A New Textiles Economy Full Report



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3 EXECUTIVE SUMMARY It is hard to imagine living in a world without textiles. Nearly everyone, everywhere comes into contact with them nearly all the time. This is especially true of clothing, the focus of this report. Clothes provide comfort and protection, and for many represent an important expression of individuality. The textiles industry is also a significant sector in the global economy, providing employment for hundreds of millions around the world. These benefits notwithstanding, the way we design, produce, and use clothes has drawbacks that are becoming increasingly clear. The textiles system operates in an almost completely linear way: large amounts of non-renewable resources are extracted to produce clothes that are often used for only a short time, after which the materials are mostly sent to landfill or incinerated. More than USD 500 billion of value is lost every year due to clothing underutilisation and the lack of recycling. Furthermore, this take-make- dispose model has numerous negative environmental and societal impacts. For instance, total greenhouse gas emissions from textiles production, at 1.2 billion tonnes annually, are more than those of all international flights and maritime shipping combined. Hazardous substances affect the health of both textile workers and wearers of clothes, and they escape into the environment. When washed, some garments release plastic microfibres, of which around half a million tonnes every year contribute to ocean pollution – 16 times more than plastic microbeads from cosmetics. Trends point to these negative impacts rising inexorably, with the potential for catastrophic outcomes in future. This linear system is ripe for disruption. This report outlines a vision for a system that works, delivering long-term benefits – a new textiles economy based on the principles of a circular economy. It offers a direction of travel on which the industry can agree and focus its efforts. In a new textiles economy, clothes, textiles, and fibres are kept at their highest value during use and re-enter the economy afterwards, never ending up as waste. This vision is distinct from, and complements, ongoing efforts to make the textiles system more sustainable by minimising its negative impacts. With specific emphasis on innovation towards a different system, a new textiles economy presents an opportunity to deliver substantially better economic, societal, and environmental outcomes. Transforming the industry to usher in a new textiles economy requires system-level change with an unprecedented degree of commitment, collaboration, and innovation. Existing activities focused on sustainability or partial aspects of the circular economy should be complemented by a concerted, global approach that matches the scale of the opportunity. Such an approach would rally key industry players and other stakeholders behind the objective of a new textiles economy, set ambitious joint commitments, kick-start cross-value chain demonstrator projects, and orchestrate and reinforce complementary initiatives. Maximising the potential for success would require establishing a coordinating vehicle that guarantees alignment and the pace of delivery necessary.

4 IN SUPPORT OF THE REPORT “This ground-breaking report lays the foundation for a new mindset and creates a shared vision for a circular fashion industry. It’s a call for action for systemic collaborations and is aligned with our efforts in making sure that economic and social development can happen in a way that the planet can afford.” KARL-JOHAN PERSSON, CHIEF EXECUTIVE OFFICER, H&M GROUP “Each year more than 18,000 tons of textiles find their way into the City of Phoenix waste and recycling streams. Our city is working on creative solutions to redirect textiles from the waste stream and back into the circular economy as a valuable resource, to ultimately stimulate the local economy. This report puts these efforts in the context of a system-level change that delivers long-term benefits.” GREG STANTON, MAYOR, CITY OF PHOENIX “How can we change a wasteful global apparel industry into one that is restorative and regenerative? This is a question that we, at C&A Foundation, are trying to answer. Through our partnership with the Ellen MacArthur Foundation, we are pleased to support this report – an important first step towards aligning the industry on what it takes to build a circular fashion industry.” LESLIE JOHNSTON, EXECUTIVE DIRECTOR, C&A FOUNDATION “The Circular Fibres Initiative and the partnership with Ellen MacArthur Foundation intends to bring circular economy to scale in the textile industry. From our experiences, we are convinced of the benefits that circular economy can bring, in both the technical and biological cycles. With our innovative TM branded lyocell fibres, we are closing the loop on textiles using cotton Refibra scraps from the value chain. I sincerely recommend this report as it provides the vision and first steps to make progress towards a regenerative system for fibres.” ROBERT VAN DE KERKHOF, CHIEF COMMERCIAL OFFICER, LENZING GROUP “At Nike, we are pursuing new business models that move away from the take, make, and waste linear models of the past. Our success depends not only on the work within our own value chain, but on disruptive partnerships across a broader textile production and manufacturing ecosystem. This report is an important step in signaling the type of systemic innovation and collaboration required to unlock a future that protects our athletes and the planet while also powering sustainable business growth.” CYRUS WADIA, VP, SUSTAINABLE BUSINESS & INNOVATION, NIKE, INC “It is evident that the moment for mainstreaming circularity and changing our consumption and production system is here. There are strong signals and evidence from the science on current and future resource constraints and planetary limits, and growing political and business leadership around the opportunities it offers. This report will surely inspire many success stories, new solutions and practices from all actors which are called to transform the textile value chain”. TIM KASTEN, DEPUTY DIRECTOR, ECONOMY DIVISION, UN ENVIRONMENT

5 “This report reimagines the textiles system. New business models, technological innovation, radical collaboration, and most importantly, rapid acceleration are critical steps the report identifies to catalyse this critical transformation.” JASON KIBBEY, CEO, SUSTAINABLE APPAREL COALITION “At the Hong Kong Research Institute of Textiles and Apparel (HKRITA) we are very excited about the release of this report. Having seen the issues and challenges of the current fashion and apparel supply chain, we know there is an urgent need for a new model for sustainable production and consumption. Suboptimal production practices, the lack of logistics coordination, and our current linear incomplete business models have resulted in the unnecessary creation of huge volumes of waste, and the shortening of the useful life of materials. We want to understand the facts and participate in the solutions.” EDWIN KEH, CEO, HONG KONG RESEARCH INSTITUTE OF TEXTILES AND APPAREL “I believe the circular economy provides unprecedented business opportunities for the fashion sector. The report is a much needed push towards a fundamental shift in industry practices providing the necessary arguments for change, both financially and environmentally. Global Fashion Agenda is excited to further build momentum around the important report recommendations and amplify its messages to a mainstream audience using the convening power of our many wide-reaching platforms, including the Copenhagen Fashion Summit.” EVA KRUSE, CEO, GLOBAL FASHION AGENDA “The British Heart Foundation (BHF) welcomes this timely report on clothing impacts and challenges. The BHF’s 560 clothing shops re-use thousands of tonnes a year and, along with the wider charity retail and re-use sector, have a vital role in keeping them in circulation. We also have appetite and capacity to further improve the circularity of textile flows, working with manufacturers, retailers and other partners in this initiative. The charity retail re-use model not only improves the environmental footprint of textiles, it creates social and economic resilience through employment, volunteer opportunities and supply of affordable goods, whilst raising millions of pounds for good causes. We hope this call to action will drive a more joined up re-use and recycling supply chain and look forward to playing a part in future developments.” MIKE TAYLOR, DIRECTOR, BRITISH HEART FOUNDATION “The Circular Fibres Initiative and this report serve as a launchpad moment for those of us actively engaged in working to shift the global textiles economy towards a circular framework. Through our Fashion Positive initiative, the Cradle to Cradle Products Innovation Institute is proud to have been part of developing the report, which represents a monumental re-thinking of textile production and use throughout the entire value chain – establishing a truly circular platform for the industry and our economy. We encourage other organisations, businesses and governments to use this report as their own platform for taking immediate action.” LEWIS PERKINS, PRESIDENT, CRADLE TO CRADLE PRODUCTS INNOVATION INSTITUTE

6 “The potential for circularity in clothing and apparel, where raw materials are kept in continual circulation, is completely achievable yet the barriers preventing it are challenging. We are extremely excited to see the dedicated team at the Ellen MacArthur Foundation applying its systemic approach to aggregating key players in the industry to work together and overcome these challenges. This report will no doubt play a crucial role in increasing exposure, intensifying efforts, and driving momentum towards a circular resource model for clothing and textiles to a time where the concept of textile waste has been relegated to the history books.” CYNDI RHOADES, CEO, WORN AGAIN “The circular economy provides an unprecedented opportunity to build restorative and fair approaches in the apparel industry. For the first time this report illuminates the challenges and resulting opportunities in creating endless flows of fibres. The report sets the stage for businesses to embrace and embed circular business models and technologies and more importantly forms a basis for systemic collaboration and convergence toward a new normal.” JEFFREY HOGUE, CHIEF SUSTAINABILITY OFFICER, C&A “It is easy to say that we need to change from a linear economic system to a circular one, it is much more difficult to do it. The report is addressing the textile story in a concrete and comprehensive way. Worth reading and even more worth supporting in practice the steps proposed.” JANEZ POTOCNIK, CO-CHAIR, INTERNATIONAL RESOURCE PANEL “Understanding the true impact of the fashion industry requires an in-depth review of the value-chain. Fibres are the first building block of this chain and a core element that needs to be understood to support the efforts on sustainable solutions for the industry. Based on the analysis provided through this report, it is possible to see new opportunities for rethinking the fashion systems that can be adapted both by designers and fashion businesses around the world.” BURAK CAKMAK, DEAN SCHOOL OF FASHION, PARSONS SCHOOL OF DESIGN “Painting a new vision of a future fashion system is a challenging task. This report accurately portrays the complexity of issues in the current failed system, and articulates in a holistic way to all stakeholders what needs to be done. Today’s garments cannot be reproduced into garments, and globally we lack collective focus on innovations that enable massive investments in global recycling systems. We at Mistra Future Fashion, a research program on sustainable fashion since 2011, see that this important report can play a key role globally in highlighting the challenges, especially within recycling, and mobilising multiple stakeholders towards a joint systemic goal.” SIGRID BARNEKOW, PROGRAM DIRECTOR, MISTRA FUTURE FASHION

7 “Circular is the new black! We need a fashion industry based on three principles: clean, fair and good.” ANTOINETTE GUHL, DEPUTY MAYOR OF PARIS, IN CHARGE OF CIRCULAR ECONOMY “This is an incredibly thorough investigation of the problem and the opportunities that a circular economy for textiles presents to business and to society. We are honored to be included in this research, and are excited about the potential to collaborate to see regenerative textile technologies commercialised at scale.” STACY FLYNN, CEO, EVRNU “It is obvious that the current fashion system is failing both the environment and us. This report sets out a compelling vision of an industry that is not only creative and innovative, but also circular. To achieve such a necessary system change that will benefit society as a whole will require strong political will. Whilst this may not be straightforward, the way is now clear.” IDA AUKEN, MEMBER OF PARLIAMENT, DENMARK “At Fashion for Good, our ambition is to reimagine the way fashion is designed, made, worn and reused. But this type of systemic change can not happen in a bubble. An open innovation culture is crucial, and this report makes a strong case that pre-competitive collaboration between brands and producers is a key step in the transition to a circular textiles system.” KATRIN LEY, MANAGING DIRECTOR, FASHION FOR GOOD “The textile, apparel, and footwear industries have long been a strong force of industrialisation across the globe. At VF, we believe this unique position will be even stronger if the overall industry continues to transition to a new textiles economy based on a circular system that regenerates materials by offering opportunities for innovative design and increased consumer engagement while capturing economic value. This report illuminates the exciting opportunities for our sector, helping companies to understand circularity in practice.” ANNA MARIA RUGARLI, SENIOR DIRECTOR, SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY, VF EMEA

8 ACKNOWLEDGEMENTS PHILANTHROPIC FUNDER CORE PARTNERS KNOWLEDGE PARTNER AFFILIATE PARTNERS GL OBAL FA SHIO NA GEN DA CORE PROJECT TEAM Chief Executive Andrew Morlet, Rob Opsomer, Systemic Initiatives Lead Dr Sven Herrmann, Project Lead and Lead Author, Circular Fibres Initiative Laura Balmond, Project Manager Camille Gillet, Research Analyst Research Analyst Lukas Fuchs, 8

9 We are very grateful for the support we have Sustainability Business Expert - Mattias Bodin, Materials and Innovation received in producing this report. Special thanks go to our Advisory Board and Expert Panel for Anna Biverstål, Sustainability Business Expert - their support, our Participating Organisations Chemicals for their active involvement, and also to the Laura Coppen, Creative Business Development - many leading academic, industry, NGO, and H&M Group Laboratory government agency experts who provided Henrik Lampa, Development Sustainability invaluable perspectives. Manager FURTHER CONTRIBUTORS LENZING AG Sonja Zak, Head of Product Management BM Textiles ELLEN MACARTHUR FOUNDATION Krishna Manda, Senior Manager Sustainability Ian Banks, Editor Integration Jocelyn Blériot, Executive Officer, Head of Product Manager Caroline Ledl, Editorial and Public Affairs Christian Weilach, Project Manager Pulp and Sarah Churchill-Slough, Design & Branding Biorefinery Technology Manager Clementine d’Oiron, Systemic Initiatives NIKE INC. Network Manager Sustainable Innovation Virginia Borcherdt, Editor Lena Gravis, Partnerships Manager Researcher Julia Koskella, Adam Brundage, Senior Manager Data and Mimi Quaife, Sub-Editor Analytics, Sustainable Business and Innovation Aurélien Susnjara, Research Analyst Jim Goddard, GM Science and Technology, Sustainable Business and Innovation Rory Waldegrave, Design Apprentice Vice President of Materials Susi Proudman, (Apparel, Footwear and Equipment) MCKINSEY & COMPANY Director of Sustainability Shannon Shoul, Clarisse Magnin, Senior Partner Excellence Senior Expert Helga Vanthournout, Saskia Hedrich, Senior Expert CONKER HOUSE Consultant Pinja Puustjärvi, Editor Joanna de Vries, Alexia Semov, Consultant Emma Parkin, Editor Intern Hammu Varjonen, C&A FOUNDATION Executive Director Leslie Johnston, Megan McGill, Programme Manager - Circular Transformation Head Circular Douwe Jan Joustra, Transformation H&M GROUP Circular Economy Cecilia Strömblad Brännsten, Lead, acting Environmental Sustainability Manager Sustainability Business Expert - Emelie Olbrink, Circular Economy and Innovation 9

10 President and Partner, Bank and Steve Bethell, EXPERT PANEL Vogue Sue McLennan, Vice President Sustainability and Professor of Fashion and Textile Sandy Black, Design and Technology, Centre for Sustainable Business Development, Bank and Vogue Fashion - University of the Arts London. Dr Anna Brismar, Founder and Owner, Green BESTSELLER A/S Strategy Sustainability Manager Dorte Rye Olsen, Dean - School of Fashion, Burak Cakmak, Parsons School of Design BRITISH HEART FOUNDATION Co-founder, For Days Kristy Caylor, Waste & Recycling Manager David Roman, Fashion Consultant Julie Gilhart, Lizzie Harrison, Founder and Creative Director, BURBERRY GROUP PLC Antiform Online Responsibility Programme Jocelyn Wilkinson, Chief Executive Officer, Hong Kong Edwin Keh, Director Research Institute of Textiles and Apparel Isaac Nichelson, Founder, S3 Source/Chief C&A Executive Officer, Circular Systems SPC Jeffrey Hogue, Chief Sustainability Officer Elisa Tonda, Head, Consumption and Production Unit, UN Environment Charline Ducas, Unit Leader of Global Circular Economy PARTICIPATING CATALONIA ORGANISATIONS Circular Economy Coordinator, Maite Ardevol, ACCIÓ ADIDAS AG Philipp Meister, Director Strategy Social and COMMON OBJECTIVE Environmental Affairs Director, Product and Impact Clare Lissaman, Christoph Frechen, Senior Director of Marketing Alexis Haass, Director of Sustainability, Brand DANISH EPA Strategy & Business Development Emilie Mille Müller, Cirkulær Økonomi & Affald Sustainability & Circularity Manager Connor Hill, Anne-Mette Lysemose Bendsen, Miljøteknologi ADITYA BIRLA GROUP EASTMAN EXPORTS GLOBAL CLOTHING President-Marketing, Birla Manohar Samuel, PVT LTD Cellulose General Manager Ugamoorthi Ramakrishnan, Chief Sustainability Officer, Aditya Naresh Tyagi, Laboratory/Sustainability/R&D Birla Fashion and Retail EILEEN FISHER INC. APEX SPINNING AND KNITTING MILLS Chief Impact and Innovation Candice Reffe, LIMITED Officer Eifaz Ahmed, Director FARM RIO ASOS PLC Taciana Abreu, Head of Marketing and Sustainability Tara Luckman, Senior Sustainability Manager FILIPPA K AB BANK & VOGUE / BEYOND RETRO Sustainability Director Elin Larsson, Global PR, Marketing and Events Neda Hashemi, Manager 10

11 FUNG GROUP PATAGONIA INC. Director of Sustainability Pamela Mar, Nellie Cohen, Worn Wear Program Manager GAP INC. CITY OF PHOENIX Melissa Fifield, Senior Director, Sustainable Public Works Director Ginger Spencer, Innovation TOMMY HILFIGER GEETANJALI WOOLLENS PVT LTD Esther Verburg, Vice President Corporate Managing Director Deepak Goel, Responsibility Tommy Hilfiger Global/PVH Europe HOUDINI SPORTSWEAR AB REBLEND Eva Karlsson, Chief Executive Officer Co-founder Anita de Wit, INDITEX REDE ASTA Alfred Vernis Domenech, Sustainability Academic Director Diretora Executiva Alice Freitas, I:COLLECT SOEX GROUP Head of Sales & Account Paul Doertenbach, Vittoria Troppenz, Business Development Management Manager Lydia Schmidt, Key Account Manager STELLA MCCARTNEY KERING Debra Guo, Sustainability Manager Cecilia Takayama, Director, Material Innovation Claire Bergkamp, Head of Sustainability and Lab Ethical Trade LEVI STRAUSS & CO TRANS-AMERICAS TEXTILE RECYCLING INC. Manager, Product Sustainability Liza Schillo, Chief Executive Officer Eric Stubin, Kelsey Pecherer, Manager, Sustainable Business and Marketing VF CORPORATION Sustainability & Anna Maria Rugarli, LOJAS RENNER Responsibility Senior Director Vinicios Malfatti, Senior Manager of Sustainability & Responsibility Julian Lings, Sustainability and Executive Director of Institute Manager, The North Face EMEA MARKS AND SPENCER VIGGA Head of Innovation and Quality, Mark Yates, Peter Svensson, Co-founder Menswear WRAP OVAM/CIRCULAR FLANDERS Keith James, Textiles Delivery Manager Project Manager Circular Veerle Spaepen, Cecile Martin, Technical Specialist Fashion (and Cities), and Co-creator, ‘Close the Loop’ Platform WORN AGAIN OVS SPA Cyndi Rhoades, Chief Executive Officer Head of Corporate Simone Colombo, Sustainability 11

12 Franco Antonio Cavadini, Chief Technical EXPERT CONTRIBUTORS Officer, Synesis s.c.ar.l. Dr Sarah Cornell, Researcher and Project Antonio Achille, Senior Partner, McKinsey & Coordinator, Stockholm Resilience Centre at Company Stockholm University Project Manager, Valvan Lucie Ackermann, Paul Cowell, Global Head of Brand Marketing, Baling Systems Archroma Marisa Adler, Senior Consultant, Resource Lead, Circle Textiles Gwen Cunningham, Recycling Systems Programme, Circle Economy Senior Lead, The Finnish Dr Matti Aistrich, Development Manager, Lahti Dr Kirsti Cura, Innovation Fund Sitra University of Applied Sciences Dr Weber Amaral, Professor, University Sao Dr Hanna de la Motte, Recycling Lead, RISE/ Paulo Mistra Future Fashion Executive Director, Anne-Sophie Andersson, Sander Defruyt, Project Manager, New Plastics ChemSec Economy, Ellen MacArthur Foundation Head, 10YFP Secretariat, Charles Arden-Clarke, Richard Delahay, Managing Director, UN Environment Sustainability Consult Enrica Arena, Co-founder and Chief Marketing Project Manager, New Dr Michiel De Smet, Officer, Orange Fiber Plastics Economy, Ellen MacArthur Foundation Sandra Averous, Programme Officer, Fashion Positive Community Maura Dilley, Consumption and Production Unit, UN Manager, Cradle to Cradle Products Innovation Environment Institute Erik Bang, Innovation Lead, H&M Foundation Co-founder, Rapanui Mart Drake-Knight, Ayesha Barenblat, Founder, Remake Clothing Ltd. Sigrid Barnekow, Program Director, Mistra Dunja Drmač, Sustainability Officer, Euratex Future Fashion/RISE Benjamin Durand-Servoingt, Associate Partner, Co-founder, The Renewal Nicole Bassett, McKinsey & Company Workshop Programme Director, Zero Scott Echols, Achim Berg, Senior Partner, McKinsey & Discharge of Hazardous Chemicals Company Chief Content Officer, Jonas Eder-Hansen, Chief Financial Officer, Gr3n Matteo Bertelè, Danish Fashion Institute/Global Fashion Agenda Recycling Professor, Lappeenranta Dr Mika Horttanainen, Dr Nancy Bocken, Professor, Lund University; University of Technology Associate Professor, Delft University of Project Lead SIPTex, IVL Swedish Maria Elander, Technology Environmental Research Institute Martin Böschen, Chief Executive Officer, Texaid Global Partnerships Lead, Ellen Nik Engineer, Associate Executive Director, Dr Julien Boucher, MacArthur Foundation EA Shaping Environmental Action Chief Executive Officer, Evrnu Stacy Flynn, Clare Brass, Director, Department 22 Ashley Gill, Senior Manager of Industry Integrity, Product Manager, Sustainable Julie Brown, Textile Exchange Apparel Coalition Dr Kate Goldsworthy, Design Lead, Mistra Global Sustainability Manager, James Carnahan, Future Fashion/University of the Arts London Archroma Director Textiles and Apparel Annie Gullingsrud, Co-founder, Reverse Resources Nin Castle, Sector, Cradle to Cradle Products Innovation Institute Founder and Chief Amanda Cattermole, Executive Officer, Cattermole Consulting 12

13 Sara Li-Chou Han, Research Associate, Project Manager, New Plastics Dr Mats Linder, Manchester Metropolitan University Economy, Ellen MacArthur Foundation Chairman, Viyellatex Group David Hasanat, Founder and President, Karla Magruder, Fabrikology International Jukka Heikkilä, Managing Director, Lounais- Suomen Jätehuolto Oy, Telaketju Project Professor, Dr Alenka Majcen Le Maréchal, University of Maribor Pirjo Heikkilä, Senior Scientist, VTT, Telaketju Project Dieter Messner, General Manager, Europe and Americas, Esprit Europe GmbH Lauren Heine, Executive Director, Northwest Green Chemistry Executive Director, Zero Discharge Frank Michel, of Hazardous Chemicals Tonnis Hooghoudt, Chief Executive Officer, Ioniqa Technologies Dr Karen Miller, Visiting Industrial Fellow and Researcher, University of Cambridge Joe Iles, Editor in Chief, Circulate, Ellen MacArthur Foundation Former Senior Consultant, MADE- Jo Mourant, BY Circular Economy Specialist, Sini Ilmonen, Lounais-Suomen Jätehuolto Oy, Telaketju Clare Ollerenshaw, Circular Economy Manager, Project London Waste and Recycling Board Dr Reimer Ivang, Chief Executive Officer and Professor, University Sao Paulo Dr Aldo Ometto, Co-founder, Better World Fashion President, Cradle to Cradle Lewis Perkins, Thorston Jelinek, Managing Director, Polyterra Products Innovation Institute Innovation Dr Pamela Ravasio, Head of CSR & Greg Kelly, Senior Partner, McKinsey & Company Sustainability, European Outdoor Group Gavriella Keyles, Manager of Stakeholder Partner, McKinsey & Company Nathalie Remy, Engagement, Future 500 Founder and Chief Executive Trewin Restorick, Jason Kibbey, Chief Executive Officer, Officer, HUBBUB Sustainable Apparel Coalition Ronnie Robinson, Chief Sourcing Officer, J Crew Senior Partner, McKinsey & Aimee Kim, Group Company Product Policy Campaigner, Ariadna Rodrigo, Traci Kinden, Project Manager, Circle Textiles Zero Waste Europe Programme, Circle Economy Founder, Reverse Resources Ann Runnel, Theresa Kjell, Senior Business and Policy Dominik Salzer, Team Leader Corporate Brand Advisor, ChemSec Development, HUGO BOSS AG Senior Manager of Stakeholder Kellen Klein, Co-founder & Chief Adriana Santanocito, Engagement, Future 500 Executive Officer, Orange Fiber Senior Partner, McKinsey & Jörn Küpper, Sustainable Businesses Manager, Mauro Scalia, Company Euratex Deepti Lahane, Chief Manager–Market Lucy Shea, Chief Executive Officer, Futerra Intelligence, Fibre2fashion Hélène Smits, Business Development Manager, Annabelle Lampe, Product Developer, Wolkat Recover Global Trends and Insights Specialist, Amy Lee, Daniel Solomita, Founder, Loop Industries Avery Dennison RBIS Project Manager, Ellen François Souchet, Delphine Lévi Alvarès, European Coordinator MacArthur Foundation of the #BreakFreeFromPlastic movement and Coordinator of the ‘Rethink Plastic’ Alliance, Eveline Speelman, Senior Project Lead, Zero Waste Europe McKinsey & Company Jerker Ligthart, Senior Chemicals Advisor, Sustainability Project Manager, Dr Katy Stevens, ChemSec European Outdoor Group 13

14 Alexandra Stewart, Scientific Officer, The Chief Executive Officer and Bert van Son, Swedish Chemicals Agency Founder, MUD jeans Global Head of Behavioural Colin Strong, Founder, The Post-Couture Martijn van Strien, Science, Ipsos Collective Steven Swartz, Expert Partner, McKinsey & Detox Campaign Strategist, Yannick Vicaire, Company Greenpeace Susanne Sweet, Stockholm School of Programme Project Manager, Rachel Wallace, Economics and Research Manager, Mistra Future Zero Discharge of Hazardous Chemicals Fashion Lutz Walter, R&D and Innovation Manager, Evonne Tan, Information Architect & Creative Euratex Designer, Textile Exchange Executive Director, CHEM Dr Michael Warhurst, Content Manager, Danish Sofia Tärneberg, Trust Fashion Institute Senior Consultant, PlanMiljø ApS David Watson, David Tyler, Reader, Manchester Metropolitan Scientific Officer, The Emma Westerholm, University Swedish Chemicals Agency Dr Natascha van der Velden, Independent Stiv Wilson, Campaigns Director, Story of Stuff Researcher Special Projects Europe, Cradle Tamara Zwart, Business Developer, Kimberly van der Wal, to Cradle Products Innovation Institute Wolkat 14

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16 DISCLAIMER This report has been produced by a team from the Ellen MacArthur Foundation, which takes full responsibility for the report’s contents and conclusions. McKinsey & Company provided analytical support. While the Participating Organisations, Affiliate Partners, members of the Advisory Board and Expert Panel, and those experts who were consulted and acknowledged on the previous pages have provided significant input to the development of this report, their participation does not necessarily imply endorsement of the report’s contents or conclusions. To quote this report, please use the following reference: Ellen MacArthur Foundation, A new textiles economy: Redesigning fashion’s future, (2017, http://www.ellenmacarthurfoundation.org/publications). Partners of the Ellen MacArthur Foundation 16

17 CONTENTS EXECUTIVE SUMMARY 3 4 In support of the report Acknowledgements 8 SUMMARY OF FINDINGS 18 PART I: THE CASE FOR RETHINKING THE GLOBAL TEXTILES SYSTEM, 35 STARTING WITH CLOTHING PART II: A NEW TEXTILES ECONOMY IS AN ATTRACTIVE VISION OF A SYSTEM THAT WORKS 43 1. Phase out substances of concern and microfibre release 52 2. Transform the way clothes are designed, sold, and used to break free from their increasingly disposable nature 72 3. Radically improve recycling by transforming clothing design, collection, and reprocessing 90 4. Make effective use of resources and move to renewable inputs 108 Appendix A. Overview of common textile materials 119 Appendix B. Methodology overview 122 Endnotes 132 17

18 SUMMARY OF FINDINGS The case for rethinking the global textiles system, starting with clothing of the total textiles used and is expected to Textiles and clothing are a fundamental part 3 remain the largest application. of everyday life and an important sector in the global economy. It is hard to imagine a world In the last 15 years, clothing production has without textiles. Clothes are worn by almost approximately doubled (see Figure 1), driven everyone, nearly all the time, and for many by a growing middle-class population across are an important expression of individuality. the globe and increased per capita sales in Globally, the USD 1.3 trillion clothing industry mature economies. The latter rise is mainly due employs more than 300 million people along to the ‘fast fashion’ phenomenon, with quicker the value chain; the production of cotton alone turnaround of new styles, increased number of accounts for almost 7% of all employment in collections offered per year, and – often – lower 1 2 Clothing – the some low-income countries. prices. focus of this report – represents more than 60% FIGURE 1: GROWTH OF CLOTHING SALES AND DECLINE IN CLOTHING UTILISATION SINCE 2000 1 000 IN 2 00 NDEX 1 I RN O F TIMES AN ITEM IS W O UMBER N ATION OTHING UTILIS CL WORLD GDP >100bn units ALES OTHING S CL (2015) 200 190 2x 180 170 160 150 140 ~50bn 130 units (2000) 120 110 100 2000 10 20 2005 15 20 1 Average number of times a garment is worn before it ceases to be used Source: Euromonitor International Apparel & Footwear 2016 Edition (volume sales trends 2005–2015); World Bank, World development (2017) indicators – GD 18

19 pressure on resources, pollutes and degrades The current clothing system is the natural environment and its ecosystems, and extremely wasteful and polluting creates significant negative societal impacts at The current system for producing, distributing, local, regional, and global scales (see Figure 2). and using clothing operates in an almost The economic value of these negative completely linear way. Large amounts of non- externalities is difficult to quantify, although renewable resources are extracted to produce Pulse of the fashion industry report the recent clothes that are often used for only a short estimated that the overall benefit to the world 4 after which the materials are largely period, economy could be about EUR 160 billion (USD lost to landfill or incineration. It is estimated 192 billion) in 2030 if the fashion industry were that more than half of fast fashion produced is to address the environmental and societal fallout 5 This linear system disposed of in under a year. 6 of the current status quo. leaves economic opportunities untapped, puts FIGURE 2: TODAY’S CLOTHING SYSTEM PUTS PRESSURE ON RESOURCES, POLLUTES THE ENVIRONMENT, AND CREATES NEGATIVE SOCIETAL IMPACTS  CO CO   CO  CO $ OIL $ FIBRE OTHING CL USE AFTER USE PRODUCTION PRODUCTION Globally, customers miss out on USD 460 Worldwide, Clothing is massively underutilised. billion of value each year by throwing away clothing utilisation – the average number of 9 and clothes that they could continue to wear, times a garment is worn before it ceases to be some garments are estimated to be discarded used – has decreased by 36% compared to 15 7 10 Clothing users While many low-income countries after just seven to ten wears. years ago. are acknowledging this as a problem, with, for have a relatively high rate of clothing utilisation, example, 60% of German and Chinese citizens elsewhere rates are much lower. In the US, for admitting to owning more clothes than they example, clothes are only worn for around a 11 quarter of the global average. The same pattern need. is emerging in China, where clothing utilisation 8 has decreased by 70% over the last 15 years. 19

20 FIGURE 3: GLOBAL MATERIAL FLOWS FOR CLOTHING IN 2015 2% 12% losses during 2% cascaded essing collection and proc recy cled recy cling <1% feedstock from closed-loop other industries cling recy 53 >9 7% onnes million t ock virgin feedst AL FIBRE ANNU 73 % USE PRODUCTION FO R STIC (63%) PLA landfilled or OTHING CL CO ON (26%) TT inciner ated OTHER (11%) onnes 0.5 million t 12% 4 microfibre leakage losses in 3 productio n 1 Recycling of clothing into the same or similar quality applications Recycling of clothing into other, lower-value applications such as insulation material, wiping cloths, or mattress stuffing 2 Includes factory offcuts and overstock liquidation 3 Plastic microfibres shed through the washing of all textiles released into the ocean 4 Source: Circular Fibres Initiative analysis – for details see Appendix B Today’s linear system uses large amounts of Less than 1% of material used to produce 13 clothing is recycled into new clothing, resources and has negative impacts on the representing a loss of more than USD 100 The textiles industry environment and people. 14 As billion worth of materials each year. relies mostly on non-renewable resources – 98 well as significant value losses, high costs are million tonnes in total per year – including oil associated with disposal: for example, the to produce synthetic fibres, fertilisers to grow estimated cost to the UK economy of landfilling cotton, and chemicals to produce, dye, and 19 Textiles production clothing and household textiles each year finish fibres and textiles. (including cotton farming) also uses around is approximately GBP 82 million (USD 108 15 20 Across the industry, only 13% of the 93 billion cubic metres of water annually, million). total material input is in some way recycled contributing to problems in some water-scarce With its low rates of utilisation (leading after clothing use (see Figure 3). Most of regions. to high levels of throughput) and low levels of this recycling consists of cascading to other recycling, the current wasteful, linear system industries and use in lower-value applications, is the root cause of this massive and ever- for example, insulation material, wiping cloths, expanding pressure on resources. and mattress stuffing – all of which are currently difficult to recapture and therefore likely The industry’s immense footprint extends 16 constitute the final use. beyond the use of raw materials. In 2015, Even though some countries have high greenhouse gas (GHG) emissions from textiles collection rates for reuse and recycling (such production totalled 1.2 billion tonnes of CO 2 21 17 more than those of all international equivalent, as Germany, which collects 75% of textiles), 22 The flights and maritime shipping combined. much of the collected clothing in such industry also has direct local impacts. The use countries is exported to countries with no of substances of concern in textile production collection infrastructure of their own. These has negative effects on farmers, factory workers, valuable efforts increase clothing utilisation, and the surrounding environment. While there though ultimately most of these clothes end is little data on the volume of substances up in landfills or are cascaded to lower-value 18 of concern used across the industry, it is applications. recognised that textile production discharges 20

21 THE NEGATIVE IMPACTS OF THE FIGURE 4: high volumes of water containing hazardous TEXTILES INDUSTRY ARE SET TO DRASTICALLY chemicals into the environment. As an example, INCREASE BY 2050 20% of industrial water pollution globally is attributable to the dyeing and treatment of 20 15 2050 23 textiles. OIL In recent years, the textiles industry has been OIL OIL RESOURCE identified as a major contributor to the issue of OIL CONSUMPTION plastic entering the ocean, which is a growing 300 MILLION 98 MILLION concern because of the associated negative TONNES TONNES environmental and health implications. It has been estimated that around half a million tonnes TEXTILES of plastic microfibres shed during the washing Y’S INDUS TR of plastic-based textiles such as polyester, nylon,  CO  CO SHARE OF 24 CARBON or acrylic end up in the ocean annually. BUDGET 26% 2% Today’s textiles system also has multiple negative societal impacts. Many workers face dangerous working environments due to unsafe processes and the hazardous substances used in production. High cost and time pressures MICROFIBRES are often imposed on all parts of the supply IN THE OCEAN 25 which can lead to workers suffering chain, poor working conditions with long hours and 22 MILLION T ONNES ADDED 26 15 AND 2050 BETWEEN 20 with evidence, in some instances, of low pay, 27 The potential modern slavery and child labour. for negative societal impacts does not stop at the factory door. Local communities, while benefitting from employment in the industry, Consumption of non-renewable resources of the textiles 1 may suffer from its poor environmental industry, including oil to produce synthetic fibres, fertilisers practices. For example, discharging untreated to grow cotton, and chemicals to produce, dye, and finish fibres and textiles production wastewater pollutes local rivers used Carbon budget based on 2 degrees scenario 2 for fishing, drinking, or bathing. Source: Circular Fibres Initiative analysis – for details see Part I The trajectory of the industry points Under a business-as-usual scenario, the growth to the potential for catastrophic in material volume of textiles would see an outcomes increasing amount of non-renewable inputs, Demand for clothing is continuing to grow up to 300 million tonnes per year by 2050. On quickly, driven particularly by emerging markets, current trend, the amount of plastic microfibres such as Asia and Africa. Should growth continue entering the ocean between 2015 and 2050 as expected, total clothing sales would reach could accumulate to an excess of 22 million 160 million tonnes in 2050 – more than three tonnes – about two thirds of the plastic-based 28 This would result in a times today’s amount. fibres currently used to produce garments substantial increase in the negative impacts of annually. the industry (including those shown in Figure 4). Profitability of the industry is at risk. Pulse The On current trend, the negative impacts of the report projects that, by of the fashion industry If industry will be potentially catastrophic. 2030, fashion brands would see a decline in the industry continues on its current path, by earnings before interest and tax (EBIT) margins 2050, it could use more than 26% of the carbon of more than three percentage points, if they 29 Moving budget associated with a 2°C pathway. were to continue business as usual. This would away from the current linear and wasteful translate into a profit reduction of approximately textiles system is therefore crucial to keeping 30 EUR 45 billion (USD 52 billion) for the industry. within reach the 2°C average global warming limit. 21

22 Additionally, the negative impacts of the impacts associated with the clothing value industry are becoming more transparent and chain and NGOs are generating awareness understood by digitally-enabled customers, of the industry’s negative environmental 32 Recently, the industry has also been leading to reputational risks for brands and to impact. challenged to find systemic solutions to tackle regulatory trends that could affect the profits ‘overconsumption’, moving beyond downstream, of businesses that fail to respond. High-profile short-term approaches to reduce the industry’s incidents, like the Rana Plaza disaster in 2013 31 33 have impact. in which over 1,000 workers were killed, drawn international attention to the societal A new textiles economy – based on circular economy principles – would lead to better outcomes In recent years, the industry and its customers quality, affordable, and individualised clothing, have become increasingly aware of the negative while regenerating natural capital, designing environmental and societal impacts of the out pollution, and using renewable resources current system. Brands and retailers have and energy. Such a system would be distributive started to address specific environmental or by design, meaning value is circulated among societal challenges within their supply chains, enterprises of all sizes in the industry so that all both individually and through industry-wide parts of the value chain can pay workers well organisations and initiatives. However, most and provide them with good working conditions. of these efforts are focused on reducing A new textiles economy relies on four ambitions the impact of the current linear system – for (see Figure 5). It would lead to better economic, example, by using more efficient production environmental, and societal outcomes, capturing techniques or reducing the impact of materials opportunities missed by the current, linear, – rather than taking an upstream, systemic textiles system. When implementing these approach to tackling the root cause of the ambitions, each will come with a variety of system’s wasteful nature directly, in particular, different solutions for different applications, and low clothing utilisation and low rates of their interactions need to be taken into account. recycling after use. Realising these ambitions will not happen This report proposes a vision for a new textiles overnight. While there are some immediate economy aligned with the principles of a profit opportunities for individual businesses, 34 one that is restorative and circular economy: collaborative efforts across the value chain, regenerative by design and provides benefits involving private and public sector actors, are 35 for business, society, and the environment. required to truly transform the way clothes This vision is distinct from, and complements, are designed, produced, sold, used, collected, ongoing efforts to make the textiles system and reprocessed. However, this should not more sustainable by minimising its negative discourage or delay action. The time to act is impacts. now, and the ambitions below offer an attractive In such a new textiles economy, clothes, fabric, target state for the industry to align on and and fibres are kept at their highest value during innovate towards. use, and re-enter the economy after use, never ending up as waste. This would provide a growing world population with access to high- 22

23 AMBITIONS FOR A NEW TEXTILES ECONOMY FIGURE 5: 2 1 INCREASE CL OTHING TANCES PHASE OUT SUBS UTILIS ATION OF C ONCERN AND 3 MICROFIBRE RELEASE VE Y IMPRO RADICALL CY RE CLING MAKE EFFECTIVE USE OF RESOURCES AND MO VE TO S RENEW ABLE INPUT ANAEROBIC TION & DIGES 4 TING COMPOS RENEW ABL Y OTHER SOURCED MA TERIAL FEED ST OCK STREAMS at all stages of the value chain. Improved transparency along the value chain, a robust evidence base, and common standards would facilitate the phase-out of substances of concern. While some Phase out substances of hazardous substances could be phased concern and microfibre release out quickly, innovation will be required to create new process inputs (e.g. dyes and First and foremost, a new textiles economy additives), production processes, as well as needs to ensure that the material input is textile materials, to fully phase out negative safe and healthy to allow cycling and to avoid impacts related to substances of concern. negative impacts during the production, use, and after-use phases. This means that • Drastically reduce plastic microfibre • substances that are of concern to health or the release. New materials and production environment are designed out and no pollutants processes that radically reduce the number such as plastic microfibres are inadvertently of plastic microfibres shed by clothing, released into the environment and ocean. alongside technologies that work effectively at scale to capture those that do still shed, The following two areas of action could kick- are essential for this to be feasible. A better start this transition: understanding of the causes of microfibre • • Align industry efforts and coordinate shedding will continue to inform solutions innovation to create safe material cycles. and identify gaps. Elimination of substances of concern is needed to enable large-scale recycling, as well as to avoid various negative impacts 23

24 use between many different people, for certain clothing types and customer segments, quality and durability can be of value even if there is only one or a few users. In these segments, many customers Transform the way clothes value high-quality, durable clothes, but a lack of information prevents the full value are designed, sold, and used capture. For clothes that have already been to break free from their used and become unwanted, but which increasingly disposable nature are still durable enough to be used again, enhanced resale models offer an attractive Increasing the average number of times clothes opportunity. A focus on delivering quality are worn is the most direct lever to capture purchases that last longer also encourages value and design out waste and pollution in new technologies to be exploited that offer the textiles system. Designing and producing better fit and customisation for maximum clothes of higher quality and providing access customer satisfaction. to them via new business models would help shift the perception of clothing from being a • Increase clothing utilisation further through • disposable item to being a durable product. As Driving high brand commitments and policy. the acts of buying and wearing clothes fulfil a usage rates requires a commitment to design complex array of customer needs and desires, a garments that last – an industry transition variety of sales and service models is needed in which could be advanced through common a new textiles economy. Economic opportunities guidelines, aligned efforts, and increased already exist in various market segments, and transparency. Policymakers can also have an brands and retailers could exploit these through important role in further increasing clothing refocused marketing. The take-up of new utilisation. opportunities would benefit from collaborative action to stimulate the development of innovative business models. Such action would also help unlock potential where the immediate economic case is not yet evident at scale. Three areas of action would speed the transition Radically improve recycling by towards this ambition: transforming clothing design, • Scale up short-term clothing rental. When • collection, and reprocessing garments can be worn more often than a customer is able or willing to do, rental There is a compelling case for radically models could provide an appealing business improving recycling to allow the industry to opportunity. For customers desiring capture the value of the materials in clothes frequent outfit changes, subscription-based that can no longer be used. Increasing recycling models can offer an attractive alternative to represents an opportunity for the industry to frequently buying new clothes. For garments capture some of the value in more than USD 100 where practical needs change over time, for billion worth of materials lost from the system example, children’s clothes or those for one- every year, as well as to reduce the negative 36 off occasions, rental services would increase impacts of their disposal. utilisation by keeping garments in frequent A combination of demand and supply-side use rather than in people’s closets. For all measures in the following four areas would be these models, refocused marketing – using needed to realise this ambition: the vast experience and capacity that brands Align clothing design and recycling • • and retailers have – and optimised logistics processes. Currently, clothing design and are key enablers for stimulating growth of production typically do not consider what new service offerings. will happen when clothes cannot be used While • • Make durability more attractive. anymore. Converging towards a range of short-term clothing rental can capture the materials (including blends where those are value of durability by distributing clothing 24

25 needed for functionality), and developing efficient recycling processes for these, is a crucial step in scaling up recycling, as is the development of new materials, where current ones do not provide the desired Make effective use of resources functionality and recyclability. Alignment is also needed to provide tracking and tracing and move to renewable inputs technologies to identify materials in the The need for raw material inputs in a new recycling process. textiles economy would be drastically reduced • Pursue technological innovation to improve • due to higher clothing utilisation and increased the economics and quality of recycling. recycling (Ambitions 2 and 3 above). However, Existing recycling technologies for common virgin material input will likely always be materials need to drastically improve their required. Where such input is needed and economics and output quality to capture no recycled materials are available, it should the full value of the materials in recovered increasingly come from renewable resources. clothing. A shared innovation agenda is This means using renewable feedstock for needed to focus efforts and investments plastic-based fibres and regenerative agriculture towards recycling technologies for common to produce any renewable resources. materials. Improved sorting technologies In addition, transitioning to more effective and would also support increased quality efficient production processes – that generate of recycling by providing well-defined less waste (such as offcuts), need fewer inputs feedstock, in particular in the transition of resources, such as fossil fuels and chemicals, phase until common tracking and tracing reduce water use in water-scarce regions, are technologies exist. energy efficient, and run on renewable energy – • Stimulate demand for recycled materials. • can further contribute to reducing the need for Increasing demand for recycled materials non-renewable resource input. Accounting for through clear commitments to using more and reporting the costs of negative externalities recycled input could drastically accelerate would further support the shift to better the uptake of clothing recycling. Better resource use and production processes, and matching supply and demand through thereby generate system-wide benefits. increased transparency and communication channels, as well as policy, would further help stimulate demand. Implement clothing collection at scale. • • Clothing collection needs to be scaled up dramatically alongside recycling technologies and, importantly, implemented in locations where it currently does not exist. Creating demand for recycled materials will increase markets for non-wearable items, dramatically improving the opportunity for collectors to capture value from these materials. Guidelines on comprehensive collection – based on current best practices and further research on optimal collection systems – would help scale up collection. These guidelines should include a set of global collection archetypes, allowing for regional variation but building on a set of common principles. 25

