Assessing decarbonisation impact and ROI for global cotton sourcing
Industry use case – fashion and apparel
The industry challenge
With increasing regulatory, investor and consumer pressure to decarbonise, many fashion and apparel brands need to identify and quantify the emissions reduction potential of initiatives to substitute conventional cotton supply.
How we help
With cotton accounting for more than 60 per cent of raw material volume, a leading global fashion and apparel brand uses the Risilience-powered platform, Riise, to identify initiatives that support decarbonising goals. A number of potential substitution initiatives are explored by running ‘what if’ scenarios and applying marginal abatement cost analyses to identify the options that offer optimal ROI.
Step-by-step solution
01.
Create digital twin of the business
02.
Apply cotton sourcing strategies using Riise Transition Planner: an emissions reduction platform and consulting package.
03.
Substitute 80% cotton from top five sourcing locations.
04.
Perform a ‘what if?’ analysis, scaling up alternative sourcing regions and recycled fibres.
05.
Validate initiatives’ feasibility with procurement and finance teams.
Results
Identified 60% emissions reduction potential (global cotton sourcing)
Considered risk of long-term price increases for recycled cotton
Secured optimal ROI from shifting regional sourcing
Risilience
Climate and nature risk is business risk. Find out how the Risilience platform delivers insights for global corporates to understand the financial implications of climate-and-nature-related risks and opportunities.
Risk identification
Risilience helps you identify the material climate-related financial risks your company faces. Our analysis covers both physical risks that could impact your operations and supply chain and transition risks as the world moves towards a lower-carbon economy. Our solution helps pinpoint relevant risks based on your operational footprint, industry sector, and value chain, aligning with the qualitative and quantitative disclosure requirements
Summary financial impact of climate risk.
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