This article is a summary only of the podcast conversation “Why Fair Trade Matters”. Listen to the full episode on Spotify podcasts or Apple podcasts, and go here for the relevant links mentioned in the podcast, or read on to enjoy the photos and summary of why fair trade matters.

Why Fair Trade Matters

In this episode, I’m joined by Yvie Scott, fashion entrepreneur and founder of Aware: The Social Design Project. Yvie launched her Fair Trade business to create meaningful change through ethical fashion and social justice. We explore what it means to run a values-driven business, why supporting communities is her passion, and how Fair Trade can inspire meaningful change.

A huge, heartfelt thanks to Yvie at Aware. The Social Design Project for financially supporting this episode of The ReNewy Living Podcast and accompanying blogpost. Her contribution ensures you receive relevant, high quality content that helps you uncomplicate sustainability.

Overview of discussion based on the subtitles:

What is Fair Trade?
Merging Fashion with Social Justice
The Problem with the Fashion Industry
The Challenges of Greenwashing
Differences between Ethical and Fair Trade
Can Ethical Fashion Ever Become Mainstream without Compromising?
Misconceptions about Labour Practices
Your Small Changes can Lead to Greater Change

What is Fair Trade?

Fair Trade is a business model that recognises the interconnectedness between social, environmental and economic factors, prioritising people and the planet over profit.

In order to be classified as fair trade, businesses must adhere to the 10 Fair Trade Principles. These principles guide businesses in creating ethical and sustainable practices that promote meaningful change globally. Here’s the link to the 10 Fair Trade Principles…

Merging Fashion with Social Justice

Based in Belmont NSW, Aware The Social Design Project (affectionately known as Aware) is a certified Fair Trade business specialising in fashion, jewellery and design. They’ve recently expanded into the fashion circular economy space, reinforcing its sustainability commitment.

Yvie’s story began over 25 years ago while working for an environmental consultancy. She saw how western companies exploit resources and people in countries without strong welfare systems. Adamant that she didn’t want to support companies like that, her anger and frustration became the force for positive change.

In 2010, a serendipitous meeting with a Lake Macquarie local at the Fair Trade AGM became the catalyst for Aware. Yvie created a business that reflected her values for social justice, fashion and advocacy, into a business that made a meaningful impact.

The Problem with the Fashion Industry

Fashion is intertwined with social injustice, politics, ecological destruction and sexism.

Yet at the same time, the fashion industry helps a lot of people. The Fair Trade owner mentions that about 75 million people work in fashion production alone, which is three times Australia’s population.

The Rana Plaza factory collapse in Bangladesh in 2013 remains the largest disaster in the history of the textile industry. With over 1,000 lives lost, it shone a spotlight on the exploitation of people within the fashion supply chain. The tragedy led to the Fashion Revolution movement and inspired the release of The True Cost documentary.

While the Fashion Revolution movement became a fashionable trend, it succeeded in bringing ethical and sustainable fashion into the global conversation.

However, even with consumers increasingly considering more genuine environmental and social impacts of their purchases, the challenges of greenwashing persists.

The Challenges of Greenwashing

Greenwashing refers to the deceptive practice of companies who say their products or practices are environmentally friendly – to appeal to customers concerned about sustainability. Using buzzwords such as “eco-friendly” or “organic” without providing substantial backing for these claims. This practice undermines the efforts of genuinely sustainable brands, misleads consumers, and perpetuates harmful environmental practices.

Yvie’s noticed that since 2015, fast fashion businesses have tuned in to the fact that customers care about sustainability, mastering the art of greenwashing and social washing. However, the promises made by these companies often measure what they aim to do rather than reflecting what they actually do. Strong and persistent marketing has become so good that people are now trusting multinational companies.

Fair trade businesses have taken a big hit from the multinational greenwashing, with the closure of Oxfam shops in Australia and The People Tree UK – a huge advocate for Fair Trade – going into bankruptcy in 2023. People Tree has reincarnated as People Tree EU…

Yvie shares some surprising statistics: only 1% of all brands worldwide disclose how many people are receiving a living wage from their employment. And then when you think of the 75 million factory workers globally, less than 2% actually earn a living wage. Yvie is concerned that these statistics, the greenwashing, is a cover of the true state of the fashion industry.

And that’s why Fair Trade is so important. Fair Trade businesses undergo peer reviews, ensuring transparency in all areas of their operations.

Difference Between Ethical and Fair Trade

Yvie highlights that many fashion designers claim to be ethical, which is a positive shift, but being ethical is often just a buzzword unless it’s backed by substantial actions. She explains that being ethical means meeting some of the Fair Trade principles, whereas Fair Trade certification requires meeting all 10 principles.

She gives an example of any ethical business which shows images of happy workers, claiming they “look after our workers” by following the Fair Trade principles. She questions why, if they truly follow those principles, they aren’t part of the Fair Trade movement, where transparency and accountability are central themes.

Can Ethical Fashion Ever Become Mainstream without Compromising?

The small business owner sits strongly about ethical fashion’s ability to becoming the norm:

“If a business is pursuing a profit and they are choosing suppliers and producers based on helping them get the biggest profit margin. Absolutely not”.

Small businesses, with their focus on direct relationships with makers, create more meaningful social and environmental impact. In contrast, larger businesses, driven by profit margins, often lack transparency and personal investment in the communities they impact.

Global Mummas is Yvie’s pinnacle example of how Fair Trade supports communities. A key theme is enabling people to send their children to school, escape extreme poverty, and flee domestic violence without facing social stigma. Fair Trade provides sustainable employment, a safe environment, and the opportunity to rebuild lives.

We are fortunate in Australia to have a strong welfare system and fair access to Medicare. Yvie hopes that with understanding our fortunes we can empathise more with people who have a lot less.

Misconceptions about Labour Practices

The greatest misconception about labour practices in the fashion industry is thinking the issue has been solved. While laws have improved, many countries still lack the infrastructure to support workers. Yvie points to a September 2024 article from Sheffield University, which found that 91% of Bangladeshi workers struggle to afford enough food to care for their families.

This is why the Fair Trade Association’s advocacy is extremely important. It’s coming together in solidarity to say that we’re more than just an ethical business. The 10 Fair Trade Principles include fair payment, capacity building, no child labour, environmental protection (eg preventing waterway pollution from dyes), no discrimination and preserving community.

Your Small Changes can Lead to Greater Change

Image credit: Fair Trade Association (Insta)

Yvie’s reassuring messages empower you to make small changes for where and how you purchase products. Avoid looking at value as being something where you get a bargain. Instead, refresh your idea of value by considering, “when I buy this, this is what I’m changing”. Simplify this by ask the questions: Who made my clothes? Who made my fabric? What difference will this make?

Wear your clothes with love. Buy items because you love their story – they’ll become a staple in your wardrobe.

Leading with Passion

Even though a Fair trade business helps communities, it’s not a charity. Fair Trade businesses aim to solve systemic issues by fostering independence through ethical trade, whereas charities address urgent needs through financial or material donations.

In Yvie’s journey, we’ve seen the challenges and triumphs of running a Fair Trade business and the powerful impact it has on communities.

Her passion for ethical fashion and social justice serves as a reminder that values-driven businesses can inspire meaningful change and pave the way for a fairer, more sustainable world.

This episode of The ReNewy Living Podcast was recorded on Awabakal country. I wish to acknowledge the traditional owners of the land and waters in the Newcastle and Lake Macquarie region of New South Wales.

I hope you’re feeling more confident about doing better for our people and planet by taking a start where you live approach to living sustainably. If this episode has spurred you into action, please feel free to share it with your friends. It would mean the world to me!

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