26 Achieving a new textiles economy demands a new level of alignment and collaboration To move beyond incremental improvements • Broad stakeholder buy-in and time-bound and achieve a shift to a new textiles economy, commitments to a vision-led transformation a concerted, global, systemic, and collaborative • Demonstration that the vision is possible, approach is needed that matches the scale of with large-scale, pre-competitive, cross- the challenge and the opportunity. value-chain collaboration • Unprecedented levels of collaboration and Transforming the textiles industry alignment in areas of action into a circular economic model Research undertaken for this report, including requires system-level change numerous interviews with textiles industry Moving towards a circular economy goes far experts, small and large brands, textile beyond traditional measures to reduce the collectors, academics, and stakeholder negative impacts of the current linear system. workshops, concluded that many efforts are It entails shifting to an entirely new system, and already being made by brands, retailers, and cannot be achieved merely through incremental other organisations to change the industry. improvements. These efforts offer solutions and demonstrate Systems thinking has gained increased attention promising progress in various areas, but are in recent years as a required approach for fragmented and often only effective at small overcoming complex, systemic issues. It is still scale. Ensuring the critical characteristics for a new science and only a few case studies system-level change are in place would harness and enabling tools are available to support this momentum and accelerate the transition. companies and industries to transform. Even if Alignment on the case for change. such tools were available, changing a complex Transforming a system requires a great deal of system is not something that can be planned effort and therefore a compelling rationale. and executed in a static, deterministic way. A 38 Together with other recent publications, design-thinking approach is required, bringing this report presents a clear need to change actors together from across the system to the current textiles system, capture economic collaborate, prototype, learn, refine, and scale opportunities and prevent potentially what works. catastrophic outcomes. Crucially, Part I of this report reinforces the case for change at the The key characteristics of a system- systems level, identifying the current linear level change approach to move business model, with its low rates of utilisation a value chain towards a circular (leading to high levels of throughput) and low economy are emerging, and some of levels of recycling, as a root cause of many them are already partially in place in issues of the current system. the textiles industry A positive vision for a new system. By its very Based on the Ellen MacArthur Foundation’s definition, system change entails moving from research on the theory and practice of an existing system to a new one. This requires a system-level change and the experience of positive vision of the system to move towards: the Foundation from working with business 39 The “If we can imagine it, we can achieve it”. and government on the transition to a circular extent of the take-up of the circular economy economy – including the New Plastics Economy framework – virtually unknown until just a few 37 – some key characteristics that initiative years ago – is an example of the power of such a support system shifts have been identified: positive vision to mobilise action. • Alignment on the case for change • A positive vision for a new system 26

27 Recently, various efforts have been made important, as no single actor can achieve system to identify the elements of a better textiles change alone. industry and this report presents for the first No large-scale demonstration project time a detailed vision of a new textiles economy representing the full extent of the vision based on the principles of a circular economy currently exists, but there are promising 40 This vision is distinct from, and (see Part II). small-scale efforts. One example of such a complements, ongoing efforts to make the collaborative initiative is ‘Relooping Fashion’ textiles system more sustainable by minimising in Finland, which pilots a unique production its negative impacts. With specific emphasis experiment of cotton clothing recycling, and on innovation towards a different system, a has developed a cross-value-chain business new textiles economy presents an opportunity ecosystem in line with the principles of the for delivering substantially better economic, 43 circular economy. societal, and environmental outcomes. Unprecedented levels of collaboration and Broad stakeholder buy-in and time-bound alignment on areas of action. Various actions commitments to a vision-led transformation. are needed to support the transition, including: a To achieve system change, buy-in to the vision dialogue mechanism (involving the whole value needs to be built across different actors, chain and existing initiatives), an open evidence including industry, government and cities, civil base, innovation for system solutions, informed society, and the broader public. None of these enabling policy, and new industry standards groups can do it alone. In particular, ambitious, and guidelines. These actions are interrelated common, time-bound commitments to the and mutually reinforce each other. As such, the vision are required. intended large-scale system change can only be achieved by orchestrating them in a coordinated The extent of ongoing activities in the manner. textiles industry, both individual and multi- stakeholder, shows an increasing buy-in to For the textiles industry, research to date has the need to address the range of issues; many identified a large number of industry efforts significant sustainability initiatives are gaining aimed at enabling the transition. The main gap momentum. This report demonstrates the is not necessarily the lack of activity in any of need to complement these with commitments these areas; rather it is coordination, alignment, towards the vision and ambitions of a new and the deepening of the impact of existing textiles economy. Such commitments would initiatives. See Box A, p.30, for the areas of need to be made by industry leaders, for action to move towards a new textiles economy example major brands. While existing individual and existing industry efforts. brand commitments are a first important step, concrete collaborative commitments towards A new approach is needed to close this positive vision would be needed to deliver gaps, reinforce current efforts, and a step-change towards a more circular system. unlock system-level change There are already efforts underway to get The case for changing the textiles system is commitments to some of the ambitions of a clear, and the vision proposed in Part II of this new textiles economy. For example, the Global report represents an attractive target state. To Fashion Agenda is gathering commitments to reach unstoppable momentum towards a new immediate action points for cycling clothes 41 textiles economy, the existing efforts to change within the system, to be achieved by 2020. the system should be consolidated by a new The Detox campaign by Greenpeace collected approach that would serve to: commitments to the phase-out of substances of 42 concern. 1. ALIGN KEY INDUSTRY PLAYERS ON Demonstration that the vision is possible, A CLEAR VISION AND SECURE THEIR with large-scale, pre-competitive, cross- COMMITMENT TO IT Demonstrator value-chain collaboration. Commitments of leading industry players projects, conducted collaboratively by various towards the new vision and ambitious stakeholders along the value chain, are required targets would enable more effective system- to test new models at scale and provide wide progress. New, aligned commitments, evidence for their success. This is particularly 27

28 together with a joint action plan to achieve towards one ambition does not impede progress them – covering all four ambitions of a new towards another. A comprehensive mapping textiles economy and building as appropriate of ongoing activities is required to understand on existing initiatives – should consider, for the landscape and to quickly identify not example, targets on the phase-out of substances only gaps and barriers in any area of action, of concern and plastic microfibre release, quality but also opportunities to spark high levels of and durability standards, requirements to design collaboration. Monitoring and broadcast of for recyclability, and minimum levels of recycled new crucial findings surfacing from any area of content in clothing. action would reinforce each initiative’s impact. 4. BROADLY ENGAGE STAKEHOLDERS 2. DRIVE LARGE-SCALE, CROSS-VALUE- AND ENSURE WIDE PROMOTION OF CHAIN DEMONSTRATOR PROJECTS THE VISION A new level of collaboration should be sparked by the undertaking of cross-value-chain Further actions to more widely engage demonstrator projects. Concrete collective stakeholders along the textiles value chain and actions, involving many brands working together provide them with the relevant support, tools, pre-competitively, would in the short term and insights to progress towards the vision. initiate the transition and demonstrate progress. Critical actions include: While further analysis is needed to identify what • Broadcasting evolving best practices and the most promising areas of these collective insights gained to stakeholders along the actions would be, examples include: global textiles value chain • Large-scale projects in major pilot cities, • Engaging policymakers and sharing of policy including several brands, city councils, best practices collecting/sorting/reprocessing actors, • Broadly communicating the nature of the jointly engaging the public in large-scale current situation and the vision of a new collection efforts, carried out as public- textiles economy private initiatives, and realising the value of collected streams • Continually involving additional actors in commitments • Joint implementation of common design and material selection standards or guidelines, 5. ESTABLISH A COORDINATING developed as part of a pre-competitive VEHICLE THAT TAKES ON THESE FOUR collaboration between several designers, ACTIVITIES buyers, textile mills, and recyclers, taking into account all aspects of a new textiles To ensure a step change in industry mobilisation, economy, including durability, recyclability, an independent vehicle would need to be the absence of substances of concern, and established to drive and coordinate the four the minimisation of microfibre release activities of the new approach. It would need to be set up in a way that is complementary to, • Collaboration projects for implementing new and value-adding for established programmes, business models at scale, jointly identifying convening the many stakeholders relevant for barriers and pulling the levers to overcome the transition. them (e.g. new technologies, joint marketing, or informed public policy) Different organisations can contribute to the transition in their 3. ORCHESTRATE COMPLEMENTARY own unique ways INITIATIVES AND REINFORCE THEIR IMPACT Businesses throughout the textiles value chain, policymakers at various levels, as well as other Orchestration should take place to steer existing organisations, all have an important role to play and future key initiatives in such a way that in the transition towards a new textiles economy. they complement each other, to ensure that Any approach to systemic change in the textiles progress in the different areas of action (see system must recognise the unique roles of these Box A, p.30) is amplified, and that progress 28

29 actors and engage them in the transformation. aspects of design and standards in a positive Alignment, collaboration, and coordination way, and stimulating innovation. Setting the between them is critical to create large-scale right policy can also support the transition in change and overcome issues such as the lack several ways (see Box A, p.32). of standards in certain areas and the absence Education and research institutions can of alignment between clothing design and what support the transition through embedding happens after their use. circular economy principles in their teaching Businesses are naturally placed to play a and creating evidence and proof points. leading role in the transition. Businesses of all Bringing circular economy principles into sizes throughout the textiles value chain – from education, from school through to professional big brands, through manufacturers and textile development, will equip learners with the collectors, to small enterprises and innovators – systems-thinking skills and mindsets needed can contribute to systemic change in the textiles to become active shapers of a circular system. In particular, brands and retailers are in economy in general, and a new textiles a unique position, given that they are the ones economy in particular. Further research – at who design and sell clothing in the first place. universities, other research institutions or They can drive change through their visibility, in targetted initiatives and programmes – is global supply chains and power in the market. needed to develop the evidence base for a They have the ability to influence purchasing new textiles economy and establish the best behaviour by changing their value proposition ways to implement it. Collaboration between and using their strong marketing know-how. researchers, businesses, and other relevant They also determine the pace of introduction organisations is crucial, for example to address of new products and the material composition specific knowledge gaps identified in the market of clothing. Clothing manufacturers and fibre or to demonstrate feasibility through pilot producers are also crucial as so many of the projects. system impacts occur during their activities. Other organisations, including industry Businesses involved in collection, sorting, associations and initiatives, NGOs, and processing, refurbishing, and recycling can international bodies, also play important play a key role in developing the techniques Industry associations and initiatives roles. and technologies to ensure that garments and could facilitate and foster collaboration materials stay within a closed-loop system, as among businesses across the value chain well as in providing valuable feedback that can and create alignment between actors on the inform designers and manufacturers about what broad transition to a new textiles economy is needed to maximise value after use. as well as on individual aspects of it. They Policymakers at various levels can set direction connect stakeholders and could also help share for the transition and create the right enabling information, case studies, best practices, and Cities and municipalities often conditions. lessons learned. The involvement of NGOs control the after-use collection infrastructure and international bodies is required to ensure and can be key partners in initiatives related to that broader environmental and societal textile collection and processing. Policymakers considerations are taken into account in future are well positioned to contribute to the change solutions. through realigning incentives, connecting different players pre-competitively, influencing 29

30 BOX A: AREAS OF ACTION TO MOVE TOWARDS A NEW TEXTILES ECONOMY Analysis and research to date have identified areas of action with the potential to collectively realise the required impact. These enablers interact and mutually reinforce each other, and the large-scale systemic change intended can only be achieved by addressing them in a coordinated manner. A ROBUST EVIDENCE BASE To guide the transformation towards, and to evolve the vision of, a new textiles economy, a robust evidence base is needed to create transparency on the impacts of the system and to aid stakeholders in defining actions required to change the system. While this report, together with a number of other recent efforts, aims to provide initial answers, more research is required. In addition to this, existing economic and scientific evidence needs to be consolidated and made readily accessible to stakeholders across the value chain, for example via a highly referenced open-source platform, to make it easier to make decisions in line with the principles of the new textiles economy. This would also highlight knowledge gaps and prompt different actors to undertake complementary research to bridge those gaps. Initial further studies could include: Investigating customers’ motives for using and buying clothes as well as the business models that can meet their needs • Determining the size of the different market segments based on customer needs and desires, the opportunities for different models to satisfy them, and the current barriers to customer adoption to provide a starting point for business model transformation • Undertaking research on the key criteria for assessing durability and quality that would drive customers’ demand for quality • Investigating the elements needed for innovative business models to confidently lead the way to increased clothing utilisation Researching the optimal balance of collection and recycling systems • Building a comprehensive understanding of the current landscape of informal recycling and collection activities Understanding local cultures and which collection infrastructures would succeed • in different regions • Further researching the barriers and opportunities for the recycling of cellulose- based fibres, as well as economically attractive options for the recycling of blended materials Investigating the most efficient logistics to return materials to processers, for • example centralised vs localised solutions and the best mix of these Better understanding the different actors in the textiles system and their interactions • Creating a detailed overview of the different actors and their interactions, for example through a systems map • Identifying key actors to create starting points for change • Creating a better understanding of the specific stakeholders that need to act in consort to create large-scale change 30

31 Better understanding the economic, environmental, and societal impacts of substances of concern and microfibres in the ocean Developing a robust evidence base on the usage of chemicals, including the • amount used, as well as identification of substances of concern and the impacts of these Exploring of the socioeconomic impacts of microfibres in the ocean • Better understanding the root causes of the release of plastic microfibres from • textile washing in order to inform innovations in textiles construction and to create materials fit for a circular system Further understanding the relevance and value of cross-flows into other industries Conducting investigations into the viability of creating high-value cross-sector • material flows that would allow multiple applications in different industries Research is already underway in several of these areas. Some approaches aim to cover all aspects of the clothing system, such as Mistra Future Fashion with its mission to provide 44 “research for systemic change in fashion – via closed loops and changed mindsets”. WRAP has also undertaken extensive research into the efficiency of the textiles system with a 45 focus on the UK. Many other organisations are investigating individual aspects, such as 46 Fashion Positive, which is focusing on “positive materials” for clothing, or the European Outdoor Group Microfibre Consortium, which is looking at enhancing the evidence base on 47 microfibres. INNOVATION A significant number of innovators exist today and brands are starting to engage with them in various ways. With a growing evidence base (see above), these innovators can be steered towards the vision of a new textiles economy. Two key actions should support future innovation: Steer innovation investments towards the common vision. Innovators should be supported at all stages, whether at the initial concept stage or when launching to market. They should be guided in the right direction, and promising innovations should receive the financial support needed to achieve scale. Brands should be involved in defining which innovations are needed, mindful of the common vision. Innovation could include, for example, the search for material flow opportunities from other industries as an input into clothing manufacturing; the development of patterns that generate no leftover fabric when manufactured; innovative collecting and sorting technologies; textile-to-textile chemical recycling technologies that are able to separate and extract polyester and cotton; or the development of garments that last but which adapt themselves to changing styles. Mobilise large-scale, targetted ‘moonshot’ innovations. In areas where existing innovation is sparse but a significant impact could be expected, innovation ‘moonshots’ should be mobilised. Stakeholders from across the industry would gather and spark innovation. One area for such innovations could be the search for a ‘super-fibre’ with similar properties to mainstream ones, but suitable for a circular system, with no negative externalities. Existing programmes are already supporting and steering innovation, such as Fashion for 48 Good, an initiative supporting fashion innovators at various stages; Fabric for Change, a global initiative by Ashoka and the C&A Foundation “to support innovators for a fair and 49 sustainable apparel industry”; or the H&M Global Change Awards, an innovation challenge run by the H&M Foundation, to seek innovations that can support fashion to become 50 circular. 31

32 POLICY Policies at supranational, national, regional, and city/municipality levels can support the transition. Policymakers should be engaged with the common vision and provided with the relevant tools, data, and insights related to textiles so that they can make informed decisions to support the industry in key areas. Policies that set direction and show commitment. Clear policies and communication can encourage private and public investment in relevant research and business development. Advancing the transition requires a coherent focus and systematic approach, including integration of the ambitions of a new textiles economy into existing government initiatives. For example, policies could provide targets and strategies for substances of concern, microfibres, durability, or recyclability. Clear and binding policies, laid out as a roadmap, would provide the visibility needed to coordinate infrastructure development and investment planning. Existing efforts can be seen in the EU’s Circular Economy Action Plan, adopted in 2015, with a package including long-term targets to reduce landfilling and 51 increase recycling and reuse. Regulatory frameworks that enable transition and remove current policy barriers. Some current policies, typically focused on individual areas rather than taking a systemic view, cause unintended barriers to adopting circular economy models. Detailed analysis of regulations – conducted with businesses and other relevant stakeholders – could identify these barriers and provide a basis for recommending policy changes that support a new textiles economy. For example, policymakers could set targets or incentives for collection. They could, for example, create extending producer responsibility (EPR) schemes for textiles, such as that existing in France, obliging clothing companies to contribute to the recycling and waste management of the clothes they put on the market. New policies could remove barriers that are caused by the definition of used textiles as waste, or address barriers to trade, such as import or export bans. Policymakers can also play an important role in stimulating demand by incentivising the use of recycled materials and/or disincentivising the use of virgin materials. Public procurement and infrastructure investments. As governments often control large budgets for procurement and infrastructure spending, acquiring textiles through new service models and directing infrastructure spend where it most supports a new textiles economy would not only have a clear impact but would also lead the way for the private sector to follow. For example, public procurement recommendations that support promising, scalable circular business models for textiles could help kick-start such models and stimulate their wider adoption in the market. Public procurement policies can also increase demand for recycled materials by specifying targets for recycled content in clothing used by the public sector. Focusing infrastructure investments on schemes such as integrated after-use collection systems and sorting and reprocessing facilities could support circular economy activity and investment by the private sector. 32

33 TRANSPARENCY Transparency on a product’s content, production history, and properties for use and after- use, for example information on substances of concern and resource use, durability and care information, or details on material content and recycling options is crucial to inform actions. Measurement tools, for example, can help assess products’ content and the negative impacts of individual actors within the textiles industry, as well as their ongoing efforts to transform their practices for a new textiles economy. The Sustainable Apparel Coalition, for 52 example, is contributing to this with the Higg Index. MARKETING Implementing a new textiles economy depends upon customers embracing alternative models of accessing clothing. With their vast experience in marketing traditional sales, and great expertise and capacity, brands are in a good position to market new models as an attractive and fashionable option. CIRCULAR-ECONOMY-DRIVEN INTERNAL STRATEGIES Taking maximum advantage of circular models requires decision makers throughout organisations to appreciate the benefits of a circular economy and take these into account in business decisions. To put the ambitions of a new textiles economy into practice, current and prospective employees need training to better understand the aspects and advantages of circular economy models in general, and a new textiles economy in particular. In addition, the right incentives need to be in place to take the ambitions of a new textiles economy into account in business decisions. 33



36 PART I: THE CASE FOR RETHINKING THE GLOBAL TEXTILES SYSTEM, STARTING WITH CLOTHING Textiles and clothing are a fundamental part of everyday life and an important sector in the global economy. As production volumes have doubled over the past 15 years, clothing is now a USD 1.3 trillion global industry employing more than 300 53 Yet, the current system million people along the value chain. for producing, distributing, and using clothing operates in an almost completely linear way – wasteful and polluting. Money is being left on the table: more than USD 500 billion in value is lost from the system every year due to under-utilised clothes and the lack of recycling. As demand for clothing grows, systemic risks are already emerging and the current industry trajectory is set to have catastrophic consequences. Today’s negative impacts on resources, the environment, and people could become a significant risk to the industry’s future profitability. around a quarter as long as the global average. The current clothing The same pattern is emerging in China, where clothing utilisation has decreased by 70% over system is extremely the last 15 years (see Box G, p.77). wasteful and polluting Underutilisation of clothing presents a The current system for producing, significant opportunity to capture value. distributing, and using clothing operates on Globally, customers miss out on USD 460 billion a predominantly take-make-dispose model. of value each year by throwing away clothes 56 High volumes of non-renewable resources and it is that they could continue to wear, are extracted to produce clothes that are estimated that some garments are discarded 57 often used for only a short period, after which People are after just seven to ten wears. the materials are largely lost to landfill or acknowledging this as a problem – with, for incineration. It is estimated that more than example, 60% of German and Chinese citizens half of ‘fast fashion’ produced is disposed of admitting to owning more clothes than they 54 58 This linear system leaves in under a year. need. economic opportunities untapped, puts pressure on resources, pollutes and degrades After clothing is used, almost all the ecosystems, and creates significant societal value in the materials they are made impacts at local, regional, and global scales. from is lost Of the total fibre input used for clothing, Clothing is massively underutilised , representing 87% is landfilled or incinerated Currently, customers purchase more clothing a lost opportunity of more than USD 100 than they will use and are quick to throw 59 As much as 73% of material billion annually. garments away after use. Worldwide, clothing going into the clothing system is lost after utilisation – the average number of times a final garment use, 10% is lost during garment garment is worn before it ceases to be used – 60 and 2% is sent production (e.g. as offcuts) has decreased by 36% compared to 15 years to landfill or incineration from garments that 55 While utilisation is relatively high in low- ago. are produced, yet never make it to market. An income countries, elsewhere rates are much additional 2% loss occurs in the collection and lower. For example, in the US clothes are worn 36

37 sorting of discarded clothing (see Figure 6). the recycling of factory offcuts. For recycling Overall, one garbage truck of textiles is landfilled after-use clothing, expert interviews and some 61 In addition to or incinerated every second. reporting suggest that the figure could be 64 This rate is even lower than for these significant value losses, high costs are below 0.1%. other industries that are commonly identified as associated with the disposal of clothing. For having low recycling rates, such as the single- example, New York City alone spends more than use plastic packaging industry where the figure USD 20 million a year landfilling and incinerating 62 65 Only 13% of the total material is around 2%. textiles, most of which constitutes clothing, and the estimated cost to the UK economy of input is in some way recycled after clothing landfilling clothing and household textiles each use. The majority of this recycling consists of year is approximately GBP 82 million (USD 108 cascading into lower-value applications such as 63 insulation material, wiping cloths, and mattress million). stuffing. After being used in these applications, Less than 1% of material used to produce currently, the materials are difficult to recapture clothing is recycled into new clothing. This 66 and therefore are usually discarded. includes recycling clothing after use, as well as FIGURE 6: GLOBAL MATERIAL FLOWS FOR CLOTHING IN 2015 2% 12% losses during 2% cascaded essing collection and proc recy cled cling recy <1% feedstock from closed-loop other industries cling recy 53 7% >9 million t onnes virgin feedst ock AL FIBRE ANNU % 73 USE R PRODUCTION FO PLA STIC (63%) landfilled or OTHING CL ON (26%) CO TT ated inciner OTHER (11%) onnes 0.5 million t 12% 4 microfibre leakage losses in 3 n productio 1 Recycling of clothing into the same or similar quality applications Recycling of clothing into other, lower-value applications such as insulation material, wiping cloths, or mattress stuffing 2 3 Includes factory offcuts and overstock liquidation Plastic microfibres shed through the washing of all textiles released into the oceans 4 Source: Circular Fibres Initiative analysis – for details see Appendix B After-use clothing collection varies globally infrastructure at all. This is especially relevant and most garments collected for reuse in as clothes collected for reuse in high-income countries with high collection rates are countries are mainly exported to these parts ultimately also lost from the system. Globally, of the world. These valuable efforts increase around 25% of garments are collected for reuse clothing utilisation, though ultimately most of 67 or recycling through a variety of systems. these clothes end up in landfills or are cascaded 70 There are large regional differences in collection to lower-value applications. rates – in Germany 75% of discarded garments 68 while in the US and China rates are collected, 69 Many countries, are between 10% and 15%. particularly in Asia and Africa, have no collection 37

38 76 with negative impacts on farmers’ health. Today’s linear system uses large The Citarum River in Indonesia has over 200 amounts of resources and has textile factories along its banks; these factories negative impacts on the environment release dyes and other chemicals into the water, and society changing the colour of the river and devastating With its low rates of utilisation (leading to 77 Chemicals used in the local ecosystem. high levels of throughput) and low levels of production may be retained in the finished recycling, the currently wasteful, linear system textiles, causing concern about their impact on has numerous negative environmental and the wearer, and released into ecosystems during societal impacts. It leads to substantial and ever- washing or when discarded after use. Often, expanding pressure on resources and causes this impact is not well assessed. For example, high levels of pollution. Hazardous substances to achieve crease-resistant ‘non-iron’ garments, 78 affect the health of both textile workers and clothing is often treated with formaldehyde the wearers of clothes, and plastic microfibres – which has been classified as carcinogenic are released into the environment, often ending to humans by the International Agency for up in the ocean. Furthermore, the materials Research on Cancer, and is also linked to allergic 79 currently used have significant drawbacks, Other potential impacts contact dermatitis. making them unfit for a circular system. For to human health include the accumulation of example, polyester uses large quantities of toxic substances in the human body through 80 non-renewable resources and fossil energy to exposure to polluted water or food sources. produce, and growing cotton requires high Textiles production accounts for significant volumes of fertilisers and pesticides (unless greenhouse gas emissions. The industry’s farmed using regenerative agriculture), as immense footprint extends beyond the use of well as significant volumes of water. These, raw materials. In 2015, greenhouse gas (GHG) and other commonly-used materials, all have emissions from textiles production totalled 1.2 various negative impacts for people and the 81 more than equivalent, billion tonnes of CO 2 environment, leaving room for significant those of all international flights and maritime innovation in materials (see Appendix A for 82 This is mainly due to the shipping combined. details). high amounts of throughput in the current linear The textiles industry is highly reliant on non- system, but it is also exacerbated by the high renewable resources across all stages of the GHG intensity of textiles, with the production The industry relies on 98 million value chain. of 1 tonne of textiles generating 17 tonnes of tonnes in total of non-renewable resources per equivalent (compared to 3.5 tonnes for CO 2 83 year. Producing plastic-based fibres for textiles GHG plastic and less than 1 tonne for paper). uses an estimated 342 million barrels of oil every emissions during the use phase of textiles are 71 and the production of cotton is estimated year, also significant. Washing and drying clothing to require 200,000 tonnes of pesticides and 8 alone are estimated to account for 120 million 72 Chemicals 84 million tonnes of fertilisers annually. equivalent. tonnes of CO 2 used in the production processes for fibres and Water use is high, often in water-scarce areas. textiles, such as dyes or finishing treatments, Textiles production (including cotton farming) also account for a significant amount of uses around 93 billion cubic metres of water resource use – around 43 million tonnes in annually, representing 4% of global freshwater 73 total. 85 Clothing accounts for over two- withdrawal. Hazardous chemical use has negative impacts thirds of this water use. At present, many of across all parts of the value chain. Significant the key cotton-producing countries are under volumes of chemicals are used to produce high water stress, including China, India, the US, 86 clothing and other textiles. There is little data or In China, 80% to 90% of Pakistan, and Turkey. transparency about which chemicals used cause fabric, yarn, and plastic-based fibres are made 87 concern or their full impact on human health in water-scarce or water-stressed regions. and the environment during the production, use, Beyond production, washing clothing using and after-use phases. Cotton production uses washing machines is estimated to require an 2.5% of the world’s arable land, but accounts additional 20 billion cubic metres of water per 74 in India 50% of 88 for 16% of all pesticides used; year globally. 75 all pesticides are used for cotton production, 38

39 Production of cellulose- and protein-based The trajectory of fibres competes for agricultural land. The growing global population is increasing the industry points competition for productive land and freshwater to the potential for resources. Cotton production currently accounts 89 Similarly, for 2.5% of the world’s arable land. catastrophic outcomes wool has a high land impact – estimated by Demand for clothing continues to grow quickly, DEFRA to be as much as 278 hectares per tonne driven particularly by emerging markets in Asia of fibres (compared with just over 1 hectare per 90 and South America. Should growth continue as The increasing demand for tonne for cotton). expected, total clothing sales could reach 175 land for food production could significantly limit million tonnes in 2050 – more than three times any possible expansion of land-intensive cotton- 99 This would further amplify today’s amount. or wool-related agriculture in the future and so 91 the negative societal and environmental restrict the output of these fibres. impacts of the current system and risk the During textile use, trillions of plastic industry’s reputation and profitability. microfibres are released through washing; most of these ultimately end up in the ocean. Negative impacts could become Plastics entering the ocean is a growing concern unmanageable due to the associated negative environmental If the industry continues on its current path, by and health implications. In recent years, plastic 2050, textiles production would use more than microfibres from the washing of plastic-based 100 25% of the carbon budget for a 2°C pathway. textiles, such as polyester, nylon, and acrylic, Moving away from today’s linear and wasteful have been identified as a major contributor 92 textiles system is therefore crucial to keeping Each year, around half a million to this issue. the current target of a 2°C average global tonnes of plastic microfibres – equivalent to warming limit within reach. more than 50 billion plastic bottles – resulting from the washing of textiles are estimated to be The number of plastic microfibres entering 93 released into the ocean. the ocean between 2015 and 2050 could accumulate to an excess of 22 million tonnes. The industry also has multiple negative The release of plastic microfibres into the ocean societal implications, driven partly by the due to the washing of textiles could grow increasing pressure on manufacturers to to 0.7 million tonnes per year by 2050. This deliver on shorter lead times and lower pricing. would be the material equivalent of around High cost and time pressures are often imposed 101 94 The accumulated 4 billion polyester tops. which can on all parts of the supply chain, amount entering the ocean between 2015 and lead to garment workers suffering poor working 95 2050 would exceed 22 million tonnes – about with conditions with long hours and low pay, two thirds of the plastic-based fibres used to evidence, in some instances, of modern slavery 96 produce garments annually. Efforts to improve these and child labour. conditions are facing various challenges; for Material and water usage is set to become example, the right to establish trade unions increasingly problematic. Input of fossil 97 Many workers face dangerous is restricted. feedstocks for textiles production would reach working environments due to hazardous 160 million tonnes by 2050. With water usage, processes, substances of concern used during the greatest challenge will be accessing the production, unsafe buildings, or lack of safety water that the textiles industry relies on in equipment. Local communities, while benefitting water-scarce regions. This has been identified by from employment in the industry, may also investors as a high risk for business disruption suffer from poor environmental practices; for 102 and potential for stranded assets. example, some factories discharge untreated Management of textile waste would become production wastewater, polluting local rivers 98 increasingly challenging. In the business-as- used for fishing, drinking, or bathing. usual scenario, more than 150 million tonnes of clothing would be landfilled or burned in 2050. 39

40 the profits of businesses that fail to respond. Between 2015 and 2050 the weight of these The negative environmental impacts described clothes would accumulate to more than ten 103 above, together with high-profile social times that of today’s world population. incidents like the Rana Plaza disaster in 2013, Profitability of the industry could be 106 have in which over 1,000 workers were killed, at risk drawn international attention to the societal impacts associated with the clothing value Maintaining current clothing production chain. NGOs are also generating awareness and approaches risks the profitability of the of the industry’s negative environmental and Pulse of the fashion The recent textiles industry. societal impacts. For example, Greenpeace report projects that by 2030, fashion industry has highlighted specific challenges – such as brands could see a decline in earnings before the use of substances of concern in clothing, interest and tax (EBIT) margins of more than 107 – and, recently, through their Detox campaign three percentage points. This would translate has challenged the industry to find systemic into a profit reduction of approximately EUR 45 solutions to tackle ‘overconsumption’, moving 104 The billion (USD 52 billion) for the industry. beyond downstream, short-term approaches report also estimates that the overall benefit 108 In another to reduce the industry’s impact. to the world economy would be about EUR example, Fashion Revolution has created a 160 billion (USD 192 billion) in 2030, if the campaign driving awareness of the way clothes fashion industry would successfully address are made, with their Fashion Revolution Week 105 environmental and social issues. calling on people and organisations to work The negative impacts of the industry have the together to “radically change the way clothes potential to increase reputational risks for 109 are sourced, produced, and consumed”. brands and regulatory trends, both affecting 40

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44 PART II: A NEW TEXTILES ECONOMY IS AN ATTRACTIVE VISION OF A SYSTEM THAT WORKS The overarching vision of a new textiles economy is that it is aligned with the principles of a circular economy: one that is restorative and regenerative by design and provides benefits for business, society, and the environment. In such a system clothes, textiles, and fibres are kept at their highest value during use and re-enter the economy after use, never ending up as waste. Realising this vision of a new global textiles system relies on four core ambitions: phasing out substances of concern and microfibre release; transforming the way clothes are designed, sold and used to break free from their increasingly disposable nature; radically improving recycling by transforming clothing design, collection, and reprocessing; and making effective use of resources and moving to renewable input. A new textiles economy is based on the principles of a circular economy (see Box B, p.48). Such a system would have the following characteristics: A new textiles economy A new textiles economy produces and provides access captures the full value of clothing during and after use. to high-quality, affordable, individualised clothing. In a new textiles economy clothes are used more often, allowing their value to be captured fully. In a new textiles economy, everyone has access Once clothes are not used anymore, recycling to the clothes that they need, when they them into new clothes allows the value of the need them. New business models allow more materials to be captured at different levels (see flexibility on which clothes to wear and when, as Figure 17, p.95 ). For this to be successful, no well as provide access to clothes that might not substances of concern that could contaminate be affordable through traditional sales. Clothes products and prevent them from being safely are designed and produced to provide high recycled are used. quality, durability, and flexibility – for example in the form of individualised or modifiable clothes. 44

45 $ A new textiles economy reflects A new textiles economy runs the true cost (environmental on renewable energy and uses and societal) of materials and renewable resources where production processes in the resource input is needed. price of products. The energy required to fuel a new textiles economy is renewable by nature, decreasing In a new textiles economy, the price of clothing resource dependence and increasing system reflects the full costs of its production, including resilience. Resources are kept in the system environmental and societal externalities (see and where input is needed, this comes from Section 4.2). Such costs are first analysed and renewable resources. This means using presented in company reporting, and ultimately renewable feedstock for plastic-based fibres reflected in product prices. and not using fossil-fuel-based fertilisers or pesticides in the farming of biologically-based input. A new textiles economy further enables this shift to renewables as its very nature ensures that less energy and fewer resources are consumed. A new textiles economy is distributive by design. As part of promoting overall system health, a new textiles economy presents new opportunities for distributed and inclusive growth. It creates a thriving ecosystem of A new textiles economy enterprises from small to large, retaining and regenerates natural systems then circulating enough of the value created and does not pollute the so that businesses and their employees can environment. participate fully in the wider economy. In a new textiles economy, where renewable resources are extracted from nature this is carried out by regenerative and restorative methods that allow for the maintenance or improvement of soil quality and rebuild natural capital. In particular, this means using regenerative agriculture for biological-based input such as cotton, and sustainably managed forests and plantations for wood-based fibres. Substances of concern do not leak into the environment or risk the health of textile workers and clothing users. Plastic microfibres are not released into the environment and ocean. Other pollutants, such as greenhouse gases, are also designed out. 45

46 to jeopardise the profits of businesses seen as A new textiles laggards in addressing the shortcomings of the current system. By moving towards a new economy could bring system with positive outcomes, brands would be substantial benefits better able to avoid negative exposure and to work collaboratively with policymakers towards The business benefits of a circular economy common goals. 110 and its opportunities for are well understood, 111 high-income countries (especially in Europe), The vision of a A new source of innovation. as well as emerging economies have been new textiles economy – creating clothing that 112 In addition to offering benefits to explored. by design circulates in a system that maintains business and the economy, a circular economy its value – is a powerful spur for new ideas that is beneficial to citizens and society, and it would redirect the focus of innovators. These 113 The research regenerates the environment. innovations would help the textiles system to undertaken for this report indicates that, given become more circular, by developing new and the global size and impact of the textiles sector, improved materials, processes, and services. a new textiles economy could play a major role Additional economic growth. A new textiles in providing such benefits. Detailed modelling economy means growing the most restorative and analysis would be needed to quantify the and regenerative parts of the value chain, full range and size of the benefits that a new particularly those that make more productive textiles economy could bring. use of material inputs (mainly through higher rates of clothing utilisation and recycling of Benefits for businesses and the materials) and increase revenue from new economy circular activities. While some sectors (e.g. Material cost savings and reduced exposure the production of virgin materials and certain A new textiles to resource price volatility. clothing production activities) could expect economy would significantly lower the costs to reduced revenue, overall income would be businesses of using virgin materials. Decreased expected to increase, which could boost material use would also reduce businesses’ economic growth. exposure to volatile raw material prices and Quantifying these impacts for the textiles thereby increase their resilience. Realising these industry would require detailed modelling benefits for the textiles industry is dependent on of the effects on GDP of the various actions radically increasing the amount of clothing that proposed. This analysis would have to quantify gets recycled by improving the current recycling the associated opportunity costs and value system (Ambition 3). of avoided negative externalities, while also Additional profit opportunities for businesses considering potential ‘rebound’ effects that Introducing new rental through new services. lower costs of the textiles system might have for 114 and subscription models allows businesses to other industries. build long-term customer relationships. These alternatives to the traditional sales model for Benefits for the environment clothes would allow fashion brands to create A new textiles economy Lower GHG emissions. profits without having to increase throughput, would significantly reduce the industry’s and open up opportunities for innovators to trial GHG emissions. For example, if on average new business models. In addition, value would the number of times a garment is worn were be created through enhanced resale as well as doubled, then GHG emissions would be 44% by offering additional services before and during lower (Ambition 2), while textiles made from use, such as individualisation, warranties, and recycled materials have lower emissions than maintenance (Ambition 2). those made from virgin materials (Ambition 3). Greater opportunity to manage reputational Using low-carbon materials and production The risks and align with policy priorities. processes (including renewable energy and negative environmental and societal impacts of energy-efficiency measures) would further the industry (see Part I) are increasingly leading reduce the GHG emissions of a new system to reputational risks for brands and to action (Ambition 4). by regulators. These trends have the potential 46

47 Reduced consumption of virgin, non-renewable Benefits for citizens and society The extraction of virgin materials and of energy. Greater utility and choice with lower overall materials for plastic-based fibres, the use of costs for customers. The additional choice pesticides and fertilisers in cotton production, and quality provided by new sales and service and the production of energy from non- models in a new textiles economy would renewable sources all have significant negative enhance the benefit experienced by customers. environmental impacts, such as GHG emissions, Choice increases as businesses create clothes and the leaking of substances of concern and and related services that better meet customer other pollutants into local environments. A new needs. Although detailed analysis is needed to textiles economy with high rates of clothing estimate the effects of a new textiles economy utilisation, improved recycling, and reduced on the cost of providing clothing, the overall waste in production would reduce all these cost to produce the same level of benefit from impacts. clothing is expected to be lower in a new textiles 115 economy. A Increased land productivity and soil health. new textiles economy would apply regenerative Reduced obsolescence and fewer unwanted agricultural methods to the production of items. A new textiles economy would provide cotton and other renewable materials used in benefits to different types of customers. textiles production. This would increase land Longer-lasting and higher-quality clothes productivity and return nutrients to the soil. would increase convenience for those customer These efforts would enhance the value of land groups and types of garments for which clothes by increasing the organic matter in the soil. shopping and/or maintenance is considered a hassle. New models of providing access to Less plastic in the ocean. Plastics in the ocean clothes would leave those who desire frequent are increasingly considered a substantial outfit changes with fewer items that are soon no problem to which the washing of plastic-based longer wanted (Ambition 2). textiles is a significant contributor (see Box F, p.67 ). A new textiles economy would ensure In a new textiles Positive health impacts. that textiles, and the system that uses them, economy, safe and healthy material inputs into are designed to prevent the release of plastic textiles production would not leave workers microfibres into the environment and, ultimately, exposed to substances hazardous to their the ocean. health, and would reduce health risks for everyone wearing clothes. The negative health No leakage of hazardous substances into impacts of pollution, for example increased rates the environment. In a new textiles economy, of cancer or allergic reactions from exposure substances of concern would be phased out, to chemicals, would also be reduced in a new reducing the negative impacts of polluted 116 textiles economy. wastewater and soil, and the accumulation of hazardous substances in the environment A better deal for employees. Because a circular (see Section 1.1). Circulating products through economy is distributive by design, value would increased utilisation and improved recycling be circulated among enterprises of all sizes also reduces the quantity of textiles landfilled in the industry, rather than being extracted. or burned – both of which often lead to the This would allow all parts of the value chain to leakage of substances of concern. pay workers well and provide them with good working conditions. Reduced pressure on water in water-scarce A new textiles economy with increased regions. rates of clothing utilisation and recycling would reduce the amount of water needed for new materials and products, avoid water-intensive activities in water-scarce regions, and reduce water use by employing efficiency measures. 47

48 BOX B: CIRCULAR ECONOMY CONCEPT AND PRINCIPLES THE CONCEPT OF A CIRCULAR ECONOMY Looking beyond the current take-make-dispose extractive industrial model, a circular economy aims to redefine growth, focusing on positive society-wide benefits. It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. It is based on three principles: • Design out waste and pollution Keep products and materials in use • Regenerate natural systems • In a circular economy, economic activity builds and rebuilds overall system health. The concept recognises the importance of the economy needing to work effectively at all scales – for large and small businesses, for organisations and individuals, globally and locally. Transitioning to a circular economy does not only amount to adjustments aimed at reducing the negative impacts of the linear economy. Rather, it represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits. The model distinguishes between technical and biological cycles. Consumption happens only in biological cycles, where food and biologically-based materials (such as cotton or wood) are designed to feed back into the system through processes like composting and anaerobic digestion. These cycles regenerate living systems, such as soil, which provide renewable resources for the economy. Technical cycles recover and restore products, components, and materials through strategies like reuse, repair, remanufacture or (in the last resort) recycling (see Figure 7). The notion of circularity has deep historical and philosophical origins. The idea of feedback, of cycles in real-world systems, is ancient and has echoes in various schools of philosophy. It enjoyed a revival in industrialised countries after World War II when the advent of computer-based studies of non-linear systems unambiguously revealed the complex, interrelated, and therefore unpredictable nature of the world we live in – more akin to a metabolism than a machine. With current advances, digital technology has the power to support the transition to a circular economy by radically increasing virtualisation, de- materialisation, transparency, and feedback-driven intelligence. The circular economy model synthesises several major schools of thought. They include the functional service economy (performance economy) of Walter Stahel; the Cradle to Cradle design philosophy of William McDonough and Michael Braungart; biomimicry as articulated by Janine Benyus; the industrial ecology of Reid Lifset and Thomas Graedel; natural capitalism by Amory and Hunter Lovins and Paul Hawken; and the blue economy systems approach described by Gunter Pauli. 48

49 CIRCULAR ECONOMY SYSTEM DIAGRAM FIGURE 7: FINITE MATERIALS RENEWABLES VIRTUALISE SUBSTITUTE MATERIALS RESTORE REGENERATE RENEWABLES FLOW STOCK MANAGEMENT MANAGEMENT FARMING/ REFURBISH/ REFURBISH/ COLLECTION PARTS REMANUFACTURE REMANUFACTURE MANUFACTURER REUSE/ REUSE/ PRODUCT REDISTRIBUTE REDISTRIBUTE MANUFACTURER RECYCLE BIOCHEMICAL BIOSPHERE REGENERATION FEEDSTOCK SERVICE PROVIDER SHARE BIOGAS CASCADES 6 2803 0006 9 MAINTAIN/ MAINTAIN/ PROLONG PROLONG USER CONSUMER ANAEROBIC DIGESTION COLLECTION COLLECTION EXTRACTION OF BIOCHEMICAL FEEDSTOCK MINIMISE SYSTEM LEAKAGE AND NEGATIVE IMPACTS 1 Hunting and fishing 2 Can take both post-harvest and post-consumer waste as an input Source: Ellen MacArthur Foundation, drawing from Braungart & McDonough, Cradle to Cradle (C2C) THE PRINCIPLES OF A CIRCULAR ECONOMY The circular economy model rests on three principles. Each addresses several of the resource and system challenges that the textiles system is facing today or might face tomorrow. Design out waste and pollution. A circular economy reveals and designs out the negative impacts of economic activity that cause damage to human health and natural systems. This includes the release of greenhouse gases and hazardous substances, the pollution of air, land, and water, as well as structural waste such as traffic congestion. A circular economy favours activities that preserve Keep products and materials in use. more value in the form of energy, labour, and materials. This means designing for durability, reuse, remanufacturing, and recycling to keep products, components, and materials circulating in the economy. Circular systems make effective use of biologically-based materials by encouraging many different uses before nutrients are returned to natural systems. Regenerate natural systems. A circular economy avoids the use of non-renewable resources and preserves or enhances renewable ones, for instance by returning valuable nutrients to the soil to support regeneration, or using renewable energy as opposed to relying on fossil fuels. 49

