Transformative Collaboration for Circular Fashion
This three-year project, spearheaded by the nonprofit EMF, unites these fashion giants with Primark, Arket, Cos, Weekday, and Reformation to scale circular business models. The inaugural working session took place in London, marking a significant step towards reshaping the industry’s approach to production and consumption.
"The Fashion ReModel aims to bring together frontrunners from luxury to High Street, demonstrating that it’s possible to scale circular business models," said Jules Lennon, fashion lead at EMF, during the Global Fashion Summit in Copenhagen.
The project raises a critical question: how can brands generate revenue without producing more clothes? This initiative has already garnered widespread interest, with Lennon noting overwhelming support from industry stakeholders following the summit.
Addressing Emissions and Waste
The fashion industry’s contribution to environmental degradation is significant, with 2.1 billion tonnes of greenhouse gases annually, equating to 4% of global emissions. EMF asserts that circular economy models could reduce this by a third, aligning the industry with the Paris Agreement targets.
Between 2000 and 2015, apparel production doubled, while the frequency of clothing use dropped by 36%. Despite only 3.5% of the global fashion market being circular in 2021, EMF predicts this could grow to 23%, worth $700 billion, by 2030.
"We recognize that circular business models present substantial economic and environmental benefits, yet these are not always realized," Lennon remarked.
Operational Framework and Goals
EMF, based in the Isle of Wight, consulted with 150 NGOs, academics, and apparel businesses before launching The Fashion ReModel. The project focuses on one topic at a time over nine-month periods, sharing insights along the way. Participants will convene three times annually for intensive design sprints, tackling financial barriers to circularity and redefining KPIs for progress.
Companies must report their annual progress toward deriving a significant percentage of their revenue from circular business models by 2027.
Leading Industry Change
Arc’teryx is keen to challenge conventional practices through its ReBIRD circularity program, which offers care, repair, resale, and upcycling services. The company aims for net-zero emissions by 2050, with substantial reductions by 2030.
Similarly, Zalando has made strides in sustainability, keeping 6.3 million items in use between 2020 and 2023, although falling short of its target. The Berlin-based retailer's circular revenue goal relies on its pre-owned sales business, which features approximately 270,000 items.
H&M is diversifying its revenue streams with a strong emphasis on sustainability. The company backs innovative startups like Syre, committing to significant purchases of recycled materials to offer customers sustainable choices while enabling multiple transactions of the same product.
Emergence from Jeans Redesign
The Fashion ReModel initiative builds on the success of the EMF’s Jeans Redesign project, which involved 100 organizations across 25 countries in creating durable, recyclable jeans. The guidelines from this project have influenced broader industry practices, with brands like Diesel and Gucci adopting similar standards.
Challenges and Investor Concerns
Despite the enthusiasm, Richard Wielechowski, senior investment analyst at Planet Tracker, highlights the difficulties of transitioning from a linear to a circular model. Investors are wary of the potential impacts on profitability, sales growth, and return on capital. The path to circularity is fraught with uncertainties, and many brands may only experiment with rather than fully commit to these models.
In conclusion, The Fashion ReModel represents a significant step towards a more sustainable fashion industry. As the initiative progresses, it aims to prove that circular business models can be profitable and scalable, setting a new standard for global fashion.