Full Report - UNEP Sustainability and Circularity in The Textile Value Chain A Global Roadmap

Sustainability
and Circularity
in the Textile
Value Chain
A Global Roadmap
Copyright © 2023 United Nations Environment Programme
ISBN No: 978-92-807-4034-9
Job No: DTI/2532/PA
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Recommended citation: United Nations Environment Programme (2023). Sustainability and Circularity in the Textile Value Chain - A
Global Roadmap. Paris
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ACKNOWLEDGEMENTS
Author: Laila Petrie (2050)
This report is built on the findings of the UNEP report Sustainability and Circularity in the Textile Value Chain - Global Stocktaking.
We would like to thank all 140 participants of the expert multi-stakeholder consultations workshops for the roadmap to sustainability
and circularity in the textile value chain convened by the United Nations Environment Programme (UNEP) in November 2020 and
May 2021 as well as participants of sessions held at the Stockholm+50 conference, ‘A healthy planet for the prosperity of all –
our responsibility, our opportunity’ (June 2022) and the World Circular Economy Forum 2021 (September 2021). Their views and
expertise were instrumental in the development of this report.
We want to thank the Government of Norway for supporting the funding of this report and all of the experts who participated in the
peer review of this report:
Dina Abdelkahim, Sandra Averous-Monnery, Garrette Clark, Divya Datt, Archana Datta, Carla Friedrich, Jayasurya Kalakkal, Peggy
Lefort, Dominic MacCormack, Pavithra Mohanraj, Laetitia Montero, Eloise Touni, Kathryn Zack, Ying Zhang (UNEP); Ahmad Ansari
(ZDHC Foundation); Laura Balmond (Ellen MacArthur Foundation); Arpit Bhutani (Circular Innovation Lab); Valeria Botta (ECOS);
Brittany Burns (Fashion for Good); Cliodhnagh Conlon (BSR); Matthew Guenther (TAL); Sarah Gray, Catherine Salvidge (Waste and
Resources Action Programme); Devyani Hari (Centre for Responsible Business); Beth Jensen (Textile Exchange); Michael Laermann
(Ecopreneur); Felicity Lammas, Holly Syrett (Global Fashion Agenda); Bianca Latchman, Andre Page, Thembi Kodisang Sibanda, Pearl
Thusi (National Cleaner Production Centre South Africa); Margherita Licata, Halshka Graczyk (International Labour Organization);
Dorothy Lovell (OECD); Leonie Meier (UNECE); Tobias Meier (Sustainable Textile Switzerland 2030); Naouel Mejri (Centre International
des Technologies de l’Environnement de Tunis); Lars Mortensen (European Environment Agency); Josphat Igadwa Mwasiagi (Moi
University); Wimon Pumkong, Orranutt Pupphavesa, Pakorn Preechawuthidech (International Institute for Trade and Development);
Maria Rincon-Lievana (European Commission); Anett Soti, Martin Su (Yee Chain); Mark Summer (University of Leeds); Katia
Vladimirova (University of Geneva); Annemieke de Vries (Rijkswaterstaat).
Technical supervision, editing and support was provided by Bettina Heller, Minori Lee, Claire Thiebault, Claudia Giacovelli, Maëlys
Nizan, Rachel Arthur, Ying Zhang, Elisa Tonda, Steven Stone, Robert Reinhardt, Libera Zi-zai Assini, Alexandra Hanyue von Minden,
Johanna Fuhlendorf, Martina Pluviano and Elise Vens (UNEP).
The report was edited by Richard Forsythe. The design and layout of the report were completed by Ana Carrasco, Claudia Tortello.
The review process highlighted that there is a plethora of relevant work ongoing in the textile sector. UNEP did a first mapping in its
report “Sustainability and Circularity in the Textile Value Chain: Global Stocktaking.” Rather than including another list in this report –
which runs the risk of being outdated quickly – UNEP is maintaining a webpage under the “One Planet network”, which highlights key
projects and initiatives on the topic. If you would like to submit an initiative to this list, please follow the instructions on the relevant page.
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UNEP promotes
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Sustainability
and Circularity in the
Textile Value
Chain
A Global Roadmap
Contents
Executive summary 7
1. Introduction 12
1.1 Background 12
1.2 How to use this report 15
2. What do sustainability and circularity mean in the textile value chain? 17
2.1 What do we mean by circularity in textiles? 17
2.2 What is the value chain approach? 19
2.3 What are the sustainability goals of the textile sector? 22
2.3.1 Climate impacts 26
2.3.2 Freshwater use 27
2.3.3 Chemical pollution and chemicals of concern 28
2.3.4 Biodiversity loss 29
2.3.5 Social and labour issues and just transition 30
2.3.6 Circularity 33
2.3.7 Raw materials 34
2.3.8 Investment 36
3. What is needed to achieve a sustainable and circular textile value chain? 38
3.1 Sustainable and circular textile business models are adopted globally 42
3.2 Textile overconsumption and overproduction are addressed 45
3.3 All textile products are designed to minimize impacts and support circular
models49
3.4 Better product care reduces impacts and improves product durability 52
3.5 Production processes are optimized through resource efficiency and
eliminating pollution, waste, on-site fossil fuel use and the use of chemicals
of concern 54
3.6 A
just transition with skilled, safe and empowered people takes place
and social issues in the textile value chain are addressed 57
3.7 Textile raw materials are shifted to sustainable or recycled sources 60
3.8 Significant improvements in shared infrastructure are made globally
for a sustainable and circular textile value chain 63
3.9 All textile waste is diverted from avoidable landfill and incineration 65
4. What is needed to deliver the building blocks? 68
5. Conclusions 72
References74

List of figures
Executive Summary Figure 1: T
hree priorities to deliver system change in the textile value chain 7
Executive Summary Figure 2: Existing quantified industry goals for a sustainable and circular
textile value chain 8
Executive Summary Figure 3: Nine building blocks needed to deliver the three priorities 9
Figure 1: Stakeholders associated with the textile value chain 13
Figure 2: Representation of activities in a circular textile value chain 18
Figure 3: The value chain in relation to supply chain and lifecycle 20
Figure 4: The tiers in the textile value chain 21
Figure 5: Existing quantified industry goals for a sustainable and circular textile value chain 25
Figure 6: Climate impact across the global apparel value chain 26
Figure 7: Freshwater use and water scarcity footprint across the global apparel value chain 28
Figure 8: Land-use impact across the global apparel value chain 29
Figure 9: Social risks across the apparel value chain 31
Figure 10: Improved impacts of recycling technologies 35
Figure 11: Financing needs by value chain step 36
Figure 12: Three priorities to deliver system change in the textile value chain 39
Figure 13: Nine building blocks needed to deliver the three priorities 39
List of boxes
Box 1: The role of individual consumers in this report 15
Box 2: What do the terms ‘value chain’ and ‘supply chain’ mean? 20
Box 3: What is a hotspot? 22
Box 4: Gender in the textile value chain 32
Box 5: How does this report define the different stakeholder groups? 41
Box 6: Case studies – Circular business models 44
Box 7: What is textile overconsumption? 47
Box 8: Case studies – Consumption and production 48
Box 9: Case studies – Design 51
Box 10: Case studies – Product care 53
Box 11: Case studies – Production processes 56
Box 12: Case studies – Just transition and social/labour improvements 59
Box 13: Case studies – Raw materials 62
Box 14: Case studies - Infrastructure 64
Box 15: Case studies – Waste management 66
List of tables
Table 1:: Existing global industry goals 23
Table 2:: Existing climate goals 27
Table 3:: Existing biodiversity goals 30
Table 4:: Existing circularity goals 33
Table 5:: Existing raw materials goals 35
Table 6:: Existing financial goals 36

Acronyms & Abbreviations
Aii Apparel Impact Institute
BCG Boston Consulting Group
BGMEA Bangladesh Garment Manufacturers and Exporters Association
BSR Business for Social Responsibility
CLP Closed Loop Partners
CMT Cut, make, trim
COP Conference of the Parties
EMF Ellen MacArthur Foundation
EPR Extended producer responsibility
ESG Environmental, social and governance
GACERE Global Alliance on Circular Economy and Resource Efficiency
GDP Gross domestic product
GFA Global Fashion Agenda
GHG Greenhouse gas
GMO Genetically modified organism
ICMA International Capital Market Association
IFC International Finance Corporation
ILO International Labour Organization
IPCC Intergovernmental Panel on Climate Change
LCA Life cycle assessment
MRSL Manufacturing Restricted Substance List
MSME Micro, small and medium-sized enterprise
NGO Non-governmental organizations
OECD Organization for Economic Co-operation and Development
PEF Product environmental footprint
PET Polyethylene terephthalate
ROC Regenerative Organic Certified
ROI Return on investment
SAICM Strategic Approach to International Chemicals Management
SBTN Science Based Targets Network
SDGs Sustainable Development Goals
SME Small and medium-sized enterprise
UNEA United Nations Environment Assembly
UNECE United Nations Economic Commission for Europe
UNECOSOC United Nations Economic and Social Council
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNFCCC United Nations Framework Convention on Climate Change
WRI World Resources Institute
WWF World Wildlife Fund
ZDHC Zero Discharge of Hazardous Chemicals
Sustainability and Circularity in the Textile Value Chain - A Global Roadmap
6
Foreword
The textile sector is woven into our leverage this to co-create a future that designs
for circularity, but also designs out the negative
daily lives – it provides high levels of environmental, gender, and social impacts of the past
employment1, generates $1.5 trillion linear system.
in revenue2, and provides products Circularity requires a fundamental shift in how we

essential to human welfare. value business models, textile products, workers,
production processes, and natural resources. And
It is however also a sector struggling to address the opportunities associated with this shift are
its impacts, including significant natural resource substantial; a transformation towards circular
use and pollution, with 215 trillion litres of water textile business models could generate $700 billion
consumed per year3, and 9% of annual microplastic in economic value by 20306, while each 1 per cent
losses to oceans4. This sector is contributing to the increase in market share of circular business models
triple planetary crisis of climate change, nature and is likely to reduce emissions by 13 million tCO2e7. The
biodiversity loss, and pollution and waste. A crisis need to shift to more sustainable consumption and
which is exacerbated by the way in which we produce production patterns and incorporate circularity into
and consume, and the textile sector is significant economies is also supported by the Fourth and Fifth
in driving unsustainable patterns of both, with Session of the UN Environment Assembly.
consumers using items 36% less before discarding
compared to 15 years ago, and the equivalent of a The findings of this report inform UNEP’s Textile
garbage truck full of clothes being thrown away every Flagship Initiative that works to deliver global
second5. systemic change through a coordinated and
collaborative approach within the United Nations
For the textile value chain, which is interconnected, Secretariat and beyond. The path forward is clear, and
complex, and global, ‘shifting the needle’ means all ambitions must rise to meet it. UNEP calls for all
creating a systemic change guided by science with textile stakeholders to walk this same path together;
a common destination of circularity. The roadmap it is only by collaborating and taking joint action that
towards sustainability and circularity sets out a route the transformation we need can happen.
for better and more coordinated delivery for each
stakeholder to reach this shared destination. The
roadmap should bring about three core changes: a
Sheila Aggarwal-Khan
shift in consumption patterns; an improvement of
practices when it comes to production processes, Director, Industry and
product design and care, and a just transition; and Economy Division
a significant investment in infrastructure. A sector UN Environment
known for its creativity and interconnection must Programme
1 UNEP (2020) Sustainability and Circularity in the Textile Value

Chain: Global Stocktaking.
2 Statista (2022). Revenue of the apparel market worldwide from 2014
to 2027.
3 Quantis (2018). Measuring Fashion: Environmental Impact of the
Global Apparel and Footwear Industries.
4 UNEP (2018). Mapping of Global Plastics Value Chain and Plastics
Losses to the Environment: with a Particular Focus on Marine 6 EMF (2021a). Circular Business Models: Redefining Growth for a
Environment. Thriving Fashion Industry.
5 EMF (2017). A New Textiles Economy: Redesigning Fashion’s Future. 7 McKinsey and GFA (2020). Fashion on Climate.
Executive Summary
Executive Summary
T
he textile sector plays a key models are offered to consumers and how aspirations
are set – could radically reduce pressure on the
role in driving industrialization,
production system (e.g., reducing the need for raw
trade, development and social materials by extending the use phase of products).
value. It rapidly develops regional and
Several initiatives have set ambitious goals to shift
global value chains by connecting towards a sustainable and circular textile value chain,
producers, retailers and consumers although progress on their delivery is often slow due
to the scale of the challenge, the complexity of the
from across the world. value chain, the lack of system-level policy, technical
It is also a sector struggling to address its and financial barriers and the fragmentation of
contributions to the triple planetary crisis on climate stakeholders beyond a small number of sustainability-
change, nature loss and pollution. Every year, the minded multinational brands.
textile sector emits 2-8% of the world’s greenhouse
gases, uses the equivalent of 86 million Olympic-
sized swimming pools of natural water resources, and
is responsible for 9% of microplastic pollution to our SHIFTING CONSUMPTION
PATTERNS
oceans. Additionally, the value chain has deep social
Optimising design, business
impacts, with textile workers at risk of exploitation, models and consumer
behaviour
underpayment, forced labour, health risks and abuse.
Women are particularly vulnerable as they represent
an average of 68% of the garment workforce, and 45%
of the overall textile sector workforce.
INFRASTRUCTURE IMPROVED PRACTICES

Transforming the textile value chain into one that INVESTMENT
\
Optimising practices and

is sustainable and circular will allow us to address Investing in shared behaviour in existing
these environmental and social impacts, while also physical technology sites, companies and
and systems processes
supporting people, prosperity and equity. However,
no single group of actors can achieve this scale of
sector transformation alone, but rather it requires
all stakeholders to use their resources and efforts to
work together towards a common goal.
Executive Summary Figure 1: Three priorities to
deliver system change in the textile value chain
In order to prioritize effective action for all
stakeholders and encourage collective engagement,
this report applied a systemic value chain approach. THE THREE PRIORITIES TO DELIVER
Building on research and consultations with over 140
textile value chain stakeholders, it defines a common SYSTEM CHANGE ARE
agenda of transformation towards sustainability and
circularity. SHIFTING CONSUMPTION
These priorities are interconnected and require a PATTERNS, IMPROVED PRACTICES

coordinated approach by all value chain actors. For
AND INFRASTRUCTURE
example, a focus on shifting consumption patterns
– how products are designed, what kind of business INVESTMENT
8
OVERALL INDUSTRY GOALS
The textile value chain Freshwater use is minimized, Biodiversity achieves $30 billion is invested in the
reaches net zero and water pollution is a net positive transition to circular and sustainable
emissions eliminated balance textiles each year
SHIFTING
CONSUMPTION
PATTERNS
Clothing utility is doubled
Circular consumer offers make up
60% of textile market revenue
Progress in focus area
IMPROVED PRACTICES
INFRASTRUCTURE
INVESTMENT 100% of priority materials are preferred
and low climate impact
The industry adopts 100%
renewable energy 45% of polyester recycled
Source 100% sustainable cotton
Progress in focus area Progress in focus area
Executive Summary Figure 2: Existing quantified industry goals for a sustainable and circular textile value chain
Within the three priorities, the roadmap proposes nine the delivery of the existing industry goals, and require
‘building blocks’ that shape a sustainable and circular multiple stakeholders to act together. The report
textile value chain. The building blocks address the identifies the priority actions that each stakeholder
key drivers of environmental and/or socio-economic group can take to deliver against the building blocks.
impacts (‘hotspots’) within the value chain, support
Foreword
Textile
overconsumption
and
9
overproduction
Sustainable
are addressed
and circular textile
All textile products
business models
are designed to
are adopted
minimize impacts
globally
and support
circular models
All textile waste is
1 2
diverted from
avoidable landfill
and incineration 3
Better product care
9 4 reduces impacts
and improves
product durability
8 5
Significant
improvements in 7 6
shared infrastructure The textile value chain
are made globally for drives resource
a sustainable and efficiency and
circular textile value eliminates production
chain pollution, production
waste, on-site fossil
Textile raw fuel use and chemicals
materials are of concern
shifted to
A just transition with
sustainable
skilled, safe, and
or recycled
empowered people
sources
takes place and social
issues in the textile
value chain are
addressed
Executive Summary Figure 3: Nine building blocks needed to deliver the three priorities
1
Sustainable and circular textile business models are adopted globally. This requires a significant shift in perception of
what ‘value’ means for consumers, brands and retailers. The focus must be placed on shifting the market and business
revenue away from linear models towards circular models that have demonstrated impact reduction in both production
and use phases, or focusing on selling experiences or other non-material goods rather than physical products.
Shifting Textile overconsumption and overproduction is addressed. A significant decrease in unnecessary consumption
Consumption
is required, particularly in developed countries. This can be achieved through a combination of increased clothing
Patterns
2 utility (how long a product is used) and shifting consumer norms and aspirations towards lower consumption through
engagement with the social and emotional aspects of behaviour. Reducing unnecessary production will be important
for brands and retailers, and can be achieved through improved stock and demand management, as well as exploring
new models such as on-demand production.
3 All textile products are designed to minimize impacts and support circular models. Design must be informed and
intentional. Improved data and feedback loops will be critical to take into account knock-on effects of design at each
stage of production, use and end of use. Products should be designed to consider the relevant circular business model
Shifting
(e.g. durability for rental), and with the assumption that they will be an input to closed loop recycling.
Consumption
Patterns +
Improved
Practices
4 Better product care reduces impacts and improves product durability. The consumer ‘use’ phase for textiles has
chemical, energy, and water impacts, alongside microfibre and product durability issues. However, most textile
brands do not include the consumer use phase in their impact evaluations and there are no large initiatives working
on this phase. There is especially a need for more data on product care impacts and behaviour, also considering that
consumers are diverse and global.
5 The textile value chain drives resource efficiency and eliminates production pollution, production waste, on-site
fossil fuel use and chemicals of concern. Textile production sites – especially wet processing sites – require major
support and investment to substitute machinery and apply circular production methods. This is particularly important
for sites beyond tiers 1 and 2 of large multinational brands, or production countries without strong policy enforcement
Improved
on cleaner production.
Practices
6 A just transition with skilled, safe, and empowered people takes place and social issues in the textile value chain
are addressed. This includes collaborating with less-developed countries and previously marginalized communities,
including – but not limited to – women, young people, indigenous and tribal peoples and persons with disabilities, which
will help to avoid significant trade-offs and negative consequences.
Improved
Practices + 7 Textile raw materials are shifted to sustainable or recycled sources. There is a need to rapidly scale new and more
sustainable production and cultivation practices for virgin raw materials, and to mainstream fibre-to-fibre recycling
Infrastructure through improved practices as well as investment in waste management systems and infrastructure.
Investment
Infrastructure 8 Significant improvements in shared infrastructure are made globally for a sustainable and circular textile value chain.
This includes renewable energy, waste management and water treatment, as investment in shared infrastructure is
investment
essential to unlock the potential of individual actors to make changes in their own systems.
Infrastructure
Investment 9 All textile waste is diverted from avoidable landfill and incineration. Shifting consumer behaviour and global dynamics
are required to avoid the need for landfill and incineration; for example, through circular solutions that reduce waste
+ Shifting outputs. Solutions are needed to avoid shifting responsibility for waste disposal, such as trade of used textiles to
Consumption locations that cannot use them and lack the infrastructure to adequately process textile waste.
Patterns
Many stakeholders are dependent on others to However, there is also a role for each stakeholder
10 create enabling conditions for action, and no single to take action within their own sphere of influence.
stakeholder group alone holds the key to reach a Alongside opportunities for collective action, this
sustainable and circular textile value chain. Therefore, report highlights some individual opportunities for
one of the most important actions that stakeholders a range of stakeholders, identifying the following
can undertake is to join collective dialogue and priorities for each:
activities.
Brands and retailers Policymakers