50 FIGURE 8: AMBITIONS FOR A NEW TEXTILES ECONOMY 2 1 INCREASE CL OTHING TANCES PHASE OUT SUBS UTILIS ATION OF C ONCERN AND 3 MICROFIBRE RELEASE RADICALL VE Y IMPRO CY RE CLING MAKE EFFECTIVE USE OF VE TO RESOURCES AND MO RENEW ABLE INPUT S ANAEROBIC DIGES TION & 4 TING COMPOS RENEW ABL Y OTHER SOURCED TERIAL MA FEED ST OCK STREAMS Ambition 1 is essential to fulfil the first principle A new textiles of a circular economy: designing out waste and pollution. Ambitions 2 and 3 apply the economy requires new second principle of a circular economy: keeping and ambitious thinking products and materials at their highest value. Increasing clothing utilisation takes advantage A new textiles economy has four main ambitions of the innermost loops in a circular economy (see Figure 8) that are consistent with the (see Figure 7), thereby keeping clothes at their principles of a circular economy (see Box B). highest value. Once they are not used anymore, These ambitions aim to bring about a new recycling retains the value of the materials at textiles economy by rethinking the existing ). Ambition 4 different levels (see Figure 17, p.95 textiles economy and capturing opportunities is related to all principles of a circular economy: missed by its current, linear nature. a new textiles economy designs out waste during textiles production, uses resources 1. Phase out substances of concern and effectively and efficiently, and moves towards microfibre release using renewable resources in a regenerative Transform the way clothes are designed, 2. manner. sold, and used to break free from their Realising these ambitions will not happen increasingly disposable nature overnight. While there are some immediate 3. Radically improve recycling by profit opportunities for individual businesses, transforming clothing design, collection, collaborative efforts across the value chain and reprocessing and spanning the private and public sectors, Make effective use of resources and move 4. are required to truly transform the way to renewable inputs clothes are designed, produced, sold, used, and reprocessed. Such a requirement should These ambitions are discussed in detail in the not discourage or delay action. The time to following chapters. Action towards meeting act is now and the ambitions discussed in the them needs to take a coordinated and systemic following four chapters offer an attractive target approach, making sure that progress in one area state for the industry to align on and innovate does not impede progress in another. towards. 50

51 BOX C: BIOLOGICAL CYCLES IN A NEW TEXTILES ECONOMY In a circular economy, value is retained in either biological or technical cycles (see Figure 7). Hardly any clothes produced today, however, are made purely from biodegradable or bio-benign materials, meaning that biological cycles are not an option for most clothes. Because of this, Ambitions 2 and 3 for a new textiles economy focus on value creation in technical cycles, through increasing the rates of clothing utilisation and different levels of recycling. Regardless, it is not unthinkable that, in the future, innovation in new materials and processes could allow clothes to be created that are suitable for biological cycles via 117 composting and anaerobic digestion. Cellulose-based fibres are naturally biodegradable. However, even garments made purely from biodegradable materials often contain other materials in stitching, labels, or buttons etc. (see Box I, p.94). Additionally, dyes contained in clothes are not necessarily safe if they leak into the environment, and clothes often contain residues of other chemicals used in fibre production and textiles processing (see Section 1.1). The presence of substances of concern can also hinder composting. For example, heavy metals can inhibit the bacterial growth essential to the process or contaminate the compost, thereby reducing its 118 nutritional value. Examples are emerging of clothes being designed that are completely biodegradable. For example, C&A has developed a Cradle to Cradle Certified T-shirt made purely from organic cotton, including the stitching, that is treated with safe materials and chemicals, as well as non-toxic dyes – allowing the T-shirt to be fully composted if it can no longer be worn or recycled (see Case Study A, p.64). Another example is the company Freitag, which produces jeans with a button that can be unscrewed by hand so that non-biodegradable 119 parts can be removed easily. Even for garments that are biodegradable, practical hurdles might prevent biodegrading at large scale. When clothing is collected, systems would be needed to keep compostable items separate from non-compostable items; private end-of-use composting relies on households having access to home-composting systems. Even if these drawbacks could be overcome, the high resource and energy intensity of the current clothing production methods (see Part I), means that a large amount of value is lost when clothes are composted rather than recycled. Also, the actual nutrient value that can be restored to the soil is low for textiles. For example, cotton has very low nitrogen, phosphorus, and 120 potassium content. High levels of innovation are needed to make biodegradable clothing a viable option at scale. Opportunities could lie in very fast-growing plants that need low amounts of treatment and water combined with processes that need less resource input. Research is already underway. In a project with clothing brand Filippa K, Mistra Future Fashion is investigating design approaches for “short-life garments”, which includes new material samples. By looking at these “short-life garments” intended for ultra-fast textiles, as well as “long-life garments”, the project aims to find the most suitable choice for different types of 121 garments and their respective intended duration of use. 51

52 1. Phase out substances of concern and microfibre release 52

53 1. PHASE OUT SUBSTANCES OF CONCERN AND MICROFIBRE RELEASE First and foremost, in a new textiles economy material input would be safe and healthy to allow it to cycle in the system and avoid negative impacts during the production, use, and after-use phases. This means that substances which cause concern to health or the environment are designed out and no plastic microfibres are released into the environment and ocean. Actions are needed in two areas to phase out substances of concern and microfibre release. The first is to align industry efforts to create safe material cycles in order to scale up the use of existing alternative technologies. The second is to develop new materials and production processes that prevent the release of plastic microfibres, while simultaneously increasing the effectiveness of technologies that capture unavoidably released microfibres. 123 Despite will remain there for a long time. Align industry 1.1. growing concerns raised by NGOs, the public, policymakers, and across the textiles value efforts and coordinate chain itself, there is very low transparency on the chemicals used across the industry, innovation to create making the true scale of the pollution – and its associated economic, environmental, and safe material cycles societal impacts – difficult to evaluate. Many of the chemicals used to make Significant opportunity exists for the industry clothing and other textiles bring substantial to capture value by creating safe material advantages, including water or stain cycles while addressing the devastating health repellence, increased durability, or a wide and pollution impacts of textiles production. choice of colours. Yet a number of these Businesses that move quickly to address the chemicals raise concerns due to their potential issues associated with substances of concern adverse effects during clothing production, can avoid costs associated with the use of use, and after-use phases. Indeed, some have such substances, including correct storage and been found to be carcinogenic or hormone handling, measures to protect employee health, disruptive, causing concern for the health handling of hazardous waste, and the cost of of factory workers exposed to them, and for environmental remediation if these substances the environment into which they escape, for 124 Three key actions could support leak out. example by being released into local rivers in the creation of safe material cycles: aligning factory effluent. The World Bank estimates existing industry efforts to harmonise standards that 20% of industrial wastewater pollution and improve transparency; driving collective worldwide originates from the textiles innovation efforts to develop and scale safe 122 Some of these substances are industry. alternative chemicals and production processes; bio-accumulative and classified as persistent, and moving to regenerative agriculture. meaning that once in the environment, they 53

54 important impacts of some textile chemicals 1.1.1. THE RISKS AND COSTS have been identified, this represents just a ASSOCIATED WITH SUBSTANCES few of the chemicals currently being used. OF CONCERN ARE MOTIVATING A significant number of chemicals, however, STAKEHOLDER ACTION have not been evaluated for their impacts, 133 For meaning that their risks are unknown. The production of textiles currently requires instance, the production of polyester often uses intensive use of chemicals, including 125,126 antimony trioxide as a catalyst, which is retained Annually, 43 million substances of concern. 134 Antimony trioxide in the polyester fibres. tonnes of chemicals are used to produce 127 is suspected of causing cancer in humans if The textile chemicals market is textiles. 135 but the impact on human health from inhaled, significant in its own right, valued at USD 21 wearing polyester garments has not yet been billion in 2015 – around one-sixth of the total 136 evaluated conclusively. sales of the clothing industry – and is expected 128 Chemicals are to reach USD 29 billion by 2024. The phase-out of substances of concern used at several stages – from fibre production, can have various economic benefits. The to dyeing, treating, and finishing processes – and management of substances of concern is often to give specific properties to the items. costly, particularly where the use of chemicals More details on the most common functions is strongly regulated, for example through of chemicals used in textiles production and special storage and transportation requirements, processing are given in Box D. personal protection measures for workers, or wastewater treatment measures. Businesses Substances used at all stages of the production could also find themselves exposed to process often remain in textiles, both 129 remediation costs if substances of concern This raises intentionally and unintentionally. 137 Increasing leak out into the environment. concerns due to the adverse effects they can global regulation on unsafe chemical use could have on people and the environment (see see these costs increase wherever textiles are Figure 9). Reported impacts range from allergic produced, and manufacturers should anticipate reactions, to respiratory diseases and increased facing such costs in the future. The first movers instances of cancer in humans, to the loss of 130 to phase out substances of concern may Some of the chemicals used also aquatic life. increase competitiveness by avoiding such costs persist in the environment and accumulate over 131 and gaining technical knowledge on alternatives. Box E discusses some of the known time. The overall economic benefits of phasing out impacts of substances of concern during substances of concern are difficult to assess due different phases of the textiles value chain. to low transparency on chemical use or data More evidence is needed on the effects of on employee-related health impacts. The Pulse chemicals used, in order to inform sourcing report estimates that of the fashion industry choices across the supply chain and to eliminate eliminating today’s negative health impacts due the leakage of substances of concern into to poor chemicals management in the industry the environment. It is estimated that over would have an economic benefit of EUR 7 billion 8,000 different chemicals are used to turn raw 138 (USD 8 billion) annually in 2030. 132 While a number of materials into textiles. 54

55 SUBSTANCES USED IN TEXTILES RAISE CONCERNS ABOUT ADVERSE EFFECTS DURING FIGURE 9: THE PRODUCTION, USE, AND AFTER-USE PHASES OTHING CL FIBRE USE AFTER USE PRODUCTION PRODUCTION International attention is being drawn to Eliminating substances of concern is needed the environmental and health impacts of to capture the full value of a closed-loop substances of concern used in the textiles . Rapidly eliminating substances of system industry, causing reputational risks to concern from textiles production is required to companies. Businesses working proactively enable healthy flows of materials in a circular to address the shortcomings of the current system, along with methods to remove those system – and anticipating upcoming regulations that remain in circulation from existing textiles. – can reduce risks to their reputation, and, During recycling, the presence of substances consequently, to profits. There has already been of concern has the potential to disrupt the a significant industry shift, driven by increasing recycling process and leads to the continued demands for transparency on the environmental circulation of – and therefore exposure to – costs of dyes and other chemicals used in the these substances, depending on the recycling 139 This is already a challenge that textiles industry from NGOs, governments, methods used. is seen in recycling today, as textiles which were and customers pressurising players along the placed on the market before current regulations, value chain to act. For example, following can contain significantly higher amounts of Greenpeace’s Detox campaign, around 80 certain substances of concern than virgin companies, including fashion brands, large materials, where the use of these substances is retailers, and textiles suppliers, have committed 140 This makes the material value more restricted. to the ZDHC programme to achieve greater difficult to recapture. The presence of certain transparency and zero discharges of hazardous 142 toxic substances, such as heavy metals, can also chemicals in their supply chain by 2020. hinder composting, for example, by inhibiting the bacterial growth essential to the process or by contaminating the compost, thereby 141 reducing its nutritional value. 55

56 BOX D: KEY CHEMICALS USED IN TEXTILES PRODUCTION AND PROCESSING (ADAPTED 143 FROM CHEMSEC ) Pesticides. Pesticides are used to defend crops from damage by insects, mould, or weeds. Residues of pesticides may therefore be present in cotton where they are used during farming. While a number of hazardous pesticides (e.g. mirex, endosulfan, and dichlorodiphenyltrichloroethane (DDT)) have been banned globally by the Stockholm 145 144 Convention, many are still applied to cotton crops in some countries. Solvents are used in large quantities at various stages of textiles production to Solvents. dissolve substances such as dye pigments. Many are hazardous when inhaled or if they come into contact with the skin. Solvents are used in the production of cellulose-based fibres (to extract and treat the cellulose). The viscose process, in particular, often uses 146 carbon disulphide which has been linked to numerous severe health conditions. Surfactants. Surfactants may act as detergents, wetting agents (enabling easier absorption into the material), emulsifiers, foaming agents, dispersants, softeners, and anti-pilling and anti-static agents. They are used in many stages of the production process. Commonly used surfactants include alkyl phenol ethoxylates, which are problematic because they can be metabolised, resulting in substances that are endocrine disruptors, meaning they could interfere with the hormone systems of mammals and fish. Dyes and pigments. Dyes and pigments are used to colour clothes. Some frequently used dyeing methods apply dyes in excess quantities, with large amounts being discharged into wastewater. Some dyes, including amine-containing azo dyes, are persistent, which is a desired property in fabric but not in the environment. Dyes also sometimes contain heavy metals such as lead or cadmium. Under certain conditions, some dyes break down into 147 carcinogenic compounds and others can cause allergic reactions. Plasticisers are used to soften plastics, such as polyvinylchloride (PVC). In Plasticisers. textiles, PVC is used for screen-printing designs and coating fabrics. One common group of plasticisers is the phthalates, which are used in large quantities in printing. Several phthalates have hazardous properties, including being harmful to hormonal systems and reproductive health. As phthalates are not chemically bound to the PVC used for image printing, they can leak out when worn or washed. Because of this, EU legislation, for 148 example, bans the use of certain phthalates. Water and stain repellents. Water repellence is often a desired property, especially for textiles to be used outdoors. A popular way to achieve this is by impregnating the fabric with fluorinated or perfluorinated compounds. Some of these substances contain unintended impurities, such as perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic 149 acid (PFOS). These are persistent in the environment, have the ability to bioaccumulate, 150 and are now found even in remote regions. Studies have shown that these have hormone-disrupting properties with impacts on the 151 reproductive and immune systems. Many companies are taking action to phase out these substances, yet by doing so, they often increased the use of other perfluorinated substances with a slightly different chemical structure but similar properties. For example, the alternative perfluorohexanoic acid (PFHxA) has also been found to persist in the 152 environment. 56

57 Flame retardants. Flame retardants are used to make a product less flammable. Depending on national regulations, flame retardants may be required in certain products. Examples include protective clothing, curtains, and fabrics used in furniture. Some currently used flame retardants, especially halogenated versions, have been shown to possess hazardous properties. Perfluorohexane sulfonate (PFHXS), which is used as a flame retardant, has been recommended for inclusion on the EU’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) list for restriction, due to its strong persistence and its 153 potential to bioaccumulate in the human body. Biocides. Biocides are used to prevent living organisms from thriving on clothes during storage or transport, and to give anti-odour properties to products such as sportswear. These are designed to be hazardous for the target organisms, making it a challenge to develop biocides that do not harm other organisms, including humans. Some of them, such as mould protection, can contaminate the areas where warehouse and store personnel unpack clothing and textiles, as they can be released when the packaging is unwrapped. Problematic biocides that may be contained in final textile products include triclosan, triclocarban, and nano-silver. Increasingly, concern is being raised about the possibility that bacteria can develop resistance to the released antibacterial substances and that this can 154 trigger the development of resistance to antibiotics. 57

58 BOX E: SUBSTANCES USED IN FIBRE MANUFACTURING AND TEXTILES PROCESSING RAISE CONCERNS ABOUT ADVERSE EFFECTS DURING THE PRODUCTION, USE, AND AFTER-USE PHASES OF THE TEXTILES VALUE CHAIN IMPACTS DURING FARMING AND FIBRE MANUFACTURING Production of cellulose-based fibres requires a large amount of chemicals, of which a number cause concern. Despite accounting for 2.5% of agricultural land globally, the 155 production of cotton accounts for as much as 16% of all pesticides used. Chemicals used in the production of cotton cause serious damage to the environment and have negative health impacts on farmers, with repeated cases of acute poisoning from 156 pesticides. The production of cotton also accounts for 4% of nitrogen and phosphorus fertiliser use globally, which can lead to water pollution by running off the land and into 157 rivers, encouraging algal blooms that starve the river of oxygen. Heavy chemical use is involved in making other cellulose-based fibres, in particular viscose. The processes used to make these fibres extract cellulose from trees or other plants using a 158 variety of process-specific chemicals. Without correct handling, this can cause significant problems for factory workers through direct exposure, and chemicals have been found to 159 be released in large quantities into rivers in Asia. For example, viscose production uses sodium hydroxide, which is corrosive, and direct contact can cause skin burns and eye 160 damage. In the production of viscose, the extracted cellulose is then spun into fibres using carbon disulphide, which has a number of health impacts, and, due to its volatility, easily escapes into the factory during processing. Reported impacts for workers include 161 neurological and vascular symptoms. When leaked into water, pollutants from the process present a high risk of acute aquatic toxicity, a single exposure incident can result in the 162 death of aquatic organisms. Manufacturing of plastic-based fibres poses threats to human health through substances 163 used or emitted during the manufacturing process. The manufacture of nylon, for 164 example, releases nitrous oxide, a strong greenhouse gas that also depletes ozone. Antimony trioxide is a commonly-used catalyst in the production of polyester. Where this chemical is discharged untreated through factory wastewater, it can cause harm to a range 165 of aquatic organisms. IMPACTS DURING TEXTILES PRODUCTION Various chemicals are used in textiles production, in particular for pre-treating, dyeing, washing, printing, and fabric finishing. Factory workers without personal protection equipment are often exposed to these and sometimes these chemicals are also discharged 166 into rivers in wastewater from production facilities. The Swedish Chemicals Agency (KEMI) reviewed more than 2,400 substances used in clothing manufacturing and found that approximately 30% of the identified substances posed a risk to human health, and 10% of these were functional chemicals. Functional chemicals are intended to provide a specific function or appearance to the textile, such as dyes, and are expected to remain in finished articles in significant concentrations, for 167 example, azo dyes. Some azo dyes have properties associated with an increased risk of 168 cancer and developmental defects, or are associated with an increased risk of allergy. 58

59 The Citarum River in Indonesia, frequently reported as “the most polluted river in the 169 world”, is an infamous example of the effects that a heavy concentration of textile manufacturers, not adequately treating their factory wastewater, can have. The hundreds of textile factories along the river’s banks have released lead, mercury, and other chemicals 170 into the waters. Samples taken of effluents from one of the many facilities in the area found the presence of a number of hazardous chemicals, including nonylphenol, antimony, and tributylphosphate. Water discharged from the specific facility was found to be highly 171 alkaline, which could cause burns to human skin, and have a fatal impact on aquatic life. In the last few decades more than 60% of fish species living in the river have died out, causing local residents to shift from fishing to collecting plastic debris on the surface to make a 172 living. IMPACTS DURING USE Substances of concern are not only released into the environment during textiles production, but can stay on the fabric, causing potential adverse effects during use. As garments are washed, chemicals that remain on them from production can be released into 173 wastewater or transported on microfibres which are shed and end up in the environment. This impact is amplified as microfibres can accumulate high concentrations of substances of 174 concern on their surface, and can be consumed by marine organisms. Examples of such pollutants include perfluorinated chemicals (PFCs), which have been 175 found to affect the liver and kidneys and act as endocrine disruptors; organotins, 176 which impact human development, the immune system, and the nervous system; and nonylphenol ethoxylates (NPEs). NPEs are widely used as surfactants and detergents in textiles processing, they are toxic to aquatic life, persist in the environment, and can 177 accumulate in body tissue and in the food chain. Despite regulation in some countries and regions, such as the EU, banning the use of NPEs in textiles production, imports of clothing from countries with no regulation on NPEs have been found to be contaminated by these chemicals. NPEs can break down into nonylphenol, which is a priority hazardous substance to eliminate under the EU Water Framework 178 Directive due to its negative impacts on aquatic life. The UK Environment Agency calculated that the washing of such clothing accounted for 173 kilograms of NPE emissions into water bodies in the UK during 2011, an average of 8 milligrams of NPE per kilogram 180 of textiles. 99.9% of the NPE was reported to be washed out in the first two washes. Nonylphenol tends to accumulate in the tissues of plants and animals and has also been shown to have the potential to disrupt hormones. Exposure to nonylphenol may therefore 181 interfere with breeding patterns and the reproductive success of animals. Some PFCs used for water and stain repellence degrade slowly or not at all, while others will transform into persistent substances, such as PFOA and PFOS (see Box D). These are classified as “persistent, bioaccumulative, toxic” PFCs, and cause concern when they are 182 released into the environment through washing. IMPACTS AFTER USE After use, the large majority of textiles end up in landfill or incineration. Substances of concern that are contained in the textiles, such as any remaining dyes or chemicals that have been introduced during production or use, can leak out of the textiles as they degrade 183 into the environment. KEMI estimates that the degradation of textiles in landfills accounts 184 for the release of over 2,000 tonnes of hazardous colourants in the EU each year. If the waste is incinerated without controlling emissions, the combustion gases also have the 185 potential to release substances of concern. 59

60 example, textile mills that supply a variety of 1.1.2. ALIGN EXISTING INDUSTRY retailers struggle to change chemical inputs EFFORTS TO HARMONISE 188 between batch runs. STANDARDS AND IMPROVE Harmonisation and adoption of a common RSL TRANSPARENCY and MRSL could more rapidly eliminate the Widespread adoption of collaborative industry- most hazardous substances, by simplifying the led practices that phase out substances of requests placed on manufacturers. This would concern could create rapid momentum towards have the added benefit that for smaller brands a new textiles economy, since shared supply and retailers, the manufacturers would likely chains mean that this change cannot be driven retain the same MRSL. The Zero Discharge of by one brand alone. Hazardous Chemicals (ZDHC) programme has started this process and created a common Aligning efforts towards an ambitious MRSL for the textiles industry, which has been common target state could more rapidly adopted by a group of signatories including scale adoption of restricted substances lists major brands, and textile and chemical (RSLs), manufacturing restricted substances 189 The Apparel and Footwear manufacturers. lists (MRSLs), and voluntary standards. High International RSL Management (AFIRM) industry fragmentation and low transparency Group provides a forum to advance the global on the chemicals used to produce textiles management of restricted substances in apparel, create a number of challenges in addressing and has a common RSL. Many well-known the use of substances of concern. Improving 190 brands and retailers are members of AFIRM. transparency across the supply chain would Including manufacturers in harmonisation efforts enable better sourcing decisions and help phase would support the implementation of changes. out the most polluting substances. To support the shift to a new system, there is a need for A comprehensive, transparent, and systematic a greater evidence base, especially where the screening approach needs to be taken to derive impacts of some chemicals used are unknown. RSLs/MRSLs. It is important that joint efforts Innovation towards alternative, non-hazardous do not lead to the shortest RSL/MRSL on processes for producing textiles is also crucial. which everyone can agree. Additionally, taking Policymakers will need to play a role to a grouping approach on adding substances to accelerate the transition, and the nature of this the list (e.g. all PFCs) would avoid substances role needs to be explored. from a similar chemical family, and with similar environmental or health implications, being Align restricted substances lists to used as substitutions to remain compliant with rapidly phase out the most harmful RSLs/MRSLs. Brand commitments to common substances lists created by independent organisations and experts could be key to avoiding these Substances identified as being of the highest problems. concern should be eliminated from the system as a priority. There is growing awareness of the Drive industry-led commitments issues surrounding substances of concern, which has led to the creation of RSLs – thresholds in towards guidelines to identify where the concentration of certain chemicals that are to focus innovation efforts not allowed be exceeded in finished products. Clear guidelines for chemicals that can be used 186 Larger brands often have their own RSLs, safely, with relevant information on functional and additional substances are restricted by characteristics, costs, and ecotoxological policymakers through legislation, such as the information, could empower brands and retailers 187 MRSLs go a step EU’s REACH legislation. to make better sourcing decisions, and in return further to restrict the use of specific chemicals increase demand for non-hazardous alternatives. above a certain threshold concentration from This would also help identify gaps where being used at all in the manufacturing process. innovation is needed to provide the desired functionality. Manufacturers across the value chain are having to deal with varying criteria from different The Better Cotton Initiative (BCI), which seeks sources, which can slow down the progress of “to make global cotton production better phasing out the most polluting chemicals. For for the people who produce it, better for the 60

61 environment it grows in and better for the process inputs to the system. Examples of sector’s future”, has demonstrated the speed standards that examine the use of textile 194 at which industry-led commitments can effect chemicals used in production include Bluesign, which assesses all input streams, including raw change. In 2010, BCI cotton accounted for 3.6% materials and chemicals – minimising risks for of all cotton produced globally; by 2016 this workers, users, and the environment. Another had increased to 12%. BCI had 986 members by such initiative is Oeko-Tex Eco Passport – a the end of 2016, representing brands, cotton mechanism by which chemical manufacturers suppliers, clothing manufacturers, and cotton 191 and suppliers can demonstrate that their producer organisations. products meet specific standards, as these are screened against their MRSL and RSL, as well as Improve transparency on substances 195 Certifications REACH and ZDHC guidelines. used in production processes can support increased transparency, for Brands demanding and publicly reporting full example, GreenScreen and Cradle to Cradle transparency on all inputs to their clothing can certifications require assessment and full more quickly eliminate the use of substances of 196 disclosure of the materials used in a product. concern. Brands that build strong relationships with their suppliers can improve trust and Emerging tracking and tracing technologies therefore information sharing on chemical hold promise for increased supply chain use, ensuring confidence in their supply chain. transparency by making data openly accessible Currently, chemical suppliers are not required to (see Section 3.2.3.). Such systems would allow specify the exact ingredients of their chemicals, customers to access information about some of 197 such as the composition of dyes. In a 2016 their garments, for example on their phones; report by KEMI, among the more than 3,500 ultimately, this could become expected for all chemical substances identified as potentially garments. used in textiles manufacturing, over 1,000 of them – nearly 30% – were listed as confidential Explore the enabling role of policy 192 Yet and so could not be included for analysis. To support the shift to a new system, policy increased public attention has led to a rise in plays an important role in creating the enabling transparency, as brands acknowledge that they conditions for industry-led initiatives. Policy cannot ignore the use of substances of concern could perpetuate the adoption of best practice in their supply chain. Brands and retailers beyond the first movers throughout the industry, which are transparent about and increase their use public procurement policies to drive accountability for the materials used to make demand, and step in where industry practices their products can demonstrate the health fall short. Policies at global or multinational of their supply chain, and reduce exposure level could avoid inefficiencies caused by to reputational risks. Currently, some brands differing regional policies. Individual country are seeking individual solutions to identify actions to protect citizens, such as bans on substances in chemicals used throughout certain chemical uses or imports, or production their supply chain. For example, VF Corp has practices connecting upstream design of textiles developed CHEM IQ, a chemical management with the use phase and after-use processing, programme to test for substances of concern in would need to be aligned to these multinational the chemicals used in their supply chain, so that approaches. they can eliminate their use. Their programme 193 Better understanding is needed of how manual is publicly available. policymakers can support the wider adoption of Aligning standards across the supply chain practices that phase out substances of concern. would also support greater transparency. Despite existing policy efforts, substances of Many standards exist for textiles sourcing, concern remain in large-scale use throughout production, and use. While these encourage a the textiles industry, and policy efforts face better understanding of supply chain activities significant challenges to harmonise across and traceability of materials, standards could global supply chains. In a number of countries, be simplified and aligned to support increased concerns have been raised about regulatory adoption. To make significant progress towards frameworks, knowledge gaps, the range of the phase-out of substances of concern, the substances or applications covered, and industry would need to look at improving enforcement of legislation, in addition to the 61

62 fact that existing regulations are not necessarily Public procurement offers another means aligned between different product uses or for policymakers to drive demand for non- 198 regions. hazardous chemicals or process alternatives, by specifying specific criteria that suppliers Where substances of concern are not phased must meet. For example, the EU Green Public out rapidly enough, policy could intervene Procurement (GPP) Criteria for Textiles Products through bans on specific substances. A focus and Services is a voluntary instrument, yet on groups of substances with similar properties it can guide decisions on large-scale public would have the potential to further speed up purchasing, which could help stimulate a this process. A number of policy efforts exist to critical mass of demand for more goods and reduce the risk of exposure to certain chemicals services, which would otherwise be difficult to by banning their use as well as the import of 203 Such guidelines have get onto the market. products containing them. Policy efforts could been piloted already. For example, in 2010, the seek to employ these existing platforms and French Ministry of Defence set procurement frameworks, to build clarity for the industry on criteria for the supply of 150,000 cotton all chemical regulations. For example, the EU, jerseys for its Navy. These guidelines included with its REACH regulation, already restricts the specifying the use of organic cotton and a list use of certain chemicals in textiles production of hazardous substances – such as azo dyes – such as azo dyes, perfluorooctane sulfonates and formaldehyde – that could not be used (PFOS), nickel, and certain brominated flame in the production process, or be present in 199 The use of NPEs in textiles retardants. the final product above threshold limits. This production has been restricted since 2004 and reduced the amount of substances of concern 200 will be banned from imports as of 2020. used comparative to their alternative supply of 204 Banning the use of specific substances jerseys. through policy has been shown to drive significant innovation efforts in other industries. 1.1.3. DRIVE COLLECTIVE For example, phthalates, which are used INNOVATION EFFORTS TO as plasticisers (see Box D), are becoming DEVELOP AND SCALE SAFE increasingly regulated, and a study by the Centre for International Environmental Law ALTERNATIVE CHEMICALS AND found that stricter regulations led to a large PRODUCTION PROCESSES 201 growth in patents for alternatives. Rapidly shifting to safe material cycles is a Regulatory intervention to increase reporting key action for the transition to a new textiles and transparency on chemical use could help economy. This can be achieved both through set a level playing field globally. This would the development and use of safe chemical rapidly increase adoption of safe chemical alternatives, or more innovative solutions use and support a rise in demand for better that rethink production processes to avoid products. For example, the European Apparel chemical use. As a first step, where safe and Textile Confederation (EURATEX) states chemical alternatives exist, these should replace that the European industry is at a “competitive substances of concern. The low transparency disadvantage”, because REACH authorisation and complexity of the textiles supply chain requirements do not apply to non-EU producers, will require collaboration of all actors to create therefore the lack of market surveillance fails to a common innovation agenda, to identify 202 “prevent the inflow of unsafe goods”. and focus on priority processes where safe alternative options do not yet exist. Other areas where policy could rapidly drive change include factory processes and practices. Scale up the use of safe alternative For example, enforcing strict policy for textile chemicals producers regarding effluents from processing Promising actions in the industry are facilities would address the discharge of demonstrating that it is already possible to hazardous chemicals into the environment create cost-competitive clothing while avoiding while factories transition to non-hazardous the use of chemicals that pose concern to alternatives. Policy could also be used to enforce health or the environment. Chemical producers health standards for workers to eliminate have started innovating to bring to the market exposure to harmful substances. 62

63 substances required in textiles production that In collaboration with textile mills, garment do not contain any restricted chemicals, while factories, and brands, chemical manufacturers brands and manufacturers alike are partnering have a significant opportunity to capture market 205 For example, with them to test new products. share by developing alternative chemicals chemical company Archroma has developed that meet both the health and environmental ‘Earthcolours’, a palette of dyes made from specifications of brands, as well as the agricultural waste, and which are water- and functional specifications. Matching suppliers to energy-saving, iron- and formaldehyde-free, brands seeking better process chemicals would and can replace conventional oil-based dyes for support faster adoption of their use and result 206 Chemical manufacturer cellulose-based fibres. in an overall reduction in the costs of bringing DyStar has produced a range of dyes that have these safer chemicals to the mass market. Tools Cradle to Cradle Gold certification, and have are emerging to help facilitate this process and been used in a large-scale pilot with clothing open up information to those smaller players retailer C&A (see Case Study A). Beyond that do not have the financial resources for Surface Technologies seeks to “either fully or certifications. Examples include the Chemsec significantly replace synthetic crude oil based Marketplace, which can be accessed for free, raw materials with renewable ones” and has helps textile producers search for safe chemical developed a durable water repellent that substitutions, and matches them with relevant 209 207 Similarly, the ZDHC Chemical Algae-based dyes may does not use PFCs. suppliers. Gateway provides information on how particular offer an alternative to traditional textile dyes chemicals in the marketplace conform with the as demonstrated, for example, in the EU Life 210 ZDHC MRSL. project Seacolours and by designers Blond & 208 Bieber. Further demonstration projects are needed to showcase successful use of these alternatives and create momentum to scale up the use of these better chemicals. Innovation is also needed to create process chemicals, including dyes, that are not hazardous from the start, yet which meet functional specifications. 63

64 CASE STUDY A: C&A CRADLE TO CRADLE GOLD CERTIFIED T-SHIRTS In June 2017, European fashion retailer C&A introduced the world’s first Gold level Cradle 211 to Cradle (C2C) Certified fashion garments. To achieve this level of certification, C&A collaborated with Fashion for Good, a global partnership launched with an initial grant by founding partner C&A Foundation. Two Indian-based garment manufacturers, Cotton Blossom and Pratibha Syntex, joined the project and produced the garments, as a collection 212 of two styles of ladies’ T-shirts. Cradle to Cradle Certified is an independent, third-party verified certification programme that assesses products and materials for safety to human and environmental health, design 213 for future use cycles, and manufacturing methods. The C&A T-shirts achieved C2C Gold level – the second highest level – overall, and also met the highest Platinum requirements for material health, renewable energy, and water stewardship. The Platinum material health level means that no substances of concern are present in these products or used in the final stages of production, including the dyeing process. In addition, the cotton used is certified organic, so no synthetic pesticides or fertilisers are used during cotton growing. The T-shirts are available in 18 different colours and offered in Europe at prices of EUR 7 and EUR 9 (USD 8.3 and USD 10.7). The shirts are made from pure organic cotton, including labels and threads, which supports easier recycling, with no need to separate out different 214 materials. The use of renewable energy, and the reuse of water in the factories further reduces the overall environmental impact of production. During the development process, C&A had to find dyes that would meet the C2C Certified material health standards. To achieve this, the company worked together with dye manufacturer Dystar to develop a colour palette of over 100 different shades from eight 215 primary C2C Certified dyes that were already available on the market. When the T-shirt can no longer be worn, and no easy recycling options exist, it can be composted in home-composting units and will decompose in less than 12 weeks. At the moment, the T-shirts are not suitable for municipal composting or community organic 216 waste bins due to acceptance criteria. C&A sees the launch of the first Gold level C2C Certified T-shirts as a first step and intends to offer more C2C Certified products in their future collections. deliver this functionality, formaldehyde is Develop processes and materials that often applied, a substance that is classified as avoid using substances of concern carcinogenic to humans by the International Collaboration between innovators, fibre Agency for Research on Cancer and linked producers, chemical suppliers, textile mills, and 217 Materials to allergic contact dermatitis. brands is needed to drive faster solutions to and chemicals innovation could seek a avoid the use of substances of concern. This solution for crease-resistance without the could include developing alternatives to replace use of formaldehyde and other substances substances of concern as well as innovative of concern. However, care must be taken to processes that dramatically reduce or avoid the avoid ‘regrettable substitutions’ that do not use of harmful chemicals. 218 consider other potential negative impacts. Screening of existing chemical catalogues to For example, an alternative being developed eliminate priority substances and to create in response to banned chemicals used as guidelines could identify areas where innovation durable water repellents uses palm oil as a is needed to provide the same functionality, replacement, leading to new challenges for the yet without the use of substances of concern. environment related to deforestation for palm 219 An example is the treatment of textiles to oil production. make them ‘non-iron’ or crease-resistant. To 64

65 Innovation in textile production processes farm itself. Other benefits include greater yield should aim to provide desired properties for stability, higher quality crops, reduced water textiles, without using substances of concern. usage, and increased carbon sequestration in 225 Promising innovations are emerging to reduce the soil. the negative impacts of traditional ‘wet Progress is already being made towards processing’. Waterless dyeing solutions and improved cotton production, but uptake of chemical-free technologies would eliminate fully regenerative methods is low. Certified toxic wastewater discharge during the dyeing organic cotton, which bans inputs of synthetic process. Existing examples of innovation in fertilisers and pesticides, represents less than dyeing technologies range from 90% lower 226 while Better 1% of the global cotton market, water consumption (such as AirDye for plastic- Cotton Initiative (BCI) cotton, which reduces based material and ColorZen for cotton) 227 these inputs, accounts for roughly 12%. to entirely waterless solutions, free from Long-term relationships and collaboration with substances of concern (such as DyeCoo for suppliers could help many farmers who do not 220 synthetic material). have the resources needed to make the shift to regenerative methods. Such a shift can take 1.1.4. MOVE TO REGENERATIVE significant time and might need new capital and financing mechanisms. Indeed, CottonConnect AGRICULTURE points out that connecting farmers to buyers A significant opportunity exists to transition willing to pay a fair price for cotton is the “long- to the use of regenerative methods in term solution to address poverty and create agriculture. These methods can include, 228 resilient rural communities”. for example, organic farming, no-till, and 221 To generate maximum soil restorative grazing. Initiatives such as BCI and Cotton Made in Africa regeneration, and therefore land productivity (CmiA) promote and share agricultural practices and farm profitability, several of these methods that reduce the use of pesticides, preserve soil are often combined. A regenerative agricultural health, and improve the health of farmers. These system preserves the integrity of a farm’s practices yield significant reductions in the natural ecosystem, increasing its health, negative environmental and societal impacts 222 229 In particular, no biodiversity, and resilience. One trial in of conventional cotton farming. toxic substances are used, nutrient losses are Pakistan found that these practices reduced 230 minimised, and soil health is not only preserved the use of pesticides by approximately 32%. but enhanced. Regenerative farming avoids Instead of a third-party certification that farmers the negative health impacts associated with pay for, brands take the cost by paying a pesticide and fertiliser use, such as groundwater membership fee, making it more economically 231 pollution and pesticide poisoning – the effects While of great accessible to small farmers. of which can include headaches, vomiting, benefit, this harm reduction approach has its lack of coordination, difficulty breathing, loss limits. In a new textiles economy the expertise, 223 Since of consciousness, seizures, and death. networks, and financing arrangements of these the cost of pesticides can represent a huge or other initiatives could be extended and share of total production costs – as much as enhanced to stimulate the transition to a fully 224 60% for small-scale cotton farmers in Africa regenerative agricultural system to grow the – regenerative methods could also present a crops used to manufacture textiles. significant opportunity for farmers to reduce costs, and increase their control over them since inputs such as fertiliser are generated by the 65

66 (see Box F). In recent years, microfibres have 1.2. Drastically reduce been identified as a major contributor to this 247 A paper by Dr Mark problem (see Figure 10). plastic microfibre Browne from the University of California brought significant attention to the issue of microfibres, release reporting in 2011 on microfibres found on beaches and that the vast majority of those Each year, trillions of microfibres are released matched the types of material, such as polyester into the environment due to the washing of 248 According to and acrylic, used in clothing. textiles, with most of them ultimately ending estimates, 35% of primary microplastics entering up in the ocean. The presence of plastics in the ocean are released through the washing the environment is a growing concern due 249 The actual number of microfibres of textiles. to their negative impacts on ecosystems released from washing clothes is difficult to and human health. In recent years, plastic measure, and estimates vary widely sometimes microfibres from the washing of plastic-based by orders of magnitude, depending on the fabric textiles, such as polyester, acrylic, and nylon, 250 George Leonard, and methodology used. have been identified as a major contributor Chief Scientist for The Ocean Conservancy, has to this problem. In a circular textiles system, estimated that there could already be the release of plastic microfibres must be 251 1.4 quadrillion microfibres in the ocean. eliminated or its negative impacts removed. A systemic understanding and fundamental MICROFIBRES FROM THE WASHING FIGURE 10: rethink of the materials used to make textiles, OF CLOTHES ENTER THE OCEAN AND FOOD and of the processes used in production, CHAIN will be needed in the transition to a healthy textiles system. Two key actions have been identified to drastically reduce plastic microfibre release: develop new materials and production processes to design out microfibre shedding, and increase the effectiveness and scale of technologies that capture the microfibres which are unavoidably released. 1.2.1. MICROFIBRES RELEASED FROM TEXTILES CONTRIBUTE TO THE GROWING AMOUNT OF PLASTIC POLLUTION IN THE OCEAN The growing evidence base on microplastics highlights the numerous potential negative impacts of plastic microfibres in the ocean. Microplastics in the ocean cause concern due to their negative environmental and health impacts 66

67 BOX F: MICROPLASTICS IN THE OCEAN – DEFINITIONS AND IMPACT (ADAPTED FROM 232 IUCN) Microplastics are tiny pieces of plastic. The definition of their size varies Microplastics. in different studies, however most commonly they are defined as 5 millimetres at their 233 largest, though some sources define the size of a microplastic as 1 millimetre or 234 smaller. Primary microplastics. Microplastics in the ocean are called primary microplastics if they are directly released into the environment at microplastic size. They can either be produced deliberately, for example, scrubbing agents in toiletries and cosmetics, or originate from the abrasion of large plastic objects such as the erosion of tyres when 235 driving or the abrasion of synthetic textiles during washing. Note that some sources 236 only include the former in their definition of primary microplastics. Microplastics in the ocean are called secondary microplastics Secondary microplastics. if they originate in larger plastic items that are released into the environment and then degrade into smaller plastic fragments (microplastics) in the marine environment. Their main source is usually mismanaged plastic waste entering the ocean. 237 Microfibres. Microfibres are very short textile fibres (less than 5 millimetres long). Microfibres from plastic-based textiles (plastic microfibres) are a type of microplastic and are released as primary microplastics during washing. IMPACT OF MICROPLASTICS IN THE OCEAN The contamination of marine environments with plastic is associated with various 238 negative economic, environmental, and societal impacts. It has been estimated that, on the current track, there could be more plastics than fish in the ocean (by weight) by 239 2050. Plastics in the ocean are either larger pieces of plastic or microplastics. While large plastic waste and some of its associated negative impacts (e.g. through ingestion, injury, entanglement, or suffocation of wildlife) are easily visible, microplastics are largely invisible to the naked eye and the potential negative impacts are less obvious. However, studies have shown the negative impacts of these small plastic particles, mainly 240 due to them being digested by aquatic organisms throughout the food chain. Ingestion of microplastics has been demonstrated to cause starvation and stunted growth in some species, and to have the ability to release substances of concern by breaking down in the 241 digestive system. One study estimates that an average European shellfish consumer 242 eats as many as 11,000 microplastic particles per year through their diet. Microplastics additionally have the potential to accumulate substances of concern on their surface, meaning these substances can concentrate in the bodies of larger animals. Microplastics have also been found in other products consumed by humans, such as beer, honey, salt, and sugar, although the source and the contribution of textiles still needs further 243 investigation. It is estimated that between 1.8 and 5 million tonnes of primary microplastics are released into the environment every year. About half, between 0.8 and 2.5 million tonnes per year, is estimated to end up in the ocean. While estimates vary, this means that between 15% and 31% of all plastics released into the ocean (from both primary and secondary sources) 244 could come from primary microplastics. This ubiquitous contamination of the ocean by microplastics, without a clear understanding of the long-term impacts, is becoming a major concern. Given the magnitude of this global ocean contamination, some refer to the current period of human 245 activity not as the Anthropocene, but as the Plasticene, and describe the world’s ocean 246 as a ‘plastic soup’. 67

68 In terms of weight, according to recent commissioned research into tracking plastic- estimates, washing of textiles causes around based fibres from source to release in the 258 Independent research is also ongoing, half a million tonnes of plastic microfibres to ocean. 252 This for example, to better understand mitigation be released into the ocean every year. 259 or to is equivalent to the total weight of almost 3 measures at the production stage, 253 If the textiles industry develop standard tests to measure microfibre billion polyester tops. continues to grow at the current rate, the release that would enable better comparison of 260 Given the variability in research results accumulated weight of plastic microfibres efforts. to date, further work is needed to build a robust entering the ocean between 2015 and 2050 evidence base that enables focused action to would exceed 22 million tonnes (see Part I, address the challenges of microfibre release. p.39). The Outdoor Industry Association has already Current wastewater treatment does not prevent begun to assemble a catalogue of the different microfibre release into the environment. Up to efforts in this area, to identify the data gaps that 40% of plastic microfibres escape wastewater still remain and raise awareness of the microfibre 254 and even those that treatment plants, 261 issues within the industry. are captured often ultimately end up in the However, to rapidly address microfibre environment through leakage from landfills or 255 pollution, the entire industry must come sewage sludge being applied as fertiliser. together, first to identify key sources and Action to address the issue of microfibre then to create a system-level solution. The Despite the release has been slow to date. European Outdoor Group Microfibre Consortium growing awareness and evidence base, no is taking the first steps towards a concerted changes in material choices or garment effort, bringing together outdoor brands production are yet being seen at scale. and yarn manufacturers, to develop reliable Microfibre pollution presents potentially and repeatable test methods for measuring significant reputational risks for retailers. microfibre release from textiles and to work Building on the momentum of the investigation towards concrete solutions. The consortium’s into pollution on beaches by Professor Richard aim is that by sharing information, a solution Thompson at Plymouth University in 2004, that benefits the entire industry can be reached and more recently by Dr Mark Browne from 262 more easily. the University of California in 2011, research is increasingly strengthening the link between 256 1.2.2. DEVELOP NEW MATERIALS microfibre pollution and textiles. AND PRODUCTION PROCESSES Better understanding of the sources of TO DESIGN OUT MICROFIBRE microfibre pollution will continue to inform the solutions to address microfibre losses SHEDDING While the case and identify innovation gaps. While the capture of microfibres has been the for action is clear, further research is needed focus of efforts to date, eliminating their release to build an evidence base on the causes of in the first place by changing how clothes are microfibre pollution and the impacts of different designed and made, is less explored. Where fabric types and their production processes. alternative materials with similar properties Given its reliance on plastic-based fibres and exist, this change could be achieved by a customer base that enjoys being outside in avoiding plastic-based fibres. Where such nature, the outdoor clothing industry has so direct replacements are not feasible, it could be far been the most motivated to respond and achieved by creating new materials or adapting investigate the sources of microfibres to seek existing ones, or developing production better solutions. processes that avoid microfibre shedding downstream. Brands across the clothing industry are taking individual action. For example, outdoor clothing Develop the evidence base on the brand Patagonia is investing in research to causes of microfibre shedding increase understanding of the sources of these fibres, the consequences that they might have, A study conducted by researchers at Plymouth 257 Canadian retailer and the potential solutions. University has determined that the quantity of MEC and outdoor apparel brand Arc’teryx have fibres shed from a garment can be affected by 68

