aiESG analysis services are used for products and services of hap Corporation, which contributes to the development of circular fashion, improving transparency in the apparel industry's complex supply chain through analysis of the full range of ESG issues.

Clients

Case Study] Supply Chain ESG Assessment of the Apparel Company hap by aiESG
〜Visualizing human rights, environmental and economic assessment of sustainable fashion

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Figure 1 Scheme of collaboration between aiESG and hap

Background of working on circular fashion, deciding factor in choosing aiESG

〜We chose ~aiESG because of its ability to perform comprehensive ESG analysis covering the entire supply chain~.

-- Please tell us about the background behind the founding of hap, Mr. Suzuki.

Mr. Suzuki: When I was working for a textile trading company, I often went to inspect production factory sites. There, I witnessed harsh working conditions, including small children working as a matter of course. While I was aware of the problems here, what triggered a fundamental change in my thinking was the Rana Plaza collapse in Bangladesh in 2013. This accident, in which a building housing a sewing factory collapsed, killing more than 1,100 people, has been called the worst industrial accident in the history of fashion.

After witnessing this reality, we decided to add the value of circular fashion to our products, and developed them under the theme of "something that can be worn by loved ones and family members," which led to the founding of hap.

Photo: Mr. Motoi Suzuki, Representative of hap

-- Could you tell us about your company's background in SDG-conscious product development and COVEROSS circular fashion?

Mr. Suzuki: We have been developing products based on the SDGs to address climate change and environmental issues from early on. An example is the development of "COVEROSS," a material developed in consideration of people and the earth.https://hap-h.jp/business/coveross/(COVEROSS).COVEROSS focuses on circular fashion with its multifunctional material technology, recyclability and durability.In 2019, COVEROSS materials were exhibited at fashion and bedding trade shows in France and Germany, where European brands asked us about international certification and specific We received many questions about sustainability and ESG assessments. From this experience, we felt strongly about the need for sustainable product development and the importance of promoting ESG-aligned product creation.

Figure 2: Providing deodorant, water repellency, heat shielding, and other functions to clothing on hand
COVEROSS LAUNDRY Service

-- Before using aiESG, what were your challenges from an ESG/sustainability perspective? What were the challenges?

Mr. Suzuki: From an ESG perspective, it was difficult to comprehensively quantify the environment, human rights, economic activities, and other aspects of the entire supply chain. The apparel supply chain is complex and global, so the challenge was that there were no services that could provide concrete quantification. Therefore, it was difficult to transparently explain to our stakeholders how we were implementing ESG standards.

-- Why did you choose aiESG and what were the deciding factors?

Mr. Suzuki: We chose aiESG because of its ability to perform comprehensive ESG analysis covering not only GHG but also the entire supply chain, including water impact, human rights, forced labor, and sanitation. We chose aiESG because of its ability to provide a comprehensive ESG analysis covering not only GHG but also the entire supply chain, including water impact, human rights, forced labor, sanitation, etc. In particular, aiESG was able to quantify the environmental and social impact of a complex global supply chain and provide concrete measures for improvement, which is a key advantage over other services. We felt that this was the best choice for the tool we were looking for, as it allowed us to demonstrate sustainability in a tangible way.

Figure 3. aiESG assessment of hap's denim (excerpt)

-- Have you considered other analysis services besides aiESG?

Mr. Suzuki: We considered several other analysis services, but none were as comprehensive as aiESG in addressing the unique needs of the apparel industry. We ultimately chose aiESG because no other service offered ESG analysis that focused on the entire supply chain.

Benefits of aiESG analysis and evaluation services: Comprehensive analysis increases transparency throughout the supply chain

-- How have aiESG analysis services helped your company to resolve issues?

Mr. Suzuki: Through aiESG's analysis service, we were able to quantify the environmental impact of each product and clarify which processes in particular need improvement. This has increased transparency throughout our supply chain and allowed us to take concrete measures to further reduce our environmental and social impact.

Figure 4: Total water consumption for USA cotton products (blue) and Chinese cotton products (orange) - fresh water Analysis results by process

-- How did you feel about the results of your analysis?

Mr. Suzuki: For skinny-fit denim pants, we have already implemented environmental and human rights impact reduction in raw material selection and processing processes over the past five years. In the process, we found that improvements were needed in the dyeing process and other areas. On the other hand, for Kabalos Laundry Service, which imparts comfort functions, we received a high evaluation overall because of the use of sustainable materials and dyeing and function imparting processes. However, we still found areas for improvement for further sustainability, and the results can be used for the next development.

Figure 5 (left) ESG analysis results for Skinny Fit Jeans / Figure 6 (right) ESG analysis results for Kavalos Laundry Service

-- Have you received any response from customers or the apparel industry? (If so, what was the response?)

Mr. Suzuki: Our collaboration projects with major apparel companies TSI Holdings (Meaningful Continuity) and Stripe International are increasing, and our ESG initiatives are being highly evaluated. We are also receiving an increasing number of inquiries from overseas about COVEROSS materials and products, and we feel that global interest is growing. Many of our customers have told us that their confidence in products made with sustainable materials has been strengthened.

Looking to the Future: Developing ESG Products and Services with an Emphasis on Sustainability and Well-Being

Figure 7: Products on display at hap's headquarters

-- Do you plan to use aiESG in your future management strategies and new product development?

Mr. Suzuki: Based on the results of aiESG analysis, we plan to focus on developing products and services not only for primary products but also for the entire circular fashion industry, including secondary distribution and recycling. We expect that this will enable us to strengthen our management strategy based on sustainability and promote sustainability throughout the fashion industry.

-- Please let us know if there is anything you would like to work on in the future to promote sustainable fashion.

Mr. Suzuki: We would like to promote the development of ESG products and services that emphasize sustainability and wellbeing (e.g., clothes that promote health just by wearing them) not only in the fashion industry but also in various other industries through the use of Kabaros sustainable materials and highly functional products. In particular, we would like to contribute to the realization of a recycling-oriented society by designing products based on recycling and secondary use.

-- If you were to recommend aiESG, what industries or companies would you recommend it for?

Mr. Suzuki: aiESG is more than just an analytical tool; it enables comprehensive ESG assessment across the entire supply chain and is flexible enough to meet industry-specific needs. Therefore, we believe that aiESG is the best partner for companies that want to strengthen their ESG activities.

-- What do you want or expect from aiESG?

Mr. Suzuki: In the future, we expect to be able to reflect data in more real time and conduct more detailed analysis. In addition, we believe that the enhancement of our evaluations in response to international standards and certifications will further strengthen our ESG response in our global operations.

From aiESG

In this interview, we spoke with Mr. Suzuki of hap about the background of their involvement in circular fashion, why they chose aiESG, how they specifically utilize the analysis, and their plans for further development. We will continue to improve our services based on the valuable feedback we received.

aiESG supports ESG analysis at the product and service level, tracing back through the supply chain. We also provide a wide range of support from the basics of ESG-related frameworks to the disclosure of non-financial information. aiESG welcomes companies that are having trouble with ESG-related operations to contact us for a consultation.


Contact us:https://aiesg.co.jp/contact/

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