Today's economic system is linear, affecting not only but many other industries. The waste of products, non-renewable elements, and the exploitation of resources are traditional practices that must end. It is a system that is no longer sustainable, as it only increases social and environmental damage.
In fashion, the linear economy is present in every step of clothing production. Material extraction, textile manufacturing, the supply chain, design, sales, marketing, etc. are guided by the goal of maximizing garment consumption without considering other issues that may arise.
The linear economy entails significant market, operational, business, and legal risks for brands. This can mean future volatility, higher prices, and interest rates, value chain failures, lack of commitment to regulations and protocols.
Thanks to linear fashion, the garment industry has a negative impact on the environment. 85% of textiles end up in landfills, only 1% of material is recycled, at least 500k microfibres end up in the ocean, and 792 to 931 billion cubic meters of water is used for textile production every year. These alarming statistics will only increase if producers continue the old economic system.
Circularity: Redefining Economic Activity
The global economy is shifting to green initiatives and partnerships. To preserve and protect the environment, various sectors are changing their business strategies and processes. One of the main steps that commercial banks, financial institutions, small and large companies, NGOs, investors, and firms are considering is the circular economy. A concept that has become well-known over the last decade as people want to make a positive impact.
The circular economy is an alternative that seeks to redefine economic activity toward generating business opportunities with social and environmental benefits. It promotes responsible production and consumption, rational use of natural resources, job creation, development of new sectors, and sustainability. Circularity is based on 3 principles: eliminating waste and pollution, keeping products and materials in use, and regenerating natural systems.
Does a Circular Economy Work?
Circularity is difficult to measure, and putting a figure on the results is complicated considering that it involves social changes. However, there are a few pillars that provide an overview of the transition. Calculating gas emissions, energy consumption, employment rates, and manufacturing costs comes closest to analyzing the benefits of the circular economy for businesses.
The Circularity Gap Report 2022 worked to link a figure to the circular economy, which in its conclusion only accounts for 8.6% of the global economy. A percentage that can certainly increase to 39% in the coming years.
The usual benefits of including the new industrial model vary from sector to sector, but at least in fashion it consistently reflects material efficiency: minimizing waste by reusing and recycling materials, leaving all virgin materials to be replaced by secondary ones. Or extending wealth by doubling the lifespan of long-lasting consumer products.
Sustainable Apparel and Textiles Conference USA - Innovation Forum
In this two-day business conference on the 21st and 22nd of June, Innovation Forum will equip delegates with the best-practice and guidance to develop net-zero strategies, transform supply chains, manage consumer communications, scale circularity, reduce waste, and drive positive social impacts.
With speakers from Gap, Tapestry, New Balance, and more, brands will discover the best practices from industry leaders and get in-depth guidance on how to effectively implement policies.
Attendees will be able to meet and network with an influential audience of key stakeholders, including NGOs, business, government and supply chain actors, as well as benchmark company performance amongst a room of your peers and discover where you should be focusing efforts.