News | November 6, 2020

New Level Of Transparency In The Textile Industry: Lenzing Introduces Blockchain Technology

After several successful pilot projects with the technology company TextileGenesis , a digital platform for the traceability of the textile supply chain has now been introduced.

The Lenzing Group, a leading company in the field of wood-based specialty fibers, is celebrating another milestone on the way to making the textile and clothing industry more sustainable and transparent. Since 2019, Lenzing has been using blockchain technology from the Hong Kong start-up TextileGenesis to ensure the traceability of textiles across all stages of production and sales back to the fibers. After several successful pilot projects, the digital platform for the brands TENCEL and LENZING ECOVERO was finally introduced on November 5, 2020. Customers and partners as well as consumers now have an overview of the entire textile supply chain.

With the COVID-19 pandemic, the fashion and textile industry, which is already changing, is experiencing profound changes. In particular, the traceability of the supply chain for clothing and home textiles has the highest priority[1] . With the platform operated by TextileGenesis, Lenzing supports the entire supply chain in meeting the increasing requirements for transparency and sustainability.

Step-by-step onboarding and digital certificates
In the past twelve months, Lenzing and TextileGenesis completed a pilot program and field tests together with selected partners such as H&M, ArmedAngels, Mara Hoffman and Chicks. The platform is now being rolled out globally in several phases. In the fourth quarter of 2020, 150 South Asian partners from India, Bangladesh, Pakistan and Sri Lanka will complete the onboarding process. More than 300 additional partners in China and Turkey will join the program in the first quarter of 2021. From today's perspective, most of the Lenzing Supply Chain Partners in question should be represented on the platform by the 2nd quarter of 2021, which means that full traceability of the supply chain can be guaranteed.

An essential component is the integration of the e-branding system operated by Lenzing for the certification of fabrics. This not only gives clothing brands and retailers complete traceability of the supply chain for TENCEL and LENZING ECOVERO fibers, but also provides insight into the digital fabric certificates.

“The feedback from our partners along the supply chain on the pilot projects last year was very positive. You have encouraged us to push ahead with the worldwide introduction of the traceability of Lenzing fibers. With this new system and the integrated Lenzing E-Branding fabric certificates, we and our partners are creating a level of transparency that has never been seen before. We offer consumers sustainable and climate-friendly clothing and home textile products made from TENCEL and LENZING ECOVERO fibers, ”says Robert van de Kerkhof, member of the Lenzing Group's Executive Board.

“In view of increasing compliance and reputational risks, the CEOs and board members of the top 100 fashion brands have committed to using 100 percent sustainable and traceable fibers over the next five years, with a focus on transparency [2] . Sustainability and traceability are two sides of the same coin. It's nice to see that Lenzing is making a decisive lead as a pioneer for the entire textile industry. With the help of Fibercoins, our platform for the innovative and sustainable fibers from Lenzing creates digital traceability along the entire supply chain, ”says Amit Gautam, CEO and founder of TextileGenesis.

Innovative Fibercoin technology
Thanks to the innovative Fibercoin technology of the TextileGenesis platform, Lenzing and its partners can issue so-called “Blockchain Assets” in direct relation to the physical fiber deliveries of the TENCEL and LENZING ECOVERO brands. These digital assets work like a “fingerprint” and prevent counterfeiting. They enable a more secure and trustworthy digital chain-of-custody across the entire textile supply chain and lay the foundation for sustainable production.

[1] ISPO consumer survey, fashion revolution

[2] Textile Genesis analyzes of top 100 apparel brands

Source: The Lenzing Group