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Levelling-up circularity in the fashion industry

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30 Jul, 2024

This post was originally published on WBCSD

The call to action is loud and clear. In May, Global Fashion Agenda’s CEO, Federica Marchionni declared: “Every company must depart from business as usual” at the Global Fashion Summit, spotlighting the need for the fashion industry to take sustainability to “the next level” to meet 2030 and 2050 sustainability targets.

In the meantime, the industry continues to lose USD 460 billion annually due to a lack of recycling and garments thrown away in landfills (UNEP, 2023)​; and, USD 65 billion in apparel exports remain at risk due to climate-change related events including flooding and extreme heat (BoF and McKinsey, 2023). 

Good reasons to be optimistic

However, there are good reasons to be optimistic. Innovative circular business models including resale, rental, repair, and remaking have the potential to grow up to 23% by 2030, representing a USD 700 billion opportunity and a cut of a third of the emissions linked to the fashion industry (EMF, 2021).

Ie, regulatory changes continue to drive positive transformation in the fashion industry. Multinationals trading in Europe must now report on their circular resource use under the new Corporate Sustainability and Reporting Directive (CSRD); and, because the fashion and textile industries are considered high-impact sectors, new rules will soon hit the runway, aimed at reducing textile waste and supporting the Eco-Design of products (Eco-design for Sustainable Production Regulation, ESPR). Further to this, mandatory Digital Product Passports will drive traceability across the value chain and deliver more transparency for investors and consumers.  

Scaling circularity and enabling transformation

Circular solutions are the only way for businesses to meet their revenue and sustainability targets. Our goal is to help businesses scale circularity and enable transformation across the value chain. We do this with our CTI Fashion Initiative and the  Circular Transition Indicators (CTI). The CTI Fashion initiative helps companies develop compelling insights about how circular business models create financial, environmental, and social value; and, the Circular Transition Indicators, bring companies a user-friendly approach to measure the performance of their circular business models. We help companies build on regulatory requirements and communicate the value of circularity to shareholders and stakeholders alike.

The CTI metrics show that using recycled instead of virgin polyester, companies can see significant drops in carbon emissions and that circular alternatives for cotton (certified regenerative) allow for 91% and 95% less land use and land-use change impacts compared to linear cotton. Circular solutions can also result in up to 95% water recovery. 

Taking CTI to the next level

Circular action delivers against more than net-zero and nature-positive targets, it also delivers toward a more equitable world; indeed, circularity can deliver production and consumption models that promote more just societies. This requires careful management to move away from the inequalities of linear supply chains, prevent burden shifting, and deliver more equitable models. This is why WBCSD’s CTI will update its circularity metrics to measure the quality of jobs created by circular business models. This year CTI will also showcase the value of circular business models and explore key enablers for scaling transformation. Additionally, we are engaging leading circularity companies from the fashion and textile value chain to develop a state-of-the-art approach to measuring circularity progress

Join us on this journey. Our metrics, knowledge, and commitment to scaling circularity can help you transform your business and lead the way in circularity.

Share your interest with us!

About the CTI Fashion Initiative

The CTI Fashion Initiative is a collaborative effort led by WBCSD, VF Corporation, and Deloitte. Funded by the VF Foundation, the initiative counts on the participation of over 35 businesses from the value chain and a strong ecosystem of players. The first report, launched in January 2024 offers step-by-step guidance to assess the circularity performance of global fashion and textiles value chain actors through sector-specific circularity metrics and features use cases developed by front-runners.  

The post Levelling-up circularity in the fashion industry first appeared on WBCSD.

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Embedding environmental stewardship into IT governance frameworks

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Integrating environmental stewardship into IT governance frameworks has become essential as businesses increasingly prioritise sustainability. IT operations contribute significantly to carbon emissions, energy consumption and electronic waste (e-waste). Organisations that embed environmental responsibility into their IT governance can reduce their ecological footprint, improve operational efficiency and strengthen their brand reputation.

