Categoría: Echology

Original content by: Leather International

The leather industry, a cornerstone of global manufacturing, faces numerous challenges from extreme weather events. Climate change has intensified the frequency and severity of these events, leading to disruptions in supply chains, production processes, and market dynamics. This article explores the impacts of extreme weather on the leather industry, strategies for mitigation, and resilience-building measures that industry stakeholders can adopt.

Understanding extreme weather events and their economic impact

Definition and Scope

Extreme weather events include hurricanes, floods, droughts, heatwaves, and storms, which are becoming increasingly common due to climate change. These events can cause widespread devastation, affecting infrastructure, agriculture, and economies globally. Industries dependent on stable environmental conditions, like leather, are particularly vulnerable.

Economic Consequences

The economic impact of extreme weather is profound. Direct consequences include the destruction of infrastructure and loss of livestock, while indirect consequences manifest as supply chain disruptions, increased costs, and shifts in market demand. For the leather industry, these impacts can translate into significant operational challenges and financial losses.

The leather industry: an overview

Global Market Dynamics

The leather industry produces a range of products, including footwear, garments, accessories, and automotive upholstery. Key players include countries like Italy, India, Brazil, and China. According to Grand View Research, the global leather goods market was valued at approximately USD 407.92 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028.

Supply Chain Structure

The leather supply chain involves several stages: sourcing raw hides and skins, tanning, and manufacturing finished goods. The initial stages depend heavily on livestock farming, which is highly susceptible to weather conditions. Subsequent stages, such as tanning and manufacturing, also face challenges from extreme weather events.

Impact of extreme weather on the leather industry

Disruption of Raw Material Supply

Extreme weather events can severely disrupt the supply of raw materials. Livestock farming, the primary source of hides and skins, is particularly vulnerable. Droughts can reduce water and food availability for livestock, while floods and storms can lead to livestock loss and damaged infrastructure.

Case Study: Australian Droughts

Australia, a significant exporter of raw hides, has experienced severe droughts in recent years. These droughts have led to reduced livestock numbers and lower quality hides, impacting leather manufacturers dependent on Australian raw materials. The scarcity of hides has driven up prices and forced manufacturers to seek alternative suppliers.

Transportation and Logistical Challenges

Extreme weather often damages critical infrastructure, including roads, railways, and ports, leading to transportation delays and increased costs. For the leather industry, timely delivery of perishable raw hides is crucial. Delays can result in spoilage and financial losses.

Case Study: Hurricane Harvey

Hurricane Harvey, which hit the United States in 2017, caused extensive flooding and infrastructure damage in Texas, a key logistics hub. The disruption affected the transportation of hides and leather goods, leading to significant delays and increased costs for manufacturers relying on these supply routes.

Impact on Labour and Production Facilities

Extreme weather events can also disrupt labour availability and damage production facilities. Floods, hurricanes, and other severe weather conditions can displace workers, damage factories, and halt production. The leather industry, which relies on skilled labour and specialised equipment, can face prolonged downtimes and increased recovery costs.

Economic Losses and Market Fluctuations

The financial impact of extreme weather can be substantial, with increased operational costs and fluctuating market demand. Consumers’ purchasing behaviour often changes in response to economic instability caused by weather-related disruptions, affecting demand for luxury leather goods.

Case Study: Floods in Bangladesh

Bangladesh, a significant player in the global leather industry, has faced recurrent flooding, affecting tanneries and production facilities. The floods have led to production stoppages, increased costs for damage repair, and disrupted supply chains, impacting the global leather market.

Resilience and adaptation strategies

Diversification of Supply Chains

To mitigate the risks associated with extreme weather, leather companies are increasingly diversifying their supply chains. By sourcing raw materials from multiple regions, companies can reduce dependency on any single area affected by weather disruptions, ensuring a more stable supply.

Investment in Technology and Innovation

Technological advancements can help the leather industry adapt to extreme weather. Innovations in synthetic leather and alternative materials provide options that are less dependent on traditional supply chains. Additionally, advancements in logistics technology can optimise transportation routes and improve supply chain visibility, helping companies navigate complex environments.