69 263 the washing process and fabric type. Building innovation). With increasing awareness of the a better evidence base and understanding in microfibre pollution problem within the industry, the industry of the causes of microfibre release there are many opportunities for research and would focus actions and highlight the areas development to ensure that when creating new where innovation is needed to address the materials, microfibre release is designed out challenge. Research to inform the creation of from the start. a textile engineered not to shed microfibres is being conducted by innovator Biov8tion in its 1.2.3. INCREASE THE 264 “Don’t feed the fish” campaign. EFFECTIVENESS AND ADOPTION OF TECHNOLOGIES THAT Develop better production processes CAPTURE MICROFIBRES Opportunities exist to reduce the shedding of WHEN THEY ARE RELEASED microfibres from clothing by changing the way textiles are made. The research programme UNAVOIDABLY Mistra Future Fashion reports that reducing Efforts to redesign textile materials and garment brushing (which is used to create surfaces production processes will ultimately be key to such as fleece) or replacing traditional cutting designing out the release of plastic microfibres methods with ultrasound or laser cutting could into the environment. Despite this, such a 265 reduce the number of microfibres released. transition will take time, and in the medium Mermaids – a European Life+ project – carried term existing materials will continue to shed out research to understand the reasons for microfibres. It is critical that effective solutions increased microfibre shedding and suggested are put in place to capture those microfibres that material characteristics introduced during when they unavoidably leak out. Actors across the production processes could be responsible the value chain have a part to play in creating for greater shedding of microfibres during a significant reduction in microfibre release 266 Material design such as fibre laundry. overall. length, yarn spinning, weaving, and dyeing Technologies exist to reduce microfibre processes are all suspected to have an impact 267 leakage during washing, yet face adoption Additionally, the use of on microfibre loss. challenges. Entrepreneurs have responded to coatings has also been shown to be able to 268 the microfibre challenge by creating laundry reduce microfibre losses by up to 50%. 270 and accessories (such as Guppy Friend 271 ) that contain the clothing or sit in CoraBall Innovate to replace microfibre- the washing machine to capture microfibres shedding materials during the wash. In addition, washing machine Plastic-based fibres represent 60% of the filters that are able to catch microfibres clothing market today and it is unrealistic to are available on the market, such as one assume that these could all be eliminated from 272 but are currently developed by Wexco, the material stream in the medium term, as they 273 As washing expensive and difficult to install. deliver properties which cannot currently be machines are currently not equipped with replicated, especially for technical and high- 274 immediate progress in this area such filters, 269 Certain products, performance clothing. would require the effort to retrofit millions of such as fleece, have so far been the focus of washing machines already in use. Incorporating studies investigating microfibres, and have filters with very small pores could also have been identified as releasing significant numbers implications on detergent use if this cannot of them and, therefore, may represent good pass through the filter, resulting in it getting candidates for innovation. In the long term, 275 Once captured, the best way of blocked. there is a need to radically rethink the materials disposing of the collected microfibres also used and to phase out those materials that needs to be addressed, since sending them to cannot be prevented from losing microfibres. landfill could ultimately still lead to them leaking This will likely involve designing new materials out into the environment. To be effective at from scratch that are either biodegradable or do reducing microfibre release, further efforts are not shed microfibres, and which have properties needed to overcome these challenges and build needed for high-performance applications understanding of how to create large-scale (see Section 4.3.3 for examples of material uptake of such technologies. 69

70 Adoption of technologies to capture contribute 2% of the total releases of primary microfibres from wastewater is a necessary yet microplastics in the ocean, compared to 35% . Wastewater treatment plants interim solution for microfibres from the washing of plastic- 280 – growing public concern play a critical role in the fate of microfibres in based textiles and legislative action in some countries have the environment, yet even the most advanced motivated the cosmetics and body care industry treatment systems can only capture 90% of 276 However, even when microfibres to dramatically rethink their products and fibres at best. are completely removed from the discharged eliminate plastic microbeads (the small pieces water, they still have the potential to find their of plastic used in many cleansing products 281 Even way into the environment during the disposal such as exfoliators and toothpastes). though the direct equivalent to this – banning all of sewage sludge, as this sludge is increasingly 277 plastic-based fibres for clothing – is not realistic applied to land as a soil supplement. Further innovation in treatment processes and today, this indicates that growing attention to investigation of investment options are needed the microfibre issue could lead to action from to scale effective capture of microfibres, which policymakers. will help reduce leakage in the medium term, yet Various other stakeholders can play a part in it is unlikely to solve the overall problem. reducing the release of plastic microfibres. The role of policy to support the rapid Collaborative action is needed across the adoption of technologies to reduce microfibre whole industry to create system-level change. release should be explored. Policymakers could Research has indicated that there is a role support the uptake of technologies related not only for garment producers, but also to the capture of microfibres. Regulatory for washing machine producers, detergent efforts have not yet included the treatment manufacturers, and waste management service of microfibres. For example, in the EU there providers to have an impact on reducing the is currently no regulation that specifically release of microfibres into the environment. addresses the release of microfibres by textile The Mermaids project highlights that washing washing processes, nor are microfibres included practices and detergents affect the number of 282 278 although This suggests in the Water Framework Directive, microfibres lost during a wash. consultations on microplastics release, including that collaborative initiatives on better labelling 279 of care and washing instructions to promote microfibres, have started in the EU. washing practices that minimise microfibre loss Legislative action in the form of bans has could play a role. been successful in other areas of primary microplastics. For microplastics included in cosmetic products – which are estimated to 70

71 71

72 2. Transform the way clothes are designed, sold, and used to break free from their increasingly disposable nature 72

73 2. TRANSFORM THE WAY CLOTHES ARE DESIGNED, SOLD, AND USED TO BREAK FREE FROM THEIR INCREASINGLY DISPOSABLE NATURE Designing and producing clothes of higher quality and providing access to them via new business models would help shift the perception of clothing from being a disposable item to being a durable product. Increasing the number of times clothes are worn could be the most powerful way to capture value, reduce pressure on resources, and decrease negative impacts. For example, if the number of times a garment is worn were doubled on average, GHG 283 Globally, customers miss out on emissions would be 44% lower. up to USD 460 billion each year by throwing away clothes that 284 they could continue to wear. To disrupt the current linear pathway for clothes, new models to access and maintain clothes are essential. Models that are not centred on ownership are needed to address fast-changing needs and styles (e.g. clothing rental). Models that explicitly offer high quality, great fit and additional services are needed to respond to segments that value durability (e.g. sales with warranties, clothing-on-demand, clothing resale, or repair services). Economic opportunities already exist for many of these models, and brands and retailers could exploit these through refocused marketing. These models would also lead to the design and manufacture of clothes that last longer, which could be further supported by industry commitments and policies. This leads to three key actions that could start the shift away from a throwaway culture for clothes: scaling up short-term clothing rental; making durability more attractive; and increasing clothing utilisation further through brand commitments and policy. 73

74 In the current system – a linear economy 2.1. A variety of based on traditional sales – this complex web of motives is mostly answered by selling new approaches is needed clothes. The current system is leading to ever lower clothing utilisation rates (see Box G) and due to people’s there is evidence that excessive shopping is complex relationship becoming a concern for many people in certain regions, as it is failing to meet their needs and with clothes 286 desires. In a new textiles economy, a diversity of People’s relationship with clothing is particularly sales and service models for different types complex. People wear and purchase clothes of clothing would satisfy customers’ needs for a variety of motives (see Figure 11). In and wants while ensuring high utilisation addition to practical motivations such as rates. There is no one-size-fits-all solution to warmth, clothing fulfils more subtle emotional accessing clothes in a new textiles economy. and societal desires, such as the expression Instead, a range of options would be on offer of identity and the demonstration of values. to match the various customer types (see The act of purchasing clothes can also be an Figure 12), alongside an increased emphasis on experience in itself (sometimes called ‘retail 285 the durability of clothes from the outset. The ). It is essential to recognise clothing’s therapy’ desire for novelty and variety would be met role as a satisfier of human needs in a societal by a vibrant rental market and an appealing context to ensure that this role can be enhanced resale market, offering flexibility and choice for by a new textiles economy. users and new opportunities for businesses. The need for long-lasting garments would be FIGURE 11: THE RELATIONSHIP BETWEEN PEOPLE AND CLOTHING IS COMPLEX AND met by offering quality guarantees and repair INFLUENCED BY A NUMBER OF MOTIVES services for new purchases. A single individual might belong to various customer types simultaneously, and choose a different model depending on the nature of clothes sought and the specific situation. Figure 13 illustrates how PR ACTICAL SOCIAL TIONAL EMO MO TIVES MO TIVES TIVES MO the combination of various sales and service models could satisfy all typical customers’ traits At purchase: purchase: At purchase: At e, bar gain, co nvenienc e shopping, leisur ‘retail ther ap y’, and types. When implementing such models, an clothes r eplac ement experienc e, social rd, uniqueness, rewa pressur e, gifts brand lo yalty overall strategy aimed at high utilisation rates earing: For w would be needed, reflected across product otection, warmth, pr earing: For w earing: For w omfort function, c demonstr ate values expr ess identity , look 287 design, business models, and marketing. and status, f ashion, onfidenc e, fantastic, c ed fitting in, be ador joy, meaning, v alues More research is needed to support the successful implementation of new models. Since different clothing segments and customer types have distinct needs, and there are regional differences, a variety of approaches have the potential to increase clothing utilisation. In some cases, for example, quality labelling in sales models could be successful, while in others, new business models could be the answer. While for some of the models discussed in this Source: Non-exhaustive collection of motives, based on a varie- Sustainable fashion and ty of sources, for example, Fletcher, K., chapter the business case is imminent, a better textiles: Design journeys , second edition (2014); Shaw, D. and understanding of which models work best for Fashion buying: From trend forecasting to shop Koumbis, D., (2013); Greenpeace, floor After the binge, the hangover: Insights which customer types and clothing segments into the minds of clothing consumers (2017); and Armstrong, is still needed. Research is also required to fully C.M., A use-oriented clothing economy? Preliminary affirmation understand the size of the respective markets in (2016) for sustainable clothing consumption alternatives different regions, so that the appropriate models can be adopted for each area. 74

75 VARIOUS CUSTOMER TYPES EXIST, WITH DIFFERENT NEEDS FROM THEIR CLOTHING FIGURE 12: AVOID BARGAIN Tries to avoid clothes shopping Shops infrequently for Seeks out bargains Shops in sales, attracted by clothes purchasing mainly for replacement items, shops promotional offers, buys second hand, goes to designer outlets, online, does not browse and warehouse sales, sources vouchers heads straight for required item, abandons store if queue to pay and deals on the Internet is too long STAND-OUT CELEBRITY Aims to look like a celebrity Wants to stand out from the crowd Reads celebrity gossip Buys from independent stores and magazines, is attracted to boutiques, makes an effort to seek stores and websites that contain celebrity fashion trends, would out new trends and ideas, makes own clothes or customises, shops queue to purchase special collections in street markets FITTING IN ENVIRONMENT Wants to fit in and Cares about the environment belong to a group Tries to buy from ethical fashion Buys similar style to friends, brands, tries to find uses for connects to peers via social their unwanted items, does not media, shops where friends shop, buy ‘fast fashion’, likes smaller fits their personal style with local fashion labels chosen ‘tribe’ (2013), p.126 Source: Shaw, D. and Koumbis, D., Fashion buying: From trend forecasting to shop floor 75

76 FIGURE 13: IN A NEW TEXTILES ECONOMY, A RANGE OF OPTIONS WOULD BE ON OFFER TO MATCH THE VARIOUS CUSTOMER TYPES AL SHORT-TERM RENT SHORT-TERM RENT AL SHORT-TERM RENT AL DUR D D UR UR ABLE CL ABLE ON ABLE HIGHL H H I G AL AL I G AL HL C RIPTI HL C L C Y Y OTHES L O Y RENT RENT O THES RENT THES SUBS SUBSCRIPTION SUBSCRIPTION BARGAIN FITTING IN ST AND OUT RES ALE RES ALE ALE R ES AL SHORT-TERM RENT AL SHORT-TERM RENT SHORT-TERM RENT AL DUR DUR D UR ABLE CL ABLE CL ABLE ON HIGHL HIGHL H L I AL G A AL HL C RIPTI Y L C Y Y OTHES OTHES O RENT RENT RENT THES UBS SUBSCRIPTION S SUBSCRIPTION CELEBRITY ENVIRONMENT AV OID S E R E AL RES ALE R E S AL E CLOTHING EXAMPLES ACCESS MODEL TYPE DESCRIPTION SEGMENT Customers pay a monthly fee to have a fixed number of garments ‘Fast fashion’ YCloset, Kleiderei, on loan at any one time and get items, all types of Gwynnie Bee frequent outfit change clothing RENTAL (see Section 2.2.1) SUBSCRIPTION Baby and children’s clothes, Customers rent garments for one- Occasion wear hire, maternity wear, off occasions and needs Vigga, Rent the formalwear, Runway (see Sections 2.2.2 and 2.2.3) sportswear, luxury RENTAL items SHORT-TERM Customers specifically select high-quality, durable garments that Staples, non- come with a warranty, an increased Patagonia, Houdini, seasonal styles, personalisation, and that can be MUD Jeans workwear, intimate easily repaired. wear SALE OF CLOTHES (see Sections 2.3.1 and 2.3.2) HIGHLY DURABLE Customers buy garments that have Renewal Worshop, been used by others beforehand Filippa K, ThredUp, All types of and could have been refurbished/ second-hand stores clothing renewed RESALE (see Section 2.3.3) 1 An ‘access model’ is considered here as a business model for people to get access to clothes Non-exhaustive illustration based on Circular Fibres Initiative research Source: 76

77 BOX G: CHANGE OF CLOTHING UTILISATION OVER TIME FIGURE 14: AVERAGE NUMBER OF TIMES A NEW GARMENT IS WORN (INCLUDING REUSE WITHIN EACH REGION) A US 250 China 200 EU-28 World 150 100 50 0 7 3 2 11 13 12 15 16 14 10 20 20 20 20 20 20 20 200 200 200 2008 2005 2006 2004 2009 Source: Circular Fibres Initiative analysis based on Euromonitor International Apparel & Footwear 2016 Edition (volume sales trends 2005–2015) THE WORLD HAS SEEN A DRAMATIC DECLINE IN CLOTHING UTILISATION IN THE PAST DECADES. Worldwide, clothing utilisation – the number of times a garment is worn before it ceases to be used – has decreased by 36% compared to 15 years ago. This is exacerbated by utilisation rates in emerging economies tending towards the low rates of high-income countries. In China, for example, the average number has descended from over 200 wears to just 62, now lower than in Europe (see Figure 14). The transition process towards new business models of clothing provision will vary depending on region, income levels, and current clothing consumption trends. For mature markets, such as Europe and North America, the key challenge is to increase clothing utilisation rates and reverse the trend of clothing being seen as disposable. In some developing markets, where clothing utilisation is still high, the challenge is to maintain these rates as incomes rise and the middle class expands. Therefore, the business models proposed in this chapter are relevant to both mature and developing markets. Some clothing categories are driving this trend more than others, and require greater attention. For example, utilisation of skirts and dresses has dropped twice as much compared to women’s tops, representing 3% and 4% of unit sales volumes, respectively. Utilisation of nightwear has nearly halved in the last 15 years (see Figure 15). In some categories, the trend might reflect a cultural change in style or an adoption by more people, while in others it might indicate a decrease in physical durability or a trend to use items less often. In particular, hosiery, which represents more than 20% of sales units and is less likely to be affected by style, has seen a significant utilisation decrease. 77

78 FIGURE 15: EVOLUTION OF CLOTHING UTILISATION PER SEGMENT, EXPRESSED AS A PERCENTAGE OF UTILISATION IN 2002 Wo n's tops me 100% tw gh Ni r ea irts an d dr ses Sk es 80% Ho siery 60% 40% 20% 0% 2011 2013 2012 2015 2016 2014 2010 2007 2003 2002 2005 2008 2006 2009 2004 Source: Circular Fibres Initiative analysis based on Euromonitor International Apparel & Footwear 2016 Edition (volume sales trends 2005–2015) UK data suggests 26% of clothing is disposed Scale up short- 2.2. of because the owner does not like it anymore (see Figure 16), so fashion subscription rental term clothing rental models could meet the needs of this sector (Section 2.2.1). Additionally, 42% is disposed Rental models can provide customers with of because it no longer fits, opening up access to a variety of clothes while decreasing opportunities for short-term rental to resolve the demand for new clothing production. this problem (Section 2.2.2). An additional Short-term rental models offer a compelling segment is characterised by the portion of value proposition, particularly for segments people’s wardrobes allocated to items only used where clothing users have shorter-term needs, on specific occasions, such as formalwear and changing practical requirements, or fast- sportswear – again, a rental model could be evolving fashion preferences. deployed here to meet these short-term needs Various segments of the clothing market are (Section 2.2.3). suited to different rental model propositions. 78

79 FIGURE 16: REASONS FOR DISPOSAL/ Subscription models are already disrupting the DONATION/SALE OF CLOTHING IN THE UK market, with brands such as Le Tote, Gwynnie Bee, Kleiderei, and YCloset. This demonstrates 6% that there is a willingness to pay monthly OTHER 7% subscriptions for clothing, with YCloset in China T DIDN' NEED securing a USD 20 million investment to scale ANY 291 MORE Another successful model up in March 2017. is Rent the Runway, initially set up for online short-term rental of clothing for occasion wear 19% GED, MA DA 42% and high-end luxury garments, which expanded STAINED, DIDN'T FIT to include a monthly rental subscription model LOST SHAPE OR ANY MORE WORN OUT 292 in 2016. Subscription models offer several advantages for brands. Subscription services help create brand and product exposure, develop a 26% DIDN'T LIKE closer and potentially long-lasting customer ANY MORE relationship based on loyalty, and provide a consistent revenue stream. Rental can also enable companies to gather valuable customer information directly, and to improve products Source: WRAP, SCAP textiles tracker survey and services through feedback loops. This (2016) can include product reviews, more detailed real-time information on what customers Existing businesses prove that rental models can want, and potential areas of dissatisfaction be profitable in certain clothing segments, and such as sizing, styling, or comfort during use, that the financial opportunity could be captured as well as information about product wear more widely. However, many customers still and tear. This information can then feed into need convincing, and existing rental models 289 product manufacturing improvements to boost Brands are not always financially attractive. durability. Already, traditional retailer French could use their vast marketing experience and Connection has partnered with subscription capacity to make clothing rental an attractive start-up Le Tote to access such data, leading to and ‘fashionable’ option. Introducing rental changes in their sizing guidelines and improved models gives brands an incentive to design 293 design-for-durability in some garments. for durability, as lower rental prices and higher margins could be achieved if a product is cycled Customers could benefit from a better ten times, for example, rather than two or three. experience and more variety. Subscription models offer a compelling advantage for some customers, allowing them to access the evolving 2.2.1. OFFER SUBSCRIPTION trends they desire without having to buy new MODELS FOR CUSTOMERS clothes frequently. The model also ensures that DESIRING FREQUENT OUTFIT customers avoid clothes taking up wardrobe CHANGES space after being worn only a few times and Subscription models allow customers to pay a alleviates them of the burden of disposal after flat monthly service fee to have a fixed number use. If clothing rental is made into a stress- of garments on loan at any one time. These free, convenient, and rewarding experience, models can provide an attractive offering for brands could tap into the fact that experiential customers desiring frequent changes of outfit, purchases tend to provide more positive 294 as well as an appealing business case for emotions than purchases of material goods. retailers. The move to online shopping suggests This is in line with the general trend of the there is a significant portion of customers with millennial generation to prefer access to, rather 295 rapidly changing fashion demands, who put For example, than ownership of, products. low value on the physical shopping experience some customers in China are becoming more itself. For these customers, short-term rental or selective about their spending, allocating subscription models can provide an attractive more of their income to lifestyle services and 296 – and often more cost-effective – alternative to YCloset experiences rather than products. buying new items. is riding the wave of popularity for sharing 79

80 economy services in China, gaining customers Rental models for baby clothes and maternity in over 100 Chinese cities since their app wear have already been successfully launched in 2015. They target mid-market urban introduced. The Danish company Vigga, customers who want to access variety and a established in 2014, allows parents to access fresh look, but who lack the budget to buy mid- high-quality baby clothing for a fraction 297 range or luxury clothing. of the cost of buying new, with bundles of 20 appropriately sized baby clothing items A rapid shift towards subscription models will provided at a time through a subscription require further marketing efforts, making use service. By increasing durability, centralising of brands’ marketing expertise and experience, washing and quality control, and streamlining and learning from sharing economy successes operations through RFID (Radio Frequency Rental of clothing is not in other industries. Identification) tagging, on average Vigga currently the norm, and not everyone might circulates their baby clothes to five families initially be open to this model. Survey data from before they are visibly used and go into Germany, Poland, Sweden, and the US suggests recycling, and they are working on increasing that just over 40% of customers could “imagine 303 Similar services have emerged this number. 298 using fashion rental”. in other countries, for example Tale Me in 304 This suggests that some convincing might be Subscription services have also Belgium. needed to scale up subscription models. With been introduced for pregnant women through their vast marketing experience in traditional companies such as Borrow For Your Bump, sales models, deep expertise, and capacity, attempting to better address a woman’s needs 305 brands are in a good position to make clothing for maternity wear. rental an attractive and ‘fashionable’ option. Lessons from existing subscription models in 2.2.3. SCALE RENTAL MODELS the fashion industry as well as sharing models FOR GARMENTS FOR ONE-OFF in other sectors could usefully be applied. For OCCASIONS AND NEEDS example, subscription box businesses, such as StitchFix’s monthly clothing and styling There are substantial opportunities in one- subscription service, are becoming a trend in off rental services of clothing for special 299 These businesses often make use of the US. These can offer occasions, luxury, and sports. curated services (e.g. of stylists) and aim to affordable access to high-quality clothes, and create a sense of identity rather than relying ensure that clothes do not take up storage 300 Colin on functional or price benefits alone. space for the user when they are no longer Strong from Ipsos explains how this sense of needed. In many countries, clothing rental identity has worked in other sectors, such as stores are available on the high street for “AirBnB and Uber, [where] rather than being special occasions, formalwear or costumes, and seen as cheap or downmarket, using the brands bringing rental services online has opened up signals your membership as a smart, digitally- huge growth potential in this segment. 301 Subscription services savvy type of person”. Successful examples of these models already in the US have also made use of endorsements, exist. Rent the Runway is a notable example following a wider trend for fashion brands to use in the US, renting more than USD 800 million 302 bloggers and influencers to their advantage. in retail value of clothing in 2014 when their business model revolved exclusively around 306 2.2.2. SCALE RENTAL MODELS The Chinese luxury rental occasion wear. market is proving popular as well, with brands FOR GARMENTS WHERE such as Ms Paris, Dora’s Dream, and One More PRACTICAL NEEDS CHANGE 307 Closet serving major Chinese cities. OVER TIME Houdini Sportswear has offered customers the Clothing where sizes change, such as baby and option to rent their outdoor sports shells since children’s clothes and maternity wear, offers a 2013. This creates an attractive financial model In these natural opportunity for rental models. for both the brand and the customer, who can models, ownership of clothing is retained by afford high-quality performance sportswear for the retailer, who redistributes clothing that no one weekend or week for 10–25% of its retail longer fits, after rigorous quality checks and price, rather than buying a cheaper, low-quality cleaning procedures. 80

81 version or needing to store the garment for Outsource logistics services when managing the rest of the year. At the same time, Houdini Large brands and scale is a challenge. achieves higher overall margins by combining retailers might suffer from mismatched scale rental and resale. Houdini’s founder, Eva problems, in that – at least initially – their new Karlsson, specifies that quality is essential: “The business models are subscale in comparison business model absolutely works for us because to their regular business, and require more the product is durable. We achieve a high resale decentralised, small-scale distribution processes. value as the shells don’t look worn after three to Outsourcing can address these challenges. For five weeks’ rental”. Sports clothing rental is also example, academics have argued that national often available in tourist destinations, such as postal networks such as the United States Postal national parks and ski resorts. Services has a delivery infrastructure that is under-utilised and could be employed for ‘first- 308 A similar argument was made a mile’ logistics. 2.2.4. OPTIMISE LOGISTICS FOR decade ago for Europe: with over 120,000 post CLOTHING RENTAL offices and more than two million other drop-off In a new textiles economy, reverse logistics locations such as mail rooms, as well as many are as critical as outbound logistics. In rental state-of-the-art logistics facilities, Europe’s models, distribution logistics are particularly postal services offer convenience for the 309 important, as products are moved about individual user and an attractive bandwidth. repeatedly. They need to be returned to the pool Invest in technology to track products and after use, in order to be checked for damage, Easy-to-scan product coding that materials. cleaned, and re-dispatched. Considering the does not wear off with use enables both specific needs for clothing-rental services, six easy tracking of inventory as well as sorting characteristics have been identified that need to of materials after use. Such systems already be taken into account for logistics (see Box H). exist for professional textile products that are As reverse logistics become a key operations laundered centrally, such as hospital textiles or challenge and opportunity, several strategies uniforms. Danish baby clothing subscription could be helpful for optimising the customer model Vigga is employing such established experience while preserving margins. They techniques by introducing RFID tagging and 310 centre around customer segmentation, scale, Tracking can also be tracking to their logistics. and last-mile choices. facilitated through customers’ online accounts, where they can mark products as being received Learn from and react to customer preferences or shipped back. around logistics. Expectations in terms of shopping experience, convenience, and cost are Implement customer drop-off and pick-up different for every customer. Businesses would models . As last-mile delivery has the highest per be well advised to develop insights in order kilometre transport costs and carbon emissions to fine-tune logistics expenditure across their of the whole logistics chain, eliminating it could markets to maximise customer satisfaction. significantly reduce logistics costs. Depending on the retail model, customers could pick up Introduce new business models first in and drop off their items at stores, post offices, Introducing new models premium segments. or local self-service shipment depots. On the first in premium segments, where margins other hand, the trend towards same-day delivery can cover high shipping costs, would advance has led to a growing number of companies logistics optimisation and bring costs down, investing in last-mile system developments thus helping to increase scale. Rent the Runway and collaborations for their primary deliveries. started out with high-end and formalwear in McKinsey sees three models dominating in 2009, but has since expanded into office and the future: autonomous ground vehicles with casual wear. Starting with high-end categories 311 In parcel lockers, drones, and bike couriers. can increase brand value and build customer high-density urban settings within developed trust, which are useful when expanding rental countries, these scenarios can play out in the and resale models into mass-market segments. near future, and such models could bring low- cost logistics to new business models. 81

82 BOX H: CHARACTERISTICS OF LOGISTICS FOR CLOTHING RENTAL Logistics for clothing rental should take into account six characteristics: It is paramount to manage the cost of required logistics – even more so because Cost. every trip is made multiple times. To save costs, clothing providers could collaborate to share distribution channels and ensure fewer, larger shipments of apparel, perhaps using click-and-collect depots that households can integrate with their existing travel, such as 312 commutes, rather than having small, disjointed deliveries. Quality preservation. While customers of a subscription or rental model do not typically expect to receive brand new items, there are still certain quality expectations. Hygiene and cleanliness are a minimum requirement. This means that – unlike for certain other product categories such as cars or tools – it is rather exceptional to move clothing items directly from user to user. A central or distributed care step is required, which can facilitate maintenance, quality monitoring, and retire or upgrade excessively worn items from the 313 pool. Importantly, the logistics need to preserve the actual and perceived quality, for example, by not causing clothing to crease, get soiled, or damaged during transport. To that purpose, subscription services often send and receive their garments in purpose-made reusable garment bags. Information. In traditional sales models, companies rarely give much thought to the whereabouts of a garment after it has been sold, since the full (conventional) value of that garment is captured in the first – and only – sales transaction. In a rental model, it needs to be known where a garment sits at any time, when it is likely to re-enter the pool, and where it will be heading out to next. In addition, information on residual value and state of the asset (e.g. in terms of wear and tear, but also as to how fashionable it still is) is precious. Speed. The need for speed in outbound logistics is no different from that in linear transaction schemes, where speedy delivery is an increasingly important feature in online sales. For example, US-based fashion subscription service Le Tote states that its goal is to get its unlimited-subscription members “as many totes as possible within [their] billing 314 cycle”. Rental and subscription models, however, have the additional challenge of getting products back as quickly as possible once a user does not need them anymore. This is different from conventional reverse logistics, where the primary aim is to keep cost down, because the goal is to limit a loss rather than create a revenue stream. After all, any clothing in transit is an asset that is not making money for its owner. Faster returns also allow a company to keep its inventory down. Like Le Tote, Rent the Runway uses a conventional parcel service to deliver and pick up in its “three pieces at any time” programme. They also 315 use a local courier service for even faster logistics within Manhattan. 82

83 Convenience. Convenience is highly subjective but – as with speed – retailers have been steadily removing any hassle factors that might keep a customer from buying a new piece of clothing. This is true for ordering, retrieving, packing up, and sending off garments. The growing presence of conveniently located parcel lockers, and their potential integration with retail operations (e.g. the rumoured participation of Alibaba in Sposter, one of China’s 316 leading parcel-retrieval locker chains ) could increase the delivery and pick-up convenience of online models without overly driving up costs. Online models make centralised inventory control easier, offering customers a wide selection at their fingertips. But there may also be impetus for a bricks-and-mortar presence, for example where retailers already have a store but want to add new services to their offering, something that might not be too 317 far off, according to 2016 UK market research by Westfield. This offers the benefit that customers can select and try on clothes on the spot. Rent the Runway, for example, has been expanding its physical presence in US markets, both through its own flagship stores 318 and collaborations with other retailers. With online retailers paying increasing attention to what they call the ‘unboxing Appeal. experience’, a lot of insights about customer experience (e.g. in terms of branded packaging) could be gathered from existing linear models and extended to the reverse logistics component. Users could be enticed to pack up clothes with care, for example by using a shipping box that, through its parallels with a suitcase, invites the customer to fold and place clothes inside rather than throw them in randomly. In a business model where parting with a product after use is an inherent element of the experience, the feeling of sending off something valuable reinforces the impression that the product was valuable to begin with. 2.3.1. SEIZE OPPORTUNITIES Make durability 2.3. IN SEGMENTS THAT VALUE more attractive DURABILITY For certain clothing types and customer While rental can capture the value of durability segments there is already demand for high- by sharing clothing between many different quality, durable clothes. However, currently, users, for certain clothing types and customer customers often lack the information they need segments, high quality and durability can be 320 to judge the durability of the clothes they buy. of value even when there are only one or a Such transparency could be created through few users. Many customers value high-quality, clear and aligned quality labelling or through durable clothes but a lack of information often durability guarantees. Long-term rental models, prevents them from making choices that are where a company maintains responsibility for 319 Focus best suited to their needs and desires. the performance of a product, is another way to on delivering quality purchases that last longer benefit from durability. also encourages the use of new technologies A clear business opportunity for more durable that offer better fit and customisation for clothes exists in certain market segments. maximum customer satisfaction. For clothes For segments such as wardrobe staples, that become unwanted but are still durable non-seasonal styles, functional clothing, and enough to be used again, enhanced resale intimate wear, quality is a key concern for models offer an attractive opportunity. For customers. These items reflect ongoing clothing customers who want to retain their clothes for needs with styles evolving slowly over time. This longer, appropriate care should be encouraged segment includes coats, jumpers, jeans, socks, and facilitated. hosiery, and underwear, which represents 64% of garments produced globally for both women 321 Many customers expect these items and men. 83

84 for example, offers returns, replacements, or to last and often wear them until they have a mending if a product does not perform to material flaw, have hard-to-remove stains, or satisfaction (such as a component in the design have lost their colouration. failing more quickly than expected), and repairs In some clothing categories, durability has the product for a fee for general wear and already proven to be a key selling point. 326 To maximise uptake of such tear damage. Improving durability has broad business offerings, the customer experience of returning advantages for brands, such as reducing the risk items should be made as easy as possible, for of damaged and returned garments, enhancing example through free shipment and transparent competitiveness, safeguarding reputations, and guidelines. increasing customer satisfaction and brand 322 Brands like Patagonia, Eileen Fisher, Warranties can also offer additional advantages loyalty. and Levi’s have adopted an explicit strategy to brands, such as increased customer loyalty around durable, high-quality clothing and have and better access to customer data. Brands seen a strong growth in market share and offering warranties can profit from customer profitability. Patagonia’s sales revenue has seen loyalty and longer-lasting connections with 327 Customers retaining contact with double-digit annual growth with gross profits customers. 323 Newer entrants the brand when a product no longer matches of USD 600 million in 2015. to the market such as American Giant, who their needs could also make it easier to get has seen sales of its high-quality ‘basics’ and used clothing back for resale or recycling. In 324 are jumpers double every year since 2012, addition, warranties provide invaluable data to pioneering a direct-to-customer model where brands on what happens to their clothes post- the brand owns or closely manages their supply purchase as they create a direct channel for chain, cutting out intermediaries to offer high users to give feedback regarding durability and quality while cutting costs. customer satisfaction. This data can be used by brands to make improvements in design and manufacturing to further increase durability. Create common quality labelling Labelling for durability will allow customers Maximise the potential of durable to better judge the value of their purchases. clothes through long-term rental Where durability comes at a higher production price, quality assurance is an important factor Companies can offer long-term rental and in ensuring that customers recognise the value maintenance as a service, retaining ownership they can capture by buying longer-lasting items. of the clothing. Such rental models increase the financial attractiveness of producing more To be trusted, such quality labelling should durable clothes, as the manufacturer or retailer be consistent throughout the industry and can capture more value, the longer the clothes reflect objective criteria. Developing common, lasts. For customers, the added value is in ideally global, standards for labelling through knowing that they are accessing a high-quality agreements between brands, producers, product without the associated upfront costs or and retailers will be key to building trust risks. Long-term rental agreements also create with customers. Further research is required an easy channel through which to get materials to specify the most informative criteria for back. assessing durability and quality, but these could include the number of washes an item Long-term rental agreements could reach scale withstands or the minimum number of times in segments such as workwear and uniforms. an item can typically be worn without showing The requirements around workwear often align signs of wear and tear. with durability needs, such as for protective clothing or uniforms which require frequent Offer warranties washing, for example in the catering industry. Business-to-business markets are particularly Offering warranties, to repair or replace any suitable for such long-term rental or ‘clothing- product or component that fails, demonstrates as-a-service’ models. a high commitment to durability. Several brands such as L.L. Bean, Nudie Jeans, Patagonia, In the UK, 90% of corporate clothing is sent to and Houdini are already providing extensive landfill or incineration – an estimated 16,000 325 Patagonia’s ‘IronClad Guarantee’, warranties. 328 – even though clothing collection tonnes 84

85 systems capture around 50% of other types customised garments on demand, providing 329 This of clothing for reuse and recycling. fitting services at the point of purchase, or highlights a significant business opportunity designing clothing that adapts to changing for value capture, in particular as the users needs, could all be scaled up to increase of corporate wear are far easier to reach for clothing utilisation. clothes recapture. Emotional durability could be enhanced by Major employers such as hospitals and involving the user in the making or remaking construction firms could create demand An emotionally durable item of their garment. for workwear rental models through their is an item that is highly valued by its owner, for In addition to the ‘push’ effects procurement. example due to its making process (e.g. tailor- of clothing producers offering long-term made, custom-ordered, designed, or self-sewn), 333 Participation clothing contracts, the business case for long- or its maintenance and redesign. of the user in the design or repair of clothing term, quality rental can also come from ‘pull’ has the potential to foster a more connected effects: major employers demanding more high- and active engagement with garments. It aligns quality, circular clothing for their uniform and with the idea that the quality of design increases workwear needs. For uniforms and protective if the person who ultimately uses the product is corporate wear, many mainstream providers 334 For example, included in the design process. already offer full-service packages, including the platform Betabrand allows anyone to submit long-term rental and laundry services, such a design idea, crowdfund it, and produce items if as PHS Group or UniFirst, helping employers the idea proves popular. outsource their uniform management and logistics. Dutch Awearness takes this model one New technologies are emerging that adapt step further, attempting to create a closed-loop clothing to individual body shapes and styles, recycling service for uniforms that are provided allowing custom-made clothing to be delivered as a performance-based service. They offer at scale. Until the 1800s, ‘made-to-measure’ suits, high-visibility uniforms, and protective clothes were the norm and are still common in healthcare clothing through long-term rental 335 Globally, certain countries, such as Ghana. contracts, in which they also manage collection, they have been largely displaced by ‘ready-to- laundry, and closed-loop recycling processes, wear’ mass produced clothes in standard sizes. thus attempting to create a fully circular New technologies could help customisation 330 model. re-enter the mainstream market. 3D body- The opportunities for long-term rental in other scanning technologies are already available to segments need further research, but start- provide body-mapping analysis which, along ups are already creating a proof of concept. with a fitting guide, could customise the perfect For example, MUD Jeans has been providing garment for the customer. This means that on- a ‘Lease A Jeans’ option since 2013, for a demand manufacturing does not necessarily monthly fee, with a repair service included. mean long delays to acquisition. For example, Customers can either keep the jeans after 12 Fame and Partners has developed a technology months or return them and switch to a new platform and supply chain that allows custom- 331 They stay connected with the brand and pair. made clothing to reach customers two to five the model encourages increased loyalty. This days after ordering. Women can specify their business model currently appeals to ‘conscious’ height for improved fit, choose from 20 colours, 336 customers; more research is needed to reach a and select from a number of design options. 332 mainstream market. Locally distributed production through the sale of designs online that can be 3D-printed 2.3.2. SCALE UP SERVICES locally and easily assembled by the customer is another innovation that has the potential TO PROVIDE INCREASED to create products only where and when they PERSONALISATION OF CLOTHES are needed. Such a model is currently being AT PURCHASE explored by the Post-Couture Collective in Higher durability is only of value if customers 337 On-demand manufacturing could Belgium. actually wear the clothes they buy. also reduce brands’ need to discount or discard Personalisation services, such as manufacturing overproduced items. 85

86 Designing clothes that will adapt to changing By putting customer experience first and user needs is on the horizon. Clothing that making resale models convenient and is designed to be multi-purpose, adaptable, accessible, resale could become a new norm. and upgradable could increase the frequency In addition to the economic rationale, measures with which customers use an item, and lower could be taken to make the purchase of pre- the number of items they keep in their closet. owned clothes more attractive to customers There is an opportunity for designers to create through increased convenience. In addition, in modular garments that can be adapted by the same way that making the quality of new users over time. Garments that can be worn clothes visible (see Section 2.3.1) could change inside out, or that are made up of a fixed base buying habits, showcasing the quality and together with removable sections that are hygiene of renewed clothing could drive the offered in multiple colours, would allow one uptake of pre-used clothing sales. 338 garment to match several outfit combinations. In other sectors in the past, focusing on There are already examples of this kind of quality and customer experience created multifunctional design, such as the concept similar shifts, for example making sleeping in of the Little Navy Dress, which consists of a hotels acceptable, where bed linen is washed ‘blank canvas’ onto which customers can zip and reused. Innovative and digitised models 339 Adaptable materials decorative attachments. for centralised control of stock, with slick that are easily upgraded represent a new area methods for customers to filter and easily find of innovation, whether they are garments that an available match, along with guaranteeing can be re-dyed or refashioned at home, or are hygiene and quality, could have a significant self-adaptive. For example, Petit Pli’s children’s impact on the frequency with which clothing is clothes are pleated in such a way that they grow shared and the cost of doing so. 340 At with the child and fit a wide range of sizes. Digital technology has the potential to disrupt the more exploratory end of fashion, CuteCircuit formal as well as informal markets for used garments include ‘wearable technology’, Other industries have already been clothing. incorporating built-in images that are updatable 341 disrupted by the digitisation of services (e.g. through a mobile app. 344 financial services, audio and video services) and the clothing industry is likely to follow this 2.3.3. MAKE RESALE ATTRACTIVE trend, exemplified by the online resale market TO A WIDE RANGE OF growing more than four times faster than the CUSTOMERS traditional second-hand store market (35% per 345 ‘Resale disruptors’ year versus 8% per year). As the average quality and durability of clothing represent a specific segment of the apparel on the market increases, so will the opportunity resale market, as they offer a more curated of capturing its value through resale. Clothing product assortment and sell their products via resale is already widely adopted across the peer-to-peer marketplaces (i.e. bringing buyers world, particularly through charity shops and and sellers together within a hosted platform to online resale, but misses opportunities, in perform transactions), augmented marketplaces particular in regions with low rates of clothing (i.e. taking on logistics, photography, and utilisation, where around 70% of the clothes 342 customer service to deliver a more convenient Provided collected for reuse is sent overseas. 346 Pre- customer experience), and retail stores. that clothes are increasingly made to last, used clothing can be accessed online through introducing attractive resale models suited to sales (e.g. The RealReal, ThredUp, Vestiaire a wider customer base locally (i.e. in the same Collective) and free direct exchange websites countries where clothes are being discarded) 347 Such platforms (e.g. The Freecycle Network). could significantly increase clothing utilisation. and tools are convenient for connecting supply To achieve this, innovative resale models and and demand, and, as well as providing adequate partnerships are required, also harnessing digital methods of guaranteeing quality and presenting technology. Some businesses are already seeing clothing in an attractive way, could be further high levels of resale when focusing on quality 343 exploited to significantly increase the sharing of and brands and retailers are and curation, clothing across many users. well-positioned to capture parts of this growing market, which would also allow them to keep better control of their brands. 86

87 Retailers have the opportunity to take some time increasing the visibility of their brand and 349 control of their resale market and bring resale making clothing resale a common option. Luxury brand Stella McCartney has partnered By selling used clothing into the mainstream. with resale company The RealReal, to encourage alongside new clothing, fashion retailers offer their customers to sell their items once they do an appealing and convenient option (i.e. using 350 not need them anymore. the usual channels for shopping). This could help reposition clothing resale from a fringe to Partnering with third parties can help brands a mainstream activity. Introducing such resale to adopt resale models more quickly and activity has the potential to be a low-risk and flexibly. One of the challenges for fashion high-reward activity for brands, as it would brands and retailers to rapidly implement resale create additional profits while feeding into the activities at scale is their limited experience perception of quality, and promoting a brand’s 351 Partnerships with third with best practices. interest in increased usage of its clothing. parties could provide the know-how needed Additionally, it could allow brands to attract new to manage activities such as logistics, renewal, customers and, by making it clear to customers and repair. Such services are already emerging. that their clothes still have value, incentivise For example, The Renewal Workshop works them to bring used clothes back. This could together with brands, creating a stock of initiate a positive spiral to accelerate the shift to renewed clothing and sharing the revenue from greater utilisation of clothes. sales with the brands (see Case Study B). Yerdle Recommerce also makes it easy for Some brands that focus on quality are brands to buy back and resell used items, already successfully capturing the value of providing “brands with the technology and their garments’ resale sector. For example, 348 logistics to develop white-label resale channels Patagonia, with their Worn Wear initiative, and Filippa K are already benefitting from that take back control of the secondary setting up a platform for the sale of their pre- market, deepening customer engagement and 352 used clothing. They are capturing a market they increasing profits”. would otherwise not have, while at the same 353 CASE STUDY B: THE RENEWAL WORKSHOP The Renewal Workshop partners with apparel brands to create value from their in-shop returned items, implementing a sales channel from high-quality, unwanted clothing. Founded in 2016, the company offers retailers a fully outsourced service, managing the reverse logistics, repair, cleaning, and resale of branded stock that customers return for any reason, whether the clothing is unused, lightly used, or in need of repair. Partnership fees for processing the clothing are comparable to what retailers would pay normally for waste management, but rather than disposing of the clothing, the renewed clothing is resold, either in-store by brands, or on The Renewal Workshop’s website under a revenue-sharing agreement. Their first clients included mid-range sportswear brands Ibex and prAna. “We are helping companies sell renewed clothing side by side in their stores. The idea is to really brand the durability story by showing how their clothing lasts and retains its value,” explains the co-founder, Nicole Bassett. The start-up also helps brands to improve durability in their product design by giving feedback on trends they see in product failures, such as button placement or seam failures. All resold clothing is quality-certified, and renewed using a waterless washing technique to restore garments to a very clean state, reducing hygiene concerns. The aim is to remove the barriers to cycling clothing through multiple users, providing used high-quality clothing at attractive prices. Of the stock that The Renewal Workshop receives from retailers, 65% is resold, with half of the remainder used to produce other products such as pencil cases. 87

