Confirming what many already suspected, a new study released by Trove and the impact intelligence platform Worldly has concluded that circular strategies can lead to significant carbon reduction in the fashion industry.
The study, entitled Where Are Circular Models Effective Sustainability Strategies for Fashion Brands?, models the impact of resale in addition to supply chain interventions. It is hoped that by understanding the carbon implications of circular models across different types of products, brands can focus their efforts on generating the best possible outcomes.
Key insights include:
- Resale is a significant decarbonization strategy: Particularly for premium apparel and outdoor brands, resale can result in a 15–16 percent reduction in annual carbon emissions by 2040.
- Such brands can achieve annual revenue growth and simultaneously reduce the need for new production by 23–35 percent annually.
- Brands should maximize resale efficiency for emissions benefit: Brands achieve the most substantial emissions reductions by amplifying the value of their products in the resale market.
- Product durability, design, and craftsmanship play pivotal roles.
“As climate change becomes more severe worldwide, consumers are demanding action and governments are implementing regulation,” said Worldly EVP, Market Impact, Del Hudson. “Both business model[s] and policy decisions must be informed by credible data.”
Trove currently powers the resale platform of brands and retailers including Canada Goose, Lululemon, Patagonia,On, Arc’teryx, and Allbirds.
Worldly (formerly Higg Inc.) is a comprehensive source of ESG data for global manufacturers and the largest library of materials and product impacts. Worldly is the exclusive licensee of the Higg Index.