Case Study: Sustainable Leather Alternatives

Companies like Piñatex and Modern Meadow are developing sustainable leather alternatives using materials like pineapple fibres and lab-grown collagen. These innovations reduce reliance on traditional raw hides and offer resilience against climate-induced supply chain disruptions.

Strategic Stockpiling and Inventory Management

Maintaining strategic stockpiles of critical raw materials and chemicals can help leather manufacturers buffer against short-term supply disruptions. Effective inventory management ensures continued production during periods of instability, reducing the financial impact of extreme weather events.

Geographic Diversification of Manufacturing

Establishing production facilities in multiple regions can mitigate the risks associated with extreme weather. By spreading manufacturing operations across different areas, companies can reduce their exposure to any single location’s weather-related disruptions, ensuring operational continuity.

Collaboration and Industry Initiatives

Collaborating with industry stakeholders and participating in initiatives focused on sustainability and climate resilience can enhance the leather industry’s preparedness for extreme weather. Industry-wide efforts to adopt best practices and share knowledge can lead to more robust and adaptable supply chains.

Case Study: Leather Working Group (LWG)

The Leather Working Group (LWG) is an example of an industry initiative promoting sustainable practices. By setting environmental standards and encouraging collaboration, LWG helps leather manufacturers improve their resilience to environmental challenges, including extreme weather events.

Policy and regulatory frameworks

Government Support and Incentives

Governments can play a crucial role in supporting the leather industry’s resilience to extreme weather. Policies and incentives promoting sustainable farming, disaster preparedness, and infrastructure development can mitigate the impacts of weather-related disruptions.

Case Study: EU Climate Policies

The European Union has implemented various climate policies and funding programmes to support industries affected by climate change. These initiatives provide financial support and resources for adopting sustainable practices and enhancing resilience to extreme weather.

International Trade Agreements

Engaging with international trade agreements can provide a framework for navigating trade barriers and disruptions caused by extreme weather. Agreements like the European Union’s Generalised Scheme of Preferences (GSP) offer reduced tariffs for exports from developing countries, helping leather manufacturers access new markets and maintain competitiveness.

Building a resilient future

Embracing Sustainability

Sustainability is key to building resilience in the leather industry. By adopting sustainable practices across the supply chain, from raw material sourcing to manufacturing, companies can reduce their environmental impact and enhance their ability to withstand extreme weather events.

Investing in Research and Development

Continued investment in research and development (R&D) is crucial for the leather industry’s long-term resilience. R&D can lead to innovations in materials, processes, and technologies that improve the industry’s adaptability to changing weather patterns and environmental conditions.

Case Study: Circular Economy Initiatives

Circular economy initiatives, such as recycling and upcycling leather waste, are gaining traction in the industry. These practices reduce reliance on raw materials and minimise waste, contributing to sustainability and resilience against supply chain disruptions.

Enhancing Disaster Preparedness

Developing robust disaster preparedness plans can help leather manufacturers respond effectively to extreme weather events. These plans should include risk assessments, emergency response protocols, and recovery strategies to minimise the impact of weather-related disruptions.

Case Study: Business Continuity Planning

Companies like Nike and Adidas have implemented comprehensive business continuity plans to address potential disruptions, including extreme weather. These plans ensure that critical operations can continue, reducing the financial and operational impact of such events.

Conclusion: adapting to a changing climate

Extreme weather events pose significant challenges to the leather industry, from disrupting supply chains to increasing operational costs. However, the industry has shown resilience through diversification, innovation, and collaboration. By embracing sustainability, investing in technology, and enhancing disaster preparedness, the leather industry can navigate the challenges posed by extreme weather and build a more resilient future.

As climate change continues to impact global weather patterns, the leather industry must remain agile and proactive. By anticipating potential disruptions and implementing robust strategies, leather manufacturers can safeguard their operations and continue to thrive in an increasingly volatile world. Through concerted efforts to enhance supply chain resilience, adopt sustainable practices, and leverage technological advancements, the leather industry can build a strong foundation capable of withstanding future extreme weather events.

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Original content by: Leather International

The leather industry, a vital sector contributing significantly to global economies, is experiencing an era of profound change. Societal polarisation, driven by divergent views on environmental sustainability, animal rights, and economic priorities, is reshaping the landscape of leather production and consumption. This article explores how these polarising forces impact the leather industry, examining both the challenges and opportunities they present.

