THE EMPIRE TAKES BACK - Propelling Fashion into the Circular Economy
British MPs are the latest governmental officials to challenge the fashion industry to take action against a ”throwaway culture” that is adversely affecting the environment. Members of the House of Commons Environmental Audit Committee are holding hearings on the environmental impacts of fast fashion and have sought hard answers from the UK’s top fashion houses. Mary Creagh, chairwoman of the committee, has recently requested an audit that includes what steps fashion companies are taking to encourage recycling and how they measure the success of their post consumer environmental footprint. Additional inquiries are underway and other measures may soon follow.
By most accounts, fast fashion has accelerated in growth and its impact. The apparel and footwear industry is forecast to grow at double-digit numbers through 2020, with clothing production doubling from 2000 through 2015, and the number of garments purchased by the average consumer increasing by 60%. To compound the issue of over consumption, it is estimated that consumers keep clothing about half as long as they did fifteen years ago. This take, make, dispose process is unsustainable and causing a wave of new interest from lawmakers. While consumers may have previously accepted the social and environmental consequences of fast fashion, regulators have already begun considering actions to legislate a solution.
While some manufacturers, brands and retailers have already begun taking steps to address sustainability in the supply chain for resources and manufacturing, most have done little to address the post consumer fashion crises.
This issue is not unique to the US and other Western countries. In 2014, the number of garments produced exceeded 100 billion for the first time, which is the equivalent to 14 garments per person. Sales of apparel in emerging economies such as China, India, Brazil and Mexico, and Russia have grown eight times faster than the US, Canada, Germany, and the UK, and the expectation is that this rate will persist.
The environmental and social impacts are mounting, as collection rates stay flat, recycling technologies are still nascent and economies are incapable of absorbing the growth. As a result, nearly three fifths of all clothing produced is incinerated or landfilled within one year of being made.
There is mounting pressure to address the problem and this may spur governmental intervention in the form of an Extended Producer Responsibility scheme. Extended Producer Responsibility (EPR) is the concept where manufactures and brands should bear financial responsibility for the environmental impacts of their products throughout the product lifecycle, including the use and disposal of the products. By enforcing a payment mechanism that requires producers to help pay for the collection and the recycling of post consumer merchandise, EPR forces a life cycle accountability. While there are over 400 EPR schemes in operation globally, most of which are in the EU, only France has may become the first to extend their program to include textile waste beginning in 2019. Now, the UK is entertaining actions that will further encourage fashion brands to take responsibility for their products.
The specter of legislation has industry analysts and financial stakeholders concerned, as the British online Investors Chronicle recently noted, “fast fashion companies could soon be treated in the same way as gambling and other ‘damaging’ fast moving consumer goods.” Whether through voluntary means or governmental ERP programs, fashion brands must take action to address the consequences of their creation. In doing so, they not only have the opportunity to address a problem, but also create more value in customer loyalty, brand equity and resource creation.