Biodiversity and business, Jakarta, Indonesia 30 November – 2 December 2009 Session 3.B Luxury and Fashion Industries

Successes identified Biodiversity and Business Conference, Jakarta, Indonesia, 30 November - 2 December 2009 In general: General consumer trend to natural, organic or nature inspired products Use and recognition of standards and certifications more prevalent Establishment of organisations that bring recognition, support and best practices (Union for Ethical Biotrade, and their ilk) The launch of sustainable and responsible investment indices (such as the Indonesian Stock Exchange) In specific luxury sectors: Cosmetics: biodiversity a major source of ingredients and innovation. Use of cultivated natural ingredients created opportunities for engagement with remote communities Fashion: wider range of sustainable textiles increasingly used such as, organic cotton, hemp, wool, silk, soy, bamboo, corn fibre and recycled PET. Changing labels for post-consumer care have had positive results e.g. reducing garment wash temperatures has led to substantial power saving Hotels & Resorts: successful initiatives implemented backhouse (from changing light bulbs and amending washing policies to leveraging product development such as for bathroom amenities) and in the design and site layout of new hotels Spas: Private sanctuaries (protected areas) being formed; sector leaders eliminating use of products from endangered species

Challenges identified Biodiversity and Business Conference, Jakarta, Indonesia, 30 November - 2 December 2009 In general: Lack of clarity as to what biodiversity is by businesses and consumers. Consequently, no consumer push to work on biodiversity and lack of support within company’s marketing departments to promote biodiversity initiatives Perception that sustainable or “eco” products and services are not luxurious therefore challenging to sell biodiversity to consumers and justify increased cost of products Different standards and certification systems confusing Lack of traceability along supply chains Subsidies (“perverse incentives”) skew markets and make unsustainable products cheaper for consumers and more profitable for businesses In specific luxury sectors: Cosmetics: ensuring natural ingredients are being sourced in a sustainable manner Fashion: numerous processes in textile/garment production that significantly impact biodiversity; lack of understanding about benefits of alternative/more sustainable fabrics such as bamboo and corn; narrow focus on the fibre used as opposed to the cradle to cradle process Hotels & Resorts: difficult to effect large-scale structural change in old hotels; water management Spas: the overharvesting of plant species for oils and the use of unethically traded and endangered commodities

Recommendations for COP 10 Biodiversity and Business Conference, Jakarta, Indonesia, 30 November - 2 December 2009 For businesses in the luxury and fashion industries: Redefine what is aspirational and align excellence with sustainability Use influence with consumers to build awareness about what biodiversity is and how it relates to consumer choices and markets For governments: Create an enabling environment for SMEs e.g offer subsidies to SMEs to allow them to comply with certification standards and gain market access Develop and implement appropriate fiscal and non-fiscal incentives Set an example via own procurement