Environmental impact and sustainable practices

The environmental impact of leather production is a major point of contention. Traditional leather processing is resource-intensive, consuming vast amounts of water and energy, and generating significant waste and pollution. The tanning process, in particular, has come under scrutiny for its use of hazardous chemicals such as chromium, which can contaminate water supplies and pose health risks to workers and surrounding communities.

To address these concerns, the industry is increasingly adopting sustainable practices. Leading companies are investing in cleaner technologies, such as vegetable tanning and water-efficient processing methods. Additionally, the development of bio-based and recycled leather alternatives is gaining traction. These innovations not only reduce environmental impact but also align with the growing consumer demand for eco-friendly products.

Animal welfare and ethical considerations

The ethical treatment of animals in the leather industry is another polarising issue. Animal rights organisations, such as PETA and the Humane Society, have campaigned vigorously against the use of animal-derived materials, advocating for cruelty-free and vegan alternatives. These efforts have resonated with a growing segment of consumers who prioritise animal welfare and seek out ethical products.

In response, the industry is exploring alternatives to traditional leather. Materials such as mushroom leather (mycelium), pineapple leather (Piñatex), and lab-grown leather are gaining popularity. These innovations not only cater to ethical concerns but also offer unique textures and properties that differentiate them from conventional leather.

Economic implications and workforce considerations

The leather industry is a significant economic contributor, particularly in developing countries where it provides employment and supports livelihoods. However, the push for sustainable and ethical practices can create economic challenges. Transitioning to cleaner technologies and alternative materials often requires substantial investment, which can be burdensome for small and medium-sized enterprises (SMEs) in the leather supply chain.

Moreover, the shift towards automation and technological advancements in leather processing may lead to job displacement. As the industry adopts more efficient production methods, there is a risk that traditional roles may become obsolete, impacting workers’ livelihoods.

Balancing economic growth and sustainability

Balancing economic growth with sustainability is a complex task. Governments and industry leaders must navigate these challenges to ensure the continued viability of the leather sector while promoting ethical and environmental responsibility. Initiatives such as public-private partnerships, financial incentives for sustainable practices, and workforce retraining programmes can help mitigate the economic impact of these transitions.

Consumer trends and market dynamics

Consumer preferences play a pivotal role in shaping the leather industry. As societal polarisation influences buying behaviour, understanding and responding to these trends is crucial for businesses. Several key trends are currently impacting the market:

1. Sustainability and Transparency: Consumers are increasingly demanding transparency in supply chains and the sustainability of products. Brands that provide clear information about their sourcing and production practices are gaining a competitive edge.
2. Ethical Consumption: The rise of ethical consumption has led to a growing market for vegan and cruelty-free products. Brands that align with these values are attracting a loyal customer base.
3. Quality and Craftsmanship: Despite the push for sustainability, there remains a strong market for high-quality, durable leather goods. Consumers appreciate the craftsmanship and longevity of well-made leather products.

Industry response and innovation

The leather industry is responding to these trends through innovation and strategic initiatives. Companies are investing in research and development to create sustainable and ethical products without compromising on quality. Collaborations with technology providers and material scientists are driving the development of novel materials and processing techniques.

Conclusion: navigating a polarised future

The leather industry stands at a crossroads, shaped by societal polarisation and the urgent need for sustainable and ethical practices. While these challenges are significant, they also present opportunities for innovation and growth. By embracing sustainable technologies, exploring alternative materials, and responding to evolving consumer preferences, the industry can navigate this polarised landscape and build a resilient and responsible future.

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Original content by: La Conceria

While “combating deforestation is a global priority” – as it obviously is – the truth is that leather should not be considered as a driver of the issue. A truth that has been repeatedly states, demonstrated and forcefully reiterated yesterday in Geneva by UNIC – Italian Tanneries. Location: the Palais des Nations. Occasion. The Deforestation-Free Trade Dialogue organized by UNECE (United Nations Economic Commission for Europe), one of the 5 “regional commissions” of the United Nations. A body whose mission is “to foster pan-European economic integration”.

