What COP26 means for fashion, and why SMX is at the forefront of the shift to sustainable production
CEO Haggai Alon flagged plans to integrate SMX’s organic cotton project into its Fashion Sustainability Competence Centre (FSCC), as the company fast-tracks its commercialisation strategy.
Last month’s global COP26 summit marked the latest initiative from global policy makers to build frameworks that accelerate efforts to combat climate change.
While the pivot away from fossil fuels remains the most obvious priority, COP26 also highlighted that other trillion-dollar sectors — such as the global fashion industry — are committed to building sustainable business practices into their supply chains.
As major fashion conglomerates continue to prioritise this shift, ASX company Security Matters (ASX:SMX) is directly engaged with the sector through its Fashion Sustainability Competence Centre (FSCC).
Inevitably, global manufacturers are moving towards the construction of a circular, closed-loop economy based on improved product tracing and recycling methods.
Launched in December last year, the FSCC provides a platform for companies to utilise SMX’s market-leading marker technology to improve the tracking and tracing of textile materials through the supply chain.
Following the launch, SMX CEO Haggai Alon highlighted how it’s “uneconomical and inefficient” to only use 100% virgin raw material in the supply chain.
“By using SMX’s marking technology and digital blockchain platform, fashion brands can efficiently sort, reclaim and reuse the raw materials in the unwanted product at end of life,” he said.
In turn, working with the FSCC “will enable fashion brands and their value chain partners to future proof their business models”.
As it moves forward at the forefront of the circular economy, SMX is now taking the next step forward in ethical fashion technology by integrating a unique partnership with the Israeli Cotton Board (ICB) into the FSCC.
Earlier this year, the company confirmed that its marker technology had been successfully applied to technology to mark cotton plants at the seed-stage, allowing cotton fabrics to be more easily tracked through the supply chain.
Working with the ICA, the goal of the project is to verify that SMX’s technology can be used to confirm that all cotton sourced from Israel meets minimum standards of quality, ESG requirements and sustainability.
By leveraging the networks already established with leading fashion brands through the FSCC, SMX has built a head start for its commercialisation strategy.
“This integration will give us a platform to scale up production to a level that meets industrial manufacturing requirements, then go to market with our organic cotton that has been successfully marked – both for product authenticity as well as the enablement of simpler recycling practices,” Alon said.
In terms of the application of SMX’s technology in the fashion sector, Alon said the initial focus “will be on materials with a positive environmental impact and lower environmental footprint, such as organic cotton and recycled polyester”.
The commercial application of its organic cotton technology follows on from another major announcement in the global fashion sector which will see SMX join forces with luxury fashion conglomerate Louis Vuitton Moet Hennessy (LVMH).
Under the terms of that deal, both companies will collaborate on a series of R&D projects focusing on the traceability of origin for the raw materials used in LVMH Métiers d’Art’s supply chain.
And as fashion manufacturers increasingly prioritise ethical sustainable sourcing and production, SMX’s latest update is evidence of how it remains in pole position to commercialise its technology through strategic partnerships across multiple global sectors.
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.