The Road to the SDGs

T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S – Materials competing against each other globally, driving innovation in new fibres, which can represent a cost-competitive and better- performing substitute for natural fibres – The increasing importance of sustainability as consumers and brands become more aware of the environmental impact of apparel, putting pressure on MCs to tackle issues such as pollution and water consumption – The need for established players to focus on innovation and consistent implementation of the SDGs – Emerging industry players’ need for improved infrastructure and more financing options to capture their full export potential – The potential for new market entrants to gain strength by directing more FDI into manufacturing capabilities and increasing their industrialisation levels. POTENTIAL IMPACTS X In terms of raw materials, MCs produce 25% of global cotton, 26% of wool and 15% of raw leather, and eight of the world’s top 15 cotton- producing countries are MCs. The new programming framework demonstrates ways in which MCs can increase their market share: – Uzbekistan, Turkmenistan and Sudan focus mainly on raw material production but are attempting to increase the added value of their respective domestic textiles industries – Pakistan and Turkey produce raw materials but have also increasingly integrated value chains vertically as they process textile fibres into finished products – Bangladesh imports raw materials that it then turns into products, and its business model has made it the world’s second-largest apparel exporter, accounting for 7% of total apparel exports. INVESTMENT X The industry has the potential to drive smart and strategic investments along the lines of the following priorities: – Extending activities up- or downstream in the GVC to deliver additional value – Strengthening or broadening processing capabilities by engaging in networks with other suppliers – Vertically integrating further processing activities – Investing in state-of-the-art technology and digitisation – Developing more appropriate infrastructure and logistical support by collaborating with national agencies and international donors – Leveraging innovative technology and new business models to drive sustainability, which is increasingly important for end customers and supplier selection for international brands – Investing in new machinery to improve material utilisation, increasing suppliers’ revenue and profitability. M E M B E R C O U N T R Y P R O D U C T I O N In terms of raw materials, MCs produce 25% of global cotton, 26% of wool and 15% of raw leather [ 229 ]