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One of these ideas is natural capital accounting, which could be used to accelerate the sector’s environmental impact reduction.
The fashion universities industry is a prime example of today’s consumer-driven model of growth. There are more frequent updates to fashion ranges and psychological incentives to encourage impulse buying. This is because consumers see shopping as their main leisure activity.
Our growing demand for throwaway changing fashion means that the world’s resources are not sufficient. For 2.6% of global water consumption, cotton is a key input. But, there is already a gap between water demand and supply. This imbalance will continue if we don’t correct it by 2030 when water demand will surpass supply by 40%.
Textile dyeing and treatment is responsible for 17 to 20% of all industrial water pollution. An estimated 8,000 synthetic chemicals are used around the globe to transform raw materials into textiles. Many of these chemicals will end up in freshwater sources. It is not just the production of raw materials that is water-intensive. The wet processing of clothing like washing and dyeing also requires large amounts of water.
Natural capital accounting is a great opportunity in the apparel industry. Companies are sensitive to the risk of losing their image and brand value due to regulatory pressure and NGO campaigns. Fashion styles can also be a reflection of one’s personal values. Companies are in a good position to influence sustainable consumer behavior.
Natural capital refers to the natural resources that we use to make goods or services. This includes minerals, land, and forests, along with services like a stable climate, clean air, and the maintenance of our ecosystem.
These natural goods, services and resources are often provided free of charge to society and business by a healthy planet. The result is that our natural capital continues to be used at an unsustainable pace and is being damaged. The most prominent example is climate change. Climate change is the leading example. Manmade carbon emissions are threatening the planet’s ability maintain a stable climate. This has led to global warming, rising sea level, and extreme weather. It is also important to not only extract too much water from agriculture, but also increase in population.
Natural capital accounting assigns a value to environmental resources by putting a dollar amount on them. Investors, investors, and governments can begin to consider environmental externalities in their everyday decisions and compare them to other impacts using a common measure.