88 mending activities, as introduced by Patagonia 2.3.4. BOOST CLOTHING CARE and their collaboration with iFixit. This would Easily accessible services and widespread simultaneously enable more quality used clothes support for users to maintain their clothes for 360 Labels and guides could to be kept for resale. longer (e.g. through repairing or restyling, and also include end-of-use information about adequate washing and storing) could help to disposal of clothing in appropriate channels. preserve the integrity of clothes and keep them at their highest perceived and actual value. Large-scale adoption of clothing repair and restyle services could significantly increase 2.4. Increase clothing In regions where the cost clothing utilisation. utilisation further of new clothing is low relative to the cost of labour, repair and restyling services are through brand often not profitable, and existing activities are mainly motivated by ethics or lifestyle commitments and choices. However, as the physical and emotional durability of garments increases, the demand for policy and economics of those services could increase as well. This could also open up opportunities While some market segments, as described to introduce novel clothing services, such as above, have a compelling business case for garment restyling or consulting, to advise on durability, reversing the recent trend towards upgrades, customisation, and mending at home. low quality and low usage rates in today’s Retailers could also provide repair and other clothing market might require additional services in-store, for example, in collaboration support. Driving high usage rates requires a with third parties, or form partnerships with commitment to designing garments that last, repair and restyle providers based in local an industry transition which can be advanced 354 communities. through common guidelines, aligned efforts, and increased transparency. Policymakers Several brands already offer in-store repair could also play a role in further increasing and incentivise users to keep their garments clothing utilisation. well maintained, in particular, outdoor clothing brands such as Bergans, Jack Wolfskin, 2.4.1. BUILD INDUSTRY Patagonia, Salewa, and Houdini, which offer 355 repair services for their used products. COMMITMENTS TO INCREASE Patagonia, for example, operates the largest DURABILITY (and still growing) repair facility in North Commitments by brands and retailers to sell America, repairing about 50,000 pieces per more durable garments could create momentum 356 year. and should be welcomed at a time when brands Clear labels and guides could increase are increasingly held accountable for the impact utilisation by making it easier for users to care of their clothes. Indeed, low-quality clothing Labels could be introduced for their clothes. is leading to heightened scrutiny from some more widely, providing maintenance information, citizens and the media, with accusations of such as repair instructions or washing and ‘designed obsolescence’ being used as a tactic 361 storing tips to reduce wear and tear. These could In addition to making quality by brands. also reduce water and energy use, for example visible and offering guarantees and warranties by encouraging washing at lower temperatures where there is demand for it (see Section 2.3.1), 357 Smart labelling and avoiding tumble dryers. quantitative targets in collective commitments solutions (e.g. Near Field Communication (NFC) could help move from concern to action. tags) could provide that information without Tools and strategies to make clothes last 358 overloading the garment with physical labels. longer are increasingly being brought into For example, each garment from Khongboon Ways of increasing durability could focus. Activewear contains a microchip located behind include using durable materials, strong seams, the brand’s logo that can be tapped with a and lasting dyes and prints that can withstand 359 phone to provide the latest information. multiple use cycles. Enhanced knowledge, Free, easy-to-follow repair guides could also transparency, and accountability must be built be made available online to support customers’ 88

89 in throughout the supply chain to ensure that industry has shown, through commitment, that better quality can be pursued as a goal. This will durability standards, warranty systems, and enable a shift in focus throughout the processes financial incentives for certain types of business of design, sourcing, and construction to create models can be successful, policy could ensure garments that last and can easily be repaired. their full implementation by making them mandatory. Already, major brands have created supply-chain mechanisms to ensure fair labour rights and Introducing Extended Producer Responsibility non-toxic products, and such communication (EPR) focused on textiles could be considered and transparency efforts could be expanded an enabler for increased utilisation and as a to focus on the quality of production. Existing financial incentive for resale models, rental frameworks and tools offer guidelines on how models, and high-quality clothing. EPR has brands can adopt a focus on durability, such as been successfully pioneered in France since the Higg Index and its Design and Development 2007 for clothing and will be extended for 362 the Waste & Resource Action Module, home textiles in 2020. Companies are obliged to Programme’s (WRAP) Clothing Longevity either set up a recycling and waste management 363 or the recent Design for Longevity Protocol, system for the clothes they put on the market, platform from the Danish Fashion Institute or pay a contribution to an organisation that 364 but for the European Clothing Action Plan, will financially support third parties to manage 366 Although this EPR focuses these practices should move further in the clothing waste. on recycling, overall reuse rates increased implementation phase across industry players. as a result of increased collection rates, and An industry-led, adequate minimum-quality additional policy measures could keep clothes assurance could be developed with agreed at a higher value by ensuring the sorting specifications, laying the groundwork for how of collected materials according to quality regulators could monitor and support the 367 A mandatory EPR programme specifications. transition of fashion away from disposability could be a financial incentive for brands to set in the future. Specifications would apply to up their own take-back and repurposing system, sourcing materials, yarn, and fabrics, asking the whether through rental or resale. It could also right questions of suppliers, testing garment bring more third parties into play to handle durability in the washing and use phase, setting collection, refurbishment, and redistribution at goals around how long clothing lasts and is scale. used, and communicating transparently with customers. The scope of an EPR scheme could also include actions to increase quality and durability Significant improvements in durability are further. Once EPR is in place, third parties could possible at minimal extra cost. Although provide financial incentives to their members cheaper production is sometimes achieved who design and make clothes with high quality by cutting quality, there are also significant standards. For example, the waste management opportunities to increase durability that are coordinator Eco TLC in France offers a 50% cost-neutral, profitable, or that have clear discount on the eco-contribution fee relative to financial benefits due to enhanced brand EPR for members who use at least 15% recycled reputation. Practical guidelines for the design 368 fibres as input in their products. phase of garments are available, such as those released by WRAP as part of the Sustainable Other policy options could be explored to 365 but concrete goals and Clothing Action Plan, stimulate clothing resale and repair. For targets around durability are required to move example, services could profit from reduced to the implementation phase and achieve scale. tax rates. Such policies are already starting to be implemented; for example, since 2017, in 2.4.2. EXPLORE THE ENABLING Sweden, VAT rates are 50% lower for repair services of items like clothes, shoes, and ROLE OF POLICY 369 bicycles. Policy could help accelerate the shift towards higher clothing utilisation, by setting the right More research is needed to explore the role conditions for business models in which high of policy in setting the right conditions for usage rates can flourish, and by imposing some the adoption of high clothing usage rates; mandatory actions to move the whole industry nevertheless there are key opportunities for away from low utilisation trends. Once the policy to aid a systemic shift. 89

90 3. Radically improve recycling by transforming clothing design, collection, and reprocessing 90

91 3. RADICALLY IMPROVE RECYCLING BY TRANSFORMING CLOTHING DESIGN, COLLECTION, AND REPROCESSING Radically improving recycling would allow the industry to capture the material value of clothes that can no longer be used. Currently, less than 1% of textiles produced for clothing is recycled into new clothes, representing a lost opportunity of more than USD 100 billion annually and high costs for landfilling and incineration. This is a significant opportunity, even if the industry could only capture part of it. Using recycled rather than virgin materials also offers an opportunity to drastically reduce non-renewable resource inputs and the negative impacts of the industry. Coordinated action is required to capture the opportunity to introduce clothing recycling at scale, involving designers, buyers, textile collectors (including cities and municipalities), recyclers, as well as innovators. Four areas of action – if coordinated well across the value chain – could start the process of capturing that value: aligning clothing design and recycling processes; pursuing technological innovation to improve the economics and quality of recycling; stimulating demand for recycled materials; and implementing clothing collection at scale. This is true for offcuts that occur during 3.1. Cross-value chain textiles production as well as used clothes. Addressing the latter problem is made harder action is required to by a lack of large-scale systems to collect and sort used clothes. Even when such systems do introduce clothing exist, value is still often lost. For example, in Sweden, a country where textiles are collected recycling at scale separately at high rates, there is little recycling 370 Worldwide, no clothing-to-clothing recycling of non-reusable textiles: they are routinely 373 operations exist at scale. While textile recycling Globally, most used textiles end incinerated. 371 has been in operation for at least 250 years, up in landfill. Such poor waste management recycling technologies still have significant leads to a loss of the value in the material and limitations. For example, mechanical recycling takes up landfill space, which costs money and processes shred materials to recapture the is scarce in many countries. Once discarded fibres, which often results in inferior quality in in this way, clothing still causes negative comparison to virgin materials. While chemical environmental impacts. As they decompose, recycling technologies can return fibres to natural fibres such as cotton and wool generate virgin quality, they are not yet technologically or the greenhouse gas methane, which is released economically mature. into the environment if the landfill is not 374 Plastic-based fibres will properly controlled. Currently, 87% of material used for clothing remain in landfills for decades, with the average production is landfilled or incinerated after its polyester product likely to survive for over 200 final use, representing a lost opportunity of 375 Additionally, substances of concern that years. more than USD 100 billion annually, coupled were applied during production processes, for 372 with negative environmental impacts. 91

92 382 example to colour or treat the item for specific the Sustainable Apparel Coalition – lists 78 properties such as water repellence, can be base materials that can be produced using 241 retained in the clothing and then escape into different processes to create more than 165,000 383 the environment if not correctly controlled (see possible material combinations. Section 1.1.1). Coordinated and compounding action is needed to overcome these drawbacks and Most of the material being recycled is cascaded capture the opportunity to introduce clothing Common purposes to lower-value applications. recycling at scale . This includes connecting for recycled textiles include cleaning cloths, designers and buyers with recyclers and the insulation material, and mattress stuffing. These producers of recycled materials, to better applications are typically not (economically) understand the materials available to them and recyclable after use, so this generally adds the impact of their design and material choices just one additional use before materials are 376 on the recyclability of a garment. Also, textile discarded. collectors, sorters, and recyclers need to work Recycling textiles into cascaded applications with brands and retailers to considerably scale usually requires minimal processing. To create up the collection of materials for recycling. cleaning cloths – used for cleaning and polishing Involving innovators could steer materials in various industries, for example print or heavy innovation in the direction needed by the oil – after the removal of metal and plastic parts, industry to support a new textiles economy. 377 textiles are sorted and cut into various sizes. Research is needed to understand material flows To create filling and insulation materials – for from other industries into apparel, as well as example for mattresses, furniture, or insulation outflows from apparel into other industries, to for buildings or vehicles – textiles are simply understand the value of cross-industry cycles. 378 shredded. Where recycled input is used to make clothing, this is often downcycled from other industries. Around 2% of input for clothing production 3.2. Align clothing comes from recycled materials, mostly polyester 379 design and recycling While this forms an from recycled PET bottles. important contribution to the reduction of virgin processes input to the textiles industry and an important proof of concept for the use of recycled Converging towards an optimised palette of materials in clothing, there is a risk that in the materials – including blends where these are long run this prevents higher-value recycling needed for functionality – and developing in those industries and suppresses clothing-to- these alongside highly efficient recycling clothing recycling. Yarn manufactures, such as processes for those materials is a crucial step Polygenta, Polyterra, Hilaturas Ferre (with their in scaling up recycling. This also includes brand Recover), and Unifi (with their brand developing new materials where no current Repreve), produce recycled polyester yarn from ones are suitable to provide both the desired 380 This is then used in products by PET bottles. functionality as well as recyclability. Universal brands such as Adidas, C&A, H&M, Nike, and tracking and tracing technologies – integrated 381 many others. in the design of clothing and aligned to Clothing-to-clothing recycling at scale is processes across the value chain – will be hindered by a disconnect between design needed to support the identification of The way clothing is and recycling processes. materials in the system to improve the output made, including the way fabric is constructed quality of the recycling process. and chosen for clothing, rarely considers the Transparency on the materials flowing through recyclability of the materials once they are no the system is key to improving recycling longer used. Specifically, the ever-increasing Recycling technologies rely on accurate rates. number of materials and blends brought to the materials detection and sorting to ensure market makes it hard for recyclers to capture well-defined material streams (either a single the full material value of clothes they receive material or well-defined combinations of (see Box I). To put this in perspective, the Higg materials including blends). Correct labelling Index – a self-assessment tool developed by 92

93 and materials identification is therefore innovations; and cross-industry alignment on paramount to accurately sorting collected systems for labelling, tracking, and tracing. clothing for recycling, yet currently information given on labels does not always provide the 3.2.1. DESIGN AND DEVELOP full picture. For example, the US Federal Trade CLOTHING AND RECYCLING Commission clarifies that a product can be TECHNOLOGIES IN A labelled 100% cotton even if it contains non- 384 COMPLEMENTARY WAY TO Incorrect identification of cotton trims. materials can disrupt the recycling process ENSURE RECYCLABILITY and lead to output streams with lower-quality Reducing the complexity of materials used fibres. Identification technology would enable to produce textiles would allow recycling automated sorting processes of garments by innovation efforts to focus on a small palette of material content and colour. This would create materials optimised for both functional needs control over the input into recycling processes and recycling technologies. This would increase and result in transparency on the output the amount of input for individual technologies 385 materials. 391 and support swifter scaling. When innovative materials are introduced, for Guidelines developed between designers, example to increase garment functionality, it buyers, textile mills, and recyclers are needed to needs to be ensured that this does not reduce create alignment on clothing design and options recyclability . E-/smart textiles that integrate for recycling items when they can no longer be advances in nanotechnology and electronics are worn. Industry efforts require coordination to expected to comprise a USD 130 billion market avoid duplication or confusion for designers, 386 The abilities of these technologies by 2025. which could stall the shift to alignment. Existing range from monitoring biometric data, such initiatives are starting to build links between as heart rate, to changes in colour if harmful designers and recyclers. For example, the 387 Product labelling firm gases are present. research programme Trash-2-Cash is running Avery Dennison aims to use RFID technology a cross-disciplinary challenge to develop to digitise more than 10 billion clothing and processes for indefinite chemical recycling of footwear items and connect these with social textiles. The project involves designers and network applications which, for example, would material scientists early on to ensure usability allow customers to share their outfits with 392 Brands, such as of the recycled materials. friends or receive personal styling consultations Vaude, Fjällräven, Houdini, Paramo have already 388 Designers are also experimenting from brands. changed the design of some of their garments with new possibilities to enhance the aesthetics to be made from 100% polyester, including and functionality of clothing. For example, zippers, buttons, and seams, instead of using fashion-technology brand Elektrocouture 393 different materials. includes LEDs in their clothes that are Industry-led collaboration is needed to identify controllable by smartphone and can change 389 the materials for which there are no upcoming Designer Lilian Stenglein is offering a colour. recycling solutions. Building an evidence base garment that uses a silver-based material that on commonly used materials and their recycling is odour-neutralising and also claims to protect options would enable the development of the wearer from electric radiation caused by 390 guidelines that support convergence towards mobile phones. a smaller range of materials, and that focus Creating industry-wide design guidelines efforts on recycling technology innovation. would support process alignment and increase The industry has an opportunity to combine its As upstream value captured through recycling. efforts through information-sharing to build a decisions such as material choices or labelling comprehensive picture of the materials used information will later impact the ability to sort throughout the system. Such efforts are already and recycle clothing after use, clear design underway, for example Circle Economy, along guidelines would facilitate greater value capture. with collectors, sorters, and recycling experts, Guidelines would need to consider aligning is running the Fibersort project, which will design of clothing with recycling options; result in an overview of the different material convergence towards a reduced palette of blends and the volumes of these that are used in materials; requirements for new material 93

94 394 collected clothing in Europe. Fashion Positive from the materials up”. By building the Fashion has launched a collaborative membership Positive Critical Materials List, the group aims to programme called PLUS, bringing together a identify high-volume, commonly used materials community of brands, designers, and suppliers that require innovation as a priority to form part 395 to work together to “design circular fashion of a circular economy. BOX I: MATERIAL BLENDS Blending is used to create fabrics that have the combined properties of their component fibres. Blended yarns are made by combining different fibres. Using material blends can improve the appearance, performance, comfort, and ease of care of a garment. Blending more expensive materials with cheaper fibres also reduces cost. One of the most common examples is ‘polycotton’, a blend of polyester and cotton. Compared to pure cotton, polycotton has a higher durability, crease resistance, 396 and lower cost, but still maintains a cotton ‘feel’. Small amounts of elastane are 397 blended with other fibres, mainly cotton, to add stretch to a garment. Acrylic is 398 mostly blended with wool fibres to lower the cost. More complex blends of three or more materials are increasingly used as well, even in basic garments, including trousers 399 made from 70% wool, 28% polyester, and 2% elastane, or a jumper composed of 43% polyamide, 20% acrylic, 19% mohair (a wool made from the hair of Angora goats), 400 13% wool, and 5% elastane. Even when clothing is labelled as 100% single material, it can still contain small quantities of other materials, and certain parts such as labels or sewing threads can be 401 made from a different material. For example, polyester stitching threads are usually used because of their strength and durability, even if the rest of a garment is made from cotton. Further investigation would be needed to understand the number of different blends employed by the industry, as well as the share of material blends. Material blends make it more difficult to capture material value through recycling. Blends can be processed in mechanical fibre recycling processes, but this makes it difficult to control the material composition of the resulting recycled yarns. For chemical polymer recycling, technologies exist to separate blends as part of the recycling process, although separate steps are required and the processes are only feasible for materials that are used in large enough portions in the input material. Technologies at pilot scale exist for blends of polyester and cotton or other cellulose- based materials. Materials that usually occur in very low quantities, such as elastane, can be part of the input to those processes but are lost as leftover sludge. When biodegradable fibres (such as cotton, other cellulose-based fibres, or wool) are mixed with non-biodegradable fibres (such as polyester, acrylic, nylon, or elastane), this creates another challenge. The resulting yarn of such a mix is no longer biodegradable and so is unsuitable for value retention in biological cycles (see Box C, p.51) even if the amount of added non-biodegradable fibres is minimal, for example in the aforementioned elastane blends. Materials innovation can address such challenges. For instance, underwear manufacturer Wolford, has created Cradle to Cradle certified hosiery and lingerie that can be safely biodegraded. The garments use cellulose-based fibres, biodegradable plastic-based Infinito fibres, and stretch is created by using Roica Eco Smart, an 402 innovative material designed to replace traditional elastane. 94

95 recyclers to understand functional requirements 3.2.2. INNOVATE NEW and ensure ultimate recyclability. MATERIALS WHERE GAPS EXIST Once promising new materials are identified, Guidelines on a materials palette optimised for these must be brought to the market. Brands recycling would identify the need for innovation can support small innovators to overcome of new materials. The development of guidelines the higher costs associated with smaller-scale to only use materials that can be recycled and less well-established supply chains and will reveal gaps where existing materials offer processes by stimulating interest and securing a specific function, but are unlikely to be investment. The fast pace of fashion cycles economically recyclable after use. Collective requires suppliers to deliver fabrics within one action by designers, material experts, and or two months of ordering, yet innovators can recyclers is needed to identify where innovation find it difficult to deliver on such short time efforts should focus to find alternative 403 Companies that have longer lead frames. materials that can be economically recycled. times offer a prime opportunity to partner with Innovators seeking new materials could work in small-scale innovators to bring new materials to collaboration with retailers, manufacturers, and market. BOX J: DIFFERENT TYPES OF RECYCLING Through recycling, material value of textiles can be captured at different levels (see Figure 17). As materials are cycled further up the value chain, the retained inherent value decreases. All of the technologies may be applied to offcuts from clothing production as well as unwanted garments collected after use. FIGURE 17: TEXTILES RECYCLING CAN CAPTURE VALUE AT VARIOUS LEVELS POL YMERIS AT ION FIBRE PRODUCTION RN YA PRODUCTION FA BRIC PRODUCTION CL OT HING PRODUCTION RET AILER USER G COLLECTION / SORTIN 95

96 Fabric recycling takes pieces of complete fabric and re-sews them to create (parts of) a new garment. This level of recycling is sometimes also referred to as ‘remanufacturing’. It FABRIC can take the form of utilising factory offcuts and leftover materials, or large parts of post- RECYCLING use garments that are disassembled and reused in a new garment while keeping the fabric intact. If a change in colour is needed, the fabric can be treated with bleaches or dyes in the process. This type of recycling does not require advanced technologies, but only has limited applications as it is labour intensive, inconsistent supply of fabrics will not allow for large- scale production, and the fabric is often too small to be made into another garment or the quality is too low. YARN RECYCLING Yarn recycling refers to the unravelling of the yarns used to make knitted garments. To be able to unravel a garment, it must be knit in a way that makes it possible to get the yarn back in a small number of pieces. Therefore, yarn recycling is only feasible for specific types of garments, which need to be collected separately or separated out. For fibre recycling, garments are sorted by colour and material, and then shredded and processed back into fibres. This level of recycling is often referred to as ‘mechanical 404 recycling’. The fibres are shortened through the shredding and thus deteriorate in quality. This quality loss makes it necessary to use higher-quality fibres (current solutions to FIBRE this often use virgin cotton or polyester recycled from sources such as PET bottles) as a RECYCLING supplement for creating new yarn. By design, fibre-recycling processes cannot separate blends or filter out dyes and contaminants. This causes problems where any substances of concern are retained in the textiles, as recycling these in the fibres can lead to the continued 405 circulation of – and therefore exposure to – these substances. Textiles that were placed on the market before current regulations can contain significantly higher amounts of certain substances of concern than virgin materials, where the use of these substances is 406 restricted. If garments are sorted by colour, no bleaching or re-dyeing is needed, however it is possible if a different colour is wanted. Polymer recycling takes fibres back to the polymer level, destroying the fibres but keeping the chemical structure of the material intact. There are two variants that are different in terms of process and output quality. POLYMER RECYCLING • Mechanical polymer recycling is carried out via melting Mechanical polymer recycling. and extruding of textiles made from mono-material plastic-based fibres. By design, this process cannot filter out dyes and contaminants, such as substances of concern. As with fibre recycling, no bleaching and re-dyeing is needed, however it is possible if a different colour is wanted. • Chemical polymer recycling. Chemical polymer recycling dissolves textiles with chemicals after the garments have been de-buttoned, de-zipped, shredded, and in some cases de-coloured. This technology can be applied to plastic- and cellulose-based fibres or a mix of both. Cellulose – the polymer that is the main component of cotton – and polyester are extracted separately for further treatment. Cellulose pulp can then be transformed into new cellulose-based fibres and plastic polymers are treated separately to bring them to back to virgin-equivalent quality. Dyes, non-target fibres in small quantities, and other contaminants can be removed during the process. CHEMICAL Chemical monomer recycling breaks down polymers into individual monomers or other MONOMER constituent materials that can then serve as feedstock to produce virgin-quality polymers. RECYCLING Dyes, non-target fibres in small quantities, and other contaminants can be removed during the process. 96

97 3.2.3. DEVELOP GUIDELINES Pursue 3.3. FOR TRACKING AND TRACING technological TECHNOLOGY TO IDENTIFY AND EASILY RECOVER MATERIALS innovation to improve Adopting product passports and materials the economics and labelling at the design stage would improve material recovery. Digital technologies can quality of recycling support more accurate sorting of textiles through increased access to information, The economics and output quality of existing however, it is key that these are considered in recycling technologies for common materials the design or manufacture stage to be used need to be drastically improved to capture the effectively. full value of materials in recovered clothing. For example, the company Content Thread A shared innovation agenda is needed to is researching the applicability of an RFID focus efforts and investments on recycling thread attached to individual garments at the technologies for common materials. Improved manufacturing stage that contains a digitised sorting technologies are also needed to ingredients list. The thread looks and feels like a provide high-quality feedstock to recyclers. normal thread and is still detectable after a long Radically improving clothing-to-clothing 407 This step would provide recyclers with all use. recycling will require effective infrastructure the information needed to sort and recycle the globally for collection, tracking and tracing, garment accordingly. Global common guidelines sorting, and recycling. on clothing labelling would be required to ensure universal application to sorting of any 3.3.1. RADICALLY IMPROVE material streams. Guidelines would also need to THE ECONOMICS AND OUTPUT include information on the integration of new QUALITY OF RECYCLING technologies, such as e-textiles or RFID, in a way that enables easy disassembly and recovery Technical innovation presents an opportunity after use. Technology company Applied DNA to address a significant bottleneck in the shift Sciences has created a bio-based marker that towards a new textiles economy, by providing can be sprayed onto cotton, allowing individual solutions that can offer recycled materials fibres to be tracked and identified throughout which can compete with virgin materials on 411 the value chain. The company claims this can There are a range of ways cost and quality. provide assurance on the origin of the cotton in which clothing can be recycled (see Box J), 408 and the composition of the material. and each of these have different opportunities and challenges related to cost, the appropriate Blockchain technology is an example of how output quality, and scaling. digital advances improve transparency and provide sorters, collectors, and recyclers with Fabric recycling of production Fabric recycling. reliable information on material composition offcuts is relatively widely adopted already . 409 This technology is already of garments. For example, companies like Nurmi clothing, employed in other industries, including banking. Reformation, Ahlma, and Looptworks use London-based designer Martine Jarlgaard leftover materials from factories to make partnered with digital company Provenance to clothes, as these fabrics are high quality and do use blockchain technology to successfully track not have complicated trimmings such as buttons 412 the journey of an alpaca jumper from the farm Finnish fashion chain or seams to remove. 410 to the finished garment. Lindex produces new collections using unsold denim garments from previous seasons that are then redesigned and remade into new garments; this ranges from small adjustments such as new details, to completely taking apart and sewing 413 fabrics back together to create a new product. Digital start-up Reverse Resources have developed a software-as-a-service to reduce 97

98 420 and make better use of factory offcuts, including from 20% to 90%, depending on application. Fabrics that need to be robust, such as denim, for fabric recycling (see Case Study C, p.114). currently only use around 20% recycled At small scales, fabric recycling also exists for 421 although recent cotton from used clothing, materials collected after use. While this type of technological improvements have managed recycling is unlikely to provide the consistency 422 A higher share of to increase this to 40%. needed for large production runs, there is recycled fibres can be achieved when factory increasing appetite from small designers to offcuts are used, as the quality of the fibre make bespoke garments from this leftover 423 deteriorates during use. material. For example, clothing brand Eileen For example, textiles recycler Hilaturas Ferre Fisher set up its “tiny factory” to make new offers a yarn made of 90% recycled cotton and garments from used clothing, when it was 10% other fibres, which can be polyester, nylon, faced with large amounts of clothing it had 424 The use of acetate, linen, viscose, or wool. previously collected from customers that was 414 Innovations, such as recycled wool and wool blends as feedstock is not suitable for resale. C-Tech’s Wear2 microwave technology, can already established, mainly as it can be 30–40% 425 and technologies enable such recycling by making disassembly a cheaper than virgin wool, are in use, for example, by recycler Wolkat lot easier. The company has developed a yarn 426 Wool and wool manufacturer Geetanjali. that dissolves when put in a microwave, allowing 415 producers in the city of Prato, Italy, have also leftover fabrics to be recycled. used wool scraps to produce cheaper garments, Yarn recycling. While simple in theory, the 427 The rebranding it as “regenerated wool”. concept of yarn recycling is largely unexplored company 3C Filati even claims to offer a “100% in practice and is not found at scale in the 428 recycled product”. industry today. Difficulties in producing a Mechanical polymer recycling. Mechanical garment from just one yarn that would not polymer recycling only works for single-variety potentially unravel by itself would need to plastic-based fibres, and is currently most be addressed for this concept to be scaled. promising as a solution for polyester recycling. However, it is possible that a technological Companies that have control over their materials solution could be found for this through have a significant opportunity to capture value increased automation and 3D knitting. Clothing through this type of recycling. For example, company Benetton has implemented such a clothing company Dutch Awearness develops design, enabling yarn recycling with its single- workwear that guarantees a pure material thread knitwear produced using a special input for the recycling process, enabling the high-tech Japanese knitting machine and just 416 429 Further research is same feedstock to be recycled several times. one 450-metre-long yarn. Despite being technologically feasible, the needed to explore the opportunities that this type of recycling could bring and to develop the process is not yet applied at scale. Yet, there relevant technologies. is a clear opportunity for scale-up, as it is price competitive with virgin polyester and, Fibre recycling. This type of recycling has been importantly, not subject to the same price used for nearly 250 years and is applicable volatility as the virgin material. at scale through standardised mechanical 418 Resource needs for chemicals, dyes, Both cotton process. Chemical polymer recycling. and water are minimal as there is often no need and other cellulose-based fibres (e.g. lyocell, for bleaching and re-dyeing because textiles viscose) as well as plastic-based fibres, such as are normally sorted by colour. However, fibre polyester, can be recycled using solvent-based recycling does not currently offer the quality technologies. Chemical polymer recycling of of recycled fibres needed to produce a 100% cotton is already at a commercial level, while recycled garment from the output, except for technologies are also being developed for 419 This wool that is recycled for the first time. blends, and are moving from R&D stages into is due to shortening of the fibres in shredding. pilot and industrial developments. Scaling up Therefore, to provide the quality needed for use adoption of chemical recycling technologies in a garment, recycled cotton is usually blended additionally could be supported by creating with longer fibres, which are mostly virgin transparency on the materials in the system, as cotton or, for cost reasons, polyester. Currently, well as coordinating innovation efforts. the amount of recycled cotton in yarn varies 98

99 Currently, For pure cotton, the result of the current Chemical monomer recycling. chemical polymer recycling process to recycle monomerisation technologies only exist for plastic-based fibres. Polymers like polyester and cotton is a cellulose pulp which can be used polyamides (e.g. nylon) can be depolymerised to produce other regenerated cellulose-based to extract the monomers from which they have fibres. The recovery process is theoretically 436 These can then be used been produced. repeatable several times but currently the as building blocks for the production of new polymer chain degrades with each repetition. polymers. Technologies are mature and proven Research shows that the quality also for both polyester and nylon, but not yet widely deteriorates during use, which suggests that at 437 For polyester this is adopted for clothing. some point the quality will be too low for further 430 More research is partly due to a lack of cost-competitiveness application in apparel. needed to better understand the applicability of compared to virgin polyester. However, as they this process for multiple cycles, for example how bring plastic-based end-of-use materials back low-quality fibres can be detected and treated. to virgin quality, these technologies could be the method of choice for materials of such low Several examples of this type of recycling quality that there are no other viable recycling already exist for pure cellulose-based alternatives. Industry efforts are needed to fibre material streams. For example, fibre create cost-competitive processes for polyester manufacturer Lenzing’s Refibra product, made fibres, and to explore monomer recycling for by recycling cotton scraps from factory offcuts cellulose-based fibres. Currently, RESYNTEX, and combining them with wood to create a new an EU collaboration project, is researching such 431 lyocell fibre, is already commercially available. 438 opportunities for cotton, PLA, PET, and wool. Other pioneers, such as recycler Re:newcell There have been some significant successes for and The Infinited Fibre Company are piloting certain materials. In 2011, leading manufacturer technologies to recycle textiles made from Aquafil created a Nylon-6 yarn called ECONYL cotton and other cellulose-based materials 432 Evrnu has from 100% recycled materials. The yarn is into new cellulose-based fibres. developed prototype jeans and T-shirts using created from post-use materials from carpets post-use recycled cotton, working with partners and factory offcuts from the production of 433 such as Levi’s and Target. various textiles, including clothing. The recycled fibre is then used in apparel, for example for Promising solutions are also emerging to 439 Japanese chemical swimwear or stockings. address the challenges of recycling material company Teijin produces a chemically recycled blends. For example, recycling start-up Worn 440 polyester under its Eco Circle brand. Again has developed a process that can Chemical monomer recycling for polyester is not separate and recapture polyester and cotton yet cost competitive, mainly because separating from pure and blended materials into virgin- out the monomers from the dyes, coatings, equivalent polyester and a cellulose pulp that and other contaminants is costly and energy can be used to produce lyocell or viscose. intensive. For example, recycled polyester from The process can take up to 20% of additional unwanted clothing commanded a 20–30% material, which gets filtered out, and the price premium compared to virgin polyester company claims that the vast majority of non- 441 Pulse of while the in a Patagonia project, wearable textiles are suitable as feedstock into the fashion industry report found chemically their process. Research to valorise these filtered- recycled polyester to be 10% more expensive out materials, for instance dyes and elastane, is 434 442 The Hong Kong Research Institute However, recycling innovators like than virgin. underway. for Textiles and Apparel in partnership with the JEPLAN have started to invest into polyester H&M Foundation also recently developed a new monomerisation, indicating that they can see 443 435 Ioniqa process to separate cotton-polyester blends. a business opportunity in the sector. Such innovations represent the opportunities has developed a process to recycle different for this type of recycling, but further alignment kinds of PET, including polyester from clothing and widespread adoption would be needed to into monomers. They claim that their product – once the process is scaled up – will be cost ensure that the real benefits of these emerging 444 . technologies are realised competitive with virgin material. 99

100 different pure and blended input textiles. 3.3.2. IMPROVE AND SCALE The plant will be able to handle 500 tonnes SORTING TECHNOLOGIES of garments per year, around one garment TO DRASTICALLY INCREASE every ten seconds. The technology is yet RECYCLING OUTPUT QUALITY to be improved in terms of the number of different colours, materials, and blends that Once clothing is collected, effective sorting and 450 it can detect. identification of garments into separate streams appropriate for different recycling systems is • SIPTex, a Swedish consortium led by IVL • required. As mentioned above, accurate and Swedish Environmental Research Institute, is rapid sorting of garments would be greatly currently undertaking operational tests for supported by universally aligned tracking and automated sorting of textiles for recycling tracing technology. Until this is implemented at using NIR and VIS technologies. In a pilot scale, continued development and introduction facility, textiles are sorted according to their of optical sorting technologies could improve different materials and colours. Rather than the speed of garment sorting, which is mostly separating for exact fibre compositions, the carried out manually today. machine sorts for the majority fibre type of each garment. Once a garment’s type is According to WRAP, automated optical sorting identified, compressed air separates it from technologies play a critical role in scaling up 451 remaining textiles. recycling and making it cost competitive with 445 While automated garment virgin resources. sorting technologies exist, their current accuracy and speed at sorting complex materials limits Stimulate demand 3.4. their application. Promising technologies using Near Infrared for recycled materials (NIR) technologies such as hyperspectral Increasing demand for recycled materials imaging and visual spectroscopy (VIS) are could drastically speed up the development currently being developed, which can sort towards circularity in the apparel sector. clothes by colour and material category. Some Driving up demand for recycled materials of these technologies can currently reach would bring economies of scale and inspire sorting speeds of up to one garment per innovation to improve their quality. Enhanced second; however, multicoloured garments pose transparency, together with matchmaking a difficulty, as only certain areas of a garment 446 mechanisms that connect designers and buyers Three projects are scanned to identify it. with producers of recycled materials, coupled currently developing these technologies are with strengthened ‘pull’ effects that generate discussed below. demand for recycled materials could lead the • • Machinery manufacturer Valvan’s NIR way. spectroscopic technology, called the FIBERSORT, can detect garments made 3.4.1. STRENGTHEN THE ‘PULL’ from cotton, wool, viscose, polyester, acrylic, nylon, and certain blends of these fibres, as EFFECT ON THE DEMAND 447 well as sorting by colour at the same time. SIDE THROUGH VOLUNTARY The FIBERSORT possesses an extensive COMMITMENTS AND POLICY database of today’s materials. After the Brands could contribute towards increasing the scan, the captured image is analysed and amount of clothing-to-clothing recycling by compared to the database to determine making commitments to use recycled materials. 448 It can process up to one the fibre type. This would stimulate and guarantee a certain garment per second. However, there are demand and generate a ‘pull’ effect to improve still challenges in sorting complex blends of recycling. 449 three or more materials. Since technologies are still under development • The EU-funded Resyntex project will build a • this might mean higher material costs in the demonstration NIR-based textile recognition short term. However, large-scale adoption in plant at SOEX’s premises that can sort, the industry could quickly lead to economies pre-treat, and biochemically process 100

101 of scale. Commitments are already in place. the Danish municipality of Herning has included The Global Fashion Agenda’s call to action finding commercial recycling solutions for for a circular fashion system has been signed used work clothes in their objectives for 461 Such examples show how by 64 fashion companies, representing 143 procurement. government stimulus and public procurement brands. With a combined total revenue of can lead the way in a system-level shift. USD 133 billion, the signatories represent approximately 7.5% of the global fashion Policymakers also play an important role in market. The signatories have committed to stimulating demand by incentivising the use defining a strategy, setting targets for 2020, of recycled materials and/or disincentivising and reporting on the progress of implementing the use of virgin materials. For example, the commitment. One of the four concrete policy could come in the form of Extended actions on the agenda is to increase the share of Producer Responsibility (EPR). EPR policies give 452 garments made from recycled textile fibres. producers significant responsibility – financial Some brands have also put their own targets in and/or physical – to treat or dispose of their 462 In comparison to place. For example, H&M has set a commitment post-consumer products. voluntary schemes, mandatory policies have to use 100% recycled or “other sustainably 453 C&A has the advantage of targetting the entire industry sourced materials” by 2030. committed to the goal that 67% of all of its raw equally. materials will be sourced from “more sustainable France introduced a law in 2006 that obliges 454 Kering has committed to sources” by 2020. companies to provide or manage recycling reducing its environmental profit and loss across options at their products’ end-of-use. The its supply chain by 40% by 2025 by tackling the intention of the law is to encourage producers impact of their sourcing, manufacturing, and to consider what happens to their products 455 operations. when they cannot be used anymore. They can Public procurement could serve as a either run their own programme to do this or frontrunner and have a significant impact. contribute to an organisation that provides Public procurement represents a significant the service on their behalf. Either programme amount of purchasing power. In Europe, for must be approved by the French public 456 Hence, example, it amounts to 14% of GDP. authorities. Non-profit ECO TLC is currently procurement guidelines that provide buyers the only organisation accredited to provide with the information needed to favour recycled such a service for textiles. Contributions paid materials in their sourcing decisions can lead to ECO TLC are used for research into recycling the way towards a greater uptake of recycled technologies, communication campaigns materials for clothes through large-scale orders. aimed at customers concerning waste-sorting Progress towards such guidance is underway habits, measuring tools to analyse industry by the European Clothing Action Plan (ECAP), statistics, and real-time collection site mapping. which is currently researching the role of public Contributions are paid by the item and vary by procurers and aims to publish a report helping size (from EUR 0.00132 (USD 0.00155) for the them to reach environmental goals by using smallest items to EUR 0.0528 (USD 0.0622) for their buying power to stimulate a circular the largest items). To incentivise companies to 457 Public procurement approach to workwear. use recycled input, these fees are reduced if a offers the ability to stimulate market demand. certain minimum amount of recycled material is 463 For example, Dutch government agencies used in a company’s production processes. purchase EUR 102 million (USD 120 million) Policymakers can increase the uptake of a year of workwear, which represents 1% of recycling by removing regulatory barriers. For 458 The overall Dutch expenditure on clothing. instance, the EU defines used textiles as waste, Netherlands has introduced a programme called and its strict rules on the transport, storage, A Circular Economy in the Netherlands by and treatment of waste pose challenges for 2050, which set the target of a 50% reduction collection and recycling efforts. This has already 459 The Dutch in raw materials use by 2030. been recognised as a problem and a proposal Enterprise Agency, which is part of the Ministry as part of the European Commission’s Circular of Economic Affairs, has also included the use Economy Package suggests reclassifying of recycled fibres as a beneficial criterion for recycled materials as non-waste whenever they 460 For end-of-use solutions, sourcing workwear. 101

102 464 470 Such standards can meet a set of general conditions. processing criteria. In addition, serve as an independent reference for quality many countries employ some kind of ban or 465 For assurance. restriction on imports of used clothing. example, China recently banned the import of A matchmaking platform could be established 466 waste textiles. to support the uptake of recycled materials. A platform that brings together suppliers and 3.4.2. CREATE TRANSPARENCY buyers of recycled materials could support easier connections and facilitate greater AND COMMUNICATION transparency and better alignment between CHANNELS TO BETTER MATCH supply and demand. Buyers could more easily SUPPLY AND DEMAND evaluate the options for recycled material and Increasing the transparency of recycled suppliers would be able to offer the materials material properties and user specifications to a larger, more focused audience. Examples of would enable better matching of supply and such platforms already exist. Circle Economy’s demand. Open dialogue between recyclers, Circle Market, an online trading platform that textile mills, and brands could facilitate connects the supply and demand of excess alignment on the key properties required for textiles, is currently being piloted with a number materials in different applications. While brands 471 of companies globally. often do not incorporate recycled materials in their products due to lower quality and/ or higher prices compared to virgin materials, recyclers claim that brands follow such strict Implement 3.5. material specifications that recycled materials 467 According cannot compete with virgin quality. clothing collection at to fibre recycling companies, recycled fibre’s scale quality cannot be compared to virgin fibre, yet it can still sufficiently fulfil the requirements 468 Clothing collection needs to be scaled up Increased of most clothing applications. dramatically alongside recycling technologies transparency on the specification of materials and, importantly, implemented in locations from brands, and also on the properties of where it currently does not exist. Creating recycled material, could support matchmaking demand for recycled materials, as discussed of buyers with suppliers. This could have the above, will increase markets for non-wearable added impact of increased trust in the supply items, and therefore dramatically improve the chain, and support the development of long- opportunity for collectors to capture value term relationships with the manufacturers from these materials. Guidelines based on providing the recycled materials. These current best practices and further research relationships would then enable adoption at on optimal systems could help scale up scale and further improve economics in the collection. Such guidelines may be applied to recycling system. Material scientists need to a set of country or city archetypes, allowing consult brands and retailers on sufficient quality for regional variation but building on a set of levels for different clothing applications to common principles. decrease the level of uncertainty around the capabilities of recycled fibres, and thus increase Various clothing collection schemes their rate of uptake. exist with large variations between The Global Recycled Standard (GRS), managed different regions by Textile Exchange, is one such effort looking A variety of systems currently exist to collect to increase confidence in recycled materials, used clothing (see Table 1 for an overview). by certifying the integrity of the final product Collection rates, and the type of schemes to as having been recycled according to ISO collect used textiles, vary significantly, both norms. This includes monitoring social and nationally and regionally. Some countries, such environmental criteria of the facilities together 469 as the UK, have municipal collection schemes, The with obedience to chemical restrictions. but these vary by local district. Yet, while in Recycled Claim Standard (RCS) operates in a countries like the UK and Germany there is often similar way, but does not include the additional 102

103 a choice between various ways of disposing of use is often characterised by fragmentation, reused clothes, many other countries do not lack of scale, and lack of location-appropriate have any formal collection at all and rely solely collection systems. Systems across retailers, on informal collection systems. Some of these charities, and municipalities require expansion systems do not distinguish between clothes and scaling up. A number of retailers – including collected for recycling and reuse (see Box K) Patagonia, Zara, and H&M – have already and further investigation is needed to better introduced their own take-back schemes. For understand the advantages and disadvantages example, H&M’s Recycle Your Clothes initiative, of mixed or separated collection. launched in 2013, has so far collected 45,000 tonnes of clothes and has set itself a target of Where collection schemes do exist, the 472 scaling up to 25,000 tonnes annually by 2020. collection landscape for clothes recycling after 103

104 TABLE 1: METHODS OF CLOTHING COLLECTION EXAMPLES MAIN ADVANTAGES MAIN DISADVANTAGES COLLECTION TYPE DESCRIPTION Textiles mixed with Garments are High convenience other waste need to collected through Most countries be separated out and Suitable for large municipal waste also accumulate dirt MUNICIPAL WASTE scales collection from other waste COLLECTION Households need to Some separate out clothing municipalities Separate kerbside Potential for large for collection including in the collection of scale US, UK, and unwanted clothes SINGLED-OUT KERBSIDE Separate logistics 473 China COLLECTION needed High convenience for user Work-intensive and British Heart Ordered courier tailored routing 474 Can be combined collects textiles Foundation needed with return of HOME PICK-UP rented items Relatively Users take convenient if 475 Red Cross, garments to Separate logistics container density is 476 San TEXAID, local collection needed NEIGHBOURHOOD high 477 Francisco containers COLLECTION Large scale possible CONTAINERS Users are asked Can be combined 478 Users have to mail Patagonia, to mail their with incentive 479 unwanted clothes items Eileen Fisher system back to brands BRAND MAIL-BACK Can be combined Users bring Users have to with incentive 481 480 Zara H&M, garments back to remember to take system retailer items along Large scale possible RETAILER DROP-OFF 482 Oxfam, Implicit incentive Users take 483 Red Cross, Users have to bring system garments to British Heart items to a shop charity shops 484 Large scale possible Foundation CHARITY SHOP DROP-OFF 104

