Threads That BindTransforming the fashion supply chain through transparency and traceability Responsible Retail 2Threads That BindBefore reaching the consumer, they pass through countless other hands—from growers, processors, mills and finished goods manufacturers, to distributors, warehouses and retail shops. They are sold, worn, washed, repaired, donated—and most end as waste. The scale of this problem becomes apparent when you consider that the annual global spend on fashion equates to the GDP of the world’s 126 poorest countries.2 The carbon footprint of any garment’s journey, the More than 150 billion garments are manufactured worldwide each year,1 often ending up far across the globe from where they were created.environmental impact of its creation, and the pay and conditions within the factory where it was assembled have created a perfect storm of unsustainability—and all this from an industry that consumes more energy than aviation and shipping combined.3 Accenture’s apparel industry research into how technology can be leveraged to transform transparency and traceability across the value chain, in support of fashion as a sustainable industry, has revealed progress in several areas. Consumer awareness and communication are improving, standardizing bodies are aiming to bring clarity and guidance, brands have begun experimenting with new materials, and suppliers are improving their production practices.But, given the complexity and scale of the production process, these incremental steps do not go far enough. 3Threads That BindIf we are to transform the industry for the better, by promoting sustainable and ethical practices in apparel manufacturing by improving transparency and traceability, we need strategic thinking, visibility, trust, guidance and clear communication at a systemic level. In this era of responsible retail, sustainability is certainly high on the CEO agenda, with 48% of CEOs implementing sustainability within their operations in 2019.4 To be successful, organizations need a holistic approach driven from the top that brings together strategy, design and execution, plus a genuine desire to collaborate with other parties across the supply chain and an understanding that sustainability requires realignment as a pre-competitive consideration. About the research In 2019, research was conducted into the apparel industry:The 21 companies taking part consisted of brands, retailers, manufacturers, suppliers, assurance providers, and advisory and standards bodies with a combined global revenue of >US$140 billion. We have to think biggerAnd we have to be realistic about how to do that. 337 Hours of face-to-face interviews15 One-on-one sessions5 Global workshops 4Threads That BindTechnology as an enabler of changeBlockchain and other technologies are just an enabler, they don’t solve human challenges at the front. The main challenges in the supply chain are social, and environmental.– Global RetailerWhile it may mitigate some pitfalls across the full life cycle of a garment, concerns will remain around trust and industry alignment, as well as the motivation to adopt sustainable and transparent practices. If we are to forge genuine, systemic change, a broader program of pre-competitive collaboration is required, where different parties agree on transformation—and technology is simply the enabler to make it happen.Technology is often seen as a panacea for all industrial issues, and it certainly helps, but our research highlights a recognition among suppliers, manufacturers and brands that technology alone cannot solve key issues relating to sustainability and transparency. toolDigitalDigital marketplaceAnalyticsAR/VRBlockchainData platformAIIOTATraining platformBSecure digital rightsEDesigning with new materialsCDigital product design / R&DFVirtual design tools DPredict sustainability impact at designGSourcing recycled productsQSmart factory and IoTR visibilityProductionVQuality and logisticsWProduct taggingXsupply chain visibilityYConsumer interactive traceability informationZIntegrated planning visibilityAcross the value chainEnd-to-end toolDigitalDigital marketplaceAnalyticsAR/VRBlockchainData platformAIIOTATraining platformBSecure digital rightsEDesigning with new materialsCDigital product design / R&DFVirtual design tools DPredict sustainability impact at designGSourcing recycled productsQSmart factory and IoTR visibilityProductionVQuality and logisticsWProduct taggingXsupply chain visibilityYConsumer interactive traceability informationZIntegrated planning visibilityAcross the value chainEnd-to-end Technology opportunities across the apparel value chainH, I, JNOSTUK, L, MValue chain stagesFor further information see the appendix5Threads That Bind 6Threads That BindTo promote responsible growth for the whole industry we need to focus on our north star vision of a fully traceable and transparent value chain. Informed by our primary research,