Sustainable dyeing and washing technologies
Sustainable dyeing and washing technologies
Business Model Description
Energy efficient and environmentally friendly, sustainable manufacturing, dyeing and washing technologies for the textiles industry
Expected Impact
This IOA will reduce water consumption and promote energy-efficiency in the textile industry.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Turkey: Aegean Region
- Turkey: Central Anatolia Region
- Turkey: Mediterranean Region
- Turkey: Marmara Region
Sector Classification
Consumer Goods
Development need
Turkey's achievement of SDGs 3, 6, and 8 is increasing yet remains behind the target levels. The picture is grimmer with SDG 9 and 12 as attainment is stagnating or increasing less than the required rate. (1) The pandemic has also made it vital to produce essential consumer products such as masks & other PPE.
Policy priority
The 11th Development Plan, 2020 Annual Program and New Economy Program 2020-2022 target macroeconomically balanced, innovative, technological, productive and efficicency-focused growth. (2) (3) (4). The 11th Development Plan calls for promoting an integrated production structure, social responsibility and environmental awareness within the textile sector.
Gender inequalities and marginalization issues
Although there is no disaggregated data about women's access to a basic goods basket in Turkey, on average, women in Turkey experience a gender wage gap of 15.6%. (18) It is estimated that for every single dollar a woman earns in Turkey, a man earns 2.27 dollars. (19) This implies a lower purchasing power vis-a-vis their male counterparts. Within the textile industry in the consumer goods sector, there is a high rate of informality among migrant and female workers. Informal workers within these sectors are usually paid below subsistence levels. (17)
Investment opportunities
35% of millennial and 36% of Gen Z consumers state that they deliberately try to purchase clothes and products with “sustainable” or “environmentally friendly” labelling according to the Cotton Incorporated Lifestyle Monitor™ Survey. (15)
Key bottlenecks
Price fluctuations and other such macroeconomic trends present a bottleneck on the demand-side for consumer goods. The dramatic shift to digital platforms after COVID-19 has been leaving some producers out of the market, there is a need to increase the digital literacy of SMEs. Inadequacies or disparities in some regional transport infrastructure pose supply-chain constraints
Apparel and Textiles
Development need
The fashion industry consumes around 79 billion cubic meters of water annually, accounting for over 10% of water consumption by all industry types. This is expected to rise 50% by 2030.(7) Due to COVID-19 restrictions, there was nearly a 70% decrease in the markets, and consumers turned to sustainable, environmental friendly and long-running products.
Policy priority
11th Development Plan suggests that the production/use of technical textiles and energy-efficient production technologies is supported by the government. Companies are called to comply with environmental protection legislation and waste re-use activities and cooperate with other stakeholders in the value chain (in particular machinery, fiber and technical end-use manufacturers).
Gender inequalities and marginalization issues
It is estimated that there are approximately 1.5 million informal workers in the Turkish garment industry. (16) The garment industry is among the top three employment sectors of Syrian refugees. (17) Research shows that most of the migrant workers in the apparel and textile industry are informal and lack social security. Informal workers in this sector earn below the minimum wage. Syrian female workers reportedly earn 20% less than male Syrian workers in Turkey's garment industry. (17)
Investment opportunities
35% of millennial and 36% of Gen Z consumers state that they deliberately try to purchase clothes and products with “sustainable” or “environmentally friendly” labelling according to the Cotton Incorporated Lifestyle Monitor™ Survey. (15)
Key bottlenecks
Price fluctuations and other such macroeconomic trends present a bottleneck on the demand-side for consumer goods. The dramatic shift to digital platforms after COVID-19 has been leaving some producers out of the market, there is a need to increase the digital literacy of SMEs. Inadequacies or disparities in some regional transport infrastructure pose supply-chain constraints
Apparel, Accessories and Footwear
Pipeline Opportunity
Sustainable dyeing and washing technologies
Energy efficient and environmentally friendly, sustainable manufacturing, dyeing and washing technologies for the textiles industry
Business Case
Market Size and Environment
> USD 1 billion
Number of people employed
The Turkish ready-wear and textiles sector is the second largest exporting industry in the country with over $17 billion in exports each year. The industry and its subsectors employ over 1.7 million people as of 2020 with the sector being as one of the key engines of growth and innovation for the country. (5) (9)
Indicative Return
15% - 20%
Investors already active in the Turkish textiles field estimate a 15% investment return, which can go as high as 50% depending on branding and innovation premium.