• create revenue in a more sustainable way • raise ambitions and implement new
and dematerialize business value through sustainable and circular policy instruments
new business models • invest in the transformation and match
• prevent problems at the design stage instead funding flows to intentions
of trying to solve them later through design • think holistically about the impact of
for low impact and circularity policies, consult widely on policy design
• make decisive business improvements and implementation, and coordinate key
based on science-based evidence to reduce stakeholders to set ambitious and effective
environmental and social impacts sustainability policy
Raw materials producers and manufacturers Financial institutions

• identify and implement the best technical • understand and address the actual investment
practices for production sites and prioritize needs of diverse stakeholders in the transition
on-site improvements and innovation for to sustainable and circular textiles and address
environmental impact reduction systemic funding barriers
• protect, invest in and empower workers, • build internal capacity, understand the details,
and work together to address shared and plan for the transition
barriers • drive real innovation in solutions, processes
• benefit from symbiotic opportunities and and metrics, create innovative financial
drive system change products and increase available funding for
sustainable and circular solutions
Innovators and recyclers Communication and consumer engagement

• provide the solutions and innovations for actors
change and create new circular offers and • make behaviour change aspirational and
technologies reframe the narrative
• create accessible and scalable solutions and • understand the complexities of ‘the consumer’
ensure that solutions are adapted for multiple rather than assuming that all consumers are
types of users and contexts the same
• be realistic and purposeful about scaling • move as many people as possible away from
change in a challenging system, including the mindset of consumption being the norm
planning for market realities
Non-governmental, representative, and

technical organizations
• advocate for and support rapid action from
the industry and policymakers, and drive
ambition and improvements
• provide credible mechanisms,
recommendations and data for prioritization
and accountability
• address system-level barriers through
convening stakeholder collaboration
Executive Summary
11
WHAT COMES NEXT?

Implementing the priorities identified in this This report underpins UNEP’s Textile Flagship
global roadmap will require an unprecedented Initiative. Together with partners, UNEP will work
degree of coordination, investment, regulation and to carry forward key recommendations, including
business model adaptation but will also create new leveraging its position to encourage coordination
opportunities for all. All actors in the value chain across the textile value chain towards circularity.
must become part of the solution to develop and
perpetuate a new model for the textile sector, based
on science and in line with circularity principles.
While acknowledging that many organizations and

initiatives are already working at the global level to
help the sector to transition towards more sustainable
practices, circularity and upstream innovations
remain a gap. The need emerges to embed circularity
principles as part of the sector ambition targets
and foster coordination, improving cohesion in the
delivery of existing initiatives, ensuring that all
efforts pull in the same direction to achieve a greater,
more harmonized and quantified impact.
12
1
Introduction
1.1 Background by an estimated 36 per cent in the past 15 years.14 The
average United States consumer bought 69 garments
per year in 2021,15 compared to 40 in the 1990s. Every
The textile sector is important to the global economy
second, the equivalent of a garbage truck full of clothes
and drives industrialization, trade, development
is thrown away around the world, amounting to an
and social value. The modern textile sector rapidly
estimated $460 billion in total value.16
develops regional and global value chains by
connecting producers, brands and retailers and
Workers in the textile value chain face exploitation,
consumers from across the world. The sector is also
systematic underpayment, forced labour, severe health
struggling to address its wide-reaching impacts,
risks and verbal and physical abuse.17 By 2030, it is
with unsustainable patterns of consumption and
anticipated that there will be rising wage inequality
production creating a triple planetary crisis of faster
between high- and low-skill workers on a global
climate change, destroying nature and increasing
level, an insufficient number of high-skill workers,
pollution levels.8
and a lack of low-skill roles.18 Women are particularly
vulnerable as they represent the majority of the garment
This report defines ‘textiles’ as all products that contain
workforce and experience incidents of gender-based
knit or woven textile components, primarily composed
violence and harassment, with all surveyed garment
of apparel and footwear, but also including home
workers in India directly experiencing or witnessing
textiles, technical, medical and automotive textiles, etc.
this gender-based violence and harassment first-
The textile value chain is estimated to be responsible
hand.19
for between 2 and 8 per cent of global greenhouse gas
(GHG) emissions,9 as well as significant pollution,
water extraction and biodiversity impacts, including
215 trillion litres of water consumed per year (the
equivalent of 86 million Olympic-sized swimming
pools)10, and 9 per cent of annual microfibre pollution
to oceans.11 Environmental pressures on the industry
place €110 billion of value at risk,12 while addressing
them could ultimately save companies $54.1 trillion.13
At the same time, the number of times that an item is
used before it is discarded (textile utility) has decreased
8 UNEP (2020). Triple Planetary Crisis: Forging a New Relationship

between People and Earth.
9 This range accounts for a variety of studies that use different
methodologies and data sources, for instance 2% according to WRI
and Aii (2021), 4% according to McKinsey and GFA (2020), and 8%
according to Quantis (2018).
10 This figure was derived by dividing the total volume of natural
water resources used annually (215 trillion litres as per Quantis, 14 The baseline for this number was 2017. EMF (2017). A new textiles
2018) by the volume of an Olympic swimming pool (estimated at economy: Redesigning fashion’s future.
2.5 million litres) based on the dimensions from the International 15 American Apparel and Footwear Association (2022). Apparel Stats
Swimming Federation, which is recognized by the International & Shoe Stats 2022: Significant Industry Data.
Olympic Committee as administering water sport international 16 Common Objective (n.d.). Volume and Consumption: How Much
conditions. The dimensions were accessed at: https://resources. Does the World Buy?
fina.org/fina/document/2022/02/08/77c3058d-b549-4543-8524- 17 Fashion Revolution (n.d.). Fashion’s Future: The Sustainable
ad51a857864e/210805-Facilities-Rules_clean.pdf (accessed 22 Development Goals.
December 2022). 18 BSR and Laudes Foundation (2021). Keeping Workers in the Loop:
11 UNEP (2021) Catalyzing Science-Based Policy Action on SCP: Task Preparing for a Just, Fair, and Inclusive Transition to Circular
Group IRP - One Planet. Fashion.
12 GFA (2017). Pulse of the Fashion Industry. 19 Business Human Rights (2022). Unbearable harassment: The
13 UNEP (2019). Global Environment Outlook – GEO-6: Healthy Planet, fashion industry and widespread abuse of female garment workers
Healthy People. in Indian factories.
Introduction
Figure 1: Stakeholders associated with the textile value chain

13
Ginners Retailers Manufacturers Waste

Farmers Fabric Garment designers Collectors
Natural fibre (including online) of detergents, management
Petro- designers Garment makers Sorters and
producers Consumers washing companies
chemical Yarn and Brands and retailers traders
Virgin (including machines, etc.
producers fabric Informal
polymers government Logistics companies
producers sector
producers & business) and warehourses associations
Recycled Social media Couriers and postal Recyclers
polymer influencers services
producers Marketers
Yarn and fabric Consumption

Fibre production Textile production End-of-life
production
Financial institutions Non-governmental organizations Workers / employees Innovators

and investors UN organizations Labour unions, trade unions Researches
Education and training Campaigners and employer organizations Media organizations
institutions Local and national government agencies Industry associations / Standard-setting/ labeling organiza-
Advocacy and policy Regulators chambers of commerce tions
organizations Labeling organizations Fashion critics
Buyers
Importers / Exporters
Raw Raw
Yarn Weaving / Bleaching /
material material Fibre Distribution Collection Landfilling /
preparation knitting / dyeing and Assembly Use
production processing preparation and retail & sorting waste to energy
(spinning) bonding finishing
& sourcing
Source: UNEP (2020). Sustainability and Circularity in the Textile Value Chain: Global Stocktaking.
The sustainability challenges of the textile value Transforming the textile value chain to become
chain are predicted to continue to increase over time, circular is a unique opportunity to solve the three
with demand predicted to grow to $2 trillion by 2027, environmental crises of our time of climate change,
with 63 per cent of the increase in demand over the biodiversity loss and pollution. Many initiatives and
next decade coming from emerging markets.20 A cross-industry platforms are working to reduce these
large part of this significant consumption will come impacts. From raw material cultivation to end-of-life
from the approximately 2-3 billion new middle-class waste, every stakeholder in the interconnected textiles
consumers expected by 205021 from markets including global value chain can contribute sustainability
China, India and the Middle East.22 However, there are solutions at every stage (see Figure 1). However, even
also signs of market shifts, with young ‘Generation Z’ accounting for existing goals and work, the fashion
consumers driving a shift towards resale markets, industry is calculated to miss the 1.5°C pathway
which are expected to grow 11 times faster than outlined in the Paris Agreement by 50 per cent25 and
conventional selling models by 2025, attracting 118.8 it is estimated that additional investments of $20–30
million sellers.23 By 2030, it is projected that the billion per year will be needed to pivot the textile
resale, rental, repair and remaking market could grow value chain towards more sustainable pathways.26
to from 3 per cent in 2021 ($73 billion) to 23 per cent
of the total textiles industry (or $700 billion) by 2030,
with resale composing 69 per cent of this economic
value generated. In another study, 60 per cent of the
top 50 global brands and retailers surveyed have
offered (or are open to offering) second-hand items to
their consumers.24
20 Statista (2022) Revenue of the apparel market worldwide from 2014

to 2027.
21 McKinsey (2020). Biodiversity: The next frontier in sustainable
fashion.
22 Fashion Revolution (2020). Why We Still Need a Fashion Revolution.
23 thredUP (2021). Fashion Resale Market Report 2021.
24 GlobalData Fashion Retailer Survey: 50 US fashion (apparel, 25 McKinsey and GFA (2020). Fashion on Climate.
accessories, footwear) retailers were surveyed in March and April 26 Fashion for Good and BCG (2020). Financing the Transformation in
2021 about their Circular Fashion goals. Fashion.
Addressing production impacts alone will not transition, as well as the global mechanisms needed
14 be sufficient to transform the industry in time. to support stakeholders in scaling transformation.
Consumption must be a central pillar, and both the
products and systems will need to be redesigned to To create a roadmap that is both ambitious and
make this shift a reality. achievable, UNEP consulted with 140 textile
value chain stakeholders including brands,
Consumption has significantly exceeded meeting producers, innovators, recyclers, policymakers,
basic human needs in many regions, and is now financial institutions, technical organizations,
associated with a perceived gain of social value. To non-governmental organizations (NGOs), academics
address this, a multi-pronged approach will be needed, and communications experts, such as advertisers,
from reducing the volume of new products purchased consumer behaviour specialists and journalists.
to examining how items are cared for and disposed of Stakeholders were identified from around the world
at their end of use. To change consumption habits, the to gather diverse perspectives and experiences,
global public must be engaged with using the textile particularly from those in key production and
sector’s well-developed communications engine to consumption locations.
shape culture, ideals, aspiration and values to create a
vision of what a new sustainable textiles future could
be.27 A sustainable transition for the fashion industry
must also focus on a change in cultural narrative.
UNEP’s vision for sustainable fashion communication
is: “To build demand and inspire action for a positive
fashion future, by changing the dominant narrative of the
sector from one of extraction, exploitation and disposable
It will be important to
consumption, towards regeneration, equity and care.”28 dematerialize business value and
It will be important to dematerialize business value
shift to circular and sustainable
and shift to circular and sustainable business models
to create new opportunities. It will also be important business models to create
to ensure that consumption mitigates potential trade-
new opportunities. It will also
offs as much as possible to ensure a just transition
that avoids the loss of livelihoods. be important to ensure that
consumption mitigates potential
UNEP has created a series of reports to support a
transition towards a more sustainable and circular tradeoffs as much as possible
textile value chain. The first report – Sustainability
to ensure a just transition that
and Circularity in the Textile Value Chain: Global
Stocktaking – mapped the global value chain and avoids the loss of livelihoods.
brought together impact data from across the textile
value chain to identify key hotspots of environmental
and socioeconomic impact that most urgently need
addressing. It also took stock of existing initiatives
that are already addressing those hotspots and
identified gaps. This current report builds on this
work by presenting the roadmap needed to achieve
sustainability and circularity in the textile value
chain. It does so by outlining the building blocks that
shape a sustainable and circular textile value chain
and subsequently identifying and prioritizing actions
each stakeholder group can take to contribute to this
27 In 2023, UNEP will publish The Sustainable Fashion Communication

Playbook as an annex to this report that will provide deeper
guidance on this element.
28 UNEP (2021c). Sustainable Fashion Communication Strategy 2021-
2024.
Introduction
Box 1: The role of individual consumers in this report 15
This report examines the role of multiple stakeholders, including those actors that engage directly with
consumers to share information and encourage behaviour change. However, individual consumers
themselves have not been specifically allocated a chapter outlining the actions they should take.
This is not to underestimate how central individuals – in their role as citizens and as consumers – are to
the transition. Individuals have an important role in changing behaviour towards sustainable lifestyles,
although the duty to act should not be placed on them. Consumers are already signalling that they care about
sustainability. However, consumers need access to affordable, effective and desirable options, convenient
alternative systems and sufficient reliable information to make decisions. In essence, governments and
companies have to be in the driving seat when it comes to rethinking, designing, delivering and enabling
access to more sustainable solutions through policies, services and products and ensuring that everyone’s
needs are met.29
This report therefore focuses on creating a context that enables consumers to make more sustainable
decisions, without waiting for consumers to change their behaviour for the industry to start acting. For
example, a reduction of unnecessary consumption will require a change in how aspirations are set through
advertising and media.
The report also recognizes the important work already under way by initiatives and organizations that
target individuals. UNEP will work together with many of the partners who contributed to the report to
translate its findings into messages that work for individuals and disseminate widely.
1.2 How to use this report This report provides examples of initiatives,
commercial companies, products and other work
that serve as an illustration of tackling different
The main report is intended as a general summary
sustainability aspects, but should not be read as an
of challenges, opportunities, solutions and next steps
endorsement by UNEP or an “end state” example of
for a sustainable and circular textile value chain. It
circularity in the textile value chain.29
outlines nine building blocks that specifically explore
the cross-stakeholder opportunities for change,
and how collaboration can be facilitated to deliver
them, highlighting examples of actions for those
stakeholders that are most crucial or influential for
each building block.
However, it is also important to recognize that each

stakeholder group has a unique role and contribution
to make to each building block in creating a sustainable
and circular textile value chain, even if they are not
highlighted in the main report. For this reason, the
annexes associated with this document detail the
opportunities and barriers, as well as actions for
each of the key stakeholder groups identified. Each
stakeholder group can read both the summary report,
and the annex specifically developed for them. Other
stakeholder annexes can be read for a more complete
context.
29 UNEP (2020a). Emissions Gap Report.

What do sustainability and circularity mean for the textile value chain?
2
2.1 What do we mean by circularity in
17
textiles?
As conceptualized in the UNEP circularity platform,

circularity provides a model to transform the current
linear textile economic model towards a sustainable
What do future. It requires governments, businesses, and
consumers to look beyond the current “take, make
sustainability and and dispose” extractive industrial model and redefine

growth, focusing on positive society-wide benefits.
Circularity’s underlying objective is that materials
circularity mean should be kept at their highest possible value as they
move and are retained as long as possible within the
for the textile value textile value chain. This reduces and disconnects the
use of natural resources and environmental impacts
from the economic activity of the textile industry,
chain? while continuing to enable improvements in human
well-being.
UNEP’s circularity approach builds on nine value

retention processes and an overarching ‘reduce
by design’ approach. Circularity goes well beyond
recycling fibres, and “reduce by design” aims to reduce
the amount of material, particularly raw material, and
hazardous chemicals consumed during production
and during use from the very beginning of product
and service conceptualization. Production and
consumption patterns as well as end-of-life processes
of textile products are optimized via innovative
product designs and business models, resulting in not
only eliminated harmful impacts and waste but also
improved social protections and business resilience.
Figure 2 illustrates what this looks like in the textile
sector.
While a sustainable and circular textiles industry

requires not only ‘closing the loop’ but also
addressing overall consumption patterns and levels,
it is important to recognize that some markets and
population groups do not yet have adequate access
to textiles. This topic is addressed in more detail in
section 3.2.
Figure 2: Representation of activities in a circular textile value chain

18
Used in another Raw material

value chain Material production
/end-of-life sourcing
disposal
Collection and Fibre

sorting preparation
Reuse
and repair
Refuse
Repurpose Yarn preparation
& reduce
(spinning)
Use
ign
Weaving / knitting / bonding
des
Distribution and
retail
ial
te r
Pro
Ma
Bleaching /
dyeing and
du
finishing
de
ct
Assembly
sig
n
Reduce by
design
Source: UNEP (2019). Circularity Platform.
Circularity is a means to achieving sustainable space (such as those focusing on scaling energy
development and is central to the delivery of many efficiency) do not pursue circularity directly, and
of the Sustainable Development Goals (SDGs),30 in are working to incrementally reduce impacts from
particular SDG 12 (Responsible Consumption and existing systems. However, even if circularity aims
Production).31 This is also reflected in the resolution at a more radical redesign of systems, ‘conventional’
on enhancing circular economy as a contribution to sustainability metrics (such as worker safety, gender,
achieving sustainable consumption and production, GHG emissions, or water impacts) should still be used
which was adopted at the United Nations Environment to measure the outcomes (and success or potential
Assembly on March 2, 2022.32 Sustainability trade-offs) of circular approaches. Within UNEP's
practices are those that balance economic, social and approach as applied in this report, circularity must
environmental considerations. Many existing and ultimately provide improved environmental and
‘conventional’ sustainability initiatives in the textiles social benefits compared to a linear model.
30 United Nations (n.d.). Sustainable Development Agenda.

