I don’t think there is a much better place than here at the World Economic Forum, to launch the CEO Agenda 2019 for the Fashion Industry – which is the Fashion Industry’s contribution to improving the state of the world.

The Fashion Industry is facing serious sustainability challenges. And although, there is progress – I’m sure we can all agree – that it must be accelerated.  

The CEO Agenda is published by Global Fashion Agenda, an organization I’m proud to be patron of and one that calls for industry collaboration to transform the way fashion is produced, marketed and consumed.

Let’s look at the word ‘consumed’ – or consumption, ethical consumption, over-consumption, conscious consumption. And pose the question: Is ethical consumption attainable in the Fashion Industry? And what is the consumers role in the industry’s transition towards a sustainable future?

• Significant growth in global population and the middle-class segment will result in a significant increase in clothing purchases.
• This combined with the current insatiable appetite for fashion and the increased rate at which clothing is discarded means that we must better understand the demands and behaviours of fashion consumers. 

History shows that consumers can play a pivotal role in transitioning an industry or a society. For example, the food industry; where consumers demanded organic products and by doing so created a new market. Or the strong movement to phase out plastic that is being driven, to a large degree, by consumers.

But the growth of ethical consumption that we are witnessing in other areas, has not yet materialized in mainstream fashion.  Why? 

Well……It is said, that particularly fashion consumption is quite irrational, as opposed to ethical consumption based on rational judgements. In fashion, purchasing decisions are more likely to be driven by emotions linked to pleasure, aspiration and excitement. It is a social activity that gives us status and is a way to express our identity.

So, the influence of rational thoughts about ethics and the environmental consequences of our purchases are perhaps weaker than we would like think.  In contrast, it is perhaps easier to be rational or make ethical judgments when considering the purchase of food or water in a plastic bottle  – and the fact that there are accessible alternatives, also plays a significant role.

That strong desire for that new dress or those cool sneakers is something that may be impossible to change, so using ethical and environmental arguments to influence more rational fashion consumption is a strategy that may not pay-off ‑ enough.

That is not to say that we shouldn’t communicate these important issues. But they are complex, difficult to understand and there exists a high level of conflicting information around them.  

Therefore, we cannot expect that fashion consumers will place strong enough demands on the industry to deliver sustainable solutions and products - and we definitely cannot wait for it to potentially happen.  

So, perhaps the more effective strategy is to accelerate the use of new technology and business models to design products that can be recycled or re-made into new styles with minimal use of raw materials, water, energy and chemicals.

This suggests that we need to reverse our traditional marketing thinking – that demand drives supply. The insatiable appetite for fashion that exists has to a degree been fed; for example, by the introduction of Fast Fashion.

Fashion consumption is a beast – demanding to be fed. It is the industry that must dictate what and how it is to be fed. So, you could say that supply becomes the driver of demand.

Industry led transformation is why we are gathered here today.   It is promising to see such an array of leaders from fashion and interconnected industries coming together, as the complexity of the challenges facing the industry calls for industry-wide collaboration and industry-led change.

It is vital that we collaborate across the entire supply chain and engage in a dialogue with stakeholders, who will need to take part in this change.

The CEO Agenda presents eight sustainability priorities that every fashion CEO needs to address and offers clear guidance on where to focus their sustainability efforts and future proof the industry;

• four priorities for immediate implementation with the new core priority of combating climate change, and
• four transformational priorities.

If we change our mind-set from threat to opportunity, we can see that the transformational priorities outlined, in fact embody future growth prospects.

The circular economy for one – from design to disposition, throughout the entire supply chain.  Currently, 73% of the world’s clothing eventually ends up in land-fills and less than 15% of clothes are collected for recycling.  And many of today’s products continue to be designed with neither durability nor recycling in mind.

There are significant opportunities – and gains – to be made here.  Instead of discarding assets after only one product cycle, companies should be developing ways to continually re-acquire and re-introduce these assets to market. 

Such gains have been quantified in the CEO Agenda.

Fashion reaches beyond clothing and into the way we choose to live our lives - help fashion consumers to choose right. You are all part of an industry that has inspired and led for generations, now be the inspiration and lead to a clean and sustainable future.

Thank you.