Investment Timeframe
Short Term (0–5 years)
Benchmark activities in this field point to a 3-4 year timeframe.
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Business - Business Model Unproven
Impact Case
Sustainable Development Need
It is estimated that the fashion industry consumes around 79 billion cubic meters of water annually, accounting for over 10% of water consumption by all industry types. Water consumption by the textiles industry is expected to further rise 50% by 2030.(7)
A cotton t-shirt requires 2,700 liters of water to be produced, which is equal to 900 days worth of drinking water. (8) Reducing water consumption via energy efficient & environmentally friendly, manufacturing, dyeing and washing technologies would have a significant level of effect on SDG 6.
Gender & Marginalisation
It is estimated that there are approximately 1.5 million informal workers in the Turkish garment industry. (16)
The garment industry is among the top three employment sectors of Syrian refugees. Informal workers in this sector earn below the minimum wage. Syrian female workers reportedly earn 20% less than male Syrian workers in Turkey's garment industry. (17)
Expected Development Outcome
Reduce water consumption via energy efficient & environmentally friendly, manufacturing, dyeing and washing technologies would have a significant level of effect on SDG 6. A cotton t-shirt requires 2700 liters of water to be produced, which is equal to 900 days worth of drinking water. (8)
Increase energy efficiency and reduce waste water through an energy efficient & environmentally friendly dyeing and washing technologies which aligns with the essential goals of 11th Development Plan of Turkey.
Gender & Marginalisation
Increase female, rural, or inmigrant employment and income level in the textile industry through formal work opportunities
Primary SDGs addressed
6.4.1 Change in water-use efficiency over time
13.6 USD per cubic meter (2017) (14)
8.4.1 Material footprint, material footprint per capita, and material footprint per GDP
8.4.2 Domestic material consumption, domestic material consumption per capita, and domestic material consumption per GDP
1.3 kg per unit of GDP (2017)(14)
18.7 metric tons per capita (2017) (14)
9.2.1 Manufacturing value added as a proportion of GDP and per capita
%16.9 (2019) (14)
12.6.1 Number of companies publishing sustainability reports
13.3.2 Number of countries that have communicated the strengthening of institutional, systemic and individual capacity-building to implement adaptation, mitigation and technology transfer, and development actions.
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Indirectly impacted stakeholders
People
Corporates
Outcome Risks
A short-run increase in prices for sustainable/responsible textiles products might repeal consumers
Impact Risks
Alignment risk Stakeholder participation risk
Impact Classification
What
Reduced water consumption in textiles.
Who
Denim manufacturers, the textile industry and more than 1 million people employed in textiles sectors and subsectors are expected to benefit from this cost-effective solution.
Risk
Low Risk high pricing might limit its accessibility for a wider segment of the population.
Impact Thesis
This IOA will reduce water consumption and promote energy-efficiency in the textile industry.
Enabling Environment
Policy Environment
11th Development Plan: Government encouragements to companies producing/using technical textiles in an environmentally sustainable way, using optimum technology.