31 International Resource Panel (2017). Resource Efficiency: Potential
and Economic Implications.
32 UNEP (2022). Enhancing circular economy as a contribution to
achieving sustainable consumption and production.
2.2 What is the value chain approach?

19
UNEP has adopted the value chain approach to

advancing sustainability and circularity in the textile
sector. This approach33 anchors natural resource use
and environmental impacts within the socioeconomic
reality of production and consumption and uncovers
actionable insights into how the management of
resources relates to the 2030 Agenda for Sustainable
Development. Taking a value chain approach implies
looking not only at the physical processes (such as
farms or factories) but also the way in which products
and services are designed and developed, promoted,
and offered to consumers (‘consumers’ being the
individual purchasers and users of textile products
globally).34
Critically, the approach goes beyond an understanding

of where along the value chain resource use and
By engaging all actors along
environmental as well as socioeconomic impacts
occur. By applying a systems lens, the value chain the value chain, the value chain
approach identifies the drivers and barriers that
approach identifies the most
shape a value chain’s operations. It includes the
complex drivers and feedback loops that determine effective solutions and defines a
and influence the operations and behaviours of actors
common agenda for concerted
along the value chain. By engaging all actors along
the value chain, the value chain approach identifies actions that can transform the
the most effective solutions and defines a common system.
agenda for concerted actions that can transform the
system. For this purpose, three steps are followed:
1. Understand the value chain and identify

sustainability hotspots;
2. Consolidate existing action and identify
opportunities to address the identified
hotspots; and
3. Define a common agenda and prioritize through
a participatory process.
UNEP’s work on applying the value chain approach

in textiles includes the 2020 report “Sustainability
and Circularity in the Textile Value Chain: Global
Stocktaking”, which summarizes the efforts
undertaken in steps (1) and (2). Building on those
findings, this report corresponds to step (3), aiming
to define the common agenda for the sector and
identifying priority actions to address the determined
gaps in a shared roadmap.
33 UNEP (2021). Catalysing Science-based Policy Action on Sustainable

Consumption And Production.
34 UNEP (2020). Sustainability and Circularity in the Textile Value
20 Box 2: What do the terms ‘value chain’ and ‘supply chain’ mean?
The textile value chain comprises all activities and stakeholders that provide or receive value from
designing, developing, making, distributing, retailing, and consuming a textile product (or providing the
service that a textile product renders), including the extraction and supply of raw materials, as well as
activities involving the textile after its useful service life has ended. The value chain covers all stages in a
textile product’s life, from supply of raw materials through to disposal after use, and includes the activities
linked to value creation such as business models, consumption patterns, investments and regulation.35
The value chain also comprises the actors undertaking the activities, and the stakeholders that can
influence those activities.
The textile value chain is thus considered as a whole system that goes beyond the supply chain and the
life cycle of products (see Figure 3).
For the textile value chain, it is common to distinguish the value chain stages as ‘tiers’, as outlined in
Figure 4.
Figure 3: The value chain in relation to supply chain and lifecycle
Raw Manufacturing Distribution Consumer Waste

materials & retail
SUPPLY CHAIN = LOGISTICS LIFE CYCLE
VALUE CHAIN = ECONOMIC & SOCIAL VALUE
Source: United Nations Environment Programme (2021). Catalysing Science-based Policy Action On Sustainable Consumption And Production.
35 UNEP (2021). Catalysing Science-based Policy Action On Sustainable Consumption And Production.
Figure 4: The tiers in the textile value chain 21
TIER 4 TIER 3 TIER 2 TIER 1 TIER 0 CONSUMER USE END OF LIFE
RAW MATERIAL RAW MATERIAL MATERIAL FINISHED OFFICE, RETAIL, Consumer care: Reuse, recycle,
EXTRACTION PROCESSING PRODUCTION PRODUCTION DISTRIBUTION washing, drying, landfill.
ASSEMBLY CENTERS dry cleaning, etc.
Cultivation and Processing of raw Production and
extraction of raw materials into yarn finishing of Assembly and Corporate real
materials from the and other materials (e.g., manufacturing of estate not involved
earth, plants, or .
intermediate fabric, trims) that final products. in production
animals. products. go directly into process.
finished product.
LOGISTICS
Shipping of
materials and
products across
value chain.
Source: WRI and Aii (2021). Roadmap to Net Zero: Delivering Science-Based Targets in the Apparel Sector.
What do the terms ‘textile industry’ and ‘fashion industry’ mean?

The textile industry is the inclusive term for several industries, such as the ‘fashion industry’ or ‘garment
and footwear industry,’ which is primarily producing clothing and apparel, or the ‘home textile industry,’
which produces items such as bedding or upholstery. The ‘textile industry’ can also include other textile
uses, e.g., for medical, transport or construction industries. The fashion or garment and footwear portion
of the industry is by far the largest.
What do the terms ‘designing’ and ‘developing’ mean?

In this report, ‘design’ refers to all design and development processes that conceptualize a product and
prepare for it being placed into production. It is crucial that all of these functions are involved in the process
of improving the sustainability of products, and not simply the product design teams. ‘Development’ or
‘product development’ are included in this scope, so the term ‘design’ is inclusive of the different stages
of the design process. Where design and development choices are spread between departments or
organizations, this is still considered the design phase.
2.3 What are the sustainability goals of the sector-level contribution or level of responsibility
22 towards achieving that goal is understood. Further,
textile sector?
many industry goals lack a target year or deadline, or
do not provide a trajectory with interim targets that
This section summarizes the impacts of the textile would allow for progress tracking.
value chain and the associated global goals set out
by its actors to reduce these impacts.36 The level of For goals that are sector-specific and quantified, these
knowledge around impacts and capacity to address are well recognized and broadly credible, within an
them varies (e.g., the research and knowledge on industry that actively resists the duplication of goals
biodiversity impacts is not as advanced), as reflected and efforts. For this reason, this report will not aim
in their associated goals.36 to add to or duplicate existing industry goals, (which
are summarised in Table 1 and Figure 5), but rather
The significant impacts of the textile value chain are: reference and use them to identify key actions that
support the delivery of these goals for all actors in the
• Climate,
value chain. UNEP is collaborating with Global Fashion
• Freshwater use,
Agenda (GFA) to consult experts and stakeholders
• Chemical pollution (including chemicals of
globally to identify and converge existing industry
concern),
aligned targets and formulate new targets where they
• Biodiversity loss, and
are currently missing, to address gaps.37
• Social issues, including labour rights, gender
equality and a just transition
The distribution of these impacts across the value Box 3: What is a hotspot?
chain was mapped out in UNEP’s Global Stocktaking
report, which identified the hotspots in the global A hotspot is a stage in the life cycle of a product
apparel value chain (see Box 3). or service that accounts for a significant part
of its environmental, social and/or economic
Many goals already exist to shift towards a sustainable impacts. A hotspot analysis approach allows
and circular textile value chain. Below is a snapshot focusing interventions on the areas that cause the
of some of the most relevant existing industry goals, highest negative impacts. Improvements in these
from both specific initiatives and industry reports. It high-impact areas (hotspots) will maximize the
also includes some non-textile specific goals that are opportunities to reduce the impacts of the value
relevant to specific impact areas.37 chain as a whole.38
There are not yet any published quantified, sector- The figures displaying the impact distribution in
specific goals on supply chain transformation, the following chapters are extracted from UNEP’s
Global Stocktaking report. The impacts identified
consumer use-phase impacts or overall value chain
are applicable for apparel with 2016 as the baseline
impacts on water, chemicals, biodiversity, and social
year (with apparel being the largest area of textile
and labour issues. Goals on circularity and financial
use, accounting for around 60 per cent of global
investment need more development and clarification, fibre demand), although the environmental profiles
particularly as they are from specific reports rather of household textiles produced in similar value
than industry bodies currently implementing and chains to apparel are expected to be similar. The
monitoring them. There is also a need for additional environmental profiles of technical and industrial
fibre-specific industry goals for raw materials, textiles are potentially very different. For more
although these are currently under development by details – including on the methodology and data
key organizations. It is important that these goals used – see UNEP (2020).38
are added or strengthened, and that where quantified
goals are not at the industry level, at least the relevant
38 GFA (2022). Fashion Industry Target Consultation. 38

36 The focus of this analysis is on industry goals and commitments
that are global in nature. This report excludes specific certification
schemes and standards or government initiatives since they often
serve as a compliance mechanism, rather than an ambition-setting
function.
37 UNEP (2020). Sustainability and Circularity in the Textile Value
Table 1:: Existing global industry goals

23
Impact area Quantified general goal Quantified industry goal Non-quantified industry goal Need for
additional goals
The textile value chain reaches net zero

emissions by 2050, in line with 1.5°C of
global warming, and a 45 to 50 per cent
reduction in supply chain emissions by
2030
Climate IPCC39, UNFCCC/Fashion Charter40, Textile

Exchange41, Sustainable Apparel Coalition42 Use-phase
impact goals
The industry adopts 100 per cent
renewable energy by 2050, and 50 per cent
by 2030
GFA/McKinsey report recommendation43
Companies implement
water stewardship, set
contextual and science- Industry-specific
Water and quantified
based targets for water
goal
interpreting WWF,44 SBTN45
ZDHC Milestone: Chemicals

of Concern according to
ZDHC MRSL to be eliminated
Chemicals by implementing the ZDHC Quantified goal
Roadmap to Zero Programme
ZDHC46
Companies implement
science-based targets for Industry-specific
Biodiversity nature and quantified
goal
SBTN47
Ensure a just transition to

environmental sustainability,
that decent work principles are
applied across the textile value Quantified goal
Social labour chain, and companies support (if feasible)
and just the delivery of SDG8
transition
ILO48
Publicly disclose Tier 1 facilities
Transparency Pledge49
39 IPCC (2021). Climate Change 2021: The Physical Science Basis.

40 UNFCCC (2021). Fashion Industry Charter for Climate Action.
41 Textile Exchange (n.d.). About Us: Climate.
42 Sourcing Journal (2021). Sustainable Apparel Coalition Embarks on ‘Bold’ Second Decade of Action.
43 McKinsey and GFA (2020). Fashion on Climate.
44 WWF (n.d.). Water Stewardship.
45 Science Based Targets Network (n.d.). Freshwater.
46 ZDHC (n.d.). Roadmap to Zero.
47 Science Based Targets Network (n.d.). Biodiversity.
48 ILO (2015). Guidelines for a just transition towards environmentally sustainable economies and societies for all.
49 Transparency Pledge (n.d.). Our Demands.
Impact area Quantified general goal Quantified industry goal Non-quantified industry goal Need for additional
24 goals
Circular consumer offers make up 60

per cent of textile market revenue by
2050, and 30 per cent by 2030 Product design
goal, consumption
Circularity GFA/McKinsey report recommendation50 goals, end-of-life
material capturing
Textile utility is doubled by 2050 goals
interpreting EMF global vision51
Source 100 per cent of priority materials

that are both preferred and low climate
impact by 2030, ensuring that these do
not negatively affect other SDGs
UNFCCC/Fashion Charter52
25 per cent sustainably sourced by 2025
The Fashion Pact53

Raw Additional fibre-
materials 45 per cent of polyester recycled specific goals
by 2025, with a goal of 90 per cent
recycled volume share by 2030
Textile Exchange54, UNFCCC/Fashion

Charter 55
Source 100 per cent sustainable cotton

by 2025
Textile Exchange56
$30 billion is invested in the transition

Further
to circular and sustainable textile each
development
year
of goals in
Investment collaboration with
(and adopted
by) the financial
Fashion for Good report
industry
recommendation57

51 EMF (2017). A New Textiles Economy. Redesigning fashion’s future.
53 The Fashion Pact (n.d.). About The Fashion Pact. Redesigning fashion’s future
54 Textile Exchange (n.d.). The 2025 Recycled Polyester Challenge
56 Textile Exchange (n.d.). 2025 Sustainable Cotton Challenge.
57 Fashion for Good (2020). Financing the Transformation.
OVERALL INDUSTRY GOALS 25
The textile value chain Freshwater use is minimized, Biodiversity achieves $30 billion is invested in the
reaches net zero and water pollution is a net positive transition to circular and
emissions eliminated balance sustainable textiles each year
SHIFTING
CONSUMPTION
PATTERNS
Clothing utility is doubled
Circular consumer offers make up
60% of textile market revenue
Progress in focus area
IMPROVED PRACTICES
INFRASTRUCTURE
INVESTMENT 100% of priority materials are preferred
and low climate impact
The industry adopts 100%
renewable energy 45% of polyester recycled
Source 100% sustainable cotton
Progress in focus area Progress in focus area
Figure 5: Existing quantified industry goals for a sustainable and circular textile value chain
2.3.1 Climate impacts Recent work from McKinsey and GFA indicates that
26 current textile value chain efforts are insufficiently
The textile value chain is estimated to account for ambitious and will only result in 50 per cent of the
2-8 per cent of global GHG emissions, with sector CO2 climate impact reduction required to achieve net zero
emissions projected to increase to nearly 2.7 billion emissions and meet the 1.5°C goal. They recommend
tons per year by 2030, the equivalent of one year of that the fashion industry adopts 100 per cent
emissions from nearly 230 million average passenger renewable energy by 2050, and 50 per cent by 2030.59
vehicles, assuming average driving patterns.58 Figure
6 shows the distribution of climate impact across Many textile initiatives have adopted the goal of net
the global apparel value chain, with hotspots seen zero by 2050, such as the Fashion Industry Charter
particularly during textile production and the use for Climate Action and the Fashion Pact. Other
phase. organizations have adopted medium-term targets in
line with a 1.5°C pathway, as seen in Table 2. Together
The Conference of the Parties (COP) process – hosted these cover the whole production phase of textiles,
by the United Nations Framework Convention on although no clear targets have been set on addressing
Climate Change (UNFCCC) – resulted in a global use phase or consumption impacts, largely because
agreement where all signatory countries adopt a there are major gaps in data to support the analysis
roadmap on climate that will limit the world to a required to establish robust impact baselines and
1.5°C rise in average global temperature. This can identify suitable targets, as well as difficulties of
be achieved if we reach net zero emissions by 2050, measuring progress against targets.
meaning that the amount of GHG removed from the
atmosphere is at least equal to the amount emitted.
Figure 6: Climate impact across the global apparel value chain
36%
24%
12% 12%
10%
5%
0%
1%

production
Raw Material Yarn Weaving / Bleaching / Landfilling /

Fibre Distribution Collection
material processing preparation knitting / dyeing and Assembly Use waste to
preparation and retail and sorting
production & sorthing (spinning) bonding finishing energy
(NB data is from previous UNEP report and is out of scope for this study. For details on methodology and limitations please refer to UNEP 2020.)
58 McKinsey and GFA (2020). Fashion on Climate 59 McKinsey and GFA (2020). Fashion on Climate.
Table 2: Existing climate goals

27
Global goal/ Initiative Details
commitment
• All signatories set either ‘Science Based Targets initiative’-aligned targets

in line with 1.5°C or 50 per cent GHG reduction on all scopes by 2030
• 100 per cent Scope 2 electricity from renewable sources by 2030
Fashion Industry Charter for
Climate Action • 100 per cent priority materials are preferred and low climate impact by
2030
Net zero by
2050 • Phase-out of coal from owned and supplier sites by 2030, including no
new coal power by January 2023 at the latest
• 25 per cent of key raw materials are lower climate impact by 2025
Fashion Pact
• 100 per cent renewable energy across own operations
Race to Zero campaign • Minimum 50 per cent reduction of GHG emissions by 2030
Sustainable Apparel Coalition • Of their tier 1-3 membership, against 2019 baseline
45 per cent
reduction
by 2030 Textile Exchange • Pre-spin impacts against 2019 baseline
2.3.2 Freshwater use either individual companies or sectors, as water use

targets depend on different local water issues, existing
The volume of fresh water consumed by the fashion practices and regulatory effectiveness. Many existing
industry today is estimated by one source to be nearly initiatives recommend that companies take a water
79 billion cubic metres, anticipating that water use stewardship approach, which means that companies
will increase by 50 per cent by 2030.60 Engagement not only reduce their own impact but also work with
and public disclosure regarding brand targets and other stakeholders including policymakers to address
progress in relation to water remains limited: of the shared water risks and establish improved shared
136 textile companies invited to disclose through water management processes. Water quality targets
CDP’s water security questionnaire, only 46 per cent are also typically not set, so stewardship programmes
responded, and of those respondents only 21 per are important in addition to volumetric targets.
cent (13 companies) identified water pollution as a
substantive financial or strategic risk to their business. For the textile value chain, goals should therefore be
Figure 7 shows the distribution of freshwater use and focused on each key production and consumption
water scarcity footprint across the global apparel region relevant to textiles with locally tailored
value chain, with hotspots during fibre production, delivery. Delivery of SDG 6 (Ensure availability and
bleaching/dyeing and finishing, and the use phase. sustainable management of water and sanitation for
all) is also a key shared water goal relevant to all value
Water impacts are felt locally rather than globally, so chain actors.
it is challenging to set a global goal that is also locally
applicable. The Science Based Targets Network
is currently working on methodologies that allow
private companies to set locally relevant and science-
based targets on fresh water, which are likely to be
based on the water availability and needs of the
region. The World Wildlife Fund (WWF) is working on
an approach that will allow a step-by-step approach to
science-based targets, while the CEO Water Mandate
has a series of action commitments for companies to
take.61 Global volume targets are typically not set for
60 WWF (2021). Open Letter on Sustainable post-Covid recovery in

textile sector.
61 CEO Water Mandate (n.d.). About Six Commitment Areas.
Figure 7: Freshwater use and water scarcity footprint across the global apparel value chain
28
Water scarcity
Freshwater use
35%
33%
24%
21% 21%
16% 18%
10%
7% 7% 5%
2%
0% 0% 0% 0%
production
Raw Raw Yarn Weaving / Bleaching / Disposal / Landfilling /

Fibre preparation Distribution collection
material material knitting / dyeing and Assembly Use waste to
preparation (spinning) and retail and sorting
production processing bonding finishing energy
(NB data is from previous UNEP report and is out of scope for this study. For details on methodology and limitations please refer to UNEP 2020.)
2.3.3 Chemical pollution and chemicals of As well as the clear links to SDG 6 above, the work
concern of the textile sector on chemicals has significantly
focused on eliminating chemicals of concern and
It is estimated that producing 1 kg of textiles requires implementing best practices around chemical
0.58 kg of chemicals,62 many of which might be controls, substitution and wastewater treatment
harmful to human health and the environment, practices. The ZDHC Roadmap to Zero Programme
damaging to natural ecosystems. 4 per cent of is one of the main initiatives focusing on chemicals,
nitrogen fertilizers and phosphorous globally are with the overall goal being to phase out the use of
used in cotton production63 as well as an estimated harmful chemicals in the textile value chain. While
16 per cent of all insecticides and 7 per cent of there is not a specific time-bound goal in place, the
all herbicides.64 Wastewater discharge from wet ZDHC Roadmap to Zero Programme has provided
processing sites can also be a significant source of valuable frameworks for the industry, leading to
hazardous chemicals and pollution in key production cleaner and more sustainable chemical management
regions. Despite widely acknowledged concern over within the fashion industry. The Strategic Approach
the volume and variety of chemicals used in the textile to International Chemicals Management (SAICM)
sector, it is still challenging to identify all industrial has also recognized chemicals in products as an
chemicals used and emitted due to limited capacity, emerging policy issue, with textiles identified as one
a lack of transparency and poor tracking systems.65 of the relevant sectors.
By eliminating human health impacts due to poor
chemical management by 2030, an annual value of
around €7 billion could be gained globally.66
62 EMF (2017). A New Textiles Economy: Redesigning Fashion’s Future.

