Scotch & Soda releases annual Impact Report outlining progress towards a smaller environmental footprint
Amsterdam-based fashion brand Scotch & Soda released their annual Impact Report for fiscal year 2021/2022. The report aims to fully capture the company’s environmental impact across the entire value chain and reveals progress towards decoupling business growth from environmental harm.
Positive change for people and the planet
It’s no secret that the fashion industry has a massive environmental impact, driven by overconsumption and poor sourcing and production practices. But fashion brands like Scotch & Soda are challenging the status quo. For the last 2 years they’ve published an Annual Impact Report to track their environmental footprint and progress towards positive change.
The report includes an Environmental Profit & Loss (EP&L) assessment that tracks the impact the company has through direct and indirect activities and reflects it in a monetary value. Jelle de Jong, Sustainability Director at Scotch & Soda, describes the importance of these metrics: "We have implemented the EP&L at the core of our sustainability strategy to generate a 360-degree understanding of our environmental footprint across the entire value chain, from cradle to grave. These insights support us in having maximum impact in those areas that need it the most, and allow us to establish measurable and time-bound objectives.”
Changing the way the fashion industry thrives
The report shows a total revenue of €342.5 million, marking 23% growth from last year. The volume of produced material was up 34%. The EP&L assessment scored the overall impact of €47.1 million and indicates the most environmental damage results from materials used and occurs during the raw production phase, resulting in greenhouse gas emissions, air pollution, and water use.
However, the assessment reveals a change in the way the company’s profits correlate with environmental impact:
- The Water Intensity Metric shows a decrease of -5% in the water that it takes to produce 1kg of clothing.
- The Material Intensity Metric shows that despite an overall increase in the produced goods of 34%, the environmental cost of materials only rose by 1%.
Overall the assessment shows that the brand’s material sourcing strategy, involving the use of more organic, recycled, and regenerative products, is allowing them to take concrete steps towards making a net positive impact. This lays the foundation for better practices to be implemented in time to meet climate goals set for 2030.
Amsterdam drives innovation and collaboration
Amsterdam’s ecosystem encourages companies to innovate their practices to become more circular and sustainable. Fashion for Good, the world’s first museum dedicated to sustainable style, runs an accelerator programme that offers innovative fashion startups the tools to succeed. Coupled with initiatives like the Denim Deal and construction of the world's first fully circular textile factory, the city is quickly emerging as a capital for sustainable fashion.
"Sustainability has become an essential part of Scotch & Soda's strategy in the last couple of years, inspired by the values of the free spirit of Amsterdam. One of our top priorities as a team is to run our business with greater sensitivity to people and the planet, by making more responsible choices that reduce our environmental footprint. I am thrilled that this year we start seeing the positive results of the strategy that we have been implementing. Even if we have a long way to go, we can now measure our impact and follow a clear roadmap for the upcoming years. We are looking forward to sustaining this positive trend, and further decouple impact from sales in the future" says Frederick Lukoff, CEO of Scotch & Soda.