The Ministry of Environment and Urbanization sets out the Zero Waste Standards and best practice guidelines fo sustainable production in the textile industry
(2020 Presidential Programme): The 2020 Presidential Programme calls for economic growth and production standards to be aligned with environmental sustainability
Financial Environment
Financial incentives: EBRD Sustainable Energy Financing Facilities: Credit lines with technical assistance, loans vary between a few € 100.000 and a few million Euros. (13) The Technology and Innovation Fund established by the minsitry of industry and technology, with a budget of 350 million TRY
Other incentives: İzmir Development Agency plans to launch a 25 million TRY support program for energy and water efficiency projects, >TURQUALITY® is a brand support program, covering all processes from production to marketing, sales to after sales services
Regulatory Environment
Eco-label regulation: Eco-label environmental friendly manufacturing in textiles which limits the type of dyeing materials used and aims to decrease the amount of toxicity. (10)
Zero-waste regulation: builds a zero-waste management system to protect environment, human health and all resources, aligned to SDGs. (11)
Waste Management Regulation: aims to reduce the use of natural resources and sustain waste management through ways such as reducing waste generation, reuse, recycling, and recovery of waste. (12)
Marketplace Participants
Private Sector
WiserWash, ISKO
Government
Ministry of Environment and Urbanization, Ministry of Industry and Technology, TSKB
Multilaterals
EBRD, EIB, IFC and other regional or international development institutions
Non-Profit
Istanbul Apparel Exporters' Association, Turkish Clothing Manufacturing Association, TEMA,
Target Locations
Turkey: Aegean Region
Turkey: Central Anatolia Region
Turkey: Mediterranean Region
Turkey: Marmara Region
References
- (1) Sustainable Development Report Dashboard 2019, OECD Members, Turkey, https://dashboards.sdgindex.org/?fbclid=IwAR1tzYVKRXvPD2mwfvhf-mLTGGQEjA76y_HlrprWhSzNYZcqrLZMLXzRIcI#/TUR
- (2) 11th Development Plan http://www.sbb.gov.tr/wp-content/uploads/2020/03/On_BirinciPLan_ingilizce_SonBaski.pdf
- (3) 2020 Annual Presidential Program, http://www.sbb.gov.tr/wp-content/uploads/2019/11/2020_Yili_Cumhurbaskanligi_Yillik_Programi.pdf
- (4) New Economy Plan 2020-2022. http://www.sbb.gov.tr/wp-content/uploads/2019/10/YeniEkonomiProgrami_OVP_2020-2022.pdf
- (5) DNB, DyeCoo Company Profile. https://www.dnb.com/business-directory/company-profiles.dyecoo_textile_systems_bv.0c797e7da3fccb74a9aa236939bdfc55.html#financials-anchor
- (6)ISKO Denim Website. https://iskodenim.com/about-us>
- (7) BCG and Global Fashion Agenda, 2030. http://globalfashionagenda.com/wp-content/uploads/2017/05/Pulse-of-the-Fashion-Industry_2017.pdf
- (8)The Conscious Club, WATER & CLOTHING. https://www.theconsciouschallenge.org/ecologicalfootprintbibleoverview/water-clothing
- (9)Turkish Exporters’ Assembly, 2019.
- (10)Official Gazette, Çevre Etiketi Yönetmeliği. https://www.resmigazete.gov.tr/eskiler/2018/10/20181019-19.htm "11)Official Gazette, Sıfır Atık Yönetmeliği. https://www.resmigazete.gov.tr/eskiler/2015/04/20150402-2.htm " "12)Official Gazette, Atık Yönetimi Yönetmeliği. https://www.resmigazete.gov.tr/eskiler/2015/04/20150402-2.htm "
- (13)EBRD, Sustainable Energy Financing Facilities. https://www.ebrd.com/downloads/research/factsheets/seff.pdf
- (14)SDG Country Profiles - https://country-profiles.unstatshub.org/tur#goal-13
- (15) Sourcing Journal, https://sourcingjournal.com/topics/lifestyle-monitor/millennials-gen-z-sustainable-clothes-psfk-social-environmental-microplastics-189021/
- (16) Clean Clothes Campaign, 2013. https://archive.cleanclothes.org/livingwage/europe/country-profiles/turkey
- (17) ILO, 2020. https://www.ilo.org/ankara/news/WCMS_738616/lang--en/index.htm
- (18) ILO, 2020. https://www.ilo.org/ankara/news/WCMS_757055/lang--en/index.htm
- (19) World Economic Forum, 2015. http://reports.weforum.org/global-gender-gap-report-2015/?doing_wp_cron=1545142811.9699389934539794921875#frame/ac8d4