Cross-industry collaboration as fashion and automotive giants look to tackle deforestation linked to leather production

Leading fashion and automotive brands, including H&M, Kering, and BMW Group, have joined a new initiative to halt the deforestation associated with leather supply chains.
Published
June 27, 2023
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A new cross-industry collaboration to tackle deforestation

Not-for-profit organisations the Textile Exchange and the Leather Working Group have launched a new ‘deforestation-free call to action for leather’. It is hoped that the new initiative will address the issues with leather production and deforestation, introduce sustainable practices, and enhance transparency throughout the leather supply chain. It is proposed that within six months of joining the initiative, brands are expected to have made a public commitment to end the procurement of bovine leather from deforested or converted lands. This commitment should cover all levels of farming and the supply chain. The ultimate aim being to scale the sourcing of verified alternatives to leather linked to deforestation. Signees will be expected to support their commitment with the mapping of their supply chains as well as an investment plan. Signatories for the new initiative include Mango, H&M, BMW, Kering, Tapestry, and Capri Holdings.

In a press release on the Leather Working Group’s website, the partnership said the initiative “emphasizes the need for a more equitable distribution of responsibility and investment in protecting forests and ecosystems. It encourages engagement and investment, rather than divestment, that will ideally lead to an increase the number of cattle farms that are verified to be deforestation-free and can subsequently provide a deforestation-free source of hides to the leather industry.”[i] It highlighted that improvements in traceability, transparency, and improved communication within supply chains were critical to supporting the long-term aims of the initiative. They noted that “Working towards greater transparency will allow brands to reward and promote deforestation and conversion-free practice.”[ii] The initiative will also place priority and importance on reporting the collective industry progress, therefore “highlighting the positive changes being made by participating brands and fostering transparency within the industry. These objectives together form a comprehensive approach to addressing deforestation and driving sustainability in the leather sector.”[iii]

Leather industry deforestation in focus, as Brazilian rainforest destroyed to make way for cattle grazing

As we previously discussed, deforestation is key in destabilising our climate. Specifically, halting the destruction of the Amazon rainforest has been a cause for humanity to rally-round and has inspired environmental awareness across nations and demographics. In the first nine months of last year alone, satellite data from the national space research agency showed that 8,590 square kilometres, or more than five times the area of Greater London, was destroyed in the Brazilian Amazon, a 23% rise over the same period in 2021[iv][v] Responsible for roughly 60% of the Amazon basin[vi], the largest cause of deforestation in Brazil is the conversion of forest areas to pasture for the production of beef.

According to WWF, Brazil is one of the world’s largest beef producers and, subsequently, one of the largest producers of leather. Whilst almost 80 per cent of the beef processed in Brazil is used for domestic consumption, over 80 per cent of the leather produced from cowhides in Brazil is exported- use cases include footwear, handbags, and apparel, as well as use in the automotive sector- e.g., for leather seats, steering wheels, and trims. Calls for traceability and transparency relating to deforestation and the leather industry are not new; WWF itself has led action which aims for brands and tanneries in Brazil to develop Deforestation and Conversion Free (DCF) sources of hides. Working with the Moore Foundation and the Tapestry Foundation, WWF has supported pilot projects by tanneries to address the challenges of tracing the origins of cowhides. WWF stresses that the goal is not just to eliminate illegal deforestation from the supply chain but rather to stop all deforestation, both legal and illegal.

Fernando Bellese, senior director for beef and leather supply chains at WWF, said: “We’re in the very initial stages of this effort, it’s one thing for the large tanneries to participate in pilot programs, but our goal is to develop solutions for indirect suppliers with cow or calf operations to help other players in the downstream supply chain, including smaller tanneries, to participate in the discussion. That will only happen if we can develop a credible verification system that is trusted by consumers, retailers, brands and other downstream buyers of leather to apply additional pressure for the production of DCF leather.”[vii]

While WWF has announced support for the ‘deforestation-free call to action for the leather,’ the NGO has stated that “actors across the private sector are at varying stages of tackling deforestation and conversion, and that much more immediate action is needed to tackle these issues in complex leather supply chains”[viii].

References

[i] Textile Exchange and Leather Working Group team up to Launch Deforestation-Free Call to Action for Leather - Leather Working Group

[ii] Ibid

[iii] Ibid

[iv] https://www.ft.com/content/ef25c015-bf13-40c3-9013-261c5f7bb103

[v] What Lula's win in Brazil means for Amazon deforestation (axios.com)

[vi] Amazon Rainforest | Plants, Animals, Climate, & Deforestation | Britannica

[vii] A Journey Toward Deforestation Free Leather | Blog Posts | WWF (worldwildlife.org)

[viii] New Initiative Aims to End Procurement of Deforestation-Linked Leather by Major Brands (edie.net)

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Lauren Foye
Head of Reports

Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”

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