105 485 While improved recycling technologies will help, This means in other countries after their use. creating clothing collection systems tailored to investment and further research is required to those destination countries – most of which do scale up collection efforts not currently have formal collection systems – to Collection, sorting, and recycling processes capture material value even from clothes sold in need to be scaled up at the same time, to other places. create demand and improve the economic attractiveness of collection. While factory Increase the uptake of existing clothing In countries where used collection schemes. offcuts are, most often, easily available for recycling collection, additional infrastructure clothing collection already exists, barriers need and processes are required to collect clothing to be addressed to further scale these initiatives. This would require actions to improve the after use. economic incentives for collectors and make Implement after-use clothing collection where it more convenient for users to keep materials it currently does not exist. More than half of in the system. Further understanding of the all clothes worldwide are sold in Europe, North advantages and disadvantages of the existing America, and China, but 10% of these end up schemes is needed to facilitate their expansion. BOX K: CLOTHING COLLECTION FOR REUSE In some high-income countries, large proportions of clothes discarded by local customers are collected through a variety of channels. Nearly 70% of the clothes collected in Europe 486 and the US overall is considered reusable. Only 20% of these collected clothes is actually 487 resold on domestic markets, due to the lack of demand. The rest is sold to textile merchants who sort and ship them overseas, and, of these, 70% is actually reused. With regard to the remainder, two-thirds are cascaded to lower-value applications and one-third 488 is landfilled or incinerated. While this model has increased value capture and utilisation of clothing, it is not a long- term solution since it will lead to saturated markets in recipient countries. In Uganda, for 489 example, second-hand garments already account for 81% of all clothing purchases. A case study of used clothing exports from Nordic countries to Malawi highlighted the lack of infrastructure for waste collection in general and revealed that a high focus on the material value of products ensured that textiles are used until all possible value is drawn out, after 490 which they are often disposed of in the environment. While such reuse schemes increase the utilisation of the material significantly, residual value is still ultimately lost from the system. This leads to several key considerations for clothing collection schemes for reuse: • Since it increases clothing utilisation, collection for reuse could play an important role in a new textiles economy – at least in the medium term, until resale models have been more widely adopted (see Section 2.3.3). • The potential to scale up the existing collection for reuse model is limited. For example, copying the systems in place in countries like the UK and Germany and rolling them out worldwide without creating new resale models (see Section 2.3.3) would not be feasible, due to the lack of markets in which to sell these collected clothes. • Greater collection for reuse in some countries does not replace the need to scale up collection systems globally – particularly in regions where they do not yet exist – and to scale up recycling. In a new textiles economy, the material in clothes that have been worn until they cannot be worn anymore should be recovered and recycled. 105

106 management of collection routes, which could 3.5.1. DEVELOP GUIDELINES TO help optimise asset utilisation, fuel consumption, SUPPORT IMPLEMENTATION and labour deployment. OF AFTER-USE CLOTHING Understand the advantages and disadvantages COLLECTION There are a of different collection schemes. A set of global collection archetypes, allowing variety of ways to collect clothing after use, for regional variation but building on a set of including local authority collections, textile common principles, could support the scaling- ‘bring banks’, civic amenity centre collections, up of clothing collection after its final use and donations directly to charity shops, in-store the implementation of systems where there are retailer collections, door-to-door charity bag currently none. collections, and ‘cash for clothes’ donations (see 492 An examination of these different Table 1). Guidelines could support alignment between methods should also include which factors are collectors and sorters when working together most important to incentivise use of existing to realise value-capture opportunities and also systems. While further research is needed, three align collection and recycling facilities globally, factors contribute to the uptake of collection to better connect the material streams to the systems, and should be considered when recycling facilities and create a closed-loop creating or scaling collection schemes: system. Efforts to develop the guidelines would need to address fundamental questions about Convenience • • . Encouraging uptake of how to collect and sort clothing streams for clothing collection schemes requires recycling. For example, they would need to infrastructure that is easy to use. Given the explore whether to separate clothes for reuse subjective nature of, and cultural differences and recycling at source, or whether to collect all in, what is considered convenient this could clothes together and separate afterwards. require offering a combination of options for collection. Pilot schemes can be used to test and select the most successful collection methods that Awareness and trust. To avoid textiles being • • captured the highest value, before scaling sent through the wrong channels, doubts these up to regional or national levels. Research about after-use treatment must be removed. is needed in several areas to develop such These are most commonly Incentives. • • recommendations. monetary, although compensation also Investigate locally appropriate collection comes in other forms such as the ‘feel- systems for after-use clothing globally. To good factor’ when donating used clothes. introduce recycling collections for after-use Collection solutions provider I:CO offers clothing where these currently do not exist, a range of collection options that reward efforts to better understand local cultures people for returning their clothes and have and material flows would be needed. There supported in-store collection schemes, like is a general lack of information about what that of fashion giant H&M, which attract happens to used textiles when there is little participants with discount vouchers for in- 493 or no collection infrastructure, and the overall store purchases. 491 Building transparency and impacts of this. understanding current practices would support 3.5.2. EXPLORE THE ENABLING the development of locally suitable collection ROLE OF POLICY schemes in places where clothes are worn for Policymakers at various levels play roles the last time. in scaling up clothing collection. Directly, Investigate cost-effective means of collection. policymakers responsible for waste To make the implementation of clothing management – usually at the municipal level collection more economically attractive for – could invest or incentivise investment in collectors, it is crucial to keep the cost of infrastructure, for example by pursuing public- collecting low. Costs associated with collection private partnerships. This could speed up the include transport and sorting. Innovation in implementation of the necessary collection technology could reduce costs through faster infrastructure where it currently does not exist loading and unloading of collection vehicles or create additional and better schemes to and by mechanisation and software-supported 106

107 increase uptake, for example through running removing barriers to trade such as import or pilots in partnership with brands. export bans. Collection rates could be rapidly increase by ‘push’ mechanisms. These could Other options at the disposal of policymakers include charging for clothing discarded in to help scale up clothing collection include the general waste bin (while not charging for setting targets or incentives for collection, separate collection), or banning textiles from extending producer responsibility schemes landfill and incineration altogether. (see Section 3.4.1), removing barriers caused by the definition of used textiles as waste, and 107

108 4. Make effective use of resources and move to renewable inputs 108

109 4. MAKE EFFECTIVE USE OF RESOURCES AND MOVE TO RENEWABLE INPUTS A new textiles economy would be regenerative and restorative, phasing out the use of non-renewable resources. Replacing non-renewable resources with recycled feedstock (Ambition 3) and reducing throughput in the system by maximising clothing utilisation (Ambition 2) are key contributors in significantly reducing resource usage. However, virgin material input will likely always be required. Where such input is needed and no recycled materials are available, it should increasingly come from renewable feedstock produced in regenerative ways. In addition, transitioning to more effective and efficient production processes that generate less waste, need fewer inputs of resources, such as fossil fuels and chemicals, reduce water use in water-scarce regions, are energy efficient, and run on renewable energy, can further contribute to reducing the need for non-renewable resource input. In addition to being essential for a system that works in the long term, achieving this ambition would allow the industry to reduce risks related to resource price volatility and security of supply, and to capture value through direct cost savings. Four key actions have been identified to support a more effective use of resources and move to renewable inputs: accounting for the costs of negative externalities to incentivise good systems-level resource management; finding sources for renewable feedstock where resource input is needed; removing barriers to adopt more effective textiles production methods at scale; and innovating processes to use fewer resources. 109

110 hungry and highly inefficient (see Figure 18). 4.1. Textiles production For example, the production of 1 kilogram of methods are resource- cotton garments uses up to 3 kilograms of 494 while up to 200,000 tonnes of chemicals, intensive and dyes worth USD 1 billion are lost to effluents every year due to inefficiencies in the dyeing challenges exist to 495 Textiles production and finishing processes. is also highly GHG intensive, as the production adopt innovations of 1 kilogram of textiles emits 20 kilograms of equivalent, whereas for the same amount CO The materials currently used in textiles 2 of plastic and paper, 4 kilograms and less than production have been selected for their equivalent are produced, 1 kilogram of CO specific functionality and optimised for cost; 2 496 To put this into perspective, in respectively. however, they have significant drawbacks in 2015, polyester production for textiles alone terms of resource use. This is particularly true was responsible for over 700 million tonnes for the two dominant materials: polyester 497 Additionally, up to 4,300 equivalent. of CO and cotton. Polyester production uses large 2 litres of water are used to produce 1 kilogram of amounts of resources and energy, and cotton cotton fibres, although this varies depending on farming requires high volumes of fertilisers and climatic conditions. Dyeing and finishing can use pesticides (unless farmed organically), as well around 125 litres of water per kilogram of cotton as significant amounts of water. Additionally, 498 fibres. current processing methods are also resource- THE TEXTILES INDUSTRY USES SIGNIFICANT AMOUNTS OF RESOURCES FIGURE 18: alent of more than f xtiles production The production o Te The equiv (including c otton farming) uses 3 trillion plastic bottles is 1 kilogr am of c otton o produc e almost 100 billion cubic metres needed t garments uses up t o , representing 3 kilogr f ater annually of w plastic-based clothes ams o ev ear . chemicals. 4% of global fresh wa ery y er t withdr aw al. 1 Based on an average weight of 10 gram of a 0.5 litres PET bottle Source: KEMI, Chemicals in textiles: Risks to human health and the environment (2014), p.33; World Bank, AQUASTAT, and FAO, Dataset: Annual freshwater withdrawals, total (2014); Circular Fibres Initiative analysis Resource price and supply risks pose a threat many of the key cotton-producing countries to profitability. A business-as-usual approach are under high water stress, including China, to such resource use will present a long-term India, the US, Pakistan, Turkey, and Brazil. risk to business profitability. The price of oil has Water management and other environmental been historically volatile, exposing businesses conditions have significant impacts on the to unexpected input cost spikes for polyester availability of cotton, and therefore lead to 499 The industry’s and other plastic-based fibres. price fluctuations. This was seen in 2011, when generally resource-hungry approach creates cotton prices rose by over 30% in less than a other problems as well. For example, at present, month due to flooding in Australia, Pakistan, and 110

111 500 China. Increasing the proportion of recycled to collaborate with the people who are or renewable alternatives could help businesses producing their clothing. Partnerships and spread the risk of sudden price shocks in raw shared investment opportunities between innovators, brands, and manufacturers could materials. identify and scale promising solutions that Technologies and innovation to reduce would bring them to the mainstream market. resource use face challenges to adoption. Brands can drive and support innovation in new The textiles value chain is highly complex, technologies and materials through investment. and characterised by significant degrees of Currently, many brands and retailers are not fragmentation and intricate relationships allocating considerable budgets for research between suppliers and retailers. The top into technologies and materials. Brands do 20 apparel retailers account for 15% of the dedicate R&D expenditure to design and 501 By comparison, the top global retail value. 504 yet less so into production trend research, 15 global supermarket companies account for technology. Innovation can be particularly 502 more than 30% of world supermarket sales. impactful in two areas: novel materials that This dynamic is consistent across apparel avoid the drawbacks of the current materials manufacturers and suppliers as well as across palette, and processes using fewer resources. regions. Consequently, large retailers typically Increased transparency and information- have hundreds of suppliers, spanning many sharing through open-source platforms offers 503 countries. a route towards rapid adoption of innovation While there are many entrepreneurs and and improved processes by sharing best innovators offering promising solutions to practice examples between a brand or retailer’s reduce resource use or to find alternative suppliers. This should be augmented by building materials that reduce waste, they are small trust through longer-term relationships and and face challenges to being adopted at potentially co-investing in technologies that scale. Similarly, manufacturing and processing improve output performance. technologies for apparel have not seen widespread adoption of improvement measures, even where technologies exist and offer the opportunity to use resources more efficiently. Account for the 4.2. Examples include small, easily implementable costs of negative solutions to avoid waste and capture cost savings – for example energy-efficient lighting externalities to systems for factories or treatment systems to capture and reuse water in production facilities – incentivise good as well as more complex solutions transforming entire processes. There are few incentives for system-level resource suppliers to invest in these technologies or to management improve production methods, as this requires significant upfront capital investment. Decisions Brands that understand the impacts of are often made from a short-term and cost- sourcing decisions will be better informed to optimisation perspective, due to squeezed demand improved processes and materials profit margins and the lack of long-standing from their supply chains. This can be made relationships between buyers and suppliers. more transparent by accounting for the cost Recycled materials are also available for textiles of externalities of supply, such as pollution or production, and have the potential to reduce health impacts on workers. the input of non-renewable resources, yet they, A report by the Global Leadership Award too, suffer challenges for large-scale adoption, in Sustainable Apparel (GLASA) states that including issues with quality and a lack of cost- resources and services from natural systems are competitiveness (Ambition 3). not adequately priced by market economics, Cross-value chain collaboration is needed and as they are not financially valued, there is To overcome for innovation to reach scale. 505 For no market incentive to manage them. the high degree of fragmentation in the example, it has been estimated that if the true whole value chain, brands and retailers need cost of conventional cotton cultivation in India 111

112 accounted for negative environmental and from all industry efforts in one place. Brands societal externalities, it would equate to EUR and manufacturers could use this to support 3.65 (USD 4.28) per kilogram – around seven sourcing decisions and to create transparency 506 on the impacts across their entire supply chain. times the actual market price. Once the true value of production is measured Examples exist already in the industry that show and understood, the textiles supply chain would how these measures can be successful. Puma, be able to work collaboratively to find solutions part of the Kering Group, has driven efforts to better manage resources. to increase transparency in their production process, and was the first brand to introduce an Environmental Profit and Loss (EPL) methodology in 2011. The EPL recognises that Find sources for 4.3. Puma’s core business depends on a variety of resources and values these services, as well renewable feedstock as the impacts of their business activities on natural systems, by using a monetary value where resource input across the supply chain. Following successful is needed implementation at Puma, Kering has adopted 507 Benefits reported the EPL at group level. Even with an increased use of recycled materials by Kering include better understanding of (Ambition 3), some virgin material input will the risks and opportunities for raw materials, likely always be required. Where such input is better relationships with suppliers as they work needed and no recycled materials are available, together to manage environmental challenges, it should increasingly come from renewable and building greater trust with stakeholders resources. This means using renewable through increased transparency. In 2015, Kering feedstock for plastic-based fibres and using reported a reduction in carbon emissions, regenerative agriculture for cotton and other supply-chain waste, and water consumption, cellulose-based fibres. Innovation could also of 11%, 16%, and 19% respectively since its lead to the introduction of completely new 2012 EPL. These savings are driven by greater materials that avoid the use of large amounts of transparency in the supply chain, allowing the non-renewable resources. company to avoid high-impact sources, coupled with changes in product design and material 508 Kering has made the methodology choices. 4.3.1. MOVE TO RENEWABLE open-source, offering a tangible way to build FEEDSTOCK FOR PLASTIC-BASED collaboration at scale and acknowledging FIBRES the power of such actions being driven by all Bio-based or CO -based feedstocks could offer 509 2 retailers that use shared supply chains. a solution for avoiding fossil fuel inputs for The Natural Capital Protocol is a framework plastic-based fibres. Plastics can be made from that builds on existing techniques to identify, biomass sources including plants, such as sugar measure, and value natural capital in the context cane or corn, or from waste materials, such as 510 Created by the Natural of business decisions. 513 Biomass waste vegetable oil, or from algae. Capital Coalition – a global multi-stakeholder feedstocks that create biodegradable plastics collaboration bringing together over 200 global could potentially also offer a solution to plastic initiatives and organisations – the protocol microfibre release into the environment. acknowledges that natural capital impacts are often specific to the sector in which a business 4.3.2. MOVE TO REGENERATIVE operates, and has developed an apparel sector FARMING METHODS FOR COTTON guide, providing more specific guidance on how 511 to apply the protocol in the textiles industry. AND OTHER CELLULOSE-BASED FIBRES Tools such as the Sustainable Apparel Coalition’s In cotton production, non-renewable resource Higg Index, or Made-By’s Environmental inputs can be reduced by introducing Benchmark for fibres can also provide a first regenerative agricultural practices, which do step for the entire textiles value chain to 512 not use synthetic pesticides or fertilisers (see understand the wider impacts of production. Section 1.1.4). These tools could also gather information 112

113 As well as avoiding the resource inputs and direction for materials in a circular system. This downsides of synthetic pesticides and fertilisers, needs to be guided by brands, in collaboration regenerative farming practices avoid other with designers and material innovators, to align with their material specifications. Accelerator negative impacts on natural systems. Viscose, programmes like Fashion for Good could help and similar cellulose-based fibres, are mainly coordinate these efforts, and connect brands to made from wood, sometimes contributing to the 523 deforestation of ancient and endangered forests small innovators. or leading to the loss of habitats. The Rainforest Action Network estimates that 120 million trees 514 an are logged every year to make clothing, area expected to increase since the production 4.4. Remove barriers of dissolving pulp – the base material for viscose 515 to adopting more and similar fibres – could double by 2050. Regenerative methods of sourcing cellulose efficient textiles include seeking out fast-growing plant species that do not need prime agricultural land, and production methods can be farmed in a way that makes them part of a thriving ecosystem. at scale Brands and retailers have a significant 4.3.3. INNOVATE NEW opportunity to work collaboratively with MATERIALS SUITABLE FOR A their suppliers to implement best practices. CIRCULAR SYSTEM Examples of reducing energy use, water While seeking solutions to the existing use, and offcut waste already exist across challenges of today’s material mix, driving the industry. However, there are barriers to innovation in new materials would aid discovery adopting them more widely, including low of those fit for a circular system more rapidly. awareness of best practices, a lack of technical Interesting, yet small-scale, alternatives are skills to implement them, misaligned incentives emerging from using waste products, such as in current pricing schemes, and difficulties in innovator Orange Fiber, which uses waste from funding investments. Making information on orange juice production to make cellulose-based viable improvements more easily available, 516 Similarly, QMILK uses leftovers from fibres. as well as closer cooperation between brands 517 AgraLoop uses agricultural dairy production, and manufacturers – including long-term 518 and waste to create cellulose-based fibres, commitments towards improved resource use – 519 EcoAlf turns used coffee grounds into fibres. could help overcome these barriers. Other explorations into new fibres include artificial silk fibres, such as Biosteel or Bolt Business cases exist for more Threads, or fibres produced from algae, such as efficient production methods 520 While some such innovations AlgaeFabrics. Significant opportunities exist to reduce the are still in research and development or at waste generated during the production of lab scale, Italian high-fashion brand Salvatore garments in the form of offcuts of materials. Ferragamo has already employed Orange Fiber Most sources – including those used for the 521 Luxury brand Stella in one of its collections. material flow analysis carried out for this report McCartney has developed two demonstration – estimate the waste in clothing manufacturing outfits made from Bolt Threads’ artificial silk, at between 10% and 20% of the materials and expects to start selling clothing containing 524 However, recent field research analysing used. the innovative material in the next couple of waste from seven garment factories concluded 522 However, further exploration is needed years. that, on average, 25% of material is cut off to understand if, or which, other such fibres 525 and that this figure can during production, could be advantageous compared to those 526 Methods be 40% or more in some cases. dominating the system today, and how they are being developed to reduce the offcuts could be scaled to industrial levels. through direct reuse in the production process. An example of such a method is provided Such efforts require a common innovation by Reverse Resources, which has developed agenda, with a clear vision and guidelines on the 113

114 software that allows manufacturers to analyse manufacturers and buyers, though collaboration and then reduce their offcuts (see Case between the two is needed to overcome 527 Study C). Analysis of such solutions suggests currently misaligned incentives. that a positive business case exists for both CASE STUDY C: REVERSE RESOURCES Image source: Reverse Resources Reverse Resources provides software to manufacturers and their buyers to work together on making profitable use of factory offcuts. The software measures the quantity of production offcuts, maps them by type, and allows the manufacturer to share relevant data 528 with buyers. Reverse Resources has developed three approaches to using offcuts in mass production: Using offcuts invisibly on internal sections of a garment (e.g. pockets, cuff facings • or the insides of shirt collars). This allows the exterior appearance of the garment to remain unchanged. Using offcuts for small details on the outside of a garment, in the same colour as the • rest of the garment or a contrasting colour. In this case, the piece of fabric is visible, but does not significantly affect the design. Using offcuts for portions of other garments, which are specifically designed with a • certain stream of offcuts in mind. This can increase their application in mass production 529 and reduce design limitations. This approach does not directly reduce the waste in the production of one garment but uses the offcuts in the production of others, and is therefore a very effective way of fabric recycling (see Box J, p.95 ). These approaches could use more than 20% of offcuts, which is equivalent to 3% of all 530 virgin fabrics. For offcuts that cannot be used in these ways, the software provides information of use to recyclers, with the aim of helping them pursue higher-value types of 531 recycling. Business cases also exist for the reduction of technologies, and examples show that individual energy and water use in production processes. measures can already result in significant cost This is particularly true as volatile energy prices savings. The National Resource Defence Council and increasing environmental and regulatory has identified ten best practices for water and pressures present a favourable context to energy saving in textile mills that have low shift towards more resource-efficient and investment costs and payback periods of around renewable-based production in order to increase one year. The measures include detecting and 532 Many manufacturers cost-competitiveness. repairing leaks in water or steam systems, and retailers are already making efforts to insulating equipment such as dye baths, and 533 Case reduce energy and water use in production recovering heat and water for reuse. 114

115 management can deliver cost and productivity studies conducted by the Georgia Technical improvements and reduce risks to continued Institute on air-jet weaving machines found 535 One example of a company operations. that reducing air leakage from 12% to 6% succeeding with implementing energy efficiency resulted in an expected electricity cost saving of is Viyellatex (see Case Study D). USD 440,000 each year for a system operating 534 Likewise, better water 500 weaving machines. CASE STUDY D: VIYELLATEX Viyellatex is a vertically-integrated garment manufacturer based in Dhaka, operating along several steps of the value chain from spinning to garment production. The company – which supplies brands such as Calvin Klein, Puma, Esprit, and Hugo Boss – had an annual turnover 536 close to USD 200 million in 2011 and employed around 17,000 people. It has received numerous awards for its sustainability focus. These initiatives are driven by a clear business case and result in economic and environmental benefits as well as positive publicity and an .537 enhanced reputation with its suppliers and customers The Chairman and CEO K. M. Rezaul Hasanat explains the company’s rationale for implementing the initiatives: “We can be environmentally friendly but, unless there is a 538 return, we can’t continue the initiative. We are saving money”. An estimated 35% of energy savings were achieved through various initiatives, translating into an economic 539 benefit of total Bangladeshi Taka (BDT) 27 million (USD 400,000) in 2010. Energy savings come from utilising output wastage of steam in heat boilers, recycling heat from dyeing units, using cooling pads as alternatives to air conditioning, as well as employing energy-efficient light bulbs and sewing machines with energy-efficient motors. Using the output wastage of steam alone achieved 40% savings compared to the original heating costs. Water savings included reuse of treated effluent water for toilet flushes, using rainwater from roof collection for production, and employing wastewater treatment. All these efforts culminated in the construction of two new factories in 2011 and 2012, both certified by the US Green Building Council. Both buildings incorporate efficiency measures, such as a rainwater harvesting system, skylight ceilings, and solar panels. For the second factory, known as ‘Eco-Fab’, the reported ambition is to provide 30% of the energy requirements through renewable sources. The aggregate investment in the projects is 540 estimated at around USD 5 million. measures are not implemented due to lack of 4.4.1. MAKE VIABLE awareness, lack of funding, or limited technical IMPROVEMENTS IN PRODUCTION 541 Knowledge could be made more knowledge. PROCESSES READILY AVAILABLE readily available through the use of an online TO ALL GARMENT AND TEXTILE toolbox or platform, such as the Euratex ‘Energy Made-To-Measure’ platform, which gathers best- MANUFACTURERS practice examples and makes these available Making best-practice cases available, and for free, particularly with the aim of supporting including clear guidelines on implementation, 542 SMEs to increase their energy efficiency. would allow small manufacturers to benefit Coordination is critical to avoid duplication from cost savings and enable them to reduce or fragmentation and counter-productive their resource use. Most textile plants are small multiplication of platforms. enterprises and operate on limited budgets and personnel. Small and medium-sized companies (SMEs) throughout the value chain can find it difficult to access the latest knowledge on easy- to-achieve energy and water-saving measures. This means that often even small improvement 115

116 increase the consistency of quality while sharing 4.4.2. MOVE TO JOINT the associated risks of investments. INVESTMENTS AND LONG- Brands and retailers could leverage their scale to TERM COLLABORATION invest in measures that improve resource use on BETWEEN RETAILERS AND a large scale through long-term commitments. MANUFACTURERS They could also work with their suppliers to Brands that work with suppliers to implement implement change and overcome barriers of process improvements will build trust and implementation. In the long run, this would better transparency on production processes. benefit all parties, in the form of better margins Despite potential long-term benefits, from energy efficiency and reduced reliance on technological improvements often require non-renewable resources. This collaboration is high upfront costs and involve long payback needed, as manufacturers hindered by a lack of periods, which are seen as too lengthy by some knowledge, financial barriers, or low awareness small manufacturers – particularly without of the alternatives available will struggle to guaranteed purchases in the future. According create change in the production processes to Charles Ardent-Clarke of the United Nation’s alone. According to the CEO of a Bangladeshi Environment Programme (UNEP): “Often the manufacturer: “If the retailers want something, paybacks involved in energy- or water-efficient they have the power at the end of the day. technologies can be three to four years. Whatever a manufacturer does, it needs to fit However, anything over six-month payback together with what the customer wants”. Some is too much for many manufacturers due to brands are already implementing measures financial constraints”. Even though there can together with their supplier base. For example, be long-term payback on investment in better Nike has launched a joint programme with processes, Mauro Scalia from Euratex highlights its suppliers to implement best practices and the need for buyers and suppliers to work technologies along their supply chain (see Case together on process improvements because Study E). A European retailer gives the following these “can be difficult for a manufacturer with perspective: “Large brands have the kind of revenues of under EUR 50 million [USD 59 leverage small manufacturers and retailers can million] to undertake alone, without the help only dream of. If the change starts somewhere, of their customers”. Building a collection of it should be from there as they have the power trusted suppliers can promote long-lasting and the cash needed to support these changes”. relationships that offer the opportunity to CASE STUDY E: NIKE’S ‘REWIRE’ Nike’s ‘Rewire’ approach is a supply-chain strategy based on “integration, incentives, and 543 innovation”. One of the aims of the programme is to incentivise suppliers to become more efficient and innovative. To this end, Nike trains and encourages its suppliers to create innovative solutions that improve productivity. To be able to measure progress, Nike has introduced the Manufacturing Index (MI) across its supply chain. Contracted factories are measured on sustainability performance – in 544 addition to the traditional business metrics of quality, timely delivery, and cost. To measure sustainability, Nike created a Sustainable Manufacturing and Sourcing Index, assessing environmental, health, safety, and labour practices, and performance, on a scale of red, yellow, bronze, silver, and gold. By 2015, 86% of suppliers were rated bronze or 545 better. High-performing suppliers get access to training in key areas to further improve their performance, including waste management, energy and water efficiency, and 546 implementation of lean practices. This ‘pull’ model incentivises suppliers to strive for the highest performance instead of just complying with minimum standards. This also helps to create a generally more positive mindset towards improvements and efficiencies. 116

117 549 Dyeing achieve a 20% reduction in water use. 4.5. Innovate and finishing processes require heavy use of water, for example to dissolve dyes or wash processes to use fewer fabrics afterwards. Mechanisation and water- reuse technologies offer a first step to reducing resources 550 Innovation water use in the dyeing process. towards low or zero water-use processes for Innovation in production processes could dyeing are emerging. Due to the need for capture value by finding alternatives to water use during dyeing, such processes can conventional chemical use, and halso reduce have impacts on energy or chemical reduction, energy use, water use, and waste. too. For cotton, ColorZen offers pre-treatment As discussed earlier, the materials currently that modifies the chemical structure of cotton used in the apparel industry require large inputs to make it more receptive to dye without the of non-renewable materials in the form of discharge of hazardous substances and claims fertilisers, pesticides, dyes, and other process to reduce water use by 95%, and energy use chemicals. In many cases these chemicals are by 75%, compared to conventional cotton not retained in the process, leading to chemical 551 treatment. waste and pollution incidents. Examples of Another innovator, DyeCoo has developed a successful innovation in production processes disruptive technology called Drydye that does include the improved production of cellulose- not use any water and significantly reduces based fibres. The traditional viscose process solvent use in the dyeing process, by using uses large amounts of solvents to extract the compressed carbon dioxide as a solvent in a cellulose and transform it into fibres that can be closed-loop system. Using this technique, 95% spun into yarn. These solvents are hazardous, of the carbon dioxide can be recovered and and without proper treatment are lost during 547 reused, and while the capital investment in The lyocell processing in factory effluents. the equipment is higher than for conventional process – in contrast – can recover up to 548 dyeing, it can reduce operating costs by 45%, of the solvent and reuse it. The fibres 99.5% 552 Currently, due to energy savings of 50%. emerging from both processes possess slightly the Drydye technology can only be used on different properties, but the overall resource plastic-based fibres, but dyes suitable for inputs, as well as leakage of chemicals, are cotton are being investigated. While the current significantly reduced. high capital cost of installing the technology Water can also be reduced through process remains a barrier to large-scale adoption, some improvements during production and brands, such as Adidas and Nike, have started to processing. Water-saving practices in cotton- 553 integrate waterless dyes into their collection. growing include avoiding areas where irrigation This increased uptake by major players will help is needed and moving to rain-fed production or, to bring costs down and make such advances where irrigation is used, shifting from furrow to accessible to a larger number of manufacturers. drip-fed irrigation – the latter has been shown to 117

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119 APPENDIX A. OVERVIEW OF COMMON TEXTILE MATERIALS Today’s textiles system is dominated by, and Plastic-based fibres use large Disadvantages: optimised for, cotton and polyester. Cotton quantities of non-renewable feedstocks, and 558 During has historically been the dominant material are energy-intensive to produce. use, textiles made from plastic-based fibres used for textiles production, yet over the last shed plastic microfibres when washed that few decades it has lost market share, mainly 554 can end up in the environment or the ocean. to plastic-based fibres such as polyester. Currently, polyester makes up 55% of total Plastic-based fibres are not biodegradable and 555 textiles fibre production and cotton 27%. therefore remain in the environment for a long 559 time. The materials used today to make textiles come with a variety of material-specific advantages Polyester and disadvantages. To fully understand the Polyester – the most common textile fibre impact of the different materials used, it is overall – is used in all kinds of textiles, necessary to look at all phases, from feedstock 560 particularly sportswear and womenswear. for raw materials through production methods, during use, and after use. While further efforts Polyester is relatively Additional advantages: are needed across the industry to build a strong, crease-resistant, soft, and has a good 561 comprehensive picture of all impacts of Compared to other mainstream drape. the common materials used – and potential materials, polyester is cheap. The process for alternatives – the major advantages and dyeing polyester requires fewer chemicals than 562 disadvantages of a range of materials are During use, it has low energy for cotton. discussed below. requirements for care, as it is crease-resistant and dries quickly. Through chemical recycling, This highlights the need for innovation to 563 polyester can be restored to virgin quality. improve the existing fibres to avoid negative impacts for people and the environment, or to Additional disadvantages: The production investigate and rethink the materials needed for of polyester often uses heavy metals as a a circular system and to create new fibres with catalyst, specifically antimony, which is a known 564 no negative impact at all. It is particularly energy- carcinogen if inhaled. intensive, especially during dyeing, which 565 requires high temperatures. A.1. Plastic-based Nylon Nylon is used to make a variety of garments fibres including shirts, dresses, underwear, raincoats, 566 hosiery, socks, and sportswear. Plastic-based fibres – often called synthetic fibres – are usually produced from oil and Additional advantages: Nylon is strong, elastic, account for two-thirds of the material input wrinkle-resistant, and has higher moisture regain 556 The most common for textiles production. than polyester and good drape. Nylon 6 can be materials are polyester (55%), followed by profitably recycled on an industrial scale using 557 Elastane is less nylon (5%), and acrylic (2%). 567 de/repolymerisation. prominent in terms of volume but is used in Additional disadvantages: Producing nylon many garments in small quantities. All plastic- 568 emits nitrous oxide, a potent greenhouse gas. based fibres share the following advantages and Even compared to other plastic-based fibres, it disadvantages. 569 is very energy-intensive to produce. Plastic-based fibres do not Advantages: require agricultural land and use little water in production and processing. They are versatile and dry quickly after washing. 119

120 Advantages: Cotton is lightweight yet strong, Acrylic very absorbent, non-allergenic, and offers good Acrylic is commonly used in jumpers, fleece, and 579 Cotton can be recycled mechanically drape. 570 sportswear. without additional chemical use if supplemented Acrylic possesses wool- Additional advantages: with virgin material. It is also possible to like properties – it has good drape and provides chemically recycle cotton into lyocell or viscose warmth – though it is much cheaper to produce due to its high cellulose content. 571 than wool and dries more quickly. Cotton growing and processing Disadvantages: Even compared to Additional disadvantages: requires large amounts of water, which is other plastic-based fibres, it is very energy and especially problematic in water-scarce regions, 572 chemical-intensive to produce. and usually large amounts of pesticides and 580 It does not absorb dyes fertilisers are used. Elastane well and is therefore treated heavily with 581 Cotton chemicals in the dyeing process. Elastane – also known as spandex – is blended creases easily and chemicals must be used or with other fibres to produce textiles that need cotton blended with other materials if crease- additional stretch – mainly underwear, jeans, 582 573 Energy usage is high for resistance is required. shirts, swimwear, and sportswear. 577 cotton-spinning. Elastane can stretch Additional advantages: up to six times its normal length and recover to Viscose 574 Adding almost its original length immediately. Viscose – also known as rayon – is made by elastane also increases the comfort and crease- 584 extracting cellulose from wood using solvents. 575 resistance of clothing. Viscose is used for shirts, dresses, and 585 Additional disadvantages: Adding elastane nightwear. to fabric made from other fibres prevents Advantages: Viscose is soft, and has a similar pure material streams, making recycling drape to silk (while being considerably more difficult. As elastane is typically used 586 cheaper). in quantities of less than 3% by weight in 576 it is difficult to find economic ways clothing, Disadvantages: The production solvent used to recycle this small portion, even if it can be to produce viscose fibres (carbon disulphide) filtered out. is highly toxic and recovery of the solvent is typically very low, so the process constantly 587 Unsafe release of solvents requires new inputs. in wastewater can have hazardous impacts, A.2. Cellulose-based and high-profile pollution incidents have been 588 However, newer production methods reported. fibres allow very efficient chemical reuse and recover 589 Typical dyeing and up to 90% of the solvent. Cellulose-based fibres refers to those obtained finishing processes additionally require high use from plant-based material. This material can 590 Furthermore, of water, energy, and chemicals. be either directly captured from plants, such there is a risk to the environment where wood as cotton, or treated chemically to extract and is sourced illegally, for example, from ancient process cellulose. Cellulose-based fibres account 591 rainforests. for one-third of all fibres used for textiles, 577 If produced 27% of which is cotton alone. Lyocell without using or retaining any substances of Lyocell can be made from wood, cotton scraps, concern, cellulose-based fibres can be safely and other sources of cellulose, and is used to biodegraded. 592 make dresses, blouses, jeans, and shirts. 593 Cotton The Advantages: Lyocell is soft and strong. production solvents used are non-toxic and Cotton is used widely in clothing, particularly for 594 578 with can be kept in a closed-loop process, T-shirts, jeans, and underwear. 120

121 Advantages: one manufacturer reporting the ability to retain Wool is warm and breathable, 595 it easily takes up dyes, which decreases the almost 100% of process solvents. amount needed, has great moisture-wicking Disadvantages: Lyocell production processes abilities, and is highly durable. Some types of are highly energy-intensive and textiles made wool can be obtained as a secondary product 596 from lyocell tend to crease easily. 604 Wool needs less washing of meat production. than most other fibres. Wool fibres are relatively Bast fibres (linen, hemp, jute) long, making them more suitable for mechanical Bast fibres include flax, hemp, and jute. They are recycling, for which there are established often used for shirts, dresses, and trousers, worn 605 systems already in place. 597 in warmer temperatures. Wool is comparably expensive. Disadvantages: Bast fibres dry quickly, are Advantages: It requires significant amounts of land to durable, absorbent, and soften as they are produce and sheep release large amounts of 598 They require small quantities of water washed. 606 Wool methane – a potent greenhouse gas. and fertiliser to grow, and can grow on land must be treated to remove dirt and pests before 599 unsuitable for food production. use, which often uses chemical treatments that can have negative impacts on the environment Disadvantages: Bast fibres are relatively costly 607 if poorly managed or simply discharged. and the spinning is energy-intensive. The fibres Bleaching agents are sometimes used to extracted from hemp tend to be coarse and whiten wool, which results in wastewater abrasive, so clothing produced from them tends 600 containing substances of concern that need to not to drape well and this can limit their use. be disposed of to avoid these leaking into the The cultivation of hemp fibres is banned in many 608 environment. countries due to the narcotic properties of the Cannabis sativa plant, , even though hemp used Silk for fibre production contains very low quantities 601 of the chemical with narcotic properties. Silk is commonly used to make dresses, blouses, 609 and scarves. Silk takes dyes well. It has a soft Advantages: feel, and retains its shape well. Silk feels cool in A.3. Protein-based the summer and provides warmth in the winter, and can absorb significant amounts of moisture fibres 610 before feeling wet. Protein-based fibres refers to those from animal Silk is expensive due to its Disadvantages: sources, such as wool and silk. They account for 611 Silk labour-intensive production process. less than 2% of all fibres used, the vast majority worms need to be fed a special diet of mulberry 602 If produced without using, of this being wool. 612 The majority of silk produced comes leaves. or retaining any substances of concern, protein- Bombyx mori silkworm, which is from the based fibres can be safely biodegraded. harvested by steaming to kill the silk moth and extract the filament, because if the moth is left Wool 613 to emerge it would damage the filament. Wool – that is animal hair, most often from sheep – is used to make rugs, blankets, jackets, 603 knitwear, and suits. 121

122 APPENDIX B. METHODOLOGY OVERVIEW Appendix B.1. Global material flows analysis This analysis of the global material flows of textile fibres is based on an aggregation of fragmented data sets, often with varying definitions and scope. The analysis not only reveals a significant opportunity to increase circularity and capture material value, but also highlights the need for better reporting standards, transparency, and consolidation on a global level. DEFINITIONS FOR OVERVIEW OF GLOBAL MATERIAL FLOWS FOR CLOTHING POST USE COLLECTED - LOSSES IN MICROFIBRES RETAILER CLOTHES CLOTHES LOSSES IN CLOSED- FIBRES CASCADED LOOP MATERIAL WASTE COLLECTION RELEASE OVERSTOCK SOLD CLOTHING PRODUCED MATERIAL RECYCLING PRODUCED LANDFILLED AND DURING USE LIQUIDATED PRODUCTION OR PROCESSING INCINERATED Retailer Collected material use - Post use - Post Clothing Fibres lost in Garments Finished Clothing Collected Microfibres overstock landfilled or the process sold garments fibres waste that waste that material fibres that shed in that ends production ends up incinerated, in produced between is cascaded are recycled laundry up either collected collection, sorting, landfilled or manufacturing – both from back into (including all landfilled or or recycling of fibres and by any virgin as incinerated applications fibres in incinerated (with or operator, finished well as e.g. rags, clothing (with or without regardless recycled clothes production insulation, without energy feedstock of means mattress energy of recovery) stuffing's recovery) collection etc.) ASSUMPTIONS ON GLOBAL MATERIAL FLOWS FOR CLOTHING VALUE UNIT COMMENT SOURCE METRIC million Calculated, see below Cotton production for clothing 13 tonnes + million 33 Plastic-based production for clothing Calculated, see below tonnes / Gherzi Share of other fibres (not plastic- FIBRE based, not cotton) of total fibre 12 % (1 - % of other fibres) PRODUCTION production, 2014 = million Total fibre production for clothing 53 tonnes USDA Total cotton production – figures for million Total cotton production 20 2014 used to better reflect long-run tonnes average x % of cotton in clothing production FAO, (2011-2015) based on extrapolation Assumptions Share of cotton production going to in share change between 2007- 67 % clothing production 2010, applied on baseline of 2010 COTTON figures – average over 5 years used in calculations = million Cotton production for clothing 13 tonnes 122

123 IHS million Total plastic-based fibres production FAO, Total plastic-based fibres production 50 tonnes Assumptions x % of plastic-based fibres in clothing production (2011-2015) based on extrapolation in share change Share of plastic-based fibres going to % 67 between 2007-2010, applied on clothing production baseline of 2010 figures – average over 5 years used in calculations = PLASTIC-BASED FIBRES million Plastic-based fibres production for 33 tonnes clothing million Gherzi 53 Total fibre production for clothing tonnes x Share of other fibres (not plastic- Share of other fibres in total fibre 12 % based, not cotton) of total fibre production production, 2014 OTHERS = million Total other fibres in clothing production 6 tonnes million Gherzi Total fibre production for clothing 53 tonnes x Loss of material between fibre and (1 – % loss between fibre and yarn) 3 % 1 yarn FABRIC = PRODUCTION million Total textile production for clothing 51 tonnes million Gherzi Total textile production for clothing 51 tonnes x Loss of material between textiles and (1 - % loss between textile and garment % 6 production) finishing and garmenting GARMENT = PRODUCTION million 48 Garment production tonnes Calculation, Total amount of garments produced million 48 Garment production each year around the world tonnes Assumption = Clothes bought in one given year SALES million VOLUME 2 assumed to equal to production 48 Consumption volume tonnes volume Assumption Clothes that are disposed of, no matter the destination (e.g., charity, million 48 Clothes disposed of bin, etc.) – assumed to be equivalent OF tonnes to the amount of sales volume every CLOTHES DISPOSED given year Obsolete inventory Share of retailer stock that is in Dutch 3 3 % liquidated to incineration/landfill % of retailer overstock liquidated clothing each given year industry (Thesis) x million Clothes disposed of 48 tonnes OR INCINERATION = RETAILER OVERSTOCK Retailer overstock liquidated into landfill million Assuming retailer overstock LIQUIDATED INTO LANDFILL 1 or incineration tonnes liquidated is part of disposed clothes 123

124 Press search Share of textile or clothing landfilled or incinerated in the seven largest consumption regions. Mass Share of clothes landfilled landfilled is assumed to be the % of 73 % or incinerated clothes that does not end up being collected, incinerated, or in overstock liquidation x million Clothes disposed of 48 tonnes POST-USE - INCINERATED million Retailer overstock liquidated into landfill 1 tonnes or incineration = DISPOSED CLOTHES LANDFILLED OR million Post-use clothes landfilled or incinerated 35 tonnes (not valorised) Share of clothes that are collected by McKinsey % Share of clothes collected any type of organisation that handles analysis 25 4 used clothes (not wasted) x million Clothes disposed of 48 tonnes = million 12 Clothes collected CLOTHES COLLECTED tonnes million 12 Clothes collected See above tonnes x Material losses incurred in collection e.g., due to part of materials being 7. 5 % Loss rate in collection unusable, damaged or lost in collection, sorting or recycling steps = million Process losses in collection 1 LOSSES IN COLLECTION tonnes Press search Share of clothing reused for second hand markets for the seven largest Share of clothes reused (of disposed) % 12 consumption regions, out of total disposed clothes 5 x million 48 See above Clothes disposed of tonnes = Clothes that are reused again in their exact same state with no CLOTHES REUSED (or minimal) reworking. For the million 6 Clothes reused percentages of the material flows, tonnes this amount is further broken down for final destination Calculation, million Expert Clothes reused 6 See above tonnes interviews, press search x Share of reused sent overseas % of clothes sent overseas for reuse % 75 FOR REUSE = million Clothes sent overseas for reuse 4 CLOTHES SENT OVERSEAS tonnes million 6 See above Clothes reused tonnes x million See above 4 Clothes sent overseas tonnes = DOMESTICALLY million CLOTHES REUSED Clothes reused domestically 2 tonnes 124

