Fashion Industry and Circular Economy

Image source: The Sustainable Fashion Forum

Fashion Industry

The fashion industry is complex and multifaceted, encompassing the design, production, marketing, and sale of clothing, footwear, accessories, and beauty products. The fashion industry constantly evolves and is influenced by various factors, including cultural trends, technological advancements, and economic conditions. The industry is also subject to multiple ethical and sustainability concerns, such as the use of sweatshops and the environmental impact of production processes. The fashion industry plays a significant role in the global economy [1], significantly impacting how people dress and express themselves.

The fashion industry has negative social and environmental impacts such as:

Working conditions: The fashion industry has been criticized for poor working conditions, especially in developing countries with weak law enforcement. Workers in textile factories are often paid low wages and work long hours in unsafe and unhealthy conditions. [2,3,4]

Exploitation: The fast fashion industry, in particular, has been criticized for exploiting workers and perpetuating a cycle of poverty. Workers in the supply chain are often paid meager wages and work long hours to produce cheap and disposable clothing. [2,3]

Body image and self-esteem: The fashion industry has been criticized for promoting an unrealistic and unhealthy ideal of feminine beauty, which can lead to decreased body satisfaction and self-esteem in women[2,5]

Consumerism: The fast fashion industry promotes a culture of consumerism, encouraging consumers to buy more and more clothing faster. This can lead to overconsumption, waste, and a lack of appreciation for the value of clothing. [2,5,6]

Greenhouse gas emissions: The fashion industry significantly contributes to greenhouse gas emissions. Textiles, clothing, and footwear production accounts for around 8% of global greenhouse gas emissions [2,6]. The fast fashion industry, in particular, has been criticized for contributing to climate change, as it relies on cheap and disposable clothing produced at a high rate.

Water pollution: The fashion industry also contributes to water pollution. The production of textiles requires large amounts of water, and the wastewater generated by textile factories is often heavily polluted with chemicals and dyes [2,7]. This polluted water can negatively impact aquatic ecosystems and human health.

Waste: The fashion industry is also a significant contributor to waste. The fast fashion industry, in particular, produces large amounts of quickly discarded clothing, leading to overflowing landfills and environmental degradation [2,3]. Additionally, textile production generates waste at every stage, from spinning and weaving to dyeing and finishing.

Chemical use: The fashion industry relies heavily on pesticides, fertilizers, and dyes. These chemicals can negatively impact the environment and human health, particularly in developing countries with lax regulations[2,9].

Circular Economy

The circular economy could help the fashion industry to reduce its negative impacts and become more sustainable. Here are some ways in which the circular economy can help the fashion industry:

Reducing waste: Circular economy practices can help reduce waste in the fashion industry by keeping materials and products in use for as long as possible. This can reduce the amount of clothing in landfills and incinerators, which can help reduce pollution and greenhouse gas emissions [9,10].

Saving resources: It helps minimize the usage of input materials for fashion production by reusing and recycling used products. It also helps treat discharged wastes, which saves costs and facilities for waste management and treatment.

Promoting sustainable practices: Circular economy practices can promote sustainable practices in the fashion industry by encouraging the use of environmentally friendly materials, reducing greenhouse gas emissions, and promoting ethical and socially responsible practices. This can help reduce the fashion industry’s negative environmental and social impacts [9,11,12].

Encouraging innovation: Circular economy practices can encourage innovation in the fashion industry by promoting new business models, such as clothing rental and resale, and encouraging the development of new materials and technologies that are more sustainable and environmentally friendly [9,12].

Creating economic opportunities: Circular economy practices can create economic opportunities in the fashion industry by promoting new business models and creating new jobs in areas such as repair, recycling and upcycling. This can help encourage economic growth and social development [9,13].

Adopting circular fashion practices requires significant adjustments to the fashion industry’s supply chains business structures, and consumer behavior [9].

Legal frameworks also play a crucial role in supporting circular fashion practices.

Here are some legal frameworks that can support circular fashion practices:

Extended Producer Responsibility (EPR): EPR is a policy approach that holds producers responsible for the environmental impact of their products throughout their lifecycle. EPR can encourage producers to design more sustainable products that can be reused, recycled, or regenerated [14,15].

Product standards and labeling: Product standards and labeling can inform consumers about the product’s environmental and social impact. Standards and labels can also encourage producers to design products that meet specific environmental and social criteria [14,16].

Tax incentives: Tax incentives can encourage producers to adopt circular fashion practices by providing financial benefits for sustainable practices, such as using environmentally friendly materials or reducing waste [14,15].

Regulations on waste and pollution: Regulations on waste and pollution can help reduce the negative environmental impact of the fashion industry by setting limits on the amount of waste and pollution that can be generated. These regulations can also encourage producers to adopt more sustainable practices [14,16].

Circular economy principles have gained prominence in the fashion industry. Even though there are several circular economy initiatives already in place within the fashion production chain, changes toward circular economy are still slow. This is because awareness has not reached large-scale populations despite the world being more aware of social and environmental issues. Consumers still do not see ethical and ecological problems associated with the fashion industry and continue to be targeted by sizeable fast fashion retailers that sell a misguided version of consumerism [17].

By: Hendra WINASTU, SOLEN Principal Associate – IPC panel coordinator

Edited by: Nguyen Duy Hung, SOLEN Director – IPC program director

Date: 16 November 2023

Article#: SOLEN-IPC-0028

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