63 Heffer, P (2013). Assessment of Fertilizer Use by Crop at the Global
Level.
64 Pesticide Action Network and the Environmental Justice
Foundation (2007). The Deadly Chemicals in Cotton.
65 Secretariat of the Convention on Biological Diversity (2020).
Assessing Progress towards Aichi Biodiversity Target 6 on
Sustainable Marine Fisheries.
66 GFA (2017). Pulse of the Fashion Industry.
2.3.4 Biodiversity loss Textile Exchange – in partnership with the Fashion

Pact, Conservation International and the Biodiversity 29
Biodiversity loss is at dangerous levels, as evidenced Consultancy – added a Biodiversity Benchmark
by the lack of progress against global targets such module to the Textile Exchange Corporate Fibers
as the Aichi targets and biodiversity-related SDGs.67 and Materials Benchmark Survey, allowing brands to
Pressures from industry and farming on land use, track how they understand and address biodiversity
freshwater resources and oceans can create losses risk in their raw materials supply.
of ecosystems, species and ecosystem services that
support human life. The textile industry can have Science Based Targets for Nature has released
significant land-use impacts during raw material interim guidance for companies on target setting for
production, and much of the textile fibre production biodiversity and stated that “a nature-positive world
and textile processing can pollute and deplete requires no net loss of nature from 2020, a net positive
freshwater resources and affect oceans through state of nature by 2030, and full recovery of nature by
pollution, microfibres and shipping. The land-use 2050.”68 This will require companies to analyse their
impacts are illustrated in Figure 8. impacts on nature and then set science-based targets
for biodiversity.
Across the textile value chain, actors need to take
drastic action to reduce their impacts on biodiversity The Fashion Pact has goals on biodiversity, including
and support efforts to restore it, but unfortunately this the development and implementation of strategies
is one of the areas where the data and resources are and Science Based Targets for Nature, developing
currently least available. Geographical ecosystem individual biodiversity blueprints by 2020, and
threats can be seen using data from tools such as the supporting zero deforestation and sustainable forest
UN Biodiversity Lab, although a systematic analysis management by 2025.69 The existing biodiversity
of total impact and the actions required of companies goals are summarised in Table 3.
remains under development:
Figure 8: Land-use impact across the global apparel value chain
56%
12% 13%
10%
6%
4%
0% 0%
production
Raw Raw Yarn Weaving / Bleaching / Disposal/ Landfilling/

Fibre preparation Distribution
material material knitting / dyeing and Assembly and retail
Use Collection waste to
production preparation (spinning) bonding energy
processing finishing and sorting
(NB data is from previous UNEP report and is out of scope for this study. For details on the methodology and limitations, please refer to UNEP 2020.)
67 Secretariat of the Convention on Biological Diversity (2020). 68 SBTN (2020). Initial Company Guidance.
Assessing Progress towards Aichi Biodiversity Target 6 on 69 The Fashion Pact (2020). First Steps to Transform Our
Sustainable Marine Fisheries. Industry.
Table 3: Existing biodiversity goals

30
Global goal/commitment Initiative Details
A nature-positive world requires • Companies should analyse their

no net loss of nature from 2020, impacts on nature and then set science-
Science Based Targets based targets for biodiversity
a net-positive state of nature by
for Nature
2030, and full recovery of nature
by 2050
Development and • Develop individual biodiversity
implementation of strategies and blueprints by 2020
The Fashion Pact
Science Based Targets for Nature • Support zero deforestation and
sustainable forest management by 2025
2.3.5 Social and labour issues and just The International Labour Organization (ILO) warns
transition that as the textile sector “move[s] into new low-cost
countries with limited capacity to implement laws
The textile industry needs to make significant progress and regulations, and with the pressure on profitability,
in addressing social and labour issues within its value working hours and wages that new technologies
chain. There are significant social and health impact bring, there is a high risk that fundamental principles
hotspots in both the fibre production and processing and rights at work will remain a distant aspiration for
phases,70 and potential for social and labour risks many employers and workers.”75
exists within new circular solutions; for example, for
child labour in recycled material collection.71 Research In the context of social and labour impact along
shows that a large proportion of textile workers in the textile value chain, the ILO places particular
seven garment-exporting countries in Asia are paid importance on the need to address decent work,
below the minimum wage. Non-compliance rates in together with environmental impacts. Decent work
the sector range from 6.6 per cent of workers in Viet is a concept involving “opportunities for work that
Nam to 53.3 per cent in the Philippines. In each of is productive and delivers a fair income, security
the countries, women are more likely than men to be in the workplace and social protection for families,
paid below the minimum wage.72 There are significant better prospects for personal development and social
health issues for workers from exposure to hazardous integration, freedom for people to express their
processes, which in turn can have a significant impact concerns, organize and participate in the decisions
on society and GDP levels.73 that affect their lives and equality of opportunity
and treatment for all women and men,”76 and it
Addressing these issues is complicated by the includes the four pillars of employment creation,
significant proportion of textile workers employed social protection, rights at work and social dialogue.
in the informal sector, in business structures that In this context, the ratification and application of
have developed due to governance and structural labour standards to the textile value chain is key in
issues. Indeed, many groups such as women, young the realization of decent work.77 Other metrics such
people, migrants, older people, indigenous and tribal as the alignment of stakeholders under the Social and
peoples, persons living with HIV or affected by HIV Labour Convergence Program are about the uptake
or AIDS, persons with disabilities, domestic workers of aligned auditing standards and the reduction of
and subsistence farmers may all be especially supplier audit fatigue on social and labour issues.
vulnerable to the most serious decent work deficits in
the informal economy.74 The priority social risks are
outlined below in Figure 9. 75 ILO (2015b). The future of work in textiles, clothing, leather and
footwear. ILO Working Paper 326.
76 The concept of Decent Work has become a universal objective
and has been included in major human rights declarations, UN
Resolutions and outcome documents from major conferences
70 UNEP (2020). Sustainability and Circularity in the Textile Value including Article 23 of the Universal Declaration of Human
Chain - Global Stocktaking. Nairobi, Kenya. Rights (1948), the World Summit for Social Development (1995),
71 Verite (2019). At Risk in the Recycling Sector Supply Chain. World Summit Outcome Document (2005), the high level segment
72 ILO (2016). Weak minimum wage compliance in Asia's garment of ECOSOC (2006), the Second United Nations Decade for the
industry. Eradication of Poverty (2008-2017), Conference on Sustainable
73 ILO (2021). Exposure to hazardous chemicals at work and resulting Development (2011) and in the UN’s 2030 Agenda for Sustainable
health impacts: A global review. Development (2015).
74 ILO (2015a). Transition from the Informal to the Formal Economy. 77 ILO (n.d.). Decent Work.
Recommendation 204.
Figure 9: Social risks across the apparel value chain

31
62%
34% 22%
18% Average social risk
43% Risk of excessive working time
13%
8% Risk of injury
25%
21%
18%
10% 11%
6% 7%
4%

production
Synthetic Yarn production Landfilling/

Natural fibre Bleaching / Distribution Disposal/
fibre (spinning) and Fabric Use waste to
production dyeing and Assembly and retail Collection
production production (weaving/knitting energy
finishing and sorting
SSource: UNEP (2020). Sustainability and Circularity in the Textile Value Chain: Global Stocktaking.
((NB data is from previous UNEP report and is out of scope for this study. For details on methodology and limitations, please refer to UNEP 2020.)
There are a number of guidelines that support

countries and enterprises in identifying decent
work impacts along the value chain. The OECD Due
Diligence Guidance for Responsible Supply Chains
in the Garment & Footwear Sector also provides
a process for assessment, corrective action, and
transparency on social (and environmental) issues
in a company’s value chain, and can help companies
to meet the due diligence expectations laid out in
the OECD Guidelines for Multinational Enterprises.78
Projects from Fair Wear Foundation and the ILO have
demonstrated that investment in workers can pay
major dividends in terms of business output, profits,
cost savings and the delivery of environmental
goals,79 as well as the latest ILO Code of Practice on
safety and health in textiles, clothing, leather and
footwear.80
78 OECD (2021). Multinational Enterprises Guidelines.

79 ILO (2014). Promoting Rights at Work through Social Dialogue.
80 ILO (2014). Promoting Rights at Work through Social Dialogue.
Just transition
32 Box 4: Gender in the textile value chain
The transition to circularity is expected to have a
Women represent an estimated of 80 per cent of complex impact on employment in the textile value
the garment manufacturing workforce and 55 per chain; for example, increased recycling may reduce
cent of the workforce of the combined textile and demand for virgin fibres and related production jobs,
garment sectors.81 The apparel sector is one of while shifting to regenerative farming will likely
the largest global employers of women workers, create more employment. Some jobs may be lost in
accounting for more than 5 per cent of working manufacturing, while new jobs will be created in
women in Asia and the Pacific, making it the largest repair, resale, sorting, pre-processing and recycling.
employer of women among all industrial sectors. Climate change mitigation could slightly reduce the
Emerging research suggests that the income that share of women in total employment unless action
women receive from textiles employment can lead is taken to reduce occupational segregation, as the
to improved outcomes such as better access to employment gains associated with the 2°C scenario
education, as well as increased decision-making are likely to create jobs in currently male-dominated
powers within the community and in domestic industries (renewables, manufacturing and
matters such as marriage age and family size.82 construction).85 Helping displaced workers and those
facing other economic losses – through either direct
However, there is also evidence of systemic compensation or skills development – will be crucial
inequality and struggle for women, including to ensuring that the transition towards circularity is
around pay equity, discrimination, violence just and inclusive. Consumers and access to clothing
and harassment, disproportionate unpaid care, at suitable price points is another consideration
work, and family responsibilities, and the lack of to the just transition to ensure equitable access to
women's voice, representation and leadership textiles. Additional guidance can be found in the ILO’s
across the industry.83 Further, many homeworkers guidelines on ensuring a just transition.
are women and children, and they are denied
formal employment, sick pay, maternity pay, The transition to circularity could create higher-
guaranteed employment, etc. This can also include quality jobs, especially for informal workers. The ILO
challenges around piece-rate pay and/or failure to estimates that implementing circular solutions –
pay overtime, health and safety concerns such as notably in waste management and recycling, and the
fire safety, exposure to chemicals and inadequate services sectors, repair and renting models – could
infrastructure, highly controlled, stressful, and create a net growth of 6 million jobs globally by 2030.86
repetitive work environments, irregular work However, achieving positive net outcomes requires
volume and schedules, and a lack of access to targeted efforts from governments, companies and
benefits such as health insurance and maternity workers’ organizations on issues such as wage
leave.84 protection, health and safety and rights, and the
retraining and upskilling of workers for new types of
work. Enforcement of existing and new legislation
will also be critical, as will social consultation and
81 ILO (2022) The State of the Apparel and Footwear Industry: inclusive discussions around environmental, social
Employment, automation and their gender dimensions.
82 Heath, R. & Mushfiq, M (2015). Manufacturing growth and
and economic policies. The transition to a circular
the lives of Bangladeshi women. Journal of Development economy may benefit some regions more than others.
Economics; and Sivasankaran,A., (2014). Work and Women's
Marriage, Fertility and Empowerment: Evidence from Countering this imbalance will require policymaker
Textile Mill Employment in India. Job Market Paper, Harvard dialogue, as well as in-depth analyses of potential
University.
83 ILO (2018). World Employment Social Outlook 2018: Greening trade-offs, as well as completing impact assessments
with Jobs.
84 Oxfam International (2004). Trading Away Our of potential large-scale interventions to specifically
Rights; Fair Wear Foundation (2013). Standing Firm ensure those at risk or with skill gaps are considered
Against Factory Floor Harassment; BSR (2017).
Empowering Female Workers in the Apparel Industry. during the transition to scaling circular business
models.
85 ILO (2018). World Employment Social Outlook 2018: Greening with

Jobs.
86 ILO (2018). World Employment Social Outlook 2018: Greening with
Jobs.
A just transition is crucial in ensuring that the textile tons.89 However, Business for Social Responsibility
sector becomes resilient against shocks. The COVID- (BSR) economic modelling suggests that circularity, 33
19 pandemic exposed disproportionate geographical automation and other macro factors could
vulnerabilities and impacts, particularly in the significantly disrupt job growth across the fashion
textile sector in Asia. Climate change coupled with industry by 2030.90 The variation between the number
unsustainable consumption patterns will continue of jobs today and what we see in the scenarios is a
to create supply chain shocks, and a just transition range of 6.72 million jobs, reflecting over 11 per cent of
is therefore also needed to ensure that potential local the fashion value chain jobs included in the model,91
impacts are instead turned into opportunities for making all efforts to a just transition as outlined in
accelerated community action to 'build back better.'87 2.3.5 key.
2.3.6 Circularity Four business models (resale, rental, repair, and

remaking) – all of which have the potential to decouple
As outlined in section 2.1, circularity is best understood revenue streams from production and resource use –
as an approach where materials are kept at their currently represent a $73 billion market.92 Collectively,
highest possible value as they move and are retained they have the potential to grow from 3.5 per cent of
as long as possible within the textile value chain. This the global fashion market today to 23 per cent by 2030,
reduces and disconnects the use of natural resources representing a $700 billion opportunity.93
and environmental impacts from the economic
activity of the textile industry, while continuing to No specific and measurable industry goals on
enable improvements in human well-being. circularity have actively been adopted for
implementation by industry organizations. However,
Circularity has strong potential to reduce the impacts analysis from GFA and the Ellen MacArthur
from textiles production, although it also has Foundation (EMF) indicates measurable l levels
significant potential to create ripple effects in global of ambition that would be suitable for setting and
labour markets. GFA and McKinsey have estimated monitoring an industry target and are summarised in
that circular business models could reduce GHG Table 4.
emissions by approximately 25 per cent,88 and that
for every 1 per cent increase in market share, circular
business models can reduce emissions by 13 million
Table 4: Existing circularity goals
Circular consumer offers make • This target is proposed within the GFA
up 60 per cent of textile market and McKinsey analysis of major climate
revenue by 2050, and 30 per cent impact reduction opportunities within the
textile value chain. It is not yet adopted
by 2030 GFA and McKinsey
or monitored directly beyond the report,
although GFA regularly update their
information on industry sustainability
progress.
Textile utility is doubled by 2050 Ellen McArthur • This target is an interpretation from analysis
by EMF. It is not confirmed as an industry
Foundation, a New
target, and is not yet adopted or monitored.
Textiles Economy
87 ILO (2018). World Employment Social Outlook 2018: Greening with 89 McKinsey and GFA (2020). Fashion on Climate.
Jobs. 90 BSR & Laudes Foundation (2021). Keeping Workers in the Loop.
88 McKinsey and GFA (2020). Fashion on Climate. 91 BSR & Laudes Foundation (2021). Keeping Workers in the Loop.
92 EMF (2021a). Circular Business Models - Redefining Growth for a
Thriving Fashion Industry.
93 EMF (2021a). Circular Business Models - Redefining Growth for a
Thriving Fashion Industry.
2.3.7 Raw materials There has been significant activity around sustainable
34 raw materials in recent years. Many brands have
The raw materials phase of textile production has their own measurable targets around sourcing more
significant impacts within the value chain, explaining sustainable raw materials, and certification schemes
why NGOs and brands working on sustainable and have goals around the scale of their uptake and
circular solutions have initially devoted strong sometimes impact reduction. The first industry-level
attention in this area. For example, fibre production targets around raw materials have begun to emerge
makes the third highest contribution to climate in recent years, with the Fashion Industry Charter for
impact, largely due to the production of synthetic Climate Action and the Fashion Pact setting goals
fibres,94 and an improved material mix leveraging around raw materials sourcing, and Textile Exchange
lower impact sources could deliver 41 million tons of beginning to set industry-level goals, sometimes
GHG emissions savings.95 Conventional cotton uses in collaboration with other actors. These goals are
around 5 per cent of all herbicides and 16 per cent summarised in Table 5. It is important to note that
of all insecticides applied globally in agriculture,96 at least 55 per cent of textiles materials are from
and significant in-field impacts such as through synthetic sources,99 so it is not feasible to shift raw
nitrous oxide emissions are produced from fertilizer materials sourcing to fully land-based fibres due to
application.97 There are significant risks of forced land constraints and potential impacts and trade-
and child labour as well as other social and labour offs. ‘Closing the loop’ to produce recycled fibres and
issues within raw materials production, but it is also improving practices within textile fibre types is a
an important source of livelihoods, particularly in more effective way to reduce overall impact.
developing countries, supporting the livelihoods of
250 million people worldwide, for example.98 Recycled materials have been growing in popularity,
but mainly driven by the use of polyethylene
It is also an area where many brands can have terephthalate (PET) from plastic bottles to create
significant leverage, through requiring certified or recycled polyester. There is some degree of closed
verified more sustainable sources as part of the loop, fibre-to-fibre recycling, but there are some
product specification, in contrast to processing significant barriers to full-scale closed loop systems,
impacts, which are much more challenging to enforce including challenges with the quality and scale of
and incentivize with producers beyond tier 1. In many feedstock, separating blended fibres and scaling the
cases, brands specify that certified materials must be infrastructure and technology needed. Even with
sourced (where these are available), and will therefore these challenges, there is clear evidence that recycled
need to pay a premium directly to their supply chain fibres usually reduce impacts on many key metrics,
partners or a central organization through a mass including climate and energy, water and chemicals,
balance system. Regenerative agriculture is also as well as land use. It is not yet clear how recycled
a growing interest area for raw materials, where products perform when it comes to key challenges
production practices aim to not only reduce impacts such as microfibre shedding, with further research
but also restore soil health and carbon and support currently under way.100
ecosystems.
94 UNEP (2020). Global Stocktaking: Sustainability and Circularity in 99 Textile Exchange (2021). Corporate Fiber & Materials
the Textile Value Chain. Benchmark.
95 McKinsey and GFA (2020). Fashion on Climate. 100 Microfibre Consortium (n.d.) The Microfibre Roadmap.
96 Pesticide Action Network and International Cotton Advisory
Committee (n.d.). Pesticide concerns in cotton.
97 WWF (2017). Cutting Cotton Carbon Emissions.
98 Better Cotton (2015). Key Facts.
Figure 10: Improved impacts of recycling technologies

