Transparency Talks
August 15, 2024

Transparency Talks: Sara Mahdavi Rasktang and Kjersti Kviseth

Today, we are kicking off our new interview series, Transparency Talks, with CEO and founder Sara Mahdavi Rakstang and board member and advisor Kjersti Kviseth. Sara has more than 20 years of experience in international supply chain management and Kjersti is a circular design and strategy consultant specialising in wool and textiles.

Their experience drives Repasdo forward, and we wanted to share some of their insight as our first interview. The conversation is focused on small and medium-sized companies in the European textile industry, and how they can use transparency as a tool to create value beyond EU regulations.

 

Q: Sara, you started Repasdo to address transparency for SMEs. Why?

Sara: Transparency is fundamental to success, balance, and sustainability. This is particularly true for SMEs and in the textile industry, where the need for transparency is even more critical. Over 98% of stakeholders, from farmers to manufacturers, merchants, and retailers, are SMEs. The question then becomes: How can we expect to drive a fundamental transition towards a better, more sustainable, and circular future without equipping this sector with the right tools? Repasdo was founded on the belief that providing these tools is essential for enabling SMEs to transition.

 

Q: You previously worked with renewable energy but moved away to advance the adoption of transparency in the apparel industry. What have been the most important takeaways and how do you see the use of other industries’ achievements for apparel and textiles?

Sara: With over two decades in supply chain management, focusing on renewable energy, I’ve learned the crucial role of small to medium suppliers. This knowledge applies to apparel, where strong smaller networks enhance resilience and transparency. Sustainability, as learned from renewables, isn’t just a purchase—it’s a core principle across the ecosystem and value chain. Sustainable apparel extends past organic materials, demanding every stage, from cultivation to production, to meet environmental and ethical norms.

In the textile industry, lessons from renewable energy can guide transformative practices. Cross-industry insights foster transparency and set new sustainability benchmarks. Large companies have the means to transition towards sustainability, but SMEs often lack solutions. If SMEs can adopt such changes, the impact on the industry would be revolutionary.

 

Sustainable apparel extends past organic materials, demanding every stage, from cultivation to production, to meet environmental and ethical norms.

 

Q: What would you say is the difference between transparency and traceability, and how does Repasdo approach that?

Sara: In the textile and apparel industry, transparency and traceability are two pillars that support ethical and sustainable practices, but they serve different purposes. Transparency is about openness and the willingness to share information. It involves disclosing the origin, manufacturing processes, and business practices. Traceability refers to the ability to track and verify the journey of a product through the supply chain.

At Repasdo, we approach these concepts with a commitment to both accountability and communication. We focus on transparency by tracking our products’ journey, employing seamless integrability to monitor the flow of goods along the supply chain from raw material to component, material, manufacturing process, retail, resale, repair and recycling. In terms of transparency, we believe it to be something beyond just regulation, a tool to share authentic stories with the world, to communicate data transparency and sustainability efforts openly, and to foster a culture of trust dedicated to a more sustainable and ethical apparel industry.

 

Q: Kjersti, the EU has launched an extensive framework, the EU Green Deal. What parts of the regulation are the most important for companies to educate themselves about, both economically and strategically?

Kjersti: Firstly, do not get scared by the amount of EU regulations. A lot is still in the making and by the end of the year, we will be more informed and wiser. The most important step is to inform yourself about what is suggested to become mandatory and start to think and plan how you could and should act accordingly. There will be a focus on the main circularity aspects of longevity, reuse, repair and recycling. If you have not started the journey already, it is time to act and start the work no matter what the regulation says. From a strategic point of view, focusing on the design and development process. It is the starting point of everything.

Then, be aware of the mandatory rules like greenwashing, waste shipment and substances of concern, because they can cause judicial and economic stress. And of course, everything related to supply chain transparency and traceability can be an economical and practical challenge to many brands. I think the most important advice is to stay informed and create a road map with your priorities related to your brand and products.

 

Q: Can all these upcoming regulations be looked at as opportunities to create value?

Sara: Absolutely. The upcoming regulations in the textile industry, such as Ecodesign for Sustainable Products Regulation (ESPR), can be seen as opportunities to create value. Here is how I see the opportunities:

1. Compliance as a Competitive Advantage: By aligning with ESPR’s requirements, companies can differentiate themselves from competitors. This can be achieved by showcasing a commitment to sustainability and transparency, which is increasingly valued by consumers.

2. Supply Chain Optimization: The regulations emphasize the need for transparent disclosure of production processes. This can drive improvements in supply chain management, leading to cost savings and enhanced efficiency.

3. Brand Reputation and Trust: By adhering to the ESPR, companies can build trust with stakeholders, especially end customers. Transparency in operations and sustainability efforts can improve brand reputation and customer loyalty.

4. Access to New Funding and Partnerships: Companies that proactively comply with such regulations may find it easier to attract investment and form partnerships with other entities that prioritize sustainability.

5. Market Leadership: By being early adopters of the ESPR, companies can position themselves as leaders in sustainable practices within the textile industry.

 

Q: Kjersti, you work closely with the industry and have extensive knowledge about circular economy and value chains. Do you think the regulations can be opportunities to create value?

Kjersti: Depending on how you define value, there is always potential for value creation. In a designer’s mind, restrictions are always a source of creativity. Those who can think outside the box will achieve a lot, and that can create value for customers which will lead to strong brand loyalty and visibility. However, the brand perspective is too narrow. If you think globally, we can increase value for people and the planet. This is a focus point with enormous potential even within the regulations – but since we do not view the greater good as a guiding principle for business, we are forced by regulation. Personally, I dislike regulations, as they are a signal of the design failure of the [textile industry] system. The regulations will be a challenging eye-opener to many and will be a costly and practically challenging operation for the EU.

 

Q: And how do you see the future of transparency in the European apparel market?

Sara: In my view, the European textile industry – rich in innovation and tradition – embraces the ESPR as a vibrant new element in its sustainability narrative. This regulation invites SMEs to pioneer ethical fashion, merging authentic creation with transparent origins and impacts. It’s a transformational shift, intertwining European craftsmanship with sustainability, and opening avenues for collaborative innovation. The ESPR isn’t just about compliance; it’s about setting a new industry standard, resonating with modern values and building a future-focused brand.

Kjersti: Transparency is a must and an agent for change towards the better. It requires new ways of thinking: from the protection of intellectual capital and ownership to collaborating and sharing to create a higher standard for joy and peace. It will be a huge struggle and cost to put control systems in place, from customs to certifications, and it might become exhausting to use. We are building a system based on fear and competition.

 

I do believe that European brands will become better and better at transparency itself. I hope it will be guided by the heart and less by intellect and power – only then can we achieve sustained value.

 

Q: What is your advice for brands looking for new technology to help and aid supply chain compliance?

Kjersti: My advice is to have your values straight and know what you are doing and what you want to achieve in the future. Then, map out the jungle creatures and look for something that suits your needs, not yelling the loudest. Look for something flexible, that can be built and developed, like a Lego set. Do not overdo it. Do not let fear guide your choice – less is often more. And remember that technology is a tool, not a solution. It requires energy and resources to run digital technology solutions, so we must consider what we choose. Collaboration and sharing technology as a common service might be the best option.