Leather is not a driver of deforestation

On Nov. 13 2024, UNIC was hosted at UNECE’s Deforestation-Free Trade Dialogue, in the afternoon panel “Learning from current experiences by markets actors: possible challenges and solutions”. The experience and truth of Italian leather in relation to the implementation of the EUDR Regulation was presented and explored in depth by President Fabrizio Nuti (photo right) with a speech that from the very title set the record straight: Why leather is not a driver of deforestation: social and economic consequences”.

Three key points

Three, in particular, were the points of Nuti’s talk. First: data in hand, UNIC has shown that leather is not a cause of deforestation. Second: the EUDR could a very dangerous boomerang. The reason? By effectively blocking European tanning production, it does not prevent products made from hides coming into Europe from deforested areas. Third, the list of countries deemed to be at risk of deforestation needs to be clarified and updated, as it’s currently not yet defined.

An important opportunity

UNIC’s presence at the UNECE table, and in front of a parterre of speakers and delegates from all over the world, presented an important opportunity to give visibility and authority to its clear position on the EUDR. A position shared by the entire European tanning industry and by many other institutions (including international ones) that have expressed strong critical opinions against this regulation. Not because of what it’s trying to achieve, which is an objective shared by all. But because of the current way of working of its implementation.

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Original content by: Leather Naturally

As the world grapples with how we can reduce our impact on the environment and actively limit the impacts of climate change, we sit at a vital crossroads in our collective history. Leather is well positioned to be a meaningful part of the solution.

The European Commission has launched an anti-fast fashion campaign specifically designed to educate younger consumers about the negative impacts of fast fashion and to promote the EU Strategy for Sustainable and Circular Textiles. The campaign aims to address issues of over-production associated with fast fashion and to prioritize sustainability and longevity.

The European Union is committed to serious action as part of its 2030 Vision for Textiles the cornerstone of which is sustainable fashion – designed to have a positive impact on people and the planet.

With leather’s inherent properties of durability, reparability and longevity it represents the antithesis of fast fashion. The fact that it utilizes a by-product in order to create a versatile and premium material lends an additional benefit to its key position in the circular economy.

Increasing traceability expectations together with more and more stringent regulations have entirely shifted the modern consumer landscape. Consumers are far more educated than ever before on the provenance of the goods they purchase and the fact that the impacts of their purchasing decisions can be far-reaching.

Within this context, leather takes a by-product that would otherwise need to be disposed of (with its own environmental impacts) and using responsible, traceable and verifiable production processes, offers designers and consumers high quality products that can be repaired, re-cycled and that can last a lifetime.

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Original content by: Lineapelle Magazine

Restarting from 42%. In other words, from the percentage  that, according to ICPEN (International Consumer Protection Enforcement Network) identifies the current green hypocrisy. That is, the fact that, online, more than 4 green slogans out of 10 “are exaggerated, false or deceitful”. Greenwashing, in one word. The occasion to take it one step further is offered by BoF (Business of Fashion), a reference portal for fashion and luxury. Unfortunately, this step does not take us much further. To the point that one question necessarily comes up: is fashion actually taking a turn, as far as 360 degrees green is concerned, or is it still at a dead end?

Turning point or dead alley?

BoF elaborates periodically a Sustainability Index. According to its latest edition, “while companies are discussing about sustainability more than ever, actions are delayed, compared with public commitments”. Much storytelling (sometimes close to propaganda), few concrete actions. “The total average score of evaluated companies was just 36 on 100, with a considerable difference between commitment and action”, BoF writes.

The relationship with suppliers

In the end, to really reach their green goals, brands need to make their production area cost-effective in a sustainable way. Which is, nevertheless, part of their universe under the “suppliers” item. With them, they should share long-term investments in technology and tools. But, BoF remarks, “suppliers complain about the fact that t18hey are often left alone, when the issue is paying for the investments. Instead of putting each season suppliers one against the other for prices, brands should establish solid partnerships, even if this could mean that the cost of production will get higher”. Luckily, it does not work like this for everyone. But that’s enough to prevent a real, determined, widespread sustainable turn from happening. And much too often, this is an unbalanced burden on the upper part of the production chain.

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