35
IMPACT
All recycled technologies are better
Negative Positive
across GHG, water and land usage
GHG emissions
Source of origin End product material production, Water depletion/ Land use1, Other sustainability
kg CO2/kg use, m3/kg hectares/ton aspects
Leakage of microplastics, incineration of virgin polyester
Virgin fabric add 2.3 kg CO2/kg
Leakage of microplastics and does not prevent the production
Biobased of polyester (as made from PET bottles)
Polyester Monomer recycling - Leakage of microplastics but prevents production of virgin
all else equal polyester
Monomer recycling - Leakage of microplastics but prevents production of virgin

optimized2 polyester
Degrades soil quality exhausting fields and the use of

Virgin - conventional fertilizers and pesticides threaten soil and water quality as
well as health of biodiversity
Cotton Virgin - organic Reduces use of fertilizers and pesticides typically impacting
biodiversity and soil quality.
Recycling reduces quality - hence it cannot fully replace virgin
Recycled - all else equal cotton
Recycling reduces quality - hence it cannot fully replace virgin
Recycled - optimized2 cotton
Modern pulp mills are able to produce additional excess heat
Virgin and electricity to sell to the grid
Man-made
cellulosic Recycled - All else equal No excess heat and electricity sold to grid - limited benefits
compared to virgin
Recycled - optimized2 No excess heat and electricity sold to grid - limited benefits
compared to virgin
EXHIBIT 5 Comparison of environmental impacts of virgin and recycled textiles
1 Ecological footprint, required to provide all the necessary resources and absorb associated CO2 waste to produce a given unit of textile
2 Optimized recycling technologies assume high degree of electrification, even in more energy intense process steps - hence possibiity to reduce emissions to close to zero
Source: McKinsey and GFA (2021). Scaling Circularity. A Policy Perspective.
Table 5:: Existing raw materials goals
Source 100 per cent of priority The Fashion Charter requires all signatories
materials that are both preferred to commit to deliver this target as part of its
Fashion Industry Charter
and low climate impact by wider list of climate-related goals, and has
for Climate Action
2030, ensuring that these do not a working group for each target aiming to
negatively affect other SDGs scale industry-wide solutions.
The Fashion Pact requires all signatories
25 per cent of our key raw to commit to deliver this target as part of
materials are lower climate Fashion Pact its wider list of climate-related goals, and
impact by 2025 carries out joint actions to support industry
change against key targets.
This target is focused on volumes of
45 per cent of polyester recycled recycled polyester sourced by brands, and
Textile Exchange and
by 2025, with a goal of 90 per was created jointly by Textile Exchange and
Fashion Industry Charter
cent recycled volume share by the Fashion Charter. Textile Exchange will
for Climate Action
2030 continue to create targets for uptake of more
sustainable fibres by the industry.
The 2025 Sustainable Cotton Challenge
aims to shift the market towards the use of
cotton grown using agricultural practices
Source 100 per cent sustainable with improved environmental and social
Textile Exchange
cotton by 2025 sustainability outcomes. It challenges
brands to commit to sourcing 100 per cent
of their cotton from more sustainable
programmes and initiatives by 2025.
2.3.8 Investment There has not been a significant degree of analysis

36 on the levels of investment required to support
There are investment gaps in the technology, a transition to a sustainable and circular textile
knowledge and experience needed to support a sector. The main analysis has come from a report by
transition to a sustainable and circular textile sector. Fashion for Good and Boston Consulting Group (BCG),
Investment will be needed at all stages of the value exploring the degree of funding required to transform
chain, from innovation research and development, the industry, and where the funding is most needed
incubating and scaling circular business models (as summarised in Table 6 and Figure 11).
and circular products to ensuring that suppliers
can access the necessary equipment, skills and The report estimated that of the $30 billion necessary
technology to provide relevant products for a circular investment each year, 25 per cent is needed to support
economy. SMEs already face additional challenges in raw materials innovations and improvements, 33 per
obtaining financing to improve their environmental cent for tier 1-3 transformation, and 20 per cent for
performance, therefore it is important that financial end of use. Sixty per cent of the financing is needed
institutions ensure that SMEs in particular have for addressing issues around energy, water and waste
access to investments needed for circularity. alone.
Table 6:: Existing financial goals
While not being implemented by Fashion

$30 billion is invested in the Fashion for Good and for Good and BCG as a monitored industry
Financing the Transformation: Fashion for Good + BCG
transition to circular and BCG, Financing the target, it is the only financial target set for
sustainable textile each year Transformation the overall level of investment needed for
the industry
Exhibit 3 | Financing Opportunity by Value Chain Step
The largest needs for financing are concentrated at the beginning and the end of the value chain.
Figure 11: Financing needs by value chain step
100% 5%
5%
20%
12%
20%
13%
25%
Other cross-
Raw Retail End Total Transparency
Processing Cut-make-trim supply-chain
materials and use of use opportunity and traceability
innovations1
Source: Fashion for Good and BCG (2020). Financing the Transformation.
Source: BCG and Fashion for Good analysis.
Includes logistics and transportation innovations, overarching water

1
management solutions, and worker empowerment.

37
3
To support a global value chain transition to
38 sustainable and circular textiles, this report explores
the actions that can be taken by specific types
of stakeholders such as brands or policymakers.
However, to reflect the interdependency of these
stakeholders, there is also a strong focus on building
What is needed a clear shared agenda for action. This results in three
important interconnected priorities to deliver system
to achieve a
change: shifting consumption patterns, improved
practices and infrastructure investment.
sustainable and These priorities are interconnected and will need to

be addressed as part of a coordinated approach for all
value chain actors. Each one of the priorities (and the
circular textile building blocks that underpin them) are dependent
on each of the others for successful delivery. For
value chain?
example, a focus on shifting consumption patterns
– how products are designed, what kind of business
models are offered to consumers and how aspirations
are set – has the potential to radically reduce pressure
In order to prioritize effective on the production system and make it easier to
improve practices in production sites, raw materials
action for all stakeholders and
production and use-phase impacts. However,
encourage collective engagement, improved practices and infrastructure are also key
to deliver successful circular business models, as
this report applied a systemic
they determine whether fibres can be captured and
value chain approach. Building recycled, whether processes can be powered with
safe chemistry and renewable energy, and whether
on research and consultations the infrastructure and processes exist to deliver
with over 140 textile value chain the sustainable and circular business model to the
consumer.
stakeholders, it defines a common
agenda of transformation towards Several initiatives have set ambitious goals to shift
towards a sustainable and circular textile value
sustainability and circularity. chain (as outlined in section 2.3 and summarized
in Figure 5), although progress to deliver them is
often slow, due to the scale of the challenge, the
opacity of the value chain, the lack of system-level
policy, the technical and financial barriers, and the
fragmentation of stakeholders beyond a small number
of sustainability-minded multinational brands.
What is needed to achieve a sustainable and circular textile value chain?
Figure 12: Three priorities to deliver system change in the textile value chain
39
SHIFTING CONSUMPTION
PATTERNS
Optimising design, business
models and consumer
behaviour
INFRASTRUCTURE IMPROVED PRACTICES \
INVESTMENT Optimising practices and

Investing in shared behaviour in existing
physical technology sites, companies and
and systems processes
Figure 13: Nine building blocks needed to deliver the three priorities
Textile
overconsumption
and
overproduction
Sustainable
are addressed
and circular textile
All textile products
business models
are designed to
are adopted
minimize impacts
globally
and support
circular models
All textile waste is
1 2
diverted from
avoidable landfill
and incineration 3
Better product care
9 4 reduces impacts
and improves
product durability
8 5
Significant
improvements in 7 6
shared infrastructure The textile value chain
are made globally for drives resource
a sustainable and efficiency and
circular textile value eliminates production
chain pollution, production
waste, on-site fossil
Textile raw fuel use and chemicals
materials are of concern
shifted to
A just transition with
sustainable
skilled, safe, and
or recycled
empowered people
sources
takes place and social
issues in the textile
value chain are
addressed
To deliver on the three priorities and thus reach a sustainable and circular textile value chain, the roadmap
40 proposes nine ‘building blocks’ that need to be delivered. All building blocks consider the key drivers of
environmental and/or socioeconomic impacts within the value chain, support the delivery of the existing
industry goals, and require multiple stakeholders to act together.
Sustainable and circular textile business models are adopted globally. This requires a
significant shift in perception of what ‘value’ means for consumers, brands and retailers.
1 The focus must be placed on shifting the market and business revenue away from linear
models towards circular models that have demonstrated environmental and social impact
reduction across the life cycle, or focusing on selling experiences or other non-material
Shifting goods rather than physical products.
Consumption Textile overconsumption and overproduction are addressed. A significant decrease in
Patterns overconsumption is required, particularly in developed countries. This can be achieved
2 through a combination of increased clothing utility (how long a product is used) and shifting
consumer norms and aspirations towards lower consumption through engagement with
the social and emotional aspects of behaviour. Reducing overproduction will be important
for brands and retailers, and can be achieved through improved stock and demand
management, as well as exploring new models such as on-demand production.
All textile products are designed to minimize impacts and support circular models. Design
3 must be informed and intentional. Improved data and feedback loops will be critical to take
into account knock-on effects of design at each stage of production, use and end of use.
Shifting Products should be designed to consider the relevant circular business model (e.g. durability
Consumption for rental), and with the assumption that they will be an input to closed loop recycling.
Patterns + Better product care reduces impacts and improves product durability. The consumer
Improved
Practices
4 ‘use’ phase for textiles has chemical, energy, and water impacts, alongside microfibre and
product durability issues. However, most textile brands do not include the consumer use
phase in their impact evaluations and there are no large initiatives working on this phase.
There is especially a need for more data on product care impacts and behaviour, also
considering that consumers are diverse and global.
The textile value chain drives resource efficiency and eliminates production pollution,
production waste, on-site fossil fuel use and chemicals of concern. Textile production
5 sites – especially wet processing sites – require major support and investment to substitute
machinery and apply circular production methods. This is particularly important for sites
beyond tiers 1 and 2 of large multinational brands, or production countries without strong
Improved policy enforcement on cleaner production.
Practices
A just transition with skilled,safe, and empowered people takes place and social issues
6 in the textile value chain are addressed. This includes collaborating with less-developed
countries and previously marginalized communities, including – but not limited to – women,
young people, indigenous and tribal peoples and persons with disabilities, which will help to
avoid significant trade-offs and negative consequences.
Textile raw materials are shifted to sustainable or recycled sources. There is a need to
Improved
Practices +
7 rapidly scale new and more sustainable production and cultivation practices for virgin raw
Infrastructure materials, and to mainstream fibre-to-fibre recycling through improved practices as well as
Investment investment in waste management systems and infrastructure.
Significant improvements in shared infrastructure are made globally for a sustainable
Infrastructure 8 and circular textile value chain. This includes renewable energy, waste management and
investment water treatment, as investment in shared infrastructure is essential to unlock the potential
of individual actors to make changes in their own systems.
Infrastructure All textile waste is diverted from avoidable landfill and incineration. Shifting consumer
Investment 9 behaviour and global dynamics are required to avoid the need for landfill and incineration;
for example, through circular solutions that reduce waste outputs. Solutions are needed to
+ Shifting
Consumption avoid shifting responsibility for waste disposal, such as trade of used textiles to locations
Patterns that cannot use them and lack the infrastructure to adequately process textile waste.
Box 5: How does this report define the different stakeholder groups? 41
Brands and retailers: For the purposes of this report, brands are established companies that do not have
circular and sustainable approaches built into their business model. New innovative companies that are
predicated on circularity and sustainability are covered under the group of ‘innovators and recyclers.’
Retailers include both in-store and online sales businesses that sell a range of products from different
brands, with many also having their owned products sold in store.
Communication and consumer engagement actors: There are several different types of organization and
outlets that engage with individual consumers, including brands, advertisers, print and digital media,
social media and influencers and film and television. Brand, retailers and media outlets are some of the
most influential groups in reaching and driving demand in consumer and citizens, but this work is relevant
to innovators, policymakers, NGOs, and technical organizations that also strongly engage in outreach to
consumers or citizens as individuals, and media outlets and advertisers are a conduit of this outreach.
Therefore, all stakeholders communicating with consumers and citizens are relevant.
Financial institutions: Financial institutions can cover a multitude of actors, including institutional
investors, philanthropic funders, impact investors, development banks and organizations, venture capital
and investment banks, commercial lenders, insurers and trade financiers. All of these actors can unlock
much-needed capital at each stage of the value chain and create innovative financial models or practices
that can incentivize other actors.
Innovators and recyclers: Innovators across the textile value chain and recyclers often inherently build
upon models, systems or aspirations that are in line with a sustainable and circular textile value chain.
This does not mean they have already achieved full sustainability and circularity, but rather that their
approach takes those principles as a basic premise, and they often have an in-built mission to improve
sustainability and circularity performance. Due to this inherent positioning of business models and aims,
these two types of value chain stakeholders are grouped together for the purpose of this report.
Non-governmental, representative, and technical organizations: This group includes NGOs working
on both environmental and social issues, as well as universities/academics, data providers, technical
consultants, researchers and think tanks. UN agencies and intergovernmental agencies can also provide
technical support, such as on-ground technical assistance or creation of science-based knowledge. These
are generally the actors that are well placed to apply a detailed technical lens to the challenges of the
value chain, pursue non-profit or market transformation goals, peer review data collection or studies, and
engage multiple actors to collaborate on solutions. They are enablers that challenge and support the ones
that directly deliver on actions for a more sustainable and circular textile value chain, including playing
an important role in supporting those that are weakest in the value chain.
Policymakers: Policymakers can be in a range of roles and institutions, from the global to local level. Local
governments are often the most closely connected with the communities and businesses that operate
within the textile value chain and can make or break efforts such as collective decision-making with
communities on allocation of resources, protections, social schemes or verification of impacts. National
governments are key to almost all policy interventions within the textile value chain. They can implement
incentives, restrictions and enforcement, as well as set policy goals and plans. National government is
not a monolith, and there are a range of different departments and roles at play. Elected officials may have
different interests and timelines in mind than civil service departments.
Producers and manufacturers: Producers and manufacturers are those in tier 1-4 of the value chain (see
Figure 4). They are the stakeholders that produce the raw materials, process the products and create
finished goods.
42 3.1 Sustainable and circular textile

business models are adopted globally
GFA and McKinsey have found that circular business models could enable the industry to cut around 143 million tons
of GHG emissions in 2030. This is assuming that one in five garments are traded through circular business models, so
a full transition to circular models could deliver much higher benefits101. They also found that each 1 per cent increase
in market share of circular business models is likely to reduce emissions by 13 Mn tCO2e102.
For circular textile business models (such as KEY ACTIONS

rental, reuse or repair,103 see also Figure 2) to Circular business models are normalized and ‘social
be adopted globally, significant shifts will be proofed’ through a change in narrative for the textile
needed in the perception of their benefits and industry, across brand campaigns and advertising, as
well as traditional and social media. Consumers are
feasibility, for consumers, brands and retailers.
presented with compelling advantages of circular
As the benefits of their value continue to business models (beyond environmental benefits),
be documented, and positive case studies such as convenience, variety, price or quality and
are presented publicly (including financial shift their purchasing behaviour through positive
aspiration.
benefits of their adoption), the focus must be
placed on shifting the market away from linear Companies invest revenue in circular business
models towards models that are sustainable models, so that the majority of their business value
shifts away from linear business models towards
and circular, i.e., that have demonstrated
more sustainable circular business models. They set
environmental and social impact reduction business targets to signal this shift and begin to divest
across the entire life cycle (in both the from linear models as they onboard new models,
services and revenue streams. They reconsider how
production and use phase). Alternatively,
the company derives business value and look beyond
brand value can be entirely dematerialized to physical products towards brand experience and
focus on selling experiences or digital content digital value (such as selling digital fashion for online
rather than textile materials and products. avatars).
Value chains are adjusted and optimized to support

new business models with minimum impacts. Supply
chain partners collaborate to adjust processes, with a
goal of holistic improvements in impact and avoiding
impact trade-offs (both environmental and social) in
supply chain planning. For example, logistics systems
are adjusted to support movement of products for
multi-life uses or repair, production phases out use
of chemicals of concern to support recycling, or
solutions are found to track key data about products
and materials.

