1. Abstract

"What are you made of?"

From Beijing to Boston, Birmingham to Bangalore, we are asked this question by stars of sport and screen as they peer from billboards and magazines. The luxury watch company TAG Heuer invites us to feel that wearing its brand provides the answer: you are made of something strong, successful, and beautiful. As the need for sustainable consumption grows worldwide, it is time to ask the luxury brands that very same question: "what are you made of?"

This article reviews recent reports of ESG (Environment, Social and Governance Issues) in some of the clothing industries of Europe.

2. Full Article

2.1 Deeper Luxury

A recent report by WWF UK (World Wild Life Fund) says that "Consumers" with increasing concerns with environmental and social issues are the greatest cultural shift of the 21^st century. The report, "Deeper Luxury" points the way to how the clothing industry must conduct itself in order to survive.

The findings of WWF-UK"s analysis of the environmental and social performance of the luxury goods sector is presented in the ground-breaking report Deeper Luxury: quality and style when the world matters. The analysis is that despite strong commercial drivers for greater sustainability, luxury brands have been slow to recognise their responsibilities and opportunities.

In Deeper Luxury, Jem Bendell and Anthony Kleanthous present a clear vision and rationale for a more sustainable luxury industry. A compelling business case is presented for a new type of luxury whose deeper values are fully embodied in the sourcing, manufacture, marketing and distribution of products and services. Authentic luxury brands are those that provide the greatest positive contributions to all affected by their creation. They identify their consumers as having the means and motivation to respect both people and the planet, thereby contributing to a "One Planet Futures".

WWF-UK calls upon the luxury industry to bring to life a new definition of luxury, with deeper values expressed through social and environmental excellence. Their performance and progress on environmental, social and governance issues should be comprehensively measured and reported.

2.2 Green is Gold

Social responsibility is becoming an increasingly necessary issue for business leaders to survive competition. So says a report by Goldman Sachs; "Green is Gold". This report shoes that companies which are considered to be leaders in implementing environmental, social and governance (ESG) policies to create sustained competitive advantage have outperformed the general stock market by 25% since August 2005. 72% of those companies outperformed their competitors over the same period.

Ethical and production with reduced environmental impact in the fashion sector is growing rapidly as a strong segment of this "Ethical Consumerism Market".

It has evolved from what was once a "Seasonal Trend" into a fundamental shift in thinking across all stakeholders in the fashion industry.

It is changing consumer attitudes which are driving this shift. As a result the market for ethically produced fashion is showing rapid growth. Spending on ethical clothing in the UK grew by 26% between 2004 and 2005, from 23 million to 29 million and demand for more of the same has increased in 2006 and 2007.