Assessing sustainability progress by fashion brands
In this year’s version Circular Fashion Index report 235 companies from 18 countries around the world producing and selling clothing in five categories were analyzed – fashion, underwear, sportswear, outdoor clothes and footwear. The companies were divided into four segments – luxury, premium, mass and fast fashion.
“They have been assessed brand activitiesintroduced over the last year, which were intended to bring them closer to implementation of sustainable development goals” – explained the authors of the report. Points were awarded from 1, which meant the smallest improvement, to 10, meaning the most significant change. “This year’s average is only 3.2 points, which gives a slight improvement (by 0.2 points – PAP) compared to 2023 ” – indicated.
Slow pace of change in the clothing segment
According to the authors of the report, the pace of change is too slow, and “the largest players such as… Zara Whether Uniqlo still do too little in the context of introducing more sustainable solutions.” However, it was emphasized that the scope of application increased by 0.3 points principles of circular design (with a view to minimizing the amount of waste) in the luxury and mass segments. “Compared to 2020, this result improved by an average of 1.2 points, which confirms the growing awareness of the industry about the circular economy,” it was noted.
“The fourth edition of the report (…) shows that most global brands make insufficient decisions from the point of view of ecology and the circular economy,” it said.
No progress among top fashion brands
It was noted that the ten best-rated brands using “circular fashion” did not make significant progress over the last year. Mentioned in this point: The North Face, Gucci, Levi’s, Lululemon, Madewell, OVS, Patagonia, Coach, Lindex and Gantof which the latter brand was the only one in the ranking to record a “significant increase in position”.
“In case fast fashion brands achieved the greatest improvement Uniqlo, Zara and Coach. The last of these significantly improved communication in terms of circular economy and increased the share of recycled materials thanks to the creation of a sub-brand Coachtopia in 2023,” it was reported. In the case of Zara, the authors praise it for its development pre-owned platforms (offering services of repair, replacement and safe disposal of clothes), and Uniqlo for the “Furugi” project, which develops the second-hand clothes segment.
Inconsistency of sustainability activities
In Kearney’s opinion, the clothing industry “lacks consistency” because companies talk about sustainable development and the circular economy in their communications, but on the other hand “take relatively little action” in this area. “This fact is especially visible in debates over the choice of materials, regarding what has a greater impact reduction of CO2 emissions or less water consumption“- it was stated.
Comparison of the environmental impact of cotton and polyester
Kearney experts conducted product life cycle assessmentcomparing the impact of cotton and polyester on the natural environment. “In a study taking into account the differences between these materials, it was found that the consumption of land and water resources in the raw material production phase for cotton is higher compared to polyester. On the other hand, greenhouse gas (GHG) emissions during the production of polyester fibers are higher than for cotton.” – indicated.
According to them, it is difficult to clearly state which material has a more negative impact throughout the entire life cycle of products, and discussions on this topic ignore the broader perspective. “Current analyzes usually cover only a limited part of the clothing life cycle, which leads to erroneous conclusions,” it said. It was noted that the industry lacks uniform solutions and standards.
Early stage of implementing a circularity strategy in the clothing industry
“Most of the brands Kearney researched are in their early stages implementing the circularity strategyfocusing mainly on the selection of raw materials and communication raising awareness about appropriate consumer choices,” it was noted. In the authors’ opinion circular economy is “an opportunity for more sustainable development for both global fashion brands and smaller local companies.” For large players – as it was added – these practices mean the opportunity to build a more responsible image.
The potential of circularity for smaller brands
“Smaller brands, on the other hand, can more quickly adapt circular innovations, standing out on the market with unique, ecological products. This approach meets growing consumer expectations and regulatory requirements, bringing economic and environmental benefits,” it said. (PAP)
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