103 EMF (2021). Fashion Business Models: Overview.
Improved impact data and tools are made available change, a lack of consumer engagement, policy
and allow companies and external stakeholders barriers, etc., and ensure that business plans 43
to evaluate the sustainability benefits of circular accurately take account of fundamental challenges
business models and product offers to ensure that and identify collaborators that can help to address
they are substantially improving on conventional these challenges, e.g. industry bodies that can share
models. This also allows adjusting the approach to information directly with producers. They can ensure
ensure optimal outcomes for alternative models and that innovative models and products are demonstrably
validate benefits to external audiences. more sustainable than linear alternatives, and work
with experts and credible tools to make sure that
THE ROLE OF DIFFERENT STAKEHOLDERS there is credible data to support claims.
Communication and consumer engagement actors Policymakers can create policies and incentives
can work to normalize circular business models and for sustainable and circular business models, such
make the approaches aspirational. This includes as tax breaks or seed funding for circular business
shifting engagement resources away from promoting models or subsidies or support for supporting aspects
linear and unsustainable models and products, and such as repair or refurbishment services. They can
towards more sustainable and circular options. also explore reporting requirements for companies
They can highlight quantified and credible benefits on the proportion of revenue or investment that
compared to linear models and emphasize the companies are making in sustainable and circular
behaviour aspects that are important to ensure business models. They can review guidance for
effective outcomes of sustainable and circular enabling, encouraging and enforcing best practices in
models, e.g. not maintaining existing purchasing sustainable communication, establish frameworks for
practices and adding sustainable and circular options consumer product claims to address the challenges
in addition, but instead shifting completely away of greenwashing, and introduce influencer and
from linear and unsustainable models. sponsorship regulations aligned with sustainable
lifestyles. They can help to fund the development
Brands and retailers can create new and attractive of detailed data and tools to evaluate sustainability
offers for the consumer through innovative circular benefits from alternative models and ensure that
and low-impact business models, and set and there are no major trade-offs from alternative models
deliver targets on shifting their business revenue and approaches.
and investment from linear to circular and more
sustainable business models. They can design NGOs and technical organizations can standardize
products intentionally for circular models and and improve science-based methodologies and data
emotional and physical longevity, and ensure that for measuring impact and risk and make this data
any circular business models, offers and designs are available to all, as well as clarifying and validating the
created with sufficient evidence to improve impacts use of claims such as being ‘circular’ and ‘sustainable.’
and reduce consumption. They can not only use They can also build the business case and evidence
data to evaluate environmental and social impacts base for circular business models, and share
and improvements but also share their data and actionable analysis of potential trade-offs with circular
good practices to encourage the scaling and further systems, future emerging technological innovations
refinement of circular models. and consumer insights. They can emphasize the
importance of circular business models to consumers
Innovators and recyclers can create new models of and raise awareness of good examples.
sharing, reuse and longevity, reflecting local identity
and infrastructure context and focus R&D into new Financial institutions can proactively invest in
technologies to support circularity. They should aim sustainable and circular business models, including
to create solutions that are scalable, and technically early-stage concepts, from both established brands
and financially feasible for all actors in the value and small start-ups. They can leverage expert data
chain, considering the different conditions in each and evaluations to ensure that investment is made in
production and consumption market and ensuring demonstrably improved models and customer offers,
accessibility for all business sizes, e.g. SMEs, those in and ensure that any trade-offs are identified and
developing countries and different consumer types. addressed.
They can identify business strategies that accept
and address existing market barriers, such as a lack
of visibility and information, inertia of technological
44 Box 6: Case studies – Circular business models
Brand examples
While many brands are starting to incorporate sustainable and circular considerations into their business
models, this is typically limited to sustainable material capsule collections, or leasing or resale businesses,
which represent a very small portion of total company turnover. However, some companies are ensuring
their core business strategy revolves around sustainable and circular textile business models.
MUD Jeans is a Netherlands-based denim brand, whose core product offered by consumers is leasing
jeans. Products are produced with post-consumer recycled cotton, as well as certified virgin organic cotton,
and consumers have access to free product repair for 12 months. When jeans are returned to MUD, they are
either released to another consumer, or – if at the end of that product’s life – are shredded to be input into
the production of new denim products.
Animaná is an Argentinian social business founded in 2008 that prioritizes natural fibres from the Andes
and Patagonia, using cultivation practices that promote the revival and protection of traditional culture
and techniques. The brand was created by the founder of Hecho por Nosotros (“Made by Us”), an NGO
that provides artisan textile communities in Latin America with capacity building programs to help
them integrate circularity into their business models and practices, and access global markets. Over
8,000 artisans and 330 micro, small and medium-sized enterprises (MSMEs) have accessed training and
resources to date, and in 2019 Animaná received the ‘Best for the World’ award by the social business
certifier B Corp for their work in the ‘changemakers’ and ‘communities’ categories. Animaná’s and Hecho
por Nosotros’ work on circularity has been recognized in their receiving special consultative status with
the United Nations Economic and Social Council (UNECOSOC), where they raise awareness in high-level
international forums on their experiences, challenges and ambitions on circular businesses.
NGO and technical organization examples

As part of the EU-funded Innovative Business Practices and Economic Models in the Textile Value Chain
(InTex) project, UNEP uses its eco-innovation methodology and the EC's Product Environmental Footprint
(PEF) methodology to train stakeholders – including policymakers, technical intermediaries and textile
SMEs – on understanding how to apply circularity into their business models in the textile sector in
Kenya, South Africa and Tunisia. Eco-innovation is the development and application of a business model,
shaped by a new business strategy that incorporates sustainability and circularity throughout all business
operations based on life cycle thinking and in cooperation with partners across the value chain. It was
developed specifically for SMEs in developing countries. Applying those methodologies, the InTex project
assists textile SMEs, including manufacturers, to shift to circular business models.
Financial institution example

The creative industry in East Africa often faces challenges in accessing finance. Heva is a finance,
business support and knowledge facility that invests in creative businesses in East Africa. It has various
funds, including their ‘Young Women in Creative Industries Fund,’ which provides loans and technical
assistance to support women-owned and -led early-stage enterprises access investments in production,
technology and capacity. Heva also conducted a project within Nairobi’s Uhuru Market, an open-air market
of over 1,000 MSME apparel producers and retailers. The project coupled financing with targeted health
interventions (such as giving prescription glasses) and formal education on upskilling. In response to
COVID-19-related needs, in 2020 Heva launched an e-commerce platform for the market to connect local
traders with local customers.
Mention of an initiative, commercial company or product in this document does not imply endorsement by the United Nations Environment
Programme or the authors.
3.2 Textile overconsumption and 45

overproduction are addressed
Mistra Future Fashion found that doubling the number of uses for a garment (from 30 to 60 total uses) reduced its functional
GHG footprint by approximately 50 per cent.104 The Ellen MacArthur Foundation has estimated that doubling the average
use of a garment reduces GHG emissions by 44 per cent.105 Both sets of analysis suppose the notion that longer wear of
a particular item would fill a functional ‘space’ in someone’s wardrobe, thereby reducing the overall consumption of that
individual, although behaviour change is also required to ensure that this shift occurs. McKinsey and GFA also found that
reducing overproduction by 10% would reduce emissions by around 158 million tonnes in 2030.106
Circular business models must be accompanied KEY ACTIONS

by a significant decrease in overconsumption, Social expectations and narratives are adjusted to
particularly concerning clothing in developed reduce consumptive mindsets and shift behaviour
countries. Overproduction is also currently a and values towards fewer purchases in markets
where there is overconsumption. Engagement with
significant challenge, where production and
social media reduces the need for ‘novelty’ in products
stock systems are not accurately calibrated to and slows the pace of trends or creates different
demand and create waste streams of unsold responses to the need for newness (e.g. resale or rental
stock. approaches), while presenting alternative models of
status and success and recalibrating what is deemed
aspirational. Alternative options are provided for self-
Reduction of overconsumption can be achieved expression, such as customization or non-material
through a combination of increased textile goods.
utility and shifting norms and aspirations
Emotional longevity is a clear focus, with designs,
towards purchasing fewer items overall by product offers, surrounding narratives and additional
focusing on the social and emotional sides functions ensuring that products are relevant to
of demand. It should be noted that many consumer needs for longer. This is achieved by
creating timeless and consistently appealing products
regions and demographics do not have high
and offering modular, adaptable or customizable
levels of consumption, meaning that goals products. Emotional longevity also applies to multiple
around overconsumption would not apply but users (e.g. a design that resonates with the next
textile utility goals would still be relevant (e.g. purchaser and therefore creates an attractive resale
market). When emotional longevity is in place,
producing higher-quality items that last longer). physical longevity has a much more positive impact.
Overproduction can be reduced by optimizing Conversely, without emotional longevity, items with
demand and stock management processes, as high resource investment may be wasted on a product
that is quickly sent to landfill. Within repositioned
well as exploring new models of sourcing such
activities to focus on emotional longevity, it will
as on-demand production. be crucial that the approach of communicators
(including brands, the media, influencers and beyond)
is re-evaluated, and that they better understand their
role in encouraging customers to continually seek out
new products.
104 Roos et al (2019). Environmental assessment of Swedish clothing

consumption.
105 EMF (2017). A new textiles economy: Redesigning fashion’s future.
Each product is made with long use in mind, with long- which keeps the customer excited about using
46 lasting quality, except where products are deliberately the products for a long time and dissuades them
made for shorter lifespans (e.g., personal protective from additional purchases. They can examine and
equipment or performance products). Long-lasting eliminate consumer messaging that encourages
quality is achieved by using durable materials, quality overconsumption, and consider whether
manufacturing techniques, fast dyes and high- sustainability messaging is at odds with other
quality trimmings, as well as designing to ensure that messaging to consumers. Brands and retailers can
products can be repaired. also make important changes in their production
and buying processes, exploring alternative
Procurement options are optimized to eliminate sourcing models such as on-demand ordering,
overproduction, including refined stock management investing in improved stock management systems
and demand forecasting systems, testing of consumer and predictive models that reduce overproduction
response to products before production (e.g., and over-ordering, and commit to using responsible
through digital goods), stock management between solutions to address any remaining unsold stock,
retail locations, reconsidering returns processes, such as collaboration with resale platforms, other
on-demand production models. Responsible solutions forms of resale or reuse, or repurposing (retaining
are applied to any remaining unsold stock such as as much utility and value as possible).
resale, modification or responsible donations.
Policymakers can create policies and incentives that
THE ROLE OF DIFFERENT STAKEHOLDERS help to shift consumption patterns and disincentivize
overproduction, but should carefully consider potential
Communication and consumer engagement actors social and economic impacts of reduced production
can work to reframe the narrative using emotion- and consumption within or beyond their own borders,
driven and aspirational messages and images linked exploring domestic or trade policy instruments (e.g.
to identity and culture to ensure that the consumer preferential tariff systems, sustainability standards,
feels a gain rather than loss in reducing consumption. trade and investment facilitation measures, trade
This includes considering emotional realities such finance) or development funds that can be used to
as habits, decision fatigue and the primacy of other incentivize a just transition towards a sustainable
decision factors such as price, quality, and emotional and circular global value chain and allow production
dimensions such as style, trends and self-perception, regions to adjust their approach to support alternative
as well as challenging whether ‘consumption’ is
revenue streams from conventional production such
necessarily the only way to experience the social
as recycling or upcycling processes.
benefits and brand value of fashion and textiles. They
can carry out nuanced analyses of real consumer NGOs and technical organizations can engage
motivations while understanding that diversity consumers on shifting behaviour in a way that
across groups makes consumer behaviour difficult to
reduces impacts, and can guide brands, policymakers,
predict.
and other decision makers on a sustainable pathway
to reducing consumption and production that will not
Brands and retailers can engage and inform
create major development and livelihood challenges.
consumers to shift them to alternative,
They can also support the gathering and monitoring
non-consumptive ways to interact with the brand
of data on consumption patterns across different
while still generating revenue, such as experiences
or digital goods. They can ensure that products regions and demographics, consumer attitudes
produced and sold have not only physical durability and successful engagement strategies that lead to
but also emotional durability and adaptability, behaviour change.
Box 7: What is textile overconsumption? 47
There is not yet a clear, agreed definition on overconsumption. It links intrinsically to the question of what is
‘necessary’ or ‘unnecessary’ textile consumption. More work is needed to fully define what level of consumption
can be deemed ‘unnecessary.’ However, some clear dimensions will need to be considered, probably at the level
of each individual as well as at a societal level:
Functional necessity: Functionally necessary consumption would involve each individual having sufficient
textiles to a) keep them warm (or dry, or cool) for a range of typical activities in their relevant conditions, b)
provide physical protection where needed, c) allow for hygienic use of the product (e.g. enough items to allow
for cleaning and use concurrently) and d) allow for growth and other physical changes in people or spaces that
require new items. For the average person, this probably indicates a functional minimum number of items of
clothing, home textiles and other core functional textiles.
Social necessity: The social meaning of textiles can be much more extensive, and determining which ones
are necessary or unnecessary is challenging. Some core necessary social functions might be to a) keep them
covered based on the local requirement levels, and b) allow them to appropriately access key events such
as job interviews or formal ceremonies. Element a) can reasonably be included in the functional necessity
segment, while b) is also important to consider given that these social functions can be barred for those from
lower income or marginalized backgrounds due to clothing limitations. Therefore, consumption levels will
need to allow for sustainable and equitable access to these social goods, e.g. size, income and logistical access
to relevant products, potentially through rental models or other circular models. Additional peripheral social
dimensions of textiles (such as individual expression, group membership and social signalling) are not strictly
necessary but may at a minimum level be important for fulfilling individual social needs (for example, as seen
in Maslow's hierarchy of needs107).
Planetary sustainability:108 Unnecessary consumption can also be tested by looking at how scalable the
relevant levels of consumption would be. For example, if every person in the world were to have the same level
of consumption – and considering the existing impacts of other parts of the economy – what impacts would
this level of consumption have on planetary sustainability? This would be complex to fully calculate but can be
a useful estimate to imagine what level of consumption might be appropriate.
Based on these elements, it can be tentatively proposed that overconsumption can be defined as consumption
that is a) beyond the physical and core social needs of an individual (as defined above), b) primarily driven by
peripheral social needs (e.g., personal image and identify), and c) inconsistent with all other people on earth
having the same level of consumption while ensuring planetary sustainability.
More work is needed to refine these concepts; for example, to understand the degree of peripheral social need
that is reasonably included to support individuals, and whether these needs can be provided without requiring
additional consumption (e.g., through other methods of self-expression such as customization, adaptable
items, digital or non-physical goods, etc).
As previously stated, the discussion on overconsumption needs to be contextualized. Consumption differs

across income levels and countries, with one source109 finding that the GHG emissions of fashion consumption
of the richest 20 per cent of people across G20 countries are on average 20 times higher than the poorest 20
per cent. Living and consuming sustainably (broadly and within fashion specifically) must therefore differ by
context. Rather, everyone needs to imagine a world in which some people consume less, while those who
still need to meet basic needs consume in a way that is different from contemporary materialism.110 The IPCC
encourages the top 10% of income earners worldwide particularly to limit consumption and explore the good
life consistent with sustainable consumption.111
107 Maslow, A.H (1943). A Theory of Human Motivation. Psychological Review, 50 (4), 430-437.
108 UNEP (2021a). For people and planet: the United Nations Environment Programme strategy for 2022–2025 to tackle climate change, loss
of nature and pollution.
109 Hot or Cool Institute (2022). Unfit, Unfair, Unfashionable: Resizing Fashion for a Fair Consumption Space.
110 UNEP (2016). A framework for shaping sustainable lifestyles, determinants and strategies.
111 IPCC (2022). Climate Change 2022: Mitigation of Climate Change.
48 Box 8: Case studies – Consumption
Brand example: Black Friday has become a global shopping event, with companies from many sectors
encouraging the purchase of goods with discounted prices. On Black Friday in 2011, Patagonia took a stand
against this by taking out an ad in the New York Times with a photo of a jacket, and the headline ‘Don’t Buy
This Jacket.’ The brand encouraged consumers to commit to their Common Threads Initiative, focusing
on only buying what is necessary (‘reduce’), asking consumers to commit to repairing their products
when damaged (‘repair’), finding a new home for products and passing them on when no longer needed
(‘reuse’), keeping their products out of landfill and incineration by bringing back worn out Patagonia
products (‘recycle’), and finally together ‘reimagining’ a world where what is taken or extracted can be
replaced by nature. Studies since the advert was published suggest that consumers have had a complex
response to the messaging, with some exhibiting a reduced intention to buy the product while others with
a positive response to the transparency and intention of the message may ultimately be more likely to buy
from Patagonia. Many sources suggest that Patagonia’s sales rose 30 per cent after the advert had been
published, suggesting that anti-consumption messaging may need to take a sophisticated approach to
avoid rebound effects.1111
Innovator example: After the founder of Fixing Fashion participated in a two-year research project on
the impact of second-hand clothing trade in Ghana, and finding that many clothing donations ended in
landfill, Fixing Fashion was created to divert clothing from being donated and disposed of into landfill.
Fixing Fashion is a free open-source platform that aims to teach anyone how to care for, fix and upgrade
their clothes to extend their lifespan. Fixing Fashion has two aims: to teach people how to repair or upgrade
clothing that they already have through the Fixing Fashion Academy platform, and share pictures of
repaired items with the Fixing Fashion community to serve as inspiration for others.
The platform is designed using the same layout and appeal as e-commerce, but when users click on
an item they see the repair that has been done, how they can carry out the repair themselves, and the
equipment needed. A ‘store’ link on the platform is unclickable, with a red ‘stop’ sign showing when users
try to click on it.
Mention of an initiative, commercial company or product in this document does not imply endorsement by the United Nations
Environment Programme or the authors
111 Karpova, E (2016). Don't buy this jacket: Patagonia's daring campaign.
3.3 All textile products are designed to minimize 49

impacts and support circular models
According to a study from World Resources Institute (WRI) and the Apparel Impact Institute (Aii), designing and
producing products to increase material efficiency by 10 per cent would drive 24 Mt CO2e of emissions benefits by
2030.112 GFA and McKinsey estimate that reducing waste by 1-2 per cent in the transition from fibre to textiles, and in
cutting waste in the manufacturing stage would contribute 24 Mt CO2e of emission reduction benefits.113
Design must be informed and intentional to KEY ACTIONS

support sustainable and circular outcomes. Products are designed for reduced impact,
Products should be designed to consider the considering: the full impact of design choices,
relevant circular business model (e.g. durability including fabric choice, elements affecting reuse and
for rental), and with the assumption that recycling (such as design for disassembly), specific
dyes, finishes, and structures; and designs optimizing
they will be an input to closed loop recycling.
efficiency such as minimizing fabric cut-out.Design
Better data and feedback loops will be critical choices that extend lifetime such as modular and
to consider the knock-on effects of design at repairable systems are also considered. Designers
each stage of production, use phase and end and product developers are trained and have access to
design tools and impact analyses to support them in
of life. Mechanisms must be created to allow
making optimum choices. They set ambitious targets
designers and product developers to consider around design-reduced production and use-phase
the overall business model and impacts impact reductions, as well as a goal on textile utility
alongside commercial criteria. Minimizing for each product.
impacts means that a product would aim to
Products are designed for circularity, including
reduce environmental and social harms from design for longevity, recycling, or disassembly
production as much as possible, such as energy, (including modular designs, removable stitches/
water or chemical use, social and labour risks glue, or mono-material designs). Product design and
business models are developed together to ensure
and issues, or other challenges such as material
optimal outcomes; for example, design for a leasing-
efficiency. based model would require high physical durability to
last through frequent wears and cleaning. Design and
business model impacts are evaluated holistically to
ensure optimal outcomes.
Design stays relevant, and feedback loops are created

from both producers and consumers to ensure that
designs stay relevant and optimal. Producers gather data
on impacts from design decisions and feed these back
to designers and product developers, while consumer
outreach gathers data on consumer behaviour, garment
lifespan and design feedback to give designers and
product developers insights into emotional and physical
longevity.
112 WRI and Aii (2021). Roadmap to Net-Zero: Delivering Science-Based

Targets in the Apparel Sector.
Design ensures that ‘safe and recycled or renewable Producers and manufacturers can collaborate with
50 inputs’ are used in products with substances that brands to provide feedback on the repercussions of
are hazardous to human health, or the environment design decisions for site-level processing impacts and
designed out of systems, as they affect safe material provide alternative design and specification options
circulation. In line with the Ellen MacArthur with verified impact benefits. They can participate
Foundation Vision of a Circular Economy for Fashion, in efforts to gather and validate impact data to help
a prioritization should be made to source from inform design decisions in the future.
recycled or renewable inputs, decoupling production
from the consumption of finite resources.114 Policymakers can collaborate with technical experts
to create incentives for more sustainable and circular
THE ROLE OF DIFFERENT STAKEHOLDERS product design decisions, taking account of the
practicalities of effectively measuring and monitoring
Brands and retailers can engage with technical solutions and existing levels of relevant data by
experts to engage and train design and product consulting with industry and experts. Where data,
development teams for optimal outcomes, purchase methodologies or tools are not available, policymakers
decision and sourcing support tools, and support the can fund technical organizations to gather data to
funding of further data collection to allow for detailed support decision-making and validate outcomes.
analysis of impacts. Brands can design products to
favour lower-impact material, design for low-impact NGOs and technical organizations can work with
production processes, design for durability and brands, producers and other stakeholders to provide
recycling, and base design decisions on clear evidence training, data and tools that will support sustainable
of environmental and social benefits across the life and circular design and product development
cycle and value chain. Retailers can implement decisions, and where there are data gaps or a lack of
product-level criteria to select products to stock. suitable guidance, work to address these challenges
through collaborative data gathering and validation
Innovators and recyclers can explore inventive new projects. NGOs can also advocate for smaller or less
design solutions to support reduced impact and powerful stakeholders needs in supporting impact
increased benefits for consumers, and test innovations reduction through design decisions (e.g. where
at small scale and in different regions to understand producers find it impossible to reduce impacts due to
what will appeal to a range of people. They can design or specification decisions from customers).
spearhead design for circularity, and experiment with
smaller closed loop systems in their own production.
114 EMF (2020). Vision of a Circular Economy.

