Environmental sustainability in apparel industry: Research of Finnish micro companies

Abstract

This research investigates sustainable performance of Finnish micro companies that are operating in apparel industry. The aim of the thesis is to find out how sustainability is visible in companies, who state that they are sustainable. There is increasing pressure towards companies to perform sustainably. Previous study shows that companies can use sustainability as a pure marketing tool. The first objective of this study is to build understanding of how apparel industry’s micro-sized companies’ sustainable practices can be assessed. Second objective is to build understanding of how sustainability verifying actions are realized in micro-sized companies in the apparel industry.

In the literature review the phenomenon of sustainability is studied. In this thesis the focus is in environmental sustainability. The importance of integrating sustainability strategy into general business strategy is presented. Also apparel industry’s impact to environment is examined through entire lifecycle of the product. Means of assessing sustainable performance, like strategy tools and life cycle assessment are presented. Carbon footprint, ISO standards and third-party labels help the consumers to recognize eco-friendly products. Theoretical part gives three viewpoints for validation: the management aspect derived from company’s strategy, life cycle aspect and thirdly tools, certifications, labels and measured values used in the company. Research method used is qualitative research. Six Finnish micro companies working in apparel industry were selected to this study. They all are using term sustainability in their website or in marketing. Data collection method is semi-structured interviews. A theory-bounded analysis method is used in data analysis of this thesis.

In two companies out of six sustainability could be seen as a substantive part of their business strategy. Two companies manufacture their products themselves and have transparent product chain and the process is monitored. The rest of the companies trusted their suppliers and chose the materials carefully. There was disagreement if certifications and labels truly tell about sustainability and two companies were not using them. This thesis gives more information of the actual sustainable performance of Finnish clothing companies that publicly state that they are sustainable.