The role of the global apparel and footwear industries has shifted far beyond meeting a basic human need. The relationship with fashion in our modern lives has had a collateral and significant impact on our planet’s resources.

As we face urgent environmental and social challenges caused by climate change and resource depletion, the efficacy of solutions will depend on the creativity, innovation and boldness so characteristic of the fashion industry. It’s time for players to change the trajectory.

This report encourages actors in the industry to set ambitious, evidence-based environmental impact reduction goals to drive meaningful change to secure a more sustainable future for fashion.

Designing fashion for the circular economy has been extensively debated, leading stakeholders to demand sound metrics on the apparel industry’s potential for circularity. Here the study aimed to understand how other impact categories as well as GHG emissions are affected when setting an industry-wide circular economy target.

A percentage of recycled fibre was applied to fiber production processes based on the assumption that 53% of disposal would go to recycling and 75% of the recycled output could be reused as recycled fiber. Furthermore, a 10% increase in the impact associated with Yarn Preparation was included to account for the new recycling technology such an approach would require. Neither land use change considerations nor the shift from fiber recycling to fabric recycling were accounted for. Both could allow for additional impact reduction. Furthermore, encouraging adoption of crops or production practices that reduce water use could also reduce additional impacts.

Setting the circular economy target at 40%16, data highlights the potential in terms of impacts. A shift of this magnitude could lead the apparel industry to decrease its impacts on climate change by around 6% and freshwater consumption by 4%, while also reducing its negative influence on human health by 3%. Overall, the reduction potential for this action item is significantly lower than for renewable energy or energy efficiency/productivity. The health of an ecosystem can be impaired by the release of substances that cause acidification, eutrophication, toxicity to wildlife and land occupation in addition to various other mechanisms.

To comply with Science Based Targets (requiring an 80% reduction in GHG emissions by 2050) and Planetary Boundaries, different improvement measures must be applied in parallel: Higher energy efficiency and a shift to renewable energy as well as smart approaches for fiber and fabric recycling. It is important to understand that the implementation of single measures alone (e.g. circular economy) will not make the apparel sector sustainable in the long term. Only a broad approach that includes a range of measures will enable the apparel and footwear industries to achieve their sustainability goals.
Furthermore, additional trends (referred to in this study) and considerations (e.g. micro-plastics, social benefits of natural fibers in terms of agricultural work places, etc.) should be considered when exploring solutions for a more sustainable future of fashion.