Box 9: Case studies - Design 51
NGO example: The Ellen MacArthur Foundation is a charity that promotes the application of circular economy
concepts to address major impacts of many industries, including climate change, biodiversity loss, waste
and pollution. The Foundation aims to inspire and empower the world’s designers and development teams,
encouraging them to transform the current polluting system by embracing circular economy principles in
everyday design and development decisions. Recognizing the huge potential of creatives, the Foundation
published ‘Circular Design for Fashion’ in 2021 as a reference and source of inspiration for the fashion industry,
focusing on what is achievable with significant industry shifts towards embracing circular design and circular
textile systems. The book includes industry case studies from over 80 different brands, designers and companies,
including Gucci, Gap, H&M, The Fabricant, thredUP and Vestiaire Collective.
Technical organization example: Design students and practitioners need access to training on circularity,
including understanding key concepts and the impacts of design decisions. Courses – both online and in-person
– are increasingly available. For example, UNEP's West Asia Sustainable Fashion Academy focuses on providing
free courses on sustainable textiles and fashion, and eco-design for students and designers. In India, the National
Institute of Fashion Technology – in partnership with UNEP – has a Management Development Programme on
‘Sustainable Business Strategies for Fashion’ aimed at mid- to senior-level managers and design professionals
that is both free and online.
Producers and manufacturers example: Circular design has been present in traditional clothing for centuries
and the practices, knowledge and materials used could serve as an inspiration for the modern textile sector. For
example, to design out textile waste, excess fabric used in Japanese kimonos is folded and sewn rather than cut.
In West Africa, wrapper cloths (also known as iro or pagne) are used for multiple purposes, including as a dress or
wrap accessory, and often in prints that resonate with cultural identity. Indian saris are embellished to increase
their value so that they can be handed down from generation to generation, and designed to be wrapped and
temporarily pinned to fit different body shapes and sizes.
Policymaker example: The European Union’s Strategy for Sustainable and Circular Textiles – released on 30
March 2022 – will require all textile products sold in the EU to be designed, produced, used and repurposed to be
circular by 2030. It covers how to close the loop of the life cycle of textile products, but also the chemicals used in
them, the recyclability of their fibres, the conditions in which they were produced, and how they are treated after
initial use. The strategy will be translated into national policy, and will include requirements such as:
• Mandatory eco-design of products, including improvements in quality and durability, as well as fibre choice
for recyclability and microfibre pollution prevention.
• Pollution reduction and prevention, including microplastic pollution measures for textile and whitegoods
sector stakeholders, as well as textile waste measures such as Extended Producer.
• Responsibility requirements to make brands responsible for reuse and recycling, and measures to stop
destruction of unsold or returned products.
• Transparency through the form of Digital Product Passport information on circularity and other
environmental aspects, as well as verifying green claims.
• Favourable taxation measures for the reuse and repair sector.
• Promoting upskilling and reskilling needed for the transition.
• Infrastructure, funding and investment for circular business models to reshape consumer purchasing habits.
• Public-private partnerships for research, innovation and investments.
In addition to EU-focused policy, the strategy includes a focus on engaging with other partners at the global,
regional and bilateral levels to ensure a shared vision of a circular textile sector.
Mention of an initiative, commercial company or product in this document does not imply endorsement by the United
Nations Environment Programme or the authors.
52 3.4 Better product care reduces impacts and

improves product durability
GFA and McKinsey found that reduced washing and drying in the consumer use phase could deliver 186 million tons of
reductions by 2030.115 Additional data is needed on the use phase of textiles, as it is not well studied, and many textile
brands exclude use-phase data from their calculations.
The use phase is challenging to address as KEY ACTIONS

consumers are diverse and global and there is Textile product care impacts are reduced through
a lack of data on impact and behaviour. Most technological innovation such as alternative cleaning
textile brands do not include the consumer use methods, efficiency and increased microfibre filter
phase in their impact evaluations and there capacity of white goods, or improved care products
such as alternative detergents or improved product
are almost no large initiatives working on the
care service models.
phase. However, the chemical, energy and
water implications of product care – alongside Clear recommendations, innovation and support are
provided to consumers to support better garment
microfibre issues and product durability – are
care for durability, alongside increased maintenance
crucial parts of the impact of the textiles sector elements such as repair services.
and must be addressed.
Behavioural norms are transformed through changes
in perception around product care, e.g. normalizing
more infrequent cleaning, less use of dryers or the
use of new technologies such as waterless cleaning.
A range of solutions and messages are developed to
reflect regional variation in current behaviour, values,
infrastructure and appropriate solutions.
THE ROLE OF DIFFERENT STAKEHOLDERS
Brands and retailers can engage consumers on

better product care behaviours and provide clearer
low-impact product care guidance to them, while
collaborating with other brands and retailers to
ensure consistency across the industry. They can
create mechanisms and incentives for product
maintenance and repair for their customers, and
shift customer perceptions of suitable product care
behaviour. They can collaborate across the industry
and support research into options and solutions
to reduce use-phase impacts such as microfibre
shedding. They can include use-phase impacts in
their impact analysis and sustainability goals, so
that consumer behaviour is within the scope of their
sustainability activities.

NGOs and technical organizations can provide

analyses of potential or proposed more sustainable Box 10: Case studies – Product care 53
and circular garment care options, including a
framework that brands and innovators can use to NGO example: Seeking to address the research
analyse potential actions and solutions. They can and knowledge gap in relation to microfibre
provide additional research on challenges such as shedding, the Microfibre Consortium launched
microfibre release to support other organizations the Microfibre 2030 Commitment as a coalition of
in taking appropriate action. They can facilitate signatory brands, testing labs and other industry
collaboration between stakeholders within a range stakeholders. This Commitment aims to align the
of connected industries (such as the white goods textiles sector surrounding the problem definition
and scope of work, understanding microfibre
industry) to drive solution creation that addresses
‘fragmentation’ and identifying steps to mitigate
typical silos of thinking. They can provide consumers
fragmentation. The Microfibre Consortium aims
with clear and evidence-based information on better
to launch a Microfibre Knowledge Hub in 2023 and
care approaches to reduce impacts and improve
the Microfibre Global Rating System in 2025 as
product durability.
industry resources to support in addressing this
issue. The Commitment has targets on the scale of
Innovators and recyclers can create innovative
industry adoption of mitigation actions by industry
product care solutions, such as new technology for
stakeholders and is aiming to achieve zero impact
cleaning, new and convenient product maintenance, from fibre fragmentation from textiles to the natural
or repair services, and new (low impact) fibres, environment by 2030.
finishes or processes that reduce the need for product
care or repair. They can explore solutions that work in Consumer engagement example: With an estimated
a variety of regions and contexts, and take account of 336,000 tons of used clothing discarded each year
local cultural needs and norms. in the UK, WRAP’s Love Your Clothes™ campaign
– which was launched in 2014 – exists to reduce
Communication and consumer engagement actors the impact of clothing on the environment. The
can engage consumers on alternative behaviours, campaign aims to change the way in which UK
solutions or technologies that will enable them to consumers buy, use and dispose of their clothing,
care for products more effectively and use them for with the end goal that purchasing circular
longer. They can also address some social norms and products and using circular business models will
stigmas around product care; for example, to address be normalized and citizens will feel empowered
over-washing for items that do not need it. to keep their clothing out of the bin. Through
industry partners and direct brand engagement,
Policymakers can support solutions that improve Love Your Clothes provides a trusted voice to
use-phase impacts and extend the useful life of a UK citizens, providing accurate knowledge and
product; for example, working with industry experts, guidance for adopting positive sustainable clothing
white goods companies, and wastewater treatment behaviours including longer product lifespan, lower
actors to address chemical and microfibre pollution temperature washing, etc. With digital campaigns
from washing of textile products through better reaching 25,000 organic views and 43,000 organic
engagements, its ‘Habits for Life’ campaign aims
filtration systems, or supporting product repair
to restore key life skills such as sewing, organizing
services through tax incentives or subsidies.
community workshops and working with the local
media and content creators to share campaign
Financial institutions can increase investment in
materials on social media.
innovative product cleaning solutions, and use a
credible mechanism for understanding the potential
benefits of new solutions. They can explore investor
activism to encourage companies to include Mention of an initiative, commercial company or product in this
document does not imply endorsement by the United Nations
use-phase impacts in their impact assessments and Environment Programme or the authors.
impact reduction plans.
54 3.5 Production processes are optimized through

resource efficiency and eliminating pollution,
waste, on-site fossil fuel use and the use of
chemicals of concern.
According to WRI and Aii, an energy efficiency improvement of 15 per cent per production unit in the processing phase
of the value chain has potential benefits of 64 Mt CO2e between 2019 and 2030. Further, a 50 per cent shift away from
on-site coal use for thermal energy in tier 1 and 2 (assuming a renewable alternative was available) would deliver a
reduction of 105 Mt CO2e by 2030.116
Textile production sites, especially wet KEY ACTIONS

processing sites use significant amounts of On-site textile production processes are optimized to
chemicals, water and fossil fuels like coal for eliminate air and water pollution and optimize water
high temperature processes. They require major use, through technologies like closed loop systems
support and investment to substitute machinery (e.g. on-site water treatment and chemical recovery,
systems that filter air emissions).
and apply circular production methods, in
particular the high number of sites that are SMEs Production by-product waste streams (such as
in developing countries. This is particularly fabric off-cuts, raw materials waste or waste from
effluent treatment) are safely managed, recycled and
important for sites beyond the tier 1 and 2 of large
repurposed wherever feasible to their maximum value
multinational brands, or production countries
and function. Hazardous waste is managed carefully
without strong government intervention on through qualified service providers and is put to
resource efficient and cleaner production. alternative use where feasible. Systems are created
to support factories in managing their non-hazardous
waste streams to optimize the utility from waste
products, such as the reuse or recycling of production
waste.
Resource efficiency measures are implemented to

reduce energy, waste and chemical waste, improve
processes and optimize the whole production system.
Energy efficiency can provide significant cost benefits
for all producers in tiers 1-3, and can particularly
benefit MSMEs.
On-site fossil fuels are eliminated in favour of

renewable energy, such as replacing fossil sources
for high-heat and backup generators for wet
processing, producer and manufacturing sites. Viable
alternatives are found – such as second-generation
verified biofuel sources – or machinery is switched to
allow for new technical solutions such as lower heat
processes, blended energy processes or hydrogen.

Chemical inputs to production are limited, and example, phasing out fossil fuel subsidies, providing
chemicals are routinely recycled within production finance for on-site improvements, or providing 55
systems as long as they do not pose a risk to workers tax incentives on improved technologies. They
and the environment. Chemicals of concern are not can ensure the effective implementation of policy,
used, sustainable alternatives are found, and chemical (e.g. increasing penalties for violations, increasing
inventories are available. Information on chemicals resources for monitoring and enforcement, stronger
used in products is made available to protect oversight to avoid corruption) and that policy changes
workers and consumers, inform risk evaluations and are predictable and long term.
ultimately to increase transparency for circularity,
including information by chemicals suppliers. Financial institutions can identify root causes of
credit and funding barriers and create solutions for
THE ROLE OF DIFFERENT STAKEHOLDERS Global South regions, (M)SMEs, early-stage innovation,
solutions in under-funded investment areas, female or
Producers and manufacturers can prioritize on-site ethnic minority-led enterprises, and other key groups
improvements and innovation for environmental that struggle to access funding. They can create new
impact reduction in production, and engage with approaches to funding, including blended finance,
third-party experts to analyse the most effective and system-level aggregation of financial needs, digital
financially viable on-site changes and investments. solutions, alternative mechanisms for demonstrating
They can identify feasible funding sources to support creditworthiness, smaller scale funding appropriate for
on-site improvements and ensure performance data developing country contexts, and early seed funding.
is shared with relevant stakeholders and consider
certification options. They can engage with value NGOs and technical organizations can encourage
chain partners to trace impacts and risks and devise companies to set ambitious targets and monitor and
targeted actions to address them, and substantiate report their progress through credible mechanisms, and
sustainability claims for raw materials and products. support policymakers to implement ambitious policy
They can join collective efforts and programmes to and address challenges. They can set a clear timeline
improve industry practices and address system-level for industry-level change and monitor progress
barriers to progress. against it. They can provide technical assistance and
capacity-building to those that most need it, e.g. SMEs
Brands and retailers can provide support and in developing countries, and create programmes to
incentives to producers including third-party technical support the transformation in key regions.
and financial capacity and programmes and relevant
commercial terms, as well as exploring effective
commercial incentives for supply chain partners. They
can proactively fund or establish industry collaboration
programmes that increase the uptake of sustainable
practices for producers globally. They can set their
own goals around reduction of supply chain impact
and work to implement the required solutions with
producers - directly or indirectly monitoring impact
reduction progress using agreed industry metrics and
data-collection methods.
Policymakers can identify gaps and opportunities in

policy for improved practices in collaboration with
expert advisers and stakeholder input, and implement
further regulation, including wastewater treatment
and water use limits, limits for site-level GHG and air
pollution emissions, limits and process requirements
on hazardous and conventional waste, and limits or
bans on chemicals of concern. They can optimize
positive and negative incentives for producers; for
56 Box 11: Case studies – Production processes
Tier 1 example: The Hirdaramani Group is a tier-1

CMT business, headquartered in Sri Lanka. It
has set 2025 targets in line with UN Sustainable
Development Goals, seeking to achieve
‘conservation goals’ in 50 per cent absolute GHG
savings, 80 per cent of all raw materials used to
be ‘certified sustainable’, 50 per cent reduction
in industrial freshwater consumption, and 0 per
cent waste to landfill. Further, the Hirdaramani
Group has achieved net zero for GHG emissions
from energy across its manufacturing in Sri
Lanka and has launched rooftop solar projects
in Sri Lanka and Viet Nam. Increasingly,
manufacturers are developing such commitments
and taking action to publicly share their progress
to date via sustainability reporting and website
communications.
Tier 2 example: Yee Chain International Co., Ltd

was founded in Taiwan, Province of China, in 1997
and is a tier-2 performance fabric manufacturer
for mostly sports footwear brands. They focus
on developing new and circular textiles in
collaboration with clients (who Yee Chain
refers to as ‘brand partners’). After identifying
and analysing their environmental hotspots
(including material waste streams, water, energy
and chemical use), Yee Chain collaborates with
clients to share information on their hotspots and
co-create solutions to them. Yee Chain identified
the issue of fabric waste caused by inefficient
product development and purchasing practices as
a priority. Fabric waste is considered an ‘invisible’
waste, as it is not detected or measured in most
audits. Together with clients, they identified
solutions including collaboration on material
choice, product design and better internal brand
alignment on solutions that were not measured
by existing brand sustainability KPIs. Using
this approach, they achieved their initial goal
of reducing ‘invisible’ textile waste by 5 per cent
(over 6,000 kg), and now work internally to reuse
excess textiles for different orders. They are also
incorporating client collaboration on hotspots
systematically into their operations, including
piloting solutions and developing principles
to guide clients on how to best enable supplier
partners to implement changes to avoid generating
waste from the product development phase.
Mention of an initiative, commercial company or product in this

