How can fashion brands adopt circular economy principles to reduce textile waste?

Imagine sending your old jeans back to the brand, which then recycles them into new items. Or renting an ever-changing, trendy wardrobe, without the guilt of waste. From durable, zero-waste designs and biodegradable materials to the exciting realm of digital fashion, the circular economy is reshaping the fashion industry, making it not just stylish, but also sustainable.

Rent the Runway is an example of a company that operates within the circular economy. It allows customers to rent designer clothing and accessories at a lower cost, promoting the reuse of clothes and extending their lifespan. According to the company, one rental from Rent the Runway is estimated to save 77% of the carbon emissions, 79% of the water usage, and 85% of the waste compared to buying new clothing. This significantly reduces the environmental impact of producing new clothes and makes luxury fashion more accessible.

Fashion industry is one of the world's biggest polluters. Applying circularity in the fashion industry allows clothes last longer, have less landfill clutter, and improve operational cost through recycling. Consumers welcome it as well, knowing that their wardrobe updates won't harm the planet. With the spotlight on sustainability, the circular economy isn't just fashion's latest trend, but its future – profitable, popular, and planet-friendly.

The circular economy is highly relevant for the fashion industry as it can significantly reduce the industry's environmental impact. The fashion industry is responsible for 10% of global carbon emissions, and 85% of textiles end up in landfills. However, adopting circular economy practices, such as rental or secondhand clothing, can reduce carbon emissions by 30-50% per kilogram of clothing compared to buying new. Outside of an emissions perspective a report by Accenture, states that a circular economy could unlock $4.5 trillion of economic growth by 2030-2035, with the potential to create 100,000 new jobs within the fashion industry alone.

Brands can create products that are designed to last and be easily recycled at the end of their lifecycle. It's about more than just the end product – the spotlight is also on using sustainable materials and creating zero-waste in manufacturing.

Ways brands can adopt circular economy principles is through offering clothing repair and upcycling services. Brands can encourage customers to repair or alter clothing items rather than discarding them, extending the lifespan of the garment and reducing waste. For example, Patagonia's Worn Wear program offers clothing repairs and encourages customers to repair their clothing rather than replace it. The company reports that it has repaired over 100,000 garments since 2013, which has saved over 10,000 pounds of waste from going to the landfill.

Interface is an example of a company that has adopted circular economy principles with great success. In 1994, Interface's founder Ray Anderson committed the company to becoming a "restorative enterprise" and eliminating waste from its operations. By 2016, the company had achieved a 96% reduction in waste to landfill, and by 2018, 62% of its raw materials came from recycled or bio-based sources. Interface reports that by prioritizing resource efficiency and waste reduction, it has saved $450 million since 1996. Additionally, the company's ReEntry program, which collects used carpet tiles from customers and recycles them into new products, generated $89 million in revenue in 2019.

One challenge of adopting circular economy principles is the need for a shift in consumer behavior. In a survey by McKinsey & Company, 62% of respondents reported that they did not know how to recycle clothing, and 41% said that they were unwilling to pay more for sustainable clothing. Additionally, the current linear economy incentivizes companies to prioritize volume and low prices over sustainability and circularity. Companies may face increased costs in transitioning to circular business models, and the lack of a circular infrastructure and policies can create barriers to circularity. For example, in the United States, only 17% of clothing is recycled or donated, largely due to a lack of infrastructure for textile recycling.

Another challenge of adopting circular economy principles is the need for collaboration among stakeholders. For example, in the fashion industry, a circular business model would require collaboration among designers, manufacturers, and retailers to prioritize sustainable measures. According to a report by the Ellen MacArthur Foundation, the global transition to a circular economy could create 700,000 new jobs by 2030. However, the report notes that this will require collaboration across industries and stakeholders to create new business models, investment strategies, and policies. While there are challenges to overcome, the potential economic and environmental benefits make it a necessary shift for businesses and society as a whole.