First Joint Workshop on Sustainable Mongolian Cashmere with Key Actors From the Sector

In a joint workshop in Mongolia’s capital, Ulaanbaatar, more than 80 company representatives and other key actors of the Mongolian cashmere sector took their journey towards sustainable cashmere production one step further.

The Mongolian cashmere sector – an important pillar of the country’s economy – faces several challenges. Production practices are still inspired by Mongolia’s socialist past and do not consider social and environmental aspects sufficiently. This results in increasing threats of deforestation and erosion of landscapes due to unsustainable herding practices. The country’s processing companies struggle with severe infrastructural obstacles, most importantly a complete absence of modern waste management including recycling plants and waste incineration as well as insufficient water treatment capacities in the country. This lack of infrastructure makes it difficult for the companies to switch to more sustainable production patterns even though there is a widespread commitment to do so.

The commitment is even more pronounced in view of the competitive, mass market-oriented Chinese cashmere industry, which increases price pressure on the Mongolian industry and makes it difficult to undergo the necessary investments. At the same time, Mongolian cashmere companies do see sustainability as an opportunity: with a strong competitor dominating the global mass market for cashmere, going sustainable can become an outstanding feature that opens new doors to western markets.

For this reason, the SteP EcoLab project was launched in 2018 by the CSCP and its partners. The first phase comprised of an in-depth assessment of the cashmere value chain and its environmental and social challenges together with the industry. During a trip to Ulanbaatar in February, as part of the assessment, we met many companies’ CEOs and discussed potential pathways for a sustainable cashmere apparel line.
In a joint workshop with relevant actors from most Mongolian cashmere processing companies, representatives of regulatory bodies and academia, those pathways were further defined, supplemented by an introduction of the business case for credible sustainable cashmere on the European market. Participants identified the major bottlenecks and systemic challenges for switching to a greener production, such as a lack of water treatment capacity. The multi-stakeholder approach proved very fruitful, as it allowed for collaborative solutions.

In the next phase of the project, we will develop sectoral and national action plan towards a sustainable cashmere production in the country.
Follow us on this exciting journey towards the world’s first certified sustainable cashmere garments – there are more updates to come!

For further questions, please contact Pawel Zylka.

Photo by CSCP / Pawel Zylka