Environment Programme or the authors.
3.6 A just transition with skilled, safe and 57

empowered people takes place and social issues
in the textile value chain are addressed
ILO estimates that transitioning towards a circular economy across sectors could create a net total of 6 million new jobs
by 2030, compared to a business-as-usual scenario.117
The successful implementation of circular and KEY ACTIONS

sustainable solutions requires skilled, safe Marginalized communities are included in planning
and empowered people. The social impacts of for the transformation of the textile industry to
the textile sector have long been the subject of ensure that approaches take account of the needs of
neglected consumer bases, affected production region
attention from brands, media, consumers, and
communities or groups with links to key issues.
NGOs. Further work is needed to address the Consultation is built into all planning on sustainable
social impacts of the linear system while also and circular textiles, particularly with stakeholders
ensuring those are not replicated in a circular with more influence such as policymakers, brands,
trade unions, employers’ organizations and financial
value chain. Delivering effective plans for a institutions. This will typically also include many
sustainable and circular textile value chain informal workers, of which there are many in the
requires including and collaborating with textile industry.
previously marginalized communities (such as
Any negative social trade-offs of circular and
women, young people, migrants, older people, sustainable approaches are addressed through
indigenous and tribal peoples, persons affected identifying and recognizing potential inequities and
losses from specific interventions, compensations
by HIV or AIDS, persons with disabilities,
such as alternative job creation and training for
domestic workers and subsistence farmers), and displaced workers, and creating a mechanism
less-developed countries to avoid significant for interregional compensation, and supports for
trade-offs and negative consequences. unavoidable trade-offs. Value chain stakeholders
conduct suitable due diligence to prevent, mitigate
and account for potential negative trade-offs from
transition.
Decent work issues are addressed, such as child

labour, living wages, migrant labour, forced labour,
working hours, social protection and safety.
Strategies to ensure the transition to formalization of
new business models is put in place and an enabling
environment for sustainable enterprises is developed.
Existing international labour standards are applied
throughout the textile value chain, and all workers’
rights are protected through concerned action
by governments, employers' organizations, and
trade unions. The rights of those in the value chain
(including new value chain actors such as collectors
of recycled materials, repair, and resale businesses)
are promoted and applied through due diligence
mechanisms.
117 ILO (2018). World Employment Social Outlook 2018: Greening with Jobs.
Equity is integrated as a key principle to guide the Policymakers can identify gaps and opportunities for
58 transition by – for example – considering outcomes implementing improved social and labour practices
for workers in sustainable and circular model design and protections within their regions, and increase
and evaluation, as well as having a focus on creating standards on wages and working hours, as well as
decent jobs and fair systems. social and labour protections. They can optimize
incentives for improvements as well as ensuring the
THE ROLE OF DIFFERENT STAKEHOLDERS implementation of policy is effective (e.g. increasing
penalties for violations, increasing resources for
Producers and manufacturers can work with external monitoring and enforcement, stronger oversight
experts and their customers to implement best-in-
to avoid corruption) and that policy changes are
class social and labour standards on-site and pay
predictable and long term. They can ensure that
workers a living wage. They can implement health and
marginalized groups and communities are actively
safety protections, training, rights, and protections
consulted on policy decisions and strategies, and that
for vulnerable workers, and encourage active worker
sustainability solutions are designed in collaboration
engagement and consultation on key decisions and
with those who are likely to be affected by them.
planning.
NGOs and technical organizations can encourage
Brands and retailers can provide support and
companies all along the value chain to set ambitious
incentives to producers to implement best practice
social and labour standards and targets, and
social standards on-site, and engage policymakers
monitor and report their progress through credible
and expert organizations in relevant regions to
mechanisms. They can engage policymakers to
support a system-wide transition to better practices,
implement ambitious social policy and address
including a clear understanding of living wage
challenges in social inclusion and protections. They
requirements, strengthening legal protections for
can provide technical assistance and capacity-
workers, and gathering relevant data to support
building on improved social practices.
the analysis of challenges and progress. They can
ensure that social and equity issues are considered Innovators and recyclers can ensure that social risks
during all strategic company decisions, and that a and impacts are carefully considered when systems
wide range of appropriate stakeholders are consulted
or solutions are created (including the significant risks
on business and sustainability strategies. They can
of social and labour issues within the waste collection
ensure that they carry out a due diligence or risk
workstream). They can also carefully consider whether
assessment process at least annually to ensure that
solutions are appropriate for their target audiences
social risks are analysed and understood. Where
and as inclusive as possible to different groups (e.g.
possible, brands measure the impact of their business
that lower-income actors are not systematically
models on workers to inform their current and future
barred from innovative sustainability solutions), and
interventions.
whether their solutions could potentially create social
negatives for communities worldwide. They may
Communication and consumer engagement actors
can raise awareness of social and labour issues need to work with a technical third party to identify
within the textile sector, its intersectionality and its these challenges, or systematically work through a
role in climate justice, highlighting the lives of factory due diligence approach.
workers, farmers and affected communities as well
as emphasizing the important role of inclusivity and
diversity in narratives around the textile and fashion
industries.
Box 12: Case studies – Just transition and 59

social/labour improvements
NGO example: Plastics for Change estimates that

there are more than 10 million informal waste
collectors worldwide who are marginalized, live
in poverty and do not have formalized, regular
employment. Many of these waste collectors
collect plastic waste, which can be an input for the
textile industry’s demand for recycled polyester
yarn and fabric. Plastics for Change is seeking
to empower these informal waste collectors
and create a market platform for brands to
source FairTrade verified recycled plastic. Waste
collectors benefit from a fair and consistent
price, improved sanitary working conditions and
more stable income for their families. Plastics
for Change is committed to a just transition to
a circular economy, and is supporting those at
most risk to participate in and benefit from this
transition.
UN agency example: Under the Decent Work in

Garment Supply Chains Asia project, the ILO has
release a "Just Transition Toolkit." The toolkit
looks at how to drive behaviours and practices
throughout the textile and garment supply chain
in Asia, and provides specific advice on just
transition in the garment sector to social partners
and industry stakeholder groups including
governments and policy actors, enterprises and
workers. The toolkit comprises reports, briefs,
highlights, videos and infographics on best
practice environmental regulation and policy
settings, eco-innovation processes and barriers
to uptake, multi-stakeholder initiatives, and just
transition in the sector.

Sustainability and circularity in the textile value chain — Global stocktaking
60 3.7 Textile raw materials are shifted to

sustainable or recycled sources
WRI and Aii have estimated that material substitution could deliver 39 million tons of CO2e reduction by 2030,118 while
GFA and McKinsey have estimated that decarbonized material production could reduce annual GHG emissions by 205
million tons.119
While the aim is to reduce the volume of raw KEY ACTIONS

materials needed through reduced consumption, Cultivation of textile raw materials is sustainable,
circular business models and improved design with production addressing and eliminating pressure
and production efficiency, there will remain a on water, biodiversity, hazardous chemicals and
need for raw materials (both recycled and more energy through certification, improved cultivation
practices or alternative systems such as regenerative
sustainable virgin materials). Since this part
farming. This is achieved by scaling existing and new
of the value chain has a significant degree of low-impact production practices, creating incentives
impact, textile raw materials need to urgently for farmers and producers, and providing technical
shift towards sustainable and recycled sources. and policy support for education and investment
in improved on-site technologies (such as solar
Rapidly scaling new production and cultivation
irrigation, laser levelling or mechanization).
practices is a priority, as well as supporting the
development of fibre-to-fibre recycling capacity Where possible, fibre-to-fibre recycling is scaled in
alongside the infrastructure in section 3.8. It is an efficient and safe way, using textiles fibre to close
the loop on production. Significant challenges such as
crucial that all input raw materials are converted
fibre blends and information tracking are addressed
to more sustainable sources regardless of through whole value chain solutions, such as design
whether they are naturally derived, regenerated, for recycling and phasing out of hazardous chemicals.
or synthetic materials. Actions focusing on one Sites in the textile value chain install new equipment
and capacity that allow them to take part in fibre-to-
material only, such as an overarching phase-
fibre recycling solutions.
out of synthetic fibres, could cause unintended
negative consequences for workers, land use, THE ROLE OF DIFFERENT STAKEHOLDERS
biodiversity, etc. Industry tools are available to
Producers can consider taking on a voluntary
help stakeholders navigate materials options certification scheme that validates and rewards best
and the nuance of alternatives available. practices. They can engage with governmental or NGO/
technical organizations to understand and implement
available better practices for farming, forestry, or
extractives, or join collective efforts and programmes
to improve industry practices and address system-
level barriers to prioritize on-site improvements
and innovation for environmental impact reduction
in production. They can engage with value chain
partners to trace impacts and risks and devise
targeted actions to address them, and substantiate
sustainability claims for raw materials and products.
They can identify feasible funding sources to support
on-site improvements, potentially through industry-
level collaboration or through government finance.
118 W
RI and Aii (2021). Roadmap to Net-Zero: Delivering Science-Based They can also ensure that performance data is shared
with relevant stakeholders. practices is mainstreamed , and implement incentives

for fibre-to-fibre recycling. 61
Brands and retailers can carry out a risk analysis of
raw material impacts and create a sourcing strategy Innovators and recyclers can ensure innovation
that prioritizes key environmental and social actions around raw materials continues, particularly where
based on the degree of harm along the life cycle. evidence is provided on impact reduction benefits.
They can monitor impacts and impact reduction They can create solutions in particular to support
progress using agreed industry metrics and data- closed loop recycling of textile fibres, in terms of both
collection methods. They can shift their sourcing recycling technology and mechanisms to support
strategy by specifying lower-impact raw materials the collection, sorting and processing of used textile
including credibly certified voluntary schemes and materials. They can work to scale viable solutions
close-loop recycled products. They can financially and ensure that solutions are designed to be scalable,
support the establishment of effective certification particularly considering the volumes and locations
and best practice implementation programmes, and of materials needed to support a variety of producers
work with policymakers and technical organizations and brands.
globally and in key regions to make sure that farming,
forestry and extractives industries are moving Financial institutions can support funding for
towards sustainable production. They can invest in innovation in raw materials, not only for innovative
programmes and schemes that support the creation fibres but also for technical solutions, improved
of recycled textiles fibres, particularly for fibre-to-fibre practices and recycling solutions in existing materials.
recycling options. They can implement clear process for project
assessment as soon as possible in the development
Policymakers can ensure that legal structures process, and use appropriate and effective metrics
effectively regulate production impacts and (developed by experts) to understand the potential
incentivize improved practices, particularly sustainability benefits and real scalability of solutions
considering water allocation permits, use limits or as they invest in them.
bans on chemicals of concern, incentives for on-site
renewables, incentives for biodiversity protections, NGOs and technical organizations can work with
social and labour best practices and overall best farming groups, foresters and extractives actors
practice requirements for farming, forestry or to share best practices, and provide technical and
extractives industries. Policymakers can ensure that financial support for implementation. They can
practices are effectively monitored and enforced, and support the development of credible and efficient
that there are no unintended negative consequences voluntary certification, and work with policymakers
from other policy areas (e.g. incentives for the use of to implement better practices in agriculture, forestry
fossil fuels). They can also invest in capacity-building and extractives.
resources for farmers, foresters and the extractives
industry to ensure that information on optimized
62 Box 13: Case studies – Raw materials
Producer example: Chetna Organic is an organic cotton co-op group in India supporting over 15,000 cotton
farming families across more than 400 Indian villages in Maharashtra, Odisha and Telangana. Chetna
Organic has partnered with Gallant International, a US-based company and their factory partners to scale
the certification of Chetna Organic farms to Regenerative Organic Certified (ROC), across 3,500 acres in
2021. The adoption of the more holistic regenerative organic approach was praised by both Chetna Organic
and Gallant, supporting smallholder cotton farmers while demonstrating that non-GMO cotton can be
grown in India without synthetic chemicals and pesticides. Gallant now offers woven shirts, knitwear,
bags and accessories made with ROC cotton and with direct traceability back to Chetna Organic co-ops.
Innovator and recycler examples: The European Union defines industrial symbiosis as “the process by
which wastes or by-products of an industry or industrial process become raw materials for another.”120
Textile raw material producers are implementing industrial symbiosis processes to develop innovative
textile raw materials in partnership with other sectors, predominantly with the food industry. One example
is Pine Kazi, a Kenyan social business that converts pineapple waste that would otherwise have been
thrown into landfill or burned into shoes and bags. In addition to converting resources from waste, this
process has a lower environmental impact than cow leather, and supports local communities by creating
an additional income stream. The company won the African Development Bank’s Fashionomics Africa
Contest in 2021.121
Another material applying this approach is Orange Fiber, which uses waste from citrus juice production,
and extracts cellulose to produce fibre and fabrics. Orange Fiber was one of companies selected for the
Fashion For Good Plug & Play Accelerator programme, and it has since launched collaborations with
Lenzing to develop the first TENCEL branded lyocell material using orange pulp and wood sources.
Financial institution example: Closed Loop Partners (CLP) is a New York-based investment firm seeking to
catalyse the creation of circular supply chains, comprised of venture capital, growth equity, private equity
and catalytic capital, and an innovation centre focused on building the circular economy. For the textile
industry specifically, CLP invests in early-stage growth companies engaged in circular fashion, material
science, supply chain technology, and food and agriculture technology. This includes Browzwear, a 3D
fashion design, development and merchandising software platform, The Renewal Workshop, an apparel
refurbishment service for products with minor damages enabling companies to sell previously unsalable
inventory, EVRNU, a fibre technology company converting garment waste into high-quality recycled fibre,
as well as in multiple molecular recycling technology organizations, including JEPLAN, a depolymerization
technology company leveraging large quantities of discarded clothing into their molecular recycling
technology process.
Mention of an initiative, commercial company or product in this document does not imply endorsement by the United Nations Environment
Programme or the authors.
120 European Cluster Collaboration Platform (n.d.) Industrial symbiosis toolkit.

121 Fashionomics Africa (2021). Pine Kazi: Turning Waste into Trendy Footwear.
3.8 Significant improvements in shared 63

infrastructure are made globally for a
sustainable and circular textile value chain
WRI and Aii estimate that a complete shift to renewable energy in tiers 1-3 could result in 424 Mt of reduced GHG
emissions,122 while GFA and McKinsey estimate that the same outcome will result in 653 Mt of reduced GHG emissions.123
Significant investment in shared infrastructure KEY ACTIONS

is needed across the textile value chain – in Renewable energy infrastructure is rolled out across
both consumption and production regions the whole value chain and countries significantly
– to support a transformation to sustainable reduce GHG emissions. Priorities include increasing
and circular systems, aligned with UNEP's renewable energy capacity in national grids, solutions
that include private sector purchases of renewable
International Good Practice Principles
energy (such as power purchase agreements), and
for Sustainable Infrastructure. 124
Without decentralized shared renewable infrastructure (for
investment in shared infrastructure, including example rural microgrids or captive renewable energy
renewable energy, waste management and water power for industrial parks) to ensure that users of
shared power infrastructure can rapidly transition to
treatment individual actors are limited in their
renewable energy. A focus is placed on wind, solar and
potential to contribute. On-site investment for wave technology, with minimal environmental and
producers and raw materials actors is addressed social trade-offs, with hydropower considered only
in sections 3.5 and 3.7. where there is low environmental and social impact.
Waste collection and processing capacity is

installed in consumption and production countries,
ensuring that both pre- and post-consumer waste
are effectively managed. This includes collecting and
sorting mechanisms (such as road-side collection for
consumers, collection from factories for pre-consumer
waste, sorting infrastructure to separate material
types, and managing data on inputs), as well as
processing and recycling infrastructure that reflects
the waste hierarchy (such as reuse and upcycling
systems, and then recycling technologies for
separating blends, mechanical recycling mechanisms
or low-impact chemical recycling mechanisms).
Infrastructure is implemented globally to support
equitable development, waste capture and revenue
from recycling solutions.
Water treatment infrastructure is strengthened in

both production and consumption countries to ensure
that key pollutants are addressed and challenges with
municipal and industry effluent treatment plants
are resolved. In production countries, industrial
effluent treatment infrastructure is implemented and
improved (particularly in industrial park or cluster
122 WRI (2021). Roadmap to Net Zero: Delivering Science-Based Targets locations) to allow for water reuse, the elimination
in the Apparel Sector.
123 McKinsey and GFA (2020). Fashion on Climate. of wastewater emissions and process microfibre
124 UNEP (2021b). International Good Practice Principles for Sustainable
Infrastructure.
shedding, and support recapture of chemical inputs

64 where feasible. Improved wastewater processing in Box 14: Case studies - Infrastructure
consumption regions improves filtering capacity
and eliminates wastewater and microfibre emissions Policymaker example:
from product use.
The City of Copenhagen has joined forces with five
THE ROLE OF DIFFERENT STAKEHOLDERS partners to test and showcase a transparent and
circular model for post-consumer textile systems,
Policymakers can increase public investment in including all of the processes and infrastructure
shared infrastructure such as renewable energy needed to make it function. The partners have
assets, shared wastewater treatment facilities and collaborated to provide systems for an entire
textile collection and recycling. They can support circular value chain: collection of household
private sector investment in required infrastructure textiles, sorting, reuse (repair, redesign, resell),
through effective financial and planning process recycling and production of new yarns/fabrics,
and support, and remove barriers to investment textile supply and procurement. The city is also
in infrastructure such as legal barriers, corruption partnering with SOEX and I:CO spirit to develop
or inadequate technical support. They can work a deep understanding of post-consumer textile
through innovative financial models – such as PPPs compositions and recycling options and the
or green bonds – to provide funding for infrastructure potential for automatic sorting. Initial findings
investment. from this partnership indicate that the lack of
standards for the products coming out of sorting
Financial institutions can create internal operations for non-wearables hampers the
organizational strategies, knowledge and capacity establishment of a well-functioning market, and
on sustainable infrastructure investment. They that there is a need to develop industry standards
can create goals and embed these goals and for sorted and baled recyclable textile qualities.
responsibilities in senior-level discussions and
their risk policies, product development and client Technical organization example:
engagement. They can create new approaches to
funding, including blended finance, system-level The International Finance Corporation (IFC)
aggregation of financial needs, digital solutions, Green Bond Technical Assistance Program
alternative mechanisms for demonstrating (GB-TAP) aims to stimulate the supply of green
creditworthiness, smaller scale funding appropriate bonds in emerging markets by creating and
for developing country contexts, and early seed disseminating best practice and knowledge as
funding. global public goods. It has created a Green Bond
Handbook to provide a step-by-step technical
guideline to potential issuers, including
governmental organizations looking to provide
investment in infrastructure improvements.
It particularly focuses on structuring a Green
Bond in compliance with the International
Capital Market Association (ICMA) Green Bond
Principles.

3.9 All textile waste is diverted from avoidable 65

landfill and incineration
GFA and McKinsey estimate that increased recycling and collection of textile waste could drive annual CO2 emissions
abatement of around 18 million tons, reducing incineration and landfill and moving the industry towards a closed loop
system.125
Significant shifts are needed to divert waste from KEY ACTIONS

landfill and incineration. Consumer behaviour Textile waste is diverted from landfill globally and
and global dynamics need to shift to avoid the managed responsibly to supply fibre-to-fibre recycling
need for landfill and incineration; for example, or other optimized recycling and reuse purposes.
through circular solutions that reduce waste Consumer behaviour in particular is adjusted so that