How can you measure the environmental impact of circular economy practices in fashion?

1 Life cycle assessment

One of the most common ways to measure the environmental impact of circular economy practices in fashion is to use life cycle assessment (LCA). LCA is a method that evaluates the environmental effects of a product or service throughout its life cycle, from raw material extraction to disposal or recycling. LCA can help you compare different circular options, such as using recycled materials, extending the lifespan of garments, or recovering fibers from textile waste.

2 Circular economy indicators

Another way to measure the environmental impact of circular economy practices in fashion is to use circular economy indicators. These are metrics that quantify the circularity of a product or system, such as the amount of material reused, the percentage of renewable energy used, or the reduction of greenhouse gas emissions. Circular economy indicators can help you monitor your progress towards circular goals, communicate your impact to stakeholders, and identify areas for improvement.

3 Material flow analysis

A third way to measure the environmental impact of circular economy practices in fashion is to use material flow analysis (MFA). MFA is a method that tracks the flows and stocks of materials in a system, such as a supply chain, a city, or a country. MFA can help you understand the sources and destinations of materials, the potential for waste reduction and resource recovery, and the environmental implications of material choices.

4 Environmental impact assessment

A fourth way to measure the environmental impact of circular economy practices in fashion is to use environmental impact assessment (EIA). EIA is a method that evaluates the potential environmental consequences of a project or policy, such as a new circular business model, a regulation, or a consumer campaign. EIA can help you identify and mitigate the environmental risks and trade-offs of circular initiatives, as well as the opportunities and benefits.

5 Social life cycle assessment

A fifth way to measure the environmental impact of circular economy practices in fashion is to use social life cycle assessment (SLCA). SLCA is a method that evaluates the social and socio-economic aspects of a product or service throughout its life cycle, such as the working conditions, human rights, health, and well-being of the people involved. SLCA can help you assess the social impacts of circular fashion, such as the effects on employment, income, education, and empowerment.

6 Circular economy accounting

A sixth way to measure the environmental impact of circular economy practices in fashion is to use circular economy accounting (CEA). CEA is a method that integrates the environmental and economic aspects of circularity into the accounting and reporting systems of an organization, such as the balance sheet, the income statement, or the sustainability report. CEA can help you measure and disclose the value created by circular fashion, such as the cost savings, the revenue streams, or the intangible benefits.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?