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                                INTERNATIONAL BUSINESS PAGES
lion by 2022, that’s an increase of USD
281 billion, or 58%, from last year. In
the United States alone, online apparel
sales account for more than one-third
of all apparel sales.
Digitalisation creates boundless oppor-
tunities, but it can also bring unintended
consequences. For example, the
digitalisation of the supply chain man-
agement may reduce lead times and
shift production from one site to an-
other more quickly. In this environ-
ment, more vigilant and systematic
efforts to promote responsible pur-
chasing practices are critical. Similarly,
as consumers move online, compa-
nies will have to consider how to rec-
oncile consumption patterns while try-
ing to build circular economies.
While some aspects of supply chains
are changing, others are not changing
fast enough. Just two months ago, a
fire in a Delhi-based factory killed over
40 people. In a study of factory work-
ers in Cambodia, 22 percent reported
being harassed. And while we have
seen progress on responsible purchas-
ing practices, we are still not paying
enough for our clothes and workers are
still not being paid enough to make
them.
Key priorities going forward
Looking ahead, there are several pri-
ority actions that can be taken to tackle
these challenges. Let me highlight
some which you will be discussing over
the next two days.
First, we need to reconcile due dili-
gence with trade tensions and supply
chain disruptions to ensure that com-
panies can continue producing and
sourcing responsibly. As tensions in
global trade encourage companies to
seek new markets, it is imperative to
understand the impact that increased
production has on the environment, on
outsourcing and on the use of contract
workers. Here, OECD guidance on re-
sponsible purchasing practices have
never been more relevant.
Second, we need to re-think business
models in the garment and footwearsector to ensure that it contributes to
the circular economy. Companies are
increasingly realising that if they do not
take steps towards a circular economy,
they will be left behind. In the garment
and footwear sectors youth are in-
creasingly concerned about the carbon
footprint of the products they buy and
wear. This is also a strategic move.
Innovation in production processes can
create value by helping to find alterna-
tives to conventional chemical use, and
reduce energy and water use, as well
as waste.
Third, we need to continue strength-
ening the role of governments in driv-
ing sustainable and responsible sup-
ply chains and creating an enabling
NCM-MARCH 2020
42environment for RBC. Yesterday
policymakers from across key econo-
mies in the garment and footwear sec-
tor met during the second Roundtable
for Policy Makers to discuss policy
options for promoting vibrant and re-
sponsible supply chains.
Tomorrow’s plenary will consider gov-
ernments’ role in driving supply chain
due diligence, with a focus on manda-
tory due diligence. You will be hearing
from the government of Viet Nam how
they are working with the OECD to in-
tegrate responsible business conduct
considerations into industrial policy. We
also believe in regional approaches and
are happy to be collaborating with the
EU and the ILO on promoting respon-