Erica Smith, chief alliance officer and environmental, social and governance lead, Blue Connections IT, said, “Environmental stewardship supports financial performance, risk mitigation and brand differentiation. With rising energy costs, increased consumer demand for sustainable products and services, and growing pressure from investors and regulators, companies can no longer afford to overlook their environmental responsibilities.

“Poor sustainability practices in IT can lead to high operational costs, supply chain risks and reputational damage. Conversely, a proactive approach improves efficiency, attracts environmentally conscious customers and helps future-proof businesses against evolving policy and regulatory changes.

“Integrating environmental responsibility into IT governance integrates sustainability initiatives into decision-making systematically. Organisations can reduce waste, lower energy consumption and extend the lifecycle of technology assets while positioning themselves as responsible leaders in an increasingly climate-aware market.”

There are four key areas that present opportunities to embed environmental stewardship into IT governance frameworks.

1. Device lifecycle management

A structured approach to managing the lifecycle of IT assets ensures devices are deployed efficiently, maintained properly and retired responsibly at the end of their useful life. Embracing a circular economy model, where equipment is refurbished, reused or ethically recycled, can significantly reduce e-waste and resource use. Companies that adopt this approach lower their environmental impact and unlock financial value by extending the lifecycle of IT assets.

Smith said, “Effective asset recovery strategies further support sustainability efforts. Integrating secure data erasure and refurbishment into IT governance policies lets businesses repurpose functional devices within the organisation or resell them to external buyers. Responsible e-waste recycling also supports companies to process materials ethically in instances where resale is not viable, reducing landfill contributions and preventing environmental contamination. The adoption of industry-certified data sanitisation methods also safeguards compliance with security and privacy regulations.”

2. Sustainable procurement

IT governance frameworks should prioritise the selection of technology vendors and partners committed to sustainable manufacturing, responsible sourcing and energy-efficient product design. This includes favouring IT hardware with a high percentage of post-consumer recycled materials and using minimal packaging. Additionally, employing Device-as-a-Service (DaaS) models optimises IT asset utilisation while reducing upfront investment and unnecessary hardware purchases.

Partnerships with sustainability-driven IT service providers can further enhance an organisation’s environmental impact. Working with partners that offer end-to-end IT asset management solutions, encompassing secure device deployment, certified data sanitisation and ethical recycling, simplifies the process of aligning IT operations with sustainability goals. Companies that prioritise environmental stewardship in their IT governance framework gain a competitive advantage by demonstrating their commitment to responsible business practices.

3. Energy consumption

Data centres, cloud services and enterprise networks require substantial energy resources, making green IT practices essential. IT governance frameworks should include policies to reduce consumption by optimising server efficiency, reducing redundant infrastructure and using renewable energy sources. Cloud providers with strong sustainability credentials can support carbon reduction initiatives, while virtualisation strategies can consolidate workloads and improve overall energy efficiency.

4. Employee engagement

Educating staff on sustainable IT practices, such as energy-efficient device usage and responsible e-waste disposal, creates a culture of accountability. Organisations that implement green workplace initiatives, such as responsible end-of-life disposal programs, reinforce their commitment to sustainability at all levels.

“IT governance must also align with corporate environmental, social and governance commitments. Companies can contribute to broader sustainability objectives by embedding environmental stewardship into IT policies, such as net-zero emissions targets and responsible supply chain management. Clear reporting mechanisms and regular sustainability audits aid transparency, letting businesses track their progress and demonstrate accountability to stakeholders,” Smith said.

Government regulations and evolving industry standards are increasingly shaping the sustainability expectations for organisations. Aligning IT governance frameworks with best practices for environmental stewardship keeps companies ahead of regulatory requirements. Proactive adoption of sustainable IT practices positions businesses as industry leaders in environmental responsibility.

Smith said, “Integrating environmental stewardship into IT governance frameworks is not just about meeting compliance obligations; it’s about futureproofing company operations and prioritising the broader environment. Taking a proactive approach to sustainability lets organisations drive efficiency, reduce long-term costs and contribute to a healthier planet. Businesses that lead in sustainable IT governance will be well-positioned for long-term success as environmental concerns continue to shape consumer and corporate priorities.”

Image credit: iStock.com/Petmal

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