125 Share of clothes going to recycling, McKinsey Share of discarded clothes going to % aggregation of figures from different 14 analysis recycling countries x million See above 48 Clothes disposed of tonnes - See above. Assuming all losses in million collection apply only to material 1 Process losses in collection tonnes collected for recycling CLOTHES RECYCLED = million Clothes recycled 6 tonnes Expert % of fibres recycled back into the clothing production – assumed to interviews, Share of recycled inputs in clothing % press search be equivalent to the amount of < 1 production inputs into fibre production that are 6 recycled-based x million See above 53 Total fibre inputs tonnes = million Amount of fibres recycled back in < 0.5 Fibres recycled back into clothing the clothing industry tonnes FOR CLOTHING PRODUCTION FIBRES RECYCLED BACK INTO FIBRES million Clothes recycled 6 See above tonnes - McKinsey Clothes recycled back in to fibres for million < 0.5 See above clothing production tonnes analysis = Clothing fibres that exit the clothing industry to be recycled for another million Clothes downcycled 6 industrial purpose (e.g., rags, tonnes CLOTHES TO CASCADING insulation, automotive parts) IHS, Wood Share of plastic-based fibres for 3 % Share of recycled plastic-based fibres McKenzie clothing that are recycled x Total tonnes of plastic-based fibres in million See above 33 clothing production tonnes = Amount of recycled fibres, assuming Expert Recycled fibres as input in clothing million plastic-based recycled fibres make interviews, 1 production tonnes up for the vast majority of recycled press search RECYCLED FIBRES FOR CLOTHING PRODUCTION fibres for clothing 1 Rough estimate – estimates of volume loss between fibres and textile production vary. E.g., Gherzi estimates total material loss between global fibre and textile production is from 89 million tonnes to 8 6million tonnes, equivalent to 3% loss between steps. Not all material is necessarily incinerated or landfilled - some likely to be cascaded 2 In theory the assumption is that production equals sales, yet in practice there can be discrepancy between volume produced and retail volume as both data points come from different data sources (IEMI and Euromonitor respectively). While, production data is used for most purposes, for specific sales and use analyses, no. of units sold is used 3 Retailers at times produce in excess - which then needs to be liquidated. Some overstock liquidated in terms of being sold at e.g., outlets or recycled - but part is liquidated by either incineration or landfilling - variable is looking at this specific proportion 4 Rounding 5 Note: in global materials flow diagram, it is assumed that in the long run reused clothes will also end up either landfilled, incinerated, cascaded or loop-to-loop recycled - thus 6 million of reused clothing is distributed based on percentage split, between each end-of- life destination. The splits differs according to whether the clothes are reused domestically or overseas. Some experts estimate the share to be even lower, e.g. below 0.1% 6 125

126 Appendix B.2: Resource use and negative externalities associated with material flows ASSUMPTIONS ON TEXTILES PRODUCTION AND METHODOLOGY STEPS FOR UNIT COMMENT SOURCE VALUE INPUT CALCULATION Total cotton production – figures for million Total cotton 2014 used to better reflect long-run USDA 20 tonnes production average x Share of cotton Applying the global share of fibres 90 % going into textiles, assuming it applies Lenzing, assumption production going to textile production to each of the three fibre types COTTON = million Cotton production for 45 tonnes textiles Total plastic-based fibres production million Total plastic-based 50 IHS tonnes fibres production x Share of plastic-based Applying the global share of fibres fibres going to textile 90 going into textiles, assuming it applies Lenzing, assumption % production to each of the three fibre types = Plastic-based fibres million PLASTIC-BASED FIBRES 18 tonnes production for textiles Plastic-based and million Sum of both cotton and plastic-based 70 cotton production for fibres production, see above tonnes textiles / Share of other fibres (not plastic-based, (% of other fibres) / Gherzi 12 % not cotton) of total fibre production, (1 - % of other fibres) 2014 OTHERS = Total tonnes of fibres other than cotton Other fibres million and plastic-based fibres going into 9 production for textiles tonnes textile production 126

127 ASSUMPTIONS ON GREENHOUSE GAS EMISSIONS STEPS FOR UNIT COMMENT SOURCE VALUE INPUT CALCULATION million Cotton production for 18 tonnes textiles x e/ kg CO GHG emissions for 2 McKinsey analysis 4.7 kg fibre cotton production = Total GHG emissions million tonnes for cotton production 86 e CO for textiles 2 + million Plastic-based fibres 45 tonnes production for textiles x GHG emissions for e/ kg CO 2 McKinsey analysis 11.9 plastic-based fibres kg fibre production = e EMISSIONS – 2 Total GHG emissions CO for plastic-based million 530 tonnes fibres production for FIBRE PRODUCTION PHASE e textiles CO 2 + million Other fibres produc- 9 tonnes tion for textiles x GHG emissions for kg CO Conservative e/ Assumed same as the lowest of cotton 2 4.7 other fibres produc- assumption / plastic-based kg fibre tion = Total GHG emissions million tonnes 40 for other fibres pro- e CO duction for textiles 2 + Total fibres produced million 71 for textiles tonnes x GHG emissions for e/ yarn production, kg CO 2 McKinsey analysis 9.6 kg fibre dyeing, weaving and knitting e EMISSIONS – 2 = CO Total GHG emissions million for yarn production, 550 tonnes TEXTILE PRODUCTION PHASE dyeing, weaving and e CO 2 knitting = Total GHG emissions in e TOTAL 1.2 GT CO 2 textiles production 127

128 ASSUMPTIONS ON WATER USAGE STEPS FOR COMMENT SOURCE UNIT VALUE INPUT CALCULATION million Cotton production for 18 tonnes textiles x litre/kg Water for cotton McKinsey analysis 4600 fibre production = billion Total water for cotton 84.5 cubic production for textiles metres + million Plastic-based fibres 45 tonnes production for textiles x Water for plastic- litre/kg McKinsey analysis 38 based fibres fibre production WATER – = Total water for billion cubic 1.7 plastic-based fibres FIBRE PRODUCTION PHASE production for textiles metres + Total other fibres million 9 produced for textiles tonnes x Assumed same as the lowest of cotton Conservative as- litre/kg Water for other fibres 38 sumption production / plastic-based fibre = billion Total water for other 0.3 cubic fibres production for metres textiles + Total fibres produced million 71 tonnes for textiles x litre/kg 88 Water for dyeing McKinsey analysis fibre PHASE WATER – = billion TEXTILE PRODUCTION Total water for dyeing 6.3 cubic metres = billion Total water in textiles TOTAL 93 cubic production metres 128

129 ASSUMPTIONS ON FERTILISERS, PESTICIDES, AND OIL FEEDSTOCK STEPS FOR UNIT COMMENT SOURCE VALUE INPUT CALCULATION F. Rosas “Fertilizer Use by Weighted average application rate for cotton Crop at the Country level 0.257 tonnes/ha globally (1990 - 2010)” (2012) x FAOSTAT “Composition of World arable land agricultural area dataset” 1417 million ha (2016) x WWF “The Impact of Cotton on Freshwater Cotton share of arable % 2.4 Resources and land Ecosystems” (1999) FERTILISERS x Share of cotton Applying the global share of fibres % production going to textile going into textiles, assuming it ap- 90 production plies to each of the three fibre types = million Total tonnes of fertilisers 8 tonnes for textiles production million Pesticides consumed A. De, R Bose et al “World 2 globally tonnes Pesticide Use” (2013) x WWF “The Impact of Cotton on Freshwater Share of pesticides going 11 % Resources and to cotton Ecosystems” (1999) x Share of cotton Applying the global share of fibres PESTICIDES production going to textile 90 % Lenzing, Assumption going into textiles, assuming it ap- plies to each of the three fibre types production = Total pesticides for textiles thousand 200 production tonnes ) produc- Based on ammonia (NH 3 is the most energy inten- tion, NH 3 Industrial Efficiency Total tonnes of fertilisers million sive fertiliser. Based on gas, oil and 8 Technology Database tonnes for textiles production coal use/ tonne NH3 produced x Energetic input for kg/kg of 0.9 fertiliser production fertiliser = Total fossil feedstock for million 7 Calculation fertilisers production tonnes + Plastic-based fibres million 45 production for textiles tonnes x kg/kg of Oil required for plastic- Arithmetic average from three plas- 1.1 S. Muthu, B. Gervet based fibres tic-based sources fibre = OIL – PLASTIC-BASED FIBRES FEEDSTOCK Total oil feedstock for million plastic-based fibres 48 tonnes production = Total fossil feedstock million for fibres production for 55 tonnes textiles 129

130 ASSUMPTIONS ON CHEMICALS AND DYES USAGE STEPS FOR VALUE UNIT COMMENT SOURCE INPUT CALCULATION Cotton production for million tonnes 18 textiles x Chemical input g/kg of Arithmetic average of range of 350 - Blusign 925 required for cotton cotton-based 1500 textile textile = Total chemical input 17 million tonnes for cotton-based textile production + Plastic-based fibres 45 million tonnes production for textiles x Chemical input g/kg of Arithmetic average of range of 110 - Blusign required for plastic- plastic-based 465 820 textile based textile = Total chemical input CHEMICALS for plastic-based million tonnes 21 textile production + Cotton production for million tonnes 9 textiles x Chemical input g/kg of other Assumed same as the lowest of cotton Conservative required for textile 465 fibres textile assumption / plastic-based based on other fibres = Total chemical input for the production 4 million tonnes of textiles based on other fibres = Total chemical input in million tonnes 42 textiles production M. Morhsed “RFT kg per tonne Dyes consumption 2014 values Dyeing & Its Effect” 20 per kg of fabric (2015) x 51 million tonnes Total fabric production DYES = Total dye consumption 1 million tonnes in textiles production 130

131 Appendix B.3. Extrapolations to 2050 METHODOLOGY AND KEY ASSUMPTIONS FOR EXTRAPOLATIONS TO 2050 METHODOLOGY • Apply growth rate forecast per fibre type for the period 2015-2020 • Extrapolate until 2050 • Isolate externalities per fibre type and scale them to the projected mass of fibres KEY ASSUMPTIONS METRIC VALUE DESCRIPTION SOURCE Textile Exchange Annual Growth rate based on the forecast Plastic-based fibres 3.5% growth rate of the textiles and clothing industry for underlying for the period 2015-2020 Cotton 1.5% material volume This rate has been used as CAGR to extrapolate 2015 baselines until 5.5% Others 2050 INPUT Total fibres CAGR CAGR 2015-2050 for Resulting from the growth rates 3.5% all fibres above Resulting from the growth rates Fibre shares in Plastic-based fibres 63% above 2050 Cotton 13% 24% Others 131

132 ENDNOTES 1 Euromonitor International Apparel & Footwear 2016 Edition 20 Ibid. (volume sales trends 2005–2015); https://www.worldwildlife. Circular Fibres Initiative analysis – for details see Appendix B 21 org/industries/cotton; Fashion United, Global industry (2016), https:// fashion statistics: International apparel Energy, Climate Change & International Energy Agency, 22 fashionunited.com/global-fashion-industry-statistics (2016), p.113 Environment: 2016 insights Excluding footwear 2 Textile dyeing industry: An environmental hazard Kant, R., 23 , Natural Science, Vol. 4, 1 (2012), p.23 Product developments in Wood Mackenzie presentation, 3 (2016) manmade fibres: Is cotton able to compete? O’Connor, M.C., 24 Inside the lonely fight against the biggest , The Guardian environmental problem you’ve never heard of 4 This is true for plastic-based fibres, but also for cellulose- (27 October 2014); International Union for Conservation based fibres such as cotton, which usually requires fossil- of Nature, Primary microplastics in the oceans: A global based fertilisers and pesticides. evaluation of sources (2017), pp.20–21 5 McKinsey & Company, Style that’s sustainable: A new fast- Handbook of research on strategic supply chain 25 Kamath, N., (2016) fashion formula management in the retail industry (2016); GS1 UK, Where Global Fashion Agenda and Boston Consulting Group, Pulse 6 did your profitability go? Managing the apparel omnichannel (2017), p.19 of the fashion industry (2016), p.13 cost-to-serve 7 Circular Fibres Initiative analysis based on Euromonitor 26 Greenpeace, Time out for fast fashion (2016), p.3; Doane, D., International Apparel & Footwear 2016 Edition (volume sales Living in the background: Home-based women workers and trends 2005–2015). All numbers include all uses until the (2007) poverty persistence garment is discarded, including reuse after collection and Findings on the worst 27 Bureau of International Labor Affairs, resale. forms of child labor (2013), pp.10, 30, 31, 56, 59, 110, 146, 171, 8 Ibid. 368, 369, 561, 775, 776; Verité, Help Wanted (2010), p.5; Anti- (2012); see Slavery International, Slavery on the high street 9 Calculation based on Circular Fibres Initiative materials http://www.safia-minney.com/slave-to-fashion.html; https:// flow analysis (for details see Appendix B) and Euromonitor labs.theguardian.com/unicef-child-labour International Apparel & Footwear 2016 Edition (volume sales trends 2005–2015). In 2015, 46% (in mass) of collected 28 See Appendix B.3 for assumptions and methodology behind garments were reused. If 100% of discarded clothing were the extrapolations in this section collected, 22.2 million tonnes would be reused instead of 5.6 Compared to the IEA 2°C pathway 2050 which allows for 29 million tonnes as at present, meaning 16.6 million tonnes of equivalent 15.3 giga tonnes of CO 2 new garment sales would be avoided, with a value of USD 460 billion. 30 Global Fashion Agenda and Boston Consulting Group, Pulse of the fashion industry (2017), p.23 Barnardo’s, 10 Survey of 1500 women as part of #MyBarnardosDonation – Campaign (2015); Morgan, L.R. and Kasperkevic, J., Rana Plaza collapse: Workplace dangers 31 An investigation of young fashion consumers’ Birtwistle, G., , The Guardian (31 May persist three years later, reports find (2009) disposal habits 2016) 11 Greenpeace, After the binge, the hangover: Insights into the See, for example, http://www.greenpeace.org/international/ 32 Clothing minds of clothing consumers (2017), p.4; WRAP, en/campaigns/detox; Changing Markets Foundation Dirty (2017), p.15 durability report fashion: How pollution in the textiles supply chain is making viscose toxic (2017); WRAP, Valuing Our Clothes: The cost Circular Fibres Initiative materials flow analysis (for details 12 (2017); Greenpeace, of UK fashion Time out for fast fashion see Appendix B) (2016) This includes recycling after use, as well as the recycling 13 33 (2017) Fashion at the crossroads Greenpeace, of factory offcuts. Expert interviews and some reports suggest that the rate of recycling clothing after use could be 34 See https://www.ellenmacarthurfoundation.org/circular- below 0.1% (see, e.g. Wicker, A., Fast fashion is creating an economy/overview/concept , Newsweek (1 September 2016)). environmental crisis These benefits have been investigated for example in: Ellen 35 14 Estimate based on Circular Fibres Initiative analysis on the MacArthur Foundation, Circular economy in India: Rethinking share of materials and on a price of USD 2.8/kg for cotton growth for long-term prosperity (2016) and Ellen MacArthur yarn and USD 1.7/kg for polyester yarn (see http://www. Foundation, SUN, and McKinsey Center for Business and globaltexassociates.com/price.html). Environment, Growth Within: A circular economy vision for a competitive Europe (2015) 15 WRAP, Evaluation of the end markets for textile rag and fibre within the UK (2014), p.8 Estimate based on the material cost of yarn 36 , et al. ., See, for example, Watson, D 16 Exports of Nordic used See https://newplasticseconomy.org 37 textiles: Fate, benefits and impacts (2016) Time out for fast fashion 38 See, for example, Greenpeace, 17 Fachverband Textilrecycling, Konsum, Bedarf und (2016); Changing Markets Foundation, Dirty fashion: How Wiederverwendung von Bekleidung und Textilien in pollution in the textiles supply chain is making viscose toxic (2016), p.37 Deutschland (2017); Global Fashion Agenda and Boston Consulting (2017); WRAP, Pulse of the fashion industry Group, Valuing Watson, D., et al., Exports of Nordic used textiles: Fate, 18 our clothes: The cost of UK fashion (2017); Fashion for Good, (2016), p.67 benefits and impacts The five goods (2017), https://fashionforgood.org/the-five- The state of the apparel sector (2013) goods; GLASA, Circular Fibres Initiative analysis – for details see Part I of this 19 report William Arthur Ward 39 132

133 See, for example, Global Fashion Agenda and Boston 40 Wicker, A., Fast fashion is creating an environmental crisis , 62 Pulse of the fashion industry (2017), Consulting Group, Newsweek (9 January 2016) p.74; Fletcher, K., Sustainable fashion and textiles: Design 63 WRAP, Evaluation of the end markets for textile rag and fibre journeys Fashion at the , second edition (2014); Greenpeace, within the UK (2014), p.8 (2017) crossroads See e.g. Wicker, A., 64 Fast fashion is creating an environmental See https://www.copenhagenfashionsummit.com/ 41 crisis , Newsweek (1 September 2016); expert interviews commitment 65 World Economic Forum, Ellen MacArthur Foundation, and See http://www.greenpeace.org/international/en/campaigns/ 42 McKinsey & Company, The New Plastics Economy: Rethinking detox/fashion/detox-catwalk (2016), p.27 the future of plastics 43 See http://reloopingfashion.org Closed loop fibre recycling: Current status Oakdene Hollins, 66 44 See http://mistrafuturefashion.com and future challenges (2013) See http://www.wrap.org.uk/category/materials-and- 45 Circular Fibres Initiative analysis – for details see Appendix B 67 products/textiles Fachverband Textilrecycling, Konsum, Bedarf und 68 46 See http://www.fashionpositive.org Wiederverwendung von Bekleidung und Textilien in Deutschland (2016), p.37 47 See http://www.europeanoutdoorgroup.com/news/outdoor- industry-microfibre-consortium-formed See http://weardonaterecycle.org/about/issue.html; http:// 69 hb.sina.com.cn/news/d/2013-07-11/152689575_3.html; http:// See https://fashionforgood.com 48 www.chinacace.org/news/view?id=8152 49 See https://www.changemakers.com/fabricofchange 70 Watson, D., et al., Exports of Nordic used textiles: Fate, (2016), pp.121, 156 benefits and impacts 50 See https://globalchangeaward.com/articles/about 71 In 2015, 33 billion barrels of oil were produced, 4% of total 51 See http://ec.europa.eu/environment/circular-economy/ oil production is used to produce plastics, of which 25% index_en.htm becomes textiles (see Nordic Fashion Association, Polyester See http://www.apparalcoalition.org/the-higg-index 52 Global oil production from 1998 to and synthetics ; Statista, 2015 https://www.statista.com/statistics/265203/ (2017), Euromonitor International Apparel & Footwear 2016 Edition 53 global-oil-production-since-in-barrels-per-day/). Figure (volume sales trends 2005–2015); https://www.worldwildlife. Roadmap to averaged with other sources: Muthu, S., org/industries/cotton Sustainable Textiles and Clothing: Eco-friendly Raw Materials, Technologies and Processing Methods (2014); Gervet, B., Style that’s sustainable: A new fast-fashion formula 54 McKinsey, The use of crude oil in plastic making contributes to global (2016) (2007) warming 55 Circular Fibres Initiative analysis based on Euromonitor Globally, around 2 million tonnes of pesticides consumed, 72 International Apparel & Footwear 2016 Edition (volume of which 11% are used for cotton farming. (De, A., et al., sales trends 2005–2015). All figures include all uses until the The impact of cotton (2013); WWF, World pesticide use garment is discarded, including reuse after collection and , FAOSTAT (1999); on freshwater resources and ecosystems resale. (2016)); average Composition of agricultural area dataset 56 Calculation based on Circular Fibres Initiative materials fertiliser application rates per hectare of cotton weighted by flow analysis (for details see Appendix B) and Euromonitor main producing countries, multiplied by hectares of world International Apparel & Footwear 2016 Edition (volume arable land times cotton share of arable land (see Rosas, sales trends 2005–2015). In 2015, 46% (in mass) of collected F., Fertilizer use by crop at the country level (1990–2010) garments were reused. If 100% of discarded clothing were (2012)). collected, 22.2 million tonnes would be reused instead of 5.6 For every kilogram of fabric, an estimated 0.58kg of various 73 million tonnes as at present, meaning 16.6 million tonnes of chemicals are used. For example, 0.35–1.5kg of chemicals new garment sales would be avoided, with a value of goes into the production of 1kg of cotton textiles (see USD 460 billion. Environmental Health & Safety (EHS) guidelines for Bluesign, (2015), http://www. 57 Barnardo’s, Once worn thrice shy brands and retailers (2011)). barnardos.org.uk/news/press_releases.htm?ref=105244; 74 Rodale Institute, Dig deeper: Chemical cotton (4 February Morgan, L.R. and Birtwistle, G., An investigation of young 2014), http://rodaleinstitute.org/chemical-cotton (2009) fashion consumers’ disposal habits 75 , State of the apparel sector report: Water Maxwell, D., et al., Greenpeace, After the binge, the hangover: Insights into 58 Impact of pesticide use (2015), p.14; Dey, K.R., et al., GLASA Clothing (2017); WRAP, the minds of clothing consumers on the health of farmers: A study in Barak valley, Assam durability report (2017) (2013) 59 Estimate based on Circular Fibres Initiative analysis on the See http://www.pan-uk.org/cotton 76 share of materials and on a price of USD 2.8/kg for cotton yarn and USD 1.7/kg for polyester yarn (see http://www. Yallop, O., Citarum, the most polluted river in the world? 77 , The globaltexassociates.com/price.html). Telegraph (11 April 2014) Recent research indicates that this might be an 60 78 See https://www.acs.org/content/acs/en/pressroom/ underestimation. Field research analysing waste from seven presspacs/2016/acs-presspac-january-27-2016/creating- garment factories carried out by the innovator Reverse greener-wrinkle-resistant-cotton-fabric.html Resources concluded that on average 25% of material is lost during production; see Reverse Resources, The Undiscovered European survey on the release of 79 Piccinini, P., et al., Business Potential of Production Leftovers within Global formaldehyde from textiles (2007) Fashion Supply Chains: Creating a Digitally Enhanced Circular 80 Global Fashion Agenda and Boston Consulting Group, Pulse (2017), p.6. Economy (2017), p.46 of the fashion industry 3 for a bale of Based on an average density of 150kg/m 61 3 Circular Fibres Initiative analysis – for details see Appendix B 81 of a garbage truck textiles and a volume of 17.5m 133

134 Energy, Climate Change & International Energy Agency, 82 Compared to the IEA 2°C pathway 2050 which allows for 100 equivalent (2016), p113 Environment: 2016 insights 15.3 giga tonnes of CO 2 101 Based on an average weight of 180 grams 83 Eunomia, The potential contribution of waste management to a low carbon economy (2015) , 102 Maxwell, D., et al., State of the apparel sector report: Water GLASA (2015), pp.4, 31 84 Calculation based on Circular Fibres Initiative analysis and following sources: Pakula, C., Stamminger, R., Electricity and Based on a weight of today’s world population of 300 million 103 water consumption for laundry washing by washing machine tonnes worldwide (2009); Dupont, (2013) Consumer Laundry Study Global Fashion Agenda and Boston Consulting Group, Pulse 104 85 Dataset: Annual World Bank, AQUASTAT, and FAO, (2017), p.23 of the fashion industry freshwater withdrawals, total (2014) 105 Ibid., p.2 Gassert, F., et al., , WRI Aqueduct Water stress by country 86 (2013) 106 Kasperkevic, J., Rana Plaza collapse: Workplace dangers persist three years later, reports find , The Guardian (31 May , Maxwell, D., et al., 87 State of the apparel sector report: Water 2016) GLASA (2015), p.43 107 See http://www.greenpeace.org/international/en/campaigns/ 88 Calculation based on Circular Fibres Initiative analysis and detox following sources: Pakula, C., Stamminger, R., Electricity and water consumption for laundry washing by washing machine 108 Greenpeace, Fashion at the crossroads (2017) worldwide (2009) 109 See http://fashionrevolution.org/about Maxwell, D., et al., 89 State of the apparel sector report: Water , Towards a circular economy, Ellen MacArthur Foundation, 110 GLASA (2015), p.23; Rodale Institute, Dig deeper: Chemical Vols. 1-3 (2012-2015) cotton (4 February 2014), http://rodaleinstitute.org/ chemical-cotton 111 Some of the recent literature includes: Circle Economy and EHERO, Circular jobs: Understanding employment Department for Environment, Food and Rural Affairs, 90 The (2016); Sitra, in the circular economy in the Netherlands role and business case for existing and emerging fibres in Leading the cycle: Finnish road map to a circular economy sustainable clothing (2007), p.75 2016–2025 Circular (2016); European Environment Agency, 91 Maxwell, D., et al., State of the apparel sector report: Water , economy in Europe (2016); Dutch Ministry of Infrastructure GLASA (2015), p.14 and Environment and Dutch Ministry of Economic Affairs, A circular economy in the Netherlands by 2050 (2016); Club of International Union for Conservation of Nature, Primary 92 Rome, (2016); The circular economy and benefits for society microplastics in the oceans: A global evaluation of sources Green Alliance, Unemployment and the circular economy (2017) in Europe (2015); US Chamber of Commerce Foundation, Achieving a circular economy: How the private sector is Based on the central scenario in International Union for 93 Economic (2015); WRAP, remaking the future of business Conservation of Nature, Primary microplastics in the oceans: (2015); Green growth potential of more circular economies (2017), p.20. Their analysis A global evaluation of sources The social benefits of a circular economy: Lessons Alliance, is based on two different approaches, one based on the The carbon (2015); Zero Waste Scotland, from the UK estimated number of wash cycles per region, the other impacts of the circular economy (2015); Ellen MacArthur based on global textile sales, which come to similar results Foundation, SUN, and McKinsey Center for Business and (see p.34 in their study). A separate Circular Fibres Initiative Growth Within: A circular economy vision for Environment, analysis led to similar results. Another study for the EU a competitive Europe (2015); WRAP and Green Alliance, Study to Commission (Eunomia Research & Consulting Ltd., (2015); Cambridge Employment and the circular economy support the development of measures to combat a range Econometrics and Bio Intelligence Service, Study on of marine litter sources for DG Environment of the , report modelling of the economic and environmental impacts of European Commission (2016), p.272 ff.) estimates 30,000 (2014); Netherlands Organisation raw material consumption tonnes per year in Europe alone. Plastic bottle comparison for Applied Scientific Research, Opportunities for a circular based on an average weight of 10 gram of a 0.5 litres PET (2013) economy in the Netherlands bottle. 112 See, for example, Tearfund and Institute of Development Handbook of research on strategic supply chain 94 Kamath, N., Virtuous circle: How the circular economy can create Studies, management in the retail industry (2016) jobs and save lives in low and middle-income countries (2016); Doane, D., Greenpeace, 95 Time out for fast fashion (2016); specifically for India, Ellen MacArthur Foundation, Living in the background: Home-based women workers and Circular economy in India: Rethinking growth for long-term (2007) poverty persistence prosperity (2016); and, specifically for China, the forthcoming The circular economy report Ellen MacArthur Foundation, 96 Bureau of International Labor Affairs , Findings on the worst opportunity for urban and industrial innovation in China forms of child labor (2013), pp.10, 30, 31, 56, 59, 110, 146, 171, 368, 369, 561, 775, 776; Moulds, J., Child labour in the fashion Towards For an overview, see Ellen MacArthur Foundation, 113 supply chain , The Guardian; Verité, Help wanted (2010), p.5; a circular economy: Business rationale for an accelerated (2012); Anti-Slavery International, Slavery on the high street transition (2016), pp.10–15 http://www.safia-minney.com/slave-to-fashion.html As an example, such an analysis (based on economic 114 Human Rights Watch, Whoever raises their head suffers the 97 modelling using a computable general equilibrium model) for most (2015), p.4 the EU economy in three sectors (food, built environment, and mobility) has shown reduced annual cash-out costs of See https://sourcingjournalonline.com/textile-factories- 98 EUR 0.6 trillion (4.5% of the EU’s GDP) and a GDP increase contaminate-indonesias-citarum-river; http://www. of 7% in 2030 (see Ellen MacArthur Foundation, SUN, and greenpeace.org/eastasia/campaigns/toxics/problems/water- McKinsey Center for Business and Environment, Growth pollution Within: A circular economy vision for a competitive Europe See Appendix B.3 for assumptions and methodology for the 99 (2015), pp.11–12). extrapolations in this section 134

135 115 Such a relationship has been investigated for certain other KEMI , Chemicals in textiles: Risks to human health and 130 human needs in specific regions. For example, analysis (2014); http://www.greenpeace.org/ the environment (based on economic modelling using a computable international/en/campaigns/detox/fashion/about/ general equilibrium model) found that implementing eleven-flagship-hazardous-chemicals; Changing Markets circular economy opportunities in three sectors (food, built Foundation, Dirty fashion: How pollution in the textiles environment, and mobility) in the EU would lead to 10% more supply chain is making viscose toxic (2017) disposable household income in 2030 (see Ellen MacArthur 131 See http://www.greenpeace.org/international/en/campaigns/ Foundation, SUN, and McKinsey Center for Business and detox/fashion/about/eleven-flagship-hazardous-chemicals Environment, Growth Within: A circular economy vision for (2015), p.30). In another example, an a competitive Europe 132 Assessing the impact of the fashion Environmental Leader, analysis for India found that the per capita cost to meet the world (2014) same level of mobility demand would be 29% lower in 2030 (2017); 133 Fashion For Good, C2C Certified ‘how-to’ guide and 54% lower in 2050 (see Ellen MacArthur Foundation, Greenpeace, Dirty laundry: Unravelling the corporate Circular economy in India: Rethinking growth for long-term (2011), p.6 connections to toxic water pollution in China prosperity (2016), p.59). Examples exist of yarn producers using antimony-free 134 Environmental and Health Effects Khan, S. and Malik, A., 116 polyester, for example Polyterra or Polyteks. (2013); Akarslana, F. and of Textile Industry Wastewater Effects of Textile Materials Harmful to Human Demiralayb, H., 135 New Jersey Department of Health and Senior Services, Health (2015) (2004); Hazardous substance fact sheet: Antimony trioxide https://echa.europa.eu/information-on-chemicals/cl- For a description of biodegradation and anaerobic digestion, 117 inventory-database/-/discli/details/16879 see, for example, Appendices B and C in World Economic Forum, Ellen MacArthur Foundation, and McKinsey & Hazardous chemicals in branded luxury textile Greenpeace, 136 Company, The New Plastics Economy: Rethinking the future (2014), p.18 products on sale during 2013 of plastics (2016) Assessing economic aspects of The bigger picture: 137 Chemsec, 118 Weber, C.J., Biobased packaging materials for the food chemicals substitution (2016), p.13 industry: Status and perspectives (2000), p.108 138 Global Fashion Agenda and Boston Consulting Group, Pulse , Freitag macht neben Taschen jetzt auch bio-Mode Gauto, A., 119 of the fashion industry (2017), p.21, assessment included WirtschaftsWoche (2017) monetary impacts associated with occupational illnesses attributed to carcinogens and airborne particulates Towards the circular economy, Ellen MacArthur Foundation, 120 Vol. 2 (2013), p.57 Ellen MacArthur Foundation, World Economic Forum, and 139 McKinsey & Company, The New Plastics Economy: Rethinking Filippa K & Mistra Future Fashion in a Mistra Future Fashion, 121 (2016) the future of plastics groundbreaking new industry research project for the future (4 May 2017), http://mistrafuturefashion.com/ of fashion 140 KEMI, Chemicals in textiles: Risks to human health and the circular-design-speeds (2014), p.31 environment 122 Kant, R., Textile dyeing industry: An environmental hazard 141 Weber, C.J., Biobased packaging materials for the food (2012), p.23 industry: Status and perspectives (2000), p.108 Greenpeace, 123 Dirty laundry: Unravelling the corporate Roberts G., Chemical Watch, Big brands quiz suppliers on 142 (2011), pp.6, 52 connections to toxic water pollution in China chemicals in textiles , Chemical Watch (September 2013); see http://www.roadmaptozero.com/contributors Chemsec, The bigger picture: Assessing economic aspects of 124 chemicals substitution (2016), p.13 143 Textiles come with a toxic footprint Chemsec, (2017), http:// textileguide.chemsec.org/find/textiles-come-with-a-toxic- For the purposes of this report, ‘substances of concern’ 125 footprint refers to substances that cause concern due to adverse or potential adverse impacts on human health or the 144 The Stockholm Convention on Persistent Organic environment. This definition is broader than the European Pollutants is a global treaty to protect human health and Union REACH Legislation definition of Substances of the environment from chemicals that remain intact in the Very High Concern (SVHC) (see https://echa.europa.eu/ environment for long periods, become widely distributed chemicals-in-our-life/which-chemicals-are-of-concern/svhc). geographically, accumulate in the fatty tissue of humans and Substances that may have serious effects on human health wildlife, and have harmful impacts on human health or on the and the environment can be identified as SVHCs. These are environment (see http://www.chm.pops.int/TheConvention/ primarily substances which are carcinogenic, mutagenic, or Overview). toxic to reproduction, as well as substances with persistent and bio-accumulative characteristics. Cotton without highly hazardous 145 Pesticide Action Network, pesticides: An Ethiopian experience (2017), p.1 Hazardous chemical substances in textiles: Proposals KEMI, 126 for risk management measures (2016), p.30 Changing Markets Foundation, Dirty fashion: 146 How pollution in the textiles supply chain is making viscose toxic For every kilogram of fabric, an estimated 0.58kg of various 127 A review of health effects of (2017); Gelbke, H.P., et al., chemicals are used. Between 0.35 and 1.5kg of chemicals go carbon disulfide in viscose industry and a proposal for an into the production of 1kg of cotton textile (see Bluesign, (2009), p.1 occupational exposure limit Environmental Health & Safety (EHS) guidelines for brands and retailers (2011)). KEMI, 147 Hazardous chemical substances in textiles: Proposals for risk management measures (2016), p.17 PRN Newswire, 128 Textile chemicals market to reach US$29.15 billion by 2024 (6 May 2016); Euromonitor International See https://newsletter.echa.europa.eu/home/-/newsletter/ 148 Apparel & Footwear 2016 Edition (volume sales trends entry/1_13_textile 2005–2015) 149 Davies, A., An evaluation of the test methods used for Greenpeace, 129 Dirty laundry: Unravelling the corporate assessing durable water repellent fabrics within the outdoor (2011), p.70 connections to toxic water pollution in China industry (2014), p.5; Patagonia, The footprint chronicles: (2013), p.1 PFOS, PFOA, and other fluorochemicals 135

136 150 Hidden in plain sight: Poly-fluorinated chemicals Greenpeace, 172 , Citarum, the most polluted river in the world? Yallop, O., (2016), p.4 (PFCs) in the air of outdoor stores The world’s The Telegraph (11 April 2014); Paddison, L., , The Guardian (22 September threatened rivers in pictures Fei, C., et al., 151 Maternal levels of perfluorinated chemicals 2016) , Human Reproduction, Vol. 24, 5 and subfecundity Do (2009), pp.1200–1205; Nordström Joensen, U., et al., This can be for plastic microfibres as well as for microfibres 173 perfluoroalkyl compounds impair human semen quality? , that are otherwise biodegradable. Environmental Health Perspectives, 117 (2009), pp.923–927; 174 Microfiber pollution and the apparel industry Bruce, N., et al., Granjean, P., et al., Serum vaccine antibody concentrations in (2016), p.19 children exposed to perfluorinated compounds , JAMA, Vol. 307, 4 (2012), pp.391–397 Greenpeace, 175 Eleven hazardous chemicals which should be (2017), http://www.greenpeace.org/international/ eliminated 152 Wang, Z., et al., Fluorinated alternatives to longchain en/campaigns/detox/fashion/about/eleven-flagship- perfluoroalkyl carboxylic acids (PFCAs), perfluoroalkane hazardous-chemicals; OECD, Synthesis paper on per- and (2013), sulfonic acids (PFSAs) and their potential precursors polyfluorinated chemicals (PFCS) (2013), p.25 pp.242–248 176 Greenpeace, Eleven hazardous chemicals which should be PFHxS added to REACH candidate list 153 Chemical Watch, eliminated (2017), http://www.greenpeace.org/international/ (2017) en/campaigns/detox/fashion/about/eleven-flagship- 154 KEMI, Chemicals in textiles: Risks to human health and the hazardous-chemicals environment (2014), p.9 Ibid. 177 Rodale Institute, Dig deeper: Chemical cotton 155 (4 February See https://www.epa.gov/assessing-and-managing- 178 2014), http://rodaleinstitute.org/chemical-cotton chemicals-under-tsca/risk-management-nonylphenol-and- The deadly chemicals in Environmental Justice Foundation, 156 nonylphenol-ethoxylates (2007), p.3 cotton 179 Action Plan (2010), p.1; Greenpeace, Heads in the sand over 157 Pulse Global Fashion Agenda and Boston Consulting Group, Europe’s most dangerous chemicals (2010), p.2 of the fashion industry (2017), p.11 Nonylphenol ethoxylates (NPE) in Environment Agency UK, 180 Viscose fibres production: An 158 Water Footprint Network, (2013), pp.10, 21 imported textiles assessment of sustainability issues (2017), p.22 Ibid., p.2 181 Changing Markets Foundation, Dirty fashion: How pollution in 159 Chemicals in textiles: Risks to human health and the 182 KEMI, the textiles supply chain is making viscose toxic (2017) (2014), p.52 environment See https://www.cdc.gov/niosh/ipcsneng/neng0360.html 160 Ibid., pp.69, 72 183 World Health Organisation, 161 Air quality guidelines: Carbon Ibid., p.73 184 disulphide , second edition (2000), pp.4–5 Assessing the environmental impact of the textile 185 Muthu, S.S., Dirty fashion: How pollution in Changing Markets Foundation, 162 Fast fashion is (2014); Wicker, A., and clothing supply chain (2017) the textiles supply chain is making viscose toxic creating an environmental crisis , Newsweek (9 January 2016) 163 Fletcher, K., Sustainable fashion and textiles: Design journeys Chemsec, (4 June 2017), http:// 186 Setting up an RSL/mRSL Sustainable Apparel Materials (2014), p.17; Kirchain, R., et al., textileguide.chemsec.org/act/setting-up-an-rsl (2015), p.14 Chemicals and clothing 187 (2013), https://newsletter. ECHA, One-pot room-temperature conversion of 164 Hwang, K.C., echa.europa.eu/home/-/newsletter/entry/1_13_textile cyclohexane to adipic acid by ozone and UV light , Science, Vol. 346, 6216 (2014), pp.1495–1498 Chemsec, (4 June 2017), http:// 188 Setting up an RSL/mRSL textileguide.chemsec.org/act/setting-up-an-rsl 165 Fletcher, K., Sustainable fashion and textiles: Design journeys (2014), p.17; Greenpeace, Hazardous chemicals in branded 189 MCL, (2016), p.71; see http:// Textile standards & legislation luxury textile products on sale during 2013 (2014), p.16 www.roadmaptozero.com/programme/manufacturing- restricted-substances-list-mrsl-conformity-guidance See http://www.fibre2fashion.com/industry-article/2554/ 166 safety-and-health-issues-in-the-textile-industry?page=2; Textile standards & See http://www.afirm-group.com; MCL, 190 Water Integrity Network, Wastewater Management in the (2016), p.52 legislation (27 July 2017); Greenpeace, Timeout Garment Industry 191 See http://www.bciannualreport.org A little story of (2016), p.3; Greenpeace, for fast fashion (2013) monstrous mess II KEMI, Hazardous chemical substances in textiles: Proposals 192 (2016), p.10 for risk management measures 167 KEMI, Hazardous chemical substances in textiles (2016), p.31; expert interview with Emma Westerholm, Officer, KEMI 193 See http://responsiblesourcing.vfc.com/chemiq 168 KEMI, Hazardous chemical substances in textiles: Proposals See https://www.bluesign.com 194 for risk management measures (2016), p.17 (2016), pp.8, 23, 71 Textile standards & legislation MCL, 195 (2017), http://www. 169 Greenpeace, Polluting paradise greenpeace.org/international/en/campaigns/detox/water/ 196 See https://www.greenscreenchemicals.org; http://www. Citarum, the most polluted polluting-paradise; Yallop, O., c2ccertified.org , The Telegraph (11 April 2014) river in the world? 197 Arthur, R., From farm to finished garment: Blockchain is , The Paddison, L., 170 The world’s threatened rivers in pictures aiding this fashion collection with transparency , Forbes (10 Guardian (2017) May 2017) (2017), http://www. Polluting paradise Greenpeace, 171 greenpeace.org/international/en/campaigns/detox/water/ polluting-paradise 136

137 A roadmap to revitalise 198 European Environmental Bureau, 218 Chemical Watch, Euratex calls for improvements to REACH REACH (2015); Warhurst, M., Are EU laws on chemicals – restriction process (2017) like REACH – being properly enforced? , ChemTrust (2014); Our DWR problem [updated] Patagonia, 219 (2016), http://www. Neltner, T.G., et al., Data gaps in toxicity testing of chemicals patagonia.com/blog/2015/09/our-dwr-problem-updated (2013); The European allowed in food in the United States Harmonising enforcement Chemical Industry Council, Maxwell, D., et al., 220 , Water State of the apparel sector report: throughout Europe is no easy task (2017), http://new. GLASA (2015) cefic.org/Policy-Centre/Environment--health/REACH--- SYSTEMIQ, Ellen MacArthur Foundation, and SUN, Achieving 221 Enforcement Growth Within (2017), p.80 (2013), https://newsletter. ECHA, Chemicals and clothing 199 See http://regenerationinternational.org/why-regenerative- 222 echa.europa.eu/home/-/newsletter/entry/1_13_textile agriculture 200 (2015) ENDS Europe, Countries agree textile chemical ban Environmental Justice Foundation, 223 The deadly chemicals in Chemsec, The bigger picture: Assessing economic aspects of 201 cotton (2007) chemicals substit ution (2016) The chemical trap Pesticide Action Network UK, (2007); 224 202 Lovell, T., Euratex calls for improvements to REACH http://regenerationinternational.org/why-regenerative- restriction process , Chemical Watch (22 February 2017) agriculture; http://www.pan-uk.org/cotton See http://ec.europa.eu/environment/gpp/index_en.htm 203 225 Achieving SYSTEMIQ, Ellen MacArthur Foundation, and SUN, (2017), p.81 Growth Within European Commission, GPP Green Procurement; a collection 204 of good practices, (2012), pp.17–18 Not accounting for cotton that is grown organically without 226 certification 205 EcoTextile, Huntsman and Viyellatex enter collaboration (2016), https://www.ecotextile.com/2016120922485/ 227 Dodd, N. and Caldas, M.G., Revision of the EU Green Public dyes-chemicals-news/huntsman-and-viyellatex-enter- services Procurement criteria for textile products and collaboration.html (2017), p.22; see http://www.bciannualreport.org; http:// bettercotton.org 206 See http://www.archroma.com/news-releases/april-13-2016- archroma-to-showcase-innovative-solutions-for-enhanced- 228 Planting the seed: the role of organic in CottonConnect, color-performance-and-sustainability-at-china-interdye- (2017), p.3 creating a sustainable cotton supply chain 2016-in-shanghai See http://www.cottonmadeinafrica.org/en/about-us/the- 229 207 See https://www.beyondst.com/midori-evopel; https:// initiative www.snewsnet.com/news/patagonias-1-million-bet-on-eco- See http://bettercotton.org 230 friendly-water-repellency 231 See http://www.cottonedon.org See http://ec.europa.eu/environment/life/ 208 project/Projects/index.cfm?fuseaction=home. , Primary International Union for Conservation of Nature 232 showFile&rep=file&fil=SEACOLORS_2nd_Newsletter.pdf; microplastics in the oceans: A global evaluation of sources http://blondandbieber.com/algaemy-textiles (2017), p.8 See https://marketplace.chemsec.org 209 233 Plastic debris in the oceans: The Thevenon, F., et al., characterization of marine plastics and their environmental 210 See http://gateway.roadmaptozero.com impacts – Situation analysis report (2014), p.19; Andrady, A.L., C2C Certified ‘how-to’ guide 211 Fashion For Good, (2017), p.3 Microplastics in the marine environment Marine Pollution Bulletin, Vol. 62, 8 (2011), p.1597; Joint Group of Experts on 212 See http://www.c-and-a.com/uk/en/corporate/company/ the Scientific Aspects of Marine Environmental Protection materials Sources, fate and effects of microplastics in the (GESAMP), 213 The C2C Certified material health methodology supports marine environment: A global assessment (2015), p.18 manufacturers to assess inputs throughout the supply chain Accumulation of microplastic on Browne, M.A., et al., 234 for toxicity, identify ways to optimise chemicals used in , Environmental shorelines worldwide: Sources and sinks products, and provide third-party verification of any claims Science and Technology, Vol. 45, 21 (2011), pp. 9175–9179; on product safety. The aspiration of C2C is that all toxic Bruce, N., et al., Microfiber pollution and the apparel industry and undefined chemicals (where risks are unknown) are (2015) eliminated to make materials suitable for safe, continuous cycling. There are five levels of achievement for materials 235 Primary International Union for Conservation of Nature, health: basic, bronze, silver, gold, and platinum. Basic means microplastics in the oceans: A global evaluation of sources that no banned list chemicals can be used, and that all (2017), p.8 ingredients used must be known. Gold achievement is the 236 Joint Group of Experts on the Scientific Aspects of Marine second highest rating and means that all ingredients are Sources, fate and Environmental Protection (GESAMP), assessed against the C2C rating methodology, and all are effects of microplastics in the marine environment: A global acceptable for use in the product, meaning that none of assessment (2015), p.17 the ingredients cause highly problematic properties in the materials (see http://www.c2ccertified.org/get-certified/ 237 Microfiber pollution and the apparel industry Bruce, N., et al., levels). (2016) Even in products labelled with 100% cotton, these 214 238 Joint Group of Experts on the Scientific Aspects of Marine components are often made from other materials due to Sources, fate and Environmental Protection (GESAMP), lower cost or superior properties of other materials effects of microplastics in the marine environment: A global (2015), p.9 assessment 215 See http://www.dystar.com/cradle-cradle World Economic Forum, Ellen MacArthur Foundation, 239 216 See http://www.c-and-a.com/uk/en/corporate/company/ The New Plastics Economy – and McKinsey & Company, materials (2016), p.17 Rethinking the future of plastics European survey on the release of Piccinini, P., et al., 217 (2007) formaldehyde from textiles 137

138 Plastic debris in the oceans: The 240 Thevenon, F., et al., The cleanest line: Patagonia, 257 An update on microfibre characterization of marine plastics and their environmental pollution (2017), http://www.patagonia.com/blog/2017/02/ impacts – Situation analysis report (2014), p.43 an-update-on-microfiber-pollution/ Ingestion of plastic microfibers by the 241 Watts, A.J.R., et al., Will clothes companies do the right thing to O’Connor, M.C., 258 crab Carcinus maenas and its effect on food consumption reduce microfibre pollution? , The Guardian (13 May 2017) and energy balance Plastic pollution (2015); Eriksen, M., et al., 259 Mermaids Consortium, Position paper: Microfiber release in the world’s oceans: More than 5 trillion plastic pieces (2017) from clothes after washing weighing over 250,000 tons afloat at sea (2014) Roos, S., et al, Microplastics shedding from polyester fabrics , 260 Van Cauwenberghe, L., and Janssen, C. R., 242 Microplastics in Mistra Future Fashion (2017) , Environmental bivalves cultured for human consumption Pollution Vol. 193 (2014), p.65 Outdoor Industry Association, Microfibres and the outdoor 261 (2017), https://outdoorindustry.org/ industry: Issue update 243 Synthetic particles as Liebezeit, G. and Liebezeit, E., article/microfibers-and-the-outdoor-industry-issue-update contaminants in German beers , Food Additives & Contaminants: Part A (2014), pp.1574–1578; Liebezeit, G. and 262 See http://www.europeanoutdoorgroup.com/news/outdoor- Liebezeit, E., Non-pollen particulates in honey and sugar , industry-microfibre-consortium-formed Food Additives & Contaminants: Part A (2013), pp.2136–2140; Napper, I.E. and Thompson, R.C., Release of synthetic 263 Bruce, N., et al., Microfiber pollution and the apparel industry microplastic plastic fibres from domestic washing machines: (2016), p.20 Effects of fabric type and washing conditions (2016) 244 , Primary International Union for Conservation of Nature See https://crowd.science/campaigns/dont-feed-the-fish 264 microplastics in the oceans: A global evaluation of sources (2017), p.20 , 265 Roos, S., et al., Microplastics shedding from polyester fabrics Mistra Future Fashion (2017), p.1 Plastic Age: How it’s reshaping rocks, oceans and 245 Reed, C., life, (28 January 2015) New Scientist 266 See http://life-mermaids.eu/en See https://www.plasticsoupfoundation.org 246 267 Mermaids Consortium, Handbook for zero microplastics from (2016), p.3, http://life-mermaids.eu/en/ textiles and laundry O’Connor, M.C., 247 Inside the lonely fight against the biggest deliverables-mermaids-life-2 , The Guardian environmental problem you’ve never heard of (27 October 2014) 268 Ibid., p.7 248 Browne, M.A., et al., Accumulation of microplastic on Bruce, N., et al., 269 Microfiber pollution and the apparel industry , Environmental shorelines worldwide: Sources and sinks (2016), p.3 Science and Technology, Vol. 45, 21 (2011), pp.9175–9179 See http://guppyfriend.com 270 International Union for Conservation of Nature, 249 Primary microplastics in the oceans: A global evaluation of sources See http://coraball.com 271 (2017), p.21 272 See http://www.septicsafe.com/filtrol-160-lint-filter-with-1- For example, estimates for microfibre losses from washing 250 filter-bag a single garment are stated in one report at around 2,000 273 Patagonia, The cleanest line: An update on microfibre Accumulation of microplastic fibres (Browne, M.A., et al., (2017), http://www.patagonia.com/blog/2017/02/ pollution , Environmental on shorelines worldwide: Sources and sinks an-update-on-microfiber-pollution Science and Technology, Vol. 45, 21 (2011), pp.9175–9179), whereas another reported a range between 8,500 and 274 See http://rozaliaproject.org/stop-microfiber-pollution Microfiber masses 250,000 fibres lost (Bruce, N., et al., recovered from conventional machine washing of new or See https://www.outsideonline.com/2091876/patagonias- 275 aged garments (2016)). new-study-finds-fleece-jackets-are-serious-pollutant 251 Oceans, microfibers and the outdoor industry: Leonard, G.H., Mermaids Consortium, Mitigation of microplastics 276 A leadership opportunity. Presentation to Outdoor Industry impact caused by textile washing processes: Policy Association (2016) recommendations based on actions A and B (2016), p.18 252 Based on the central scenario in International Union for Synthetic fibers as an Zubris, K.A.V. and Richards, B.K., 277 Conservation of Nature, Primary microplastics in the oceans: (2005) indicator of land application of sludge (2017), p.20. Their analysis A global evaluation of sources 278 Mermaids Consortium, Policy recommendations based on is based on two different approaches, one based on the (2017), p.7 actions A and B estimated number of wash cycles per region, the other based on global textile sales, which come to similar results See https://ec.europa.eu/info/consultations/public- 279 (see p.34 in their study). A separate Circular Fibres Initiative consultation-investigating-options-reducing-releases- analysis led to similar results. Another study for the EU environment-microplastics_en Study to Commission (Eunomia Research & Consulting Ltd., Primary 280 International Union for Conservation of Nature, support the development of measures to combat a range microplastics in the oceans: A global evaluation of sources of marine litter sources , report for DG Environment of the (2017), p.21 European Commission (2016), p.272 ff.) estimates 30,000 tonnes per year in Europe alone. See http://storyofstuff.org/plastic-microbeads-ban-the-bead 281 253 Assuming 180 grams for an average top 282 Position paper: Microfiber release Mermaids Consortium, from clothes after washing (2017), p.4 Microfiber pollution and the apparel industry Bruce, N., et al., 254 (2016), pp.8–9 Ibid., p.10 255 Plastic microfibre ingestion by deep- Ibid.; Taylor, M.L., et al., 256 (2016) sea organisms 138

139 283 Calculation of the GHG emissions avoided from the Can anyone make a ‘Netflix for baby clothes’ Goldmark, A., 304 production phase based on Circular Fibres Initiative , GOOD (1 March 2012) work? externalities analysis (for details see Appendix B), and 305 See https://borrowforyourbump.com assuming second-hand operations consume ten times less energy than the production of clothing (based on Laursen, 306 Rent the Runway’s designer closet tops $800 Vasan, P., Sustainable recovery of products and materials: Scenario S.E., million , CNBC (25 July 2015) analysis of the UK clothing and textile sector (2005), p.8). YCloset raises Series B $20m from Pan-Lin 307 Shwe Gaung, J., Calculation based on Circular Fibres Initiative materials 284 Asset, IDG , Deal Street Asia (20 March 2017) flow analysis (for details see Appendix B), and Euromonitor Esposito, M., et al., 308 Reverse logistics for postal services within International Apparel & Footwear 2016 Edition (volume a circular economy (2017) sales trends 2005–2015). In 2015, 46% (in mass) of collected garments were reused. If 100% of discarded clothing were Building an optimized return solution from Meenhorst, E., 309 collected, 22.2 million tonnes would be reused instead of 5.6 logistic network commodities , Reverse Logistics Magazine million tonnes as at present, meaning 16.6 million tonnes of (2008) new garment sales would be avoided, with a value of USD 460 billion. Expert interview with Peter Svensson, Vigga co-founder 310 285 Cambridge Dictionary definition: “the act of buying special 311 Joerss, M., et al., How customer demands are reshaping last- things for yourself in order to feel better when you are , McKinsey Quarterly (2016) mile delivery unhappy” PWC, 312 Shifting patterns: The future of the logistics industry 286 Greenpeace, After the binge, the hangover: Insights into the (2016), p.22 minds of clothing consumers (2017) Wang, U., 313 How the Netflix model impacts the environment, Product design and business model Bocken, N.M.P., et al., 287 , The Guardian (6 February 2014) economy and society , Journal of Industrial and strategies for a circular economy See http://letote.zendesk.com 314 Production Engineering, Vol. 33, 5 (2015), pp.308–320 See https://help.renttherunway.com/hc/en-us/ 315 288 Shaw, D. and Koumbis, D., Fashion buying: From trend articles/212479018-How-does-Rent-the-Runway-work- (2013), p.126 forecasting to shop floor 316 Alibaba logistics arm reaches out for parcel Ma, A., et al., WRAP, 289 SCAP textiles tracker survey (2016); Armstrong, C.M., locker buy-in , Caixin Global (12 June 2017) A use-oriented clothing economy? Preliminary affirmation for sustainable clothing consumption alternatives (2016), p.27; 317 Green, C., Clothing rental: New subscription service allows , Nielsen, K.S. and Gwozdz, W., Field report: Consumer survey customers to rent clothes from high street shops , The Mistra Future Fashion (2017), p.17 Independent (9 February 2016) 290 WRAP, (2016) SCAP textiles tracker survey 318 See https://www.renttherunway.com/stories/nycflagship YCloset raises Series B $20m from Pan-Lin 291 Shwe Gaung, J., , . Niinimäki, K. and Hassi, L 319 Emerging design strategies in , Deal Street Asia (20 March 2017) Asset, IDG sustainable production and consumption of textiles and (2011), p.1879 clothing , Journal of Cleaner Production, Vol. 19 292 Cision PR Newswire, Rent the Runway raises $60 Million in Series E funding led by Fidelity Investments (27 December 320 Ibid. 2016) Euromonitor International Apparel & Footwear 2016 Edition 321 Bricks-and-mortar shops bet on startup tech to McBride, S., 293 (volume sales trends 2005–2015) bring back customers , Bloomberg Businessweek (9 February 2017) WRAP, 322 (2014), p.1 Clothing longevity protocol 294 Kumar, A., et al., Waiting for Merlot: Anticipatory , The New Patagonia’s anti-growth strategy MacKinnon, J.B., 323 , consumption of experiential and material purchases Yorker (21 May 2015) Psychological Science, Vol. 25, 10 (2014); Morgan, B., Koppelman, C., 324 5 reasons why American Giant is the new NOwnership, no problem: Why millennials value experiences Levi Strauss: Back to basics on American basics , Forbes (14 over owning things , Forbes (1 June 2015) February 2017) 295 Goldman Sachs, Millennials coming of age (2017), http:// See https://www.yotpo.com/blog/5-brands-with-an- 325 www.goldmansachs.com/our-thinking/pages/millennials/ unlimited-lifetime-guarantee The State of Business of Fashion and McKinsey & Company, 296 326 See http://www.patagonia.com/ironclad-guarantee.html (2017), p.25 Fashion 2017 SGS, 327 End customers perspective on policies and extended 297 Expert interview with Doris Ke, Head of Marketing, YCloset (2016) warranties , 298 Nielsen, K. S. and Gwozdz, W., Field report: Consumer survey WRAP, Scale and nature of corporate-wear arisings and 328 Mistra Future Fashion (2017), p.17 market opportunities (2012) 299 See http://www.mysubscriptionaddiction.com; Segran, E., Valuing our clothes (2012), p.5 329 WRAP, From socks to sex toys: Inside America’s subscription-box obsession (4 June 2015) , Fast Company FinanCE Working Group, 330 Money makes the world (2016), http://www.circle-economy.com/ go round 300 Catulli, M., et al., Consuming use-orientated product service moneymakestheworldgoround Journal of systems: A consumer culture theory perspective, Cleaner Production, Vol. 141 (2017) 331 See http://www.mudjeans.eu Expert interview with Colin Strong, Global Head of 301 332 Expert interview with Bert Van Son, CEO of MUD Jeans Behavioural Science, Ipsos 333 Jonathan Chapman, Emotionally Durable Design: Objects, Are fashion bloggers able to convert followers into Eytan, D., 302 Experiences and Empathy (2005) , Forbes (11 May 2016) buyers? , Sustainable fashion and textiles: Design journeys 334 Fletcher, K., 303 Expert interview with Peter Svensson, Vigga co-founder (2014), p.222 second edition 139

140 335 (11 March 2003); Afua The tailor-made tourist The Telegraph, 365 WRAP, Sustainable clothing: A practical guide to enhancing The Guardian (4 Why Ghana is ahead of the curve, Hirsch, (2017) clothing quality and durability August 2013) Legifrance, Code de l’environnement: Article L541-10-3 366 336 Decker, V., With $10.2 million in funding, Nyree Corby’s Fame Impact assessment of policies promoting Elander, M., et al . 367 , and Partners is aiming to be the anti-fashion brand , Forbes Mistra , fiber-to-fiber recycling of textiles (short abstract) (14 May 2017) (2017), p.8 Future Fashion 337 See http://www.postcouture.cc 368 See http://www.ecotlc.fr/page-335-l-eco-conception.html Ibid., p.156 338 PRI, Sweden tries to curb buy-and-throw-away culture 369 Design strategies for the eternal Connor-Crabb, A., et al., 339 through tax breaks (2 January 2017) (2016), p.33 reoccurrence of the new As clothing is the focus of this report, the term ‘clothing- 370 340 See http://petitpli.com to-clothing recycling’ is used in this chapter. The types of recycling discussed here can also be used for other types of 341 See http://cutecircuit.com textiles, both at source and destination, and there is usually no need to limit those technologies to clothing-to-clothing 342 Circular Fibres Initiative analysis – for details see Appendix B (and often it would be impractical). However, existing 5th annual resale report 343 (2017), p.1 ThredUp, technologies to downcycle used textiles into low-value applications, such as cleaning cloths or stuffing could be Why every leader should care about 344 McKinsey & Company, seen as textile-to-textile recycling, which is why this term is (6 July 2017), http:// digitization and disruptive innovation avoided. The recycling technologies discussed here (see Box www.mckinsey.com/business-functions/digital-mckinsey/our- J), with the exception of fabric recycling and yarn recycling, insights/why-every-leader-should-care-about-digitization- are also often referred to as ‘fibre-to-fibre recycling’ (see, and-disruptive-innovation Evaluation of the end markets for textile rag and e.g. WRAP, fibre within the UK (2014), p.3; Global Fashion Agenda and Forbes, Fashion retailers have to adapt to deal with second- 345 Pulse of the fashion industry The Boston Consulting Group, (11 April 2017) hand clothes sold online (2017), p.76). 5th annual resale report 346 ThredUp, (2017), p.13 371 Sustainable fashion and textiles: Design journeys Fletcher, K., See https://www.therealreal.com; https://www.thredup.com; 347 (2014), p.42 https://www.vestiairecollective.com; https://www.freecycle. Estimate based on Circular Fibres Initiative analysis on the 372 org share of materials and on a price of USD 2.8/kg for cotton See https://www.patagonia.com.au/pages/worn-wear 348 yarn and USD 1.7/kg for polyester yarn (see http://www. globaltexassociates.com/price.html). Hvass, K.K., Business model innovation through second-hand 349 retailing: A fashion industry case (2015), p.24 See http://mistrafuturefashion.com/sustainable-fashion 373 350 See: https://fashionista.com/2017/10/stella-mccartney-the- See http://nordicfashionassociation.com/content/recycling- 374 realreal-partnership and-waste-0 351 Hvass, K.K., Post-retail responsibility of garments: A fashion 375 Goldsworthy, K., Mistra Future Fashion report: Design for industry perspective (2013), p.15 (2014) cyclability 352 See https://www.yerdle.com/ Closed loop fibre recycling: Current status Oakdene Hollins, 376 (2013); Fletcher, K., Sustainable and future challenges Case study box based on an expert interview with Nicole 353 fashion and textiles: Design journeys (2014), p.118; see http:// Bassett, Co-founder of The Renewal Workshop, and the mistrafuturefashion.com/sustainable-fashion website https://renewalworkshop.com 377 WRAP, Evaluation of the end markets for textile rag and Evaluating the financial viability and resource WRAP, 354 fibre within the UK (2014), p.18; see http://www.lmb-supplies. implications for new business models in the clothing sector co.uk/recycling.html (2013), p.2 378 See http://www.recycleaid.co.uk/cloth-and-fabric-recycling/ 355 Greenpeace, Fashion at the crossroads (2017), p.23 waste-clothes-and-fabric-recycling; http://levistrauss.com/ unzipped-blog/2014/03/denim-insulation-101-how-recycled- 356 See https://www.patagonia.com.au/pages/worn-wear; Evaluation of the end jeans-can-keep-you-warm; WRAP, (2017), https:// The cleanest line: Extended play Patagonia, markets for textile rag and fibre within the UK (2014), p.19 www.patagonia.com/blog/2017/09/extended-play Estimate of 1-3% based on McKinsey Analysis; IHS; SRI; CMAI; 379 357 Sustainable Brands, H&M’s clever care labels helping TECNON; expert discussion customers extend clothing life while saving energy, water (30 April 2014) See http://www.polygenta.com/Our_Breakthrough_process. 380 html; https://www.polyterra.com/en/materials; http://www. (15 Smart clothing: The next big thing in IoT wearables? NXP, 358 recovertex.com/sustainability; http://www.repreve.com February 2016), https://blog.nxp.com/portable-wearable/ smart-clothing-iot-wearables 381 See http://www.adidas.co.uk/parley; http://sustainability.c- and-a.com/sustainable-products/sustainable-materials/ See https://www.khongboonswimwear.com/nfc-technology 359 other-raw-materials/polyester; http://about.hm.com/en/ See https://www.patagonia.com.au/pages/worn-wear 360 sustainability/sustainable-fashion/materials.html; https:// news.nike.com/news/nike-better-world Planned obsolescence Hindle, T., , The Economist (23 March 361 2009) 382 See http://apparelcoalition.org/the-higg-index See http://ddm.higg.org/page/ddm-home 362 See http://msi.higg.org/page/learn-more#what-is-the-scope- 383 of-the-msi (2014) 363 WRAP, Clothing longevity protocol 384 See https://www.ftc.gov/tips-advice/business-center/ See http://designforlongevity.com 364 guidance/calling-it-cotton-labeling-advertising-cotton- products 140

141 385 Sustainable fashion and textiles: Design journeys Fletcher, K., Blockchain technology is based on a distributed database 409 (2014), p.79 not centrally owned by any one person. Any information added is stored in ‘blocks’ owned by a number of people. See http://www.cientifica.com/research/market-reports/ 386 Theses blocks then form a chain of information to create smart-textiles-apparel-markets-applications-technologies a complete history for an item. Any attempt to change a block in retrospect will be detected by the system because 387 Innovation in Textiles, Smart textiles and wearables: Markets, the information would differ from that of all the other (2016) application and technologies, United Kingdom participants of that specific blockchain. This guarantees 388 See http://rbis.averydennison.com/en/home/our-solutions/ reliable data that is safe from fraudulent claims (see, apparel-and-footwear-branding/introducing-janela-smart- e.g. http://www.goldmansachs.com/our-thinking/pages/ product-platform.html blockchain). 389 See https://elektrocouture.com/collections See https://www.provenance.org/case-studies/martine- 410 jarlgaard 390 See https://elektrocouture.com/portfolio/2nd-generation- inforce-yoga Efforts to account for the costs of negative externalities in 411 the material price (see Section 4.2) could help increase the Fletcher, K., Sustainable fashion and textiles: Design journeys 391 cost-competiveness of recycled materials. (2014), p.124; Global Fashion Agenda and The Boston (2017), p.124 Consulting Group, Pulse of the fashion industry 412 See http://www.nurmiclothing.com; https://www. thereformation.com; https://ahlma.cc; https://www. 392 See http://trash2cashproject.eu/about looptworks.com 393 Greenpeace, Fashion at the Crossroads (2017), p.81 See http://about.lindex.com/en/redesign2 413 394 See https://www.circle-economy.com/textile-sorting-project See https://www.uschamberfoundation.org/eileen-fisher-s- 414 intuitive-journey-circularity 395 See http://www.fashionpositive.org/plus 415 See http://www.ctechinnovation.com/funded-projects/ Yarn engineering 396 , Indian Journal of Fibre & Elmogahzy, Y., wear2-microwave-textile-disassembly Textile research, Vol. 31 (2006) Introducing the concept ‘single-thread Greenstrategy, 416 Singh, K., Analysis of spandex/cotton elastomeric properties: 397 (20 October 2016), knitwear’ Spinning and applications (2012) See http://www.greenstrategy.se/introducing-the-concept- 417 (2017), p.113 398 Sustainable fibres and textiles Muthu, S., single-thread-knitwear 399 See http://www.samsoe.com/is/man/apparel/blazers-and- 418 Sustainable fashion and textiles: Design journeys Fletcher, K., suits/suit-pants/laurent-pants-fold-up-6568/M00004178. (2014), p.42 html 419 See http://www.3cfilati.it/en/portfolios/cardato-recycled-by- 400 See http://www2.hm.com/en_gb/productpage.0519787002. 3c-filati html?gclid=EAIaIQobChMI2djt662V1gIVsRXTCh1d_ wO8EAQYASABEgJhFfD_BwE&s_ See https://about.hm.com/en/sustainability/get-involved/ 420 kwcid=AL!850!3!214282971985!!!!!&ef_ Certificate of recycle-your-clothes.html; Hilaturas Ferre, id=WMFvMwAABS5g4ZIM:20170908101611:s compliance (2016) 401 See http://www.textileschool.com/articles/81/sewing-thread; 421 See https://about.hm.com/en/sustainability/get-involved/ https://www.ftc.gov/tips-advice/business-center/guidance/ recycle-your-clothes.html calling-it-cotton-labeling-advertising-cotton-products 422 See https://www.ellenmacarthurfoundation.org/case-studies/ 402 See https://www.wolfordshop.com/aboutwolford/ pioneering-a-lease-model-for-organic-cotton-jeans Sustainability.html 423 Palme, A., et al., Cellulose: Chemical and ultrastructural Expert interviews with Enrica Arena, Co-founder and CEO, 403 changes in cotton cellulose induced by laundering and textile Orange Fibre, and Annie Gullingsrud, Director, Textiles and use , Cellulose, Vol. 21, 6 (2014), p.4681 Apparel Sector, Cradle2Cradle 424 (2016) Certificate of compliance Hilaturas Ferre, This quality loss is higher for woven than for knit garments 404 and it is also higher the tighter the garment is woven/knitted Deutsche Welle: Italian fabric makers turn dirty Williams, M., 425 (see http://www.threadsmagazine.com/item/5152/knits- (24 December 2010) secret into marketing weapon wovens-whats-the-difference). See http://www.wolkat.com/en; http://www. 426 Ellen MacArthur Foundation, World Economic Forum, and 405 geetanjaliwoollens.com McKinsey & Company, The New Plastics Economy: Rethinking 427 See http://www.cardato.it/en/brand-cardato-recycled the future of plastics (2016), pp.80–81 See http://www.3cfilati.it/en/portfolios/cardato-recycled-by- 428 KEMI, Risks to human health and the 406 Chemicals in textiles: 3c-filati environment (2014) 429 See http://dutchawearness.com/chainmanagement See https://globalchangeaward.com/winner/winner-1 407 430 Palme, A., et al., Cellulose: Chemical and ultrastructural See http://adnas.com/cotton-supply-chain-protection 408 changes in cotton cellulose induced by laundering and textile , Cellulose, Vol. 21, 6 (2014), p.4681 use 431 See http://www.lenzing-fibers.com/en/tencel/refibra 432 See http://renewcell.se; http://infinitedfiber.com/strategy-2 433 See http://www.evrnu.com/technology; http://www. levistrauss.com/unzipped-blog/2016/05/levi-strauss-co- evrnu-create-first-pair-of-jeans-from-post-consumer-cotton- waste; https://www.apparelnews.net/news/2016/dec/08/ evrnu-regenerated-cotton-sustainable-second-time-a 141

142 434 Expert interview with Cyndi Rhoades, Founder and CEO, 460 Dutch Enterprise Agency, Criteria for sustainable Worn Again procurement of workwear (2011), http://english.rvo.nl/sites/ default/files/2013/12/Criteriadocument%20Workwear.pdf 435 Technological breakthrough: Successful H&M Foundation, method found for recycling blend textiles into new fibres 461 , GPP in Reusing workwear in Herning European Commission, (11 September 2017), http://hmfoundation.com/news/ practice, 65 (2016) technological-breakthrough-successful-method-found-for- See http://www.oecd.org/env/tools-evaluation/ 462 recycling-blend-textiles-into-new-fibres extendedproducerresponsibility.htm 436 Recent advances in chemical recycling Achilias, D., et al., See http://www.ecotlc.fr/page-297-information-in-english. 463 , of polymers (PP, PS, LDPE, HDPE, PVC, PC, Nylon, PMMA) html material recycling: Trends and perspectives (2012) See http://europa.eu/rapid/press-release_MEMO-15-6204_ 464 See http://www2.teijin-frontier.com/english/sozai/specifics/ 437 en.htm ecopet-plus.html; http://www.econyl.com/regeneration- system/ See http://www.greenpeace.org/international/Global/ 465 international/briefings/toxics/2016/Fact-Sheet-Timeout-for- 438 See http://www.resyntex.eu/images/downloads/RESYNTEX_ fast-fashion.pdf Introduction_Presentation_2016.pdf 466 See https://www.reuters.com/article/china-environment/ See https://www.aquafil.com/sustainability/econyl 439 china-notifies-wto-of-ban-on-plastic-paper-textile-waste- See http://www2.teijin-frontier.com/english/sozai/specifics/ 440 imports-idUSL5N1K94IS eco-circle.html Expert interview with Helene Smits, Brand Manager, Recover, 467 441 Patagonia, Closing the loop: A report on Patagonia’s and Deepak Goel, CEO, Geetanjali Common Threads garment recycling program (7 July 2009), 468 Expert interviews with representatives from Recover, http://www.patagonia.com/blog/2009/03/closing-the- ReBlend, Wolkat, and Geetanjali loop-a-report-on-patagonias-common-threads-garment- recycling-program See http://textileexchange.org/wp-content/ 469 uploads/2017/06/Global-Recycled-Standard-v4.0.pdf 442 Global Fashion Agenda and The Boston Consulting Group, Pulse of the fashion industry (2017), p.44 470 See http://textileexchange.org/wp-content/ uploads/2017/06/Recycled-Claim-Standard-v2.0.pdf See https://www.jeplan.co.jp/en/technology/polyester_ 443 recycle 471 See http://www.circle-economy.com/case/circle-market/#. WallYNOGORt; http://www.netherlandscircularhotspot.nl/ See http://www.ioniqa.com/company/; expert interview with 444 circle-market.html Tonnis Hooghoudt, CEO, Ioniqa See http://www.hm.charitystar.com 472 WRAP, (2014) Technologies for sorting end of life textiles 445 473 See http://simplerecycling.com; see http://www.wrap. Expert interview with Lucie Ackermann, Project Manager, 446 org.uk/sites/files/wrap/Textiles_Guide_CS_Bexley_0.pdf Valvan https://www.iwight.com/Residents/Waste-and-Recycling/ 447 See http://www.valvan.com/uncategorized/introducing-the- Household-Waste-and-Recycling-Collection/Other- fibersort Collection-Services; see http://europe.chinadaily.com.cn/ china/2017-08/30/content_31308134.htm 448 See http://www.valvan.com/wp-content/uploads/2015/10/ Valvan-leaflet-FIBERSORT_LR.pdf 474 See https://www.bhf.org.uk/shop/donating-goods/free- collection-of-clothes-books-and-more See https://www.circle-economy.com/a-key-enabler-for-high- 449 value-textile-to-textile-recycling-is-on-its-way-to-the-market 475 See https://www.drk.de/spenden/spenderservice/ spendentransparenz/kleidersammlung 450 Blanch-Perez-del-Notario, C. and Lambrechts, A., Hyperspectral imaging for textile sorting and recycling in 476 See https://www.texaid.ch/en/products-and-services/ (2016) industry collection/container-collection.html 451 See http://www.ivl.se/english/startpage/top-menu/ Nationswell, Old clothes are getting kicked to the curb in this 477 pressroom/press-releases/press-releases---arkiv/2017-03- city (but it’s a good thing) (17 January 2014) 28-new-technology-may-revolutionize-textile-recycling.html; See http://www.patagonia.com/recycling.html 478 expert interview with Maria Elander, Project Lead, SIPTex 479 See https://www.fisherfound.com 452 Global Fashion Agenda, A call to action for a circular fashion system (2017) 480 See https://about.hm.com/en/sustainability/get-involved/ recycle-your-clothes.html 453 H&M, S ustainability report (2016) 481 See https://www.zara.com/uk/en/info/join-life/clothes- 454 C&A, Global (2016) sustainability report collecting-c861007.html 455 See http://www.kering.com/en/sustainability/2025-strategy/ See http://www.oxfam.org.uk/donate/donate-goods 482 care See http://www.redcross.org.uk/en/Get-involved/Our-shops/ 483 456 See https://ec.europa.eu/growth/single-market/public- Donate-to-our-charity-shops procurement_en 484 See https://www.bhf.org.uk/shop/donating-goods/free- See http://www.ecap.eu.com/action-plan/public- 457 collection-of-clothes-books-and-more procurement-action 485 Circular Fibres Initiative analysis – for details see Appendix B Ibid. 458 486 Ibid. See http://www.rebus.eu.com/wp-content/uploads/2017/05/ 459 ECAP-Workwear-Report.pdf 487 Rodgers, L., Where do your old clothes go? , BBC (11 February 2015), http://www.bbc.co.uk/news/magazine-30227025 142

143 Exports of Nordic used textiles: Fate, 488 Watson, D., et al., 517 See http://www.qmilk.eu Comtrade (2016), p.67; United Nations, benefits and impacts 518 Sustainable Brands, Plug and play accelerator reveals 12 new (2013) Database (19 April 2017) startups changing the face of fashion A second-hand clothing ban in East TradeMark East Africa, 489 See https://ecoalf.com/uk_en/about/processes/coffee- 519 Africa? (18 May 2016), https://www.trademarkea.com/news/ grounds a-second-hand-clothing-ban-in-east-africa 520 See http://www.biosteel-fiber.com/home/#c243; https:// 490 Exports of Nordic used textiles: Fate, Watson, D., et al., boltthreads.com; http://www.tjeerdveenhoven.com/ benefits and impacts (2016), p.121 portfolio_page/algaefabrics 491 Ibid., p.5 521 See http://orangefiber.it/en/collections Textiles market situation report 492 WRAP, (2016), p.8 522 See https://www.nytimes.com/2017/11/12/style/alternative- 493 See http://www.ico-spirit.com/en/company; https://about. fabrics-sustainability-recycling.html hm.com/en/sustainability/get-involved/recycle-your-clothes. 523 See https://fashionforgood.com html 524 See Appendix B KEMI, 494 Chemicals in textiles: Risks to human health and the environment (2014), p.33 525 Reverse Resources, The Undiscovered Business Potential of Production Leftovers within Global Fashion Supply Chains: Saxena, S., et al., Challenges in sustainable wet processing of 495 Creating a Digitally Enhanced Circular Economy (2017), p.6 textiles (2017); based on a price of USD 5,000 per tonne of reactive dye; prices on Alibaba (5 July 2017) See http://nordicfashionassociation.com/content/waste- 526 production-phase; Reverse Resources, The Undiscovered Eunomia, The potential contribution of waste management to 496 Business Potential of Production Leftovers within Global a low carbon economy (2015) Fashion Supply Chains: Creating a Digitally Enhanced Circular (2015), p.17 Sustainable apparel materials Kirchain, R., et al., 497 (2017), p.6 Economy The role and business case for existing and Turley, D.B., et al., 498 527 Reverse Resources, The undiscovered business potential of emerging fibres in sustainable clothing: Final report to the production leftovers within global fashion supply chains: Department for Environment, Food and Rural Affairs (Defra) creating a digitally enhanced circular economy (2017), (2010) pp.9–10 499 World Economic Forum, Ellen MacArthur Foundation, and 528 Ibid., p.30 McKinsey & Company, The New Plastics Economy: Rethinking 529 Ibid., pp.13–14 (2015) the future of plastics Ibid., p.15 530 500 White, G., Cotton price causes ‘panic buying’ as nears 150- year high , The Telegraph (2011) 531 Ibid., p.30 501 Euromonitor International Apparel, Footwear, & Accessories Global Fashion Agenda and The Boston Consulting Group, 532 2016 Edition (brand shares 2000–2015) The Pulse of the fashion industry (2017) 502 See https://www.ers.usda.gov/topics/international-markets- 533 NRDC, NRDC’s 10 best practices for textile mills to save trade/global-food-markets/global-food-industry (2013), p.5 money and reduce pollution See http://manufacturingmap.nikeinc.com 503 534 Energy efficiency improvement opportunities Hasanbeigi, A., (2010), p.28 for the textile industry (2017), http://www. Annual report 2016 Fast Retailing, 504 fastretailing.com/eng/ir/library/pdf/ar2016_en.pdf The state of the apparel sector GLASA, 535 (2015) Maxwell, D., et al., 505 , State of the apparel sector report: Water Good business: Viyellatex MakingIt Magazine, 536 (2012) GLASA (2015), p.31 537 Ibid. The true price of cotton from India IDH and True Price, 506 538 Ibid. (2016), p.15 539 (2011) Viyellatex, Corporate sustainability report See http://about.puma.com/en/sustainability/environment/ 507 environmental-profit-and-loss-account Corporate sustainability report Viyellatex, 540 (2012) Kering, 508 Environmental Profit and Loss: 2015 group results 541 Hasanbeigi, A. and Price, L., Price review of energy use and Sustainability Targets report (2015), p.7; Kering, (2016) energy efficiency technologies for the textile industry (2012) pp.55–57 542 See http://www.em2m.eu See http://www.kering.com/en/sustainability/motivation 509 543 Porteous, A. and Rammohan, S., Integration, incentives 510 See http://naturalcapitalcoalition.org/protocol and innovation: Nike’s strategy to improve social and environmental conditions in its global supply chain (2013) Apparel sector guide (2016) 511 Natural Capital Coalition, 544 See http://about.nike.com/pages/transform-manufacturing See http://apparelcoalition.org/the-higg-index; http://www. 512 made-by.org/consultancy/tools/environmental 545 Green Supply Chain, Green Supply Chain news: Nike promises revolution in its approach to manufacturing (2016) World Economic Forum, Ellen MacArthur Foundation, and 513 McKinsey & Company, The New Plastics Economy: Rethinking Porteous, A. and Rammohan, S., 546 Integration, incentives (2015), p.92 the future of plastics and innovation: Nike’s strategy to improve social and environmental conditions in its global supply chain (2013) Changing Markets Foundation, Dirty fashion: How pollution in 514 (2017) the textiles supply chain is making viscose toxic 547 Clean by Design, Fibre selection: Understanding the impact of different fibers is the first step in designing See http://www.canopystyle.org/forests 515 (2012) environmentally responsible apparel See http://orangefiber.it 516 143

144 See http://www.lenzing-fibers.com/en/tencel 548 See http://www.bbc.co.uk/schools/gcsebitesize/design/ 579 textiles/fibresrev4.shtml Maxwell, D., et al., , State of the apparel sector report: Water 549 GLASA (2015), p.36 580 Fletcher, K., Sustainable fashion and textiles: Design journeys (2014), p.13 Ibid., p.37 550 Clean by Design, Fibre selection (2012) 581 551 Ibid., p.37 Turley, D.B., et al., The role and business case for existing and 582 Ibid., p.38 552 emerging fibres in sustainable clothing: Final report to the Department for Environment, Food and Rural Affairs (Defra) 553 Nike and Adidas show cautious support for eco- Hepburn, S., (2010), p.107 , The Guardian (24 April 2015) friendly dye technology Fibre selection Clean by Design, 583 (2012) Ethridge, D ., Policy-driven causes for cotton’s decreasing 554 (2016), p.2 market share of fibers Textile opportunities for Cradle to Cradle 584 Fashion+, (2014), p.23 CertifiedTM Products Program Preferred fiber market report (2016), p.55 555 Textile Exchange, See http://www.fibersource.com/fiber-products/ 585 556 FAO, World apparel fibre consumption survey (2013), p.2 586 See http://www.fibre2fashion.com/industry-article/1970/ Textile Exchange, Preferred fiber market report (2016), p.7 557 properties-of-bamboo-fibre; https://www.eileenfisher.com/ Muthu, S., (2017) p.281 Sustainable fibres and textiles 558 sustainable-fibers/choosing-tencel-over-viscose 559 See http://www.uniformreuse.co.uk/alternative-fabric. 587 See https://www.patagonia.com/on/demandware.static/ php?textile=4 Sites-patagonia-us-Site/Library-Sites-PatagoniaShared/ en_US/PDF-US/bamboo_rayon.pdf 560 See http://www.fibersource.com/fiber-products Dirty fashion 588 (2017) Changing Markets Foundation, 561 See http://www.bbc.co.uk/schools/gcsebitesize/design/ textiles/fibresrev4.shtml 589 See http://www.lenzing.com/en/responsibility/ecological- responsibility/eco-labelsawards.html Clean by Design, Fibre selection 562 (2012) Clean by Design, 590 Fibre selection (2012) 563 If your clothes aren’t already made of plastic, they Quartz, The role and business will be (5 June 2015); Turley, D.B., et al., 591 See http://canopyplanet.org case for existing and emerging fibres in sustainable clothing: 592 See http://www.fibersource.com/fiber-products Final report to the Department for Environment, Food and Rural Affairs (Defra) (2010); see http://fibersource.wpengine. 593 Ibid. com/fiber-products/polyester-fiber Sustainable fashion and textiles: Design journeys Fletcher, K., 594 564 Greenpeace, Hazardous chemicals in branded luxury textile (2014), p.16 products on sale during 2013 (2014), p.17; Shotyk, W., et al., Contamination of Canadian and European bottled water with See http://www.lenzing-fibers.com/en/tencel 595 (2006) antimony from PET containers 596 See http://www.fibersource.com/fiber-products Fibre selection Clean by Design, (2012) 565 See http://www.bbc.co.uk/schools/gcsebitesize/design/ 597 566 See http://www.fibersource.com/fiber-products textiles/fibresrev2.shtml 567 See https://www.econyl.com/assets/uploads/ECONYL_ 598 See http://www.bbc.co.uk/schools/gcsebitesize/design/ brochure_150318_EN.pdf textiles/fibresrev4.shtml 568 Fletcher, K., Sustainable fashion and textiles: Design journeys 599 Sustainable fashion and textiles: Design journeys Fletcher, K., (2014), p.17 (2014), p.16 Ibid., p.17 569 Turley, D.B., et al., The role and business case for existing and 600 emerging fibres in sustainable clothing: Final report to the 570 See http://www.fibersource.com/fiber-products Department for Environment, Food and Rural Affairs (Defra) (2010), pp.13, 108 571 See http://fibersource.wpengine.com/fiber-products/acrylic- fiber; http://www.bbc.co.uk/schools/gcsebitesize/design/ 601 Congressional Research Service, Hemp as an agricultural textiles/fibresrev4.shtml commodity (2017), p.7 Sustainable fashion and textiles: Design journeys Fletcher, K., 572 Preferred fiber market report Textile Exchange, 602 (2016), p.55 (2014), pp.17–18 603 See http://www.bbc.co.uk/schools/gcsebitesize/design/ 573 See http://fibersource.wpengine.com/fiber-products textiles/fibresrev2.shtml Analysis of spandex/cotton elastomeric properties: 574 Singh, K., 604 Apparel industry life cycle Business for Social Responsibility, Spinning and applications (2012) carbon mapping Sustainable fashion (2009), p.8; Fletcher, K., (2014), p.14 and textiles: Design journeys 575 See http://fibersource.wpengine.com/fiber-products/ spandex-fiber 605 See http://www.patagonia.com/recycled-wool.html 576 Turley, D.B., et al., The role and business case for existing and See http://sff.arts.ac.uk/Fibre%20Processing/woolprocessing. 606 emerging fibres in sustainable clothing: Final report to the html Department for Environment, Food and Rural Affairs (Defra) (2010), p.115 607 University of Oxford: Environmental Change Institute, Annual Land of the living wind review (2006); Worrall, S., (2004); (2016), p.55 577 Textile Exchange, Preferred fiber market report (9 June 2010) Oecotextiles, Wool See http://www.bbc.co.uk/schools/gcsebitesize/design/ 578 608 See https://www.eileenfisher.com/sustainable-fibers/were- textiles/fibresrev2.shtml working-on-it-chlorine-free-wool 144

145 609 See http://www.bbc.co.uk/schools/gcsebitesize/design/ textiles/fibresrev2.shtml 610 See http://www.fibre2fashion.com/industry-article/1710/ properties-and-characteristics-of-silk 611 Ibid. 612 Fletcher, K., Sustainable fashion and textiles: Design journeys (2014), p.15 Ibid., p.15 613 145

146 ABOUT THE ELLEN MACARTHUR FOUNDATION The Ellen MacArthur Foundation was established in 2010 with the aim of accelerating the transition to a circular economy. Since its creation the charity has emerged as a global thought leader, establishing circular economy on the agenda of decision makers across business, government, and academia. With the support of its Core Philanthropic Partners, MAVA and SUN, and Knowledge Partners (Arup, IDEO, McKinsey & Company, and SYSTEMIQ), the Foundation’s work focuses on five interlinking areas: EDUCATION (Danone, Google, H&M, Intesa Sanpaolo, NIKE Inc., Philips, Renault, and Unilever) to develop Inspiring learners to rethink the future through scalable circular business initiatives and to the circular economy framework address challenges to implementing them. The Foundation has created global teaching, The Circular Economy 100 programme brings learning, and training platforms built around together industry leading corporations, the circular economy framework, encompassing emerging innovators, affiliate networks, both formal and informal education. With an government authorities, regions, and cities, to emphasis on online learning, the Foundation build circular capacity, address common barriers provides cutting edge insights and content to progress, understand the necessary enabling to support circular economy education, and conditions, and pilot circular practices, in a the systems thinking required to accelerate a collaborative, pre-competitive environment. transition. The Foundation’s formal education work INSIGHT AND ANALYSIS includes Higher Education programmes with partners in Europe, the US, India, China, and Providing robust evidence about the benefits South America, international curriculum and implications of the transition development with schools and colleges, and The Foundation works to quantify the economic corporate capacity building. The informal potential of the circular economy model and education work includes the global, online develop approaches for capturing this value. Disruptive Innovation Festival. These insight and analysis feeds into a growing body of economic reports highlighting the BUSINESS AND GOVERNMENT rationale for an accelerated transition towards a circular economy, and exploring the potential Catalysing circular innovation and creating the benefits across stakeholders and sectors. conditions for it to reach scale The circular economy framework is evolving, Since its launch, the Foundation has emphasised and the Foundation continues to widen its the real-world relevance of the circular economy understanding by working with international framework, recognising that business innovation experts, key thinkers, and leading academics. sits at the heart of economic transitions. The Foundation works with its Global Partners 146

147 COMMUNICATIONS SYSTEMIC INITIATIVES Engaging a global audience around the circular Transforming key material flows to scale the economy circular economy globally The Foundation communicates cutting edge Taking a global, cross-sectoral approach to material flows, the Foundation is bringing ideas and insight through its circular economy together organisations from across value chains research reports, case studies, articles and books. It uses relevant digital media to reach to tackle systemic stalemates that organisations audiences who can accelerate the transition, cannot overcome in isolation. Plastics was globally. The Foundation aggregates, curates, identified through initial work by the Foundation with the World Economic Forum and McKinsey and makes knowledge accessible through Circulate, an online information source & Company as one of the value chains most dedicated to providing unique insight on circular representative of the current linear model, and is the focus of the Foundation’s first Systemic economy and related subjects. Initiative. Applying the principles of the circular economy, the New Plastics Economy initiative, launched in May 2016, brings together key stakeholders to rethink and redesign the future of plastics, starting with packaging. Building on the success of this first Systemic Initiative, textile fibres became the Foundation’s second material stream focus, with the launch in May 2017 of the Circular Fibres Initiative. 147

148 148

149 149

150 © Copyright 2017 Ellen MacArthur Foundation www.ellenmacarthurfoundation.org Charity Registration No.: 1130306 OSCR Registration No.: SC043120 Company No.: 6897785 150

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