Dear PFI community,
Since the Covid-19 pandemic, fashion supply chain stakeholders have experienced many ups and downs. We have seen ethical companies who are well-equipped, strive to protect their employees during these hard times, and so far have succeeded. However the extreme circumstances of this past year, have shown that no amount of preparation could have prepared us for the events that have unfolded, which have inevitably, and sadly forced many companies to close their doors.
The fashion industry is undergoing tremendous shifts. Corporations managing to survive have benefited from aspects such as:
- Introduction of a leadership circle for crisis management
- A solid relationship with customers and an awareness of short-term solutions to meet evolving customer needs
- Stable financial infrastructure and sufficient reserves
PFI Fareast strives to constantly evolve to meet the needs of our partners and customers. Where once we focused on traditional services, today we offer advanced solutions to supply chain challenges through our sustainability strategies and digitalized our offerings. We will continue to develop innovative approaches to challenges and enhance our existing services to support the fashion industry in a post-pandemic world.
Mrs. Candice Wang
Managing Director of PFI Fareast
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Global Supply Chain News
Updates on the German Supply Chain Law: Chancellor Angela Merkel’s cabinet passed the bill
On 3rd March 2021, Chancellor Angela Merkel’s cabinet passed the mandatory due diligence proposal which obliges German corporations to comply with social and environmental laws across their supply chains, including their suppliers on a global scale.
According to the article, “German employers cry foul as Merkel’s cabinet passes supply chain act”, “Cabinet members adopted the supply chain act during their weekly meeting, paving the way for stricter-than-expected rules that would force large companies to pay fines of up to 2% of their annual global turnover if they violate the rule. The law would also enable the government to temporarily exclude companies from public tenders when they have been sentenced to pay a fine of 175,000 euros or more.”
PFI Fareast and cads are jointly organising an international virtual conference on the German supply chain law named “Guide to Lieferkettengesetz – Building Responsible Global Supply Chains”. The online event will take a deep dive into the challenges and the changes to the market landscape as a product of the due diligence law and shed light on how the different supply chain holders need to react to the law.
Read more information about the online event and save your spot here.
A rat study uncovers the damaging impacts caused by microplastic pollution
The rat study “Nanopolystyrene translocation and fetal deposition after acute lung exposure during late-stage pregnancy” published in the Particle and Fibre Toxicology journal discovers microplastic particles in pregnant rats’ lungs quickly transfer to the organs of their foetuses.
Plastic pollution is everywhere around us. We have been consuming tiny plastic particles via food, water and air. Regarding the article, the health impact of these microplastic to human body is yet to be discovered, but this study shows evidence of an alarming issue – the possibility of tiny plastic particles to be transferred during pregnancy in a live mammal. There is a potential for the carrying chemicals in the plastic particles to cause long-term damage for the foetuses’ and babies’ development.
Join forces with PFI to reduce the uncontrolled spread of plastic waste by processing the waste into new products in such a way that it does not cause further harm to the creatures in our ecosystem. PFI offers accredited product certifications: Recycled Material Certification (RMC) and Recycled Material Certification Blue (RMC Blue) to trace the recycled content of products from source to finish. Additionally, with more research reveals the negative impacts brought by plastic pollutions, consumers surely heightened their awareness when choosing products that are certified as sustainable or environmentally friendly. PFI provides a QR code on the hangtags or product packaging of each certified product, enabling consumers to verify the percentage of recycled material their product contains.
Over 200 groups form an association that urges fashion brands to pay decent wages to workers in the textile supply chain
During the pandemic, fashion brands and retailers lost profits, hence cancelled orders and stopped payments for orders already placed at suppliers and factories. Workers have been dismissed and factories are left with no choice but to either destroy or keep the unwanted final products.
According to the news, “the #PayYourWorkers campaign said brands and retailers that made a profit in 2020 – like Nike, Amazon and Next – could stop garment workers “going hungry” and close the gap to a living wage by paying only $0.10 more per t-shirt.”
It should always be in the brands’ interest to ensure the compliance of international standards and pay living wages to workers to support a positive development of our globalized society.
PFI offers social audit services that keep track of factory social compliance performance and consultancy by our experts to support global supply chains. Moreover the service includes assisting brands in their efforts to source from trustworthy ethical suppliers. Our highly experienced experts verify and improve the social performance of factories according to PFI standards or designated code of conducts. Check out the PFI’s social audit services now and see how we can help you.
More trash, more cash: Who is really behind the plastic crisis in Spain? by Changing Markets Foundation.
“This report delves deeper to investigate the actions and tactics of other companies in the plastics supply chain, specifically focusing on retailers and further analysing the activities of Ecoembes and fellow producer responsibility organisation (PRO) Ecovidrio. It analyses in more detail the organisational and financial structures of Ecoembes and Ecovidrio to shine a light on their motivation for blocking meaningful action on plastic pollution.”
Wage theft and pandemic profits—the right to a living wage for garment workers, Business & Human Rights Resource Centre.
“This report demonstrates how the business model of fashion brands and the structure of global garment supply chains create and sustain poverty wages for garment workers. We explore how persistently low wages continue to be the foundation of the industry despite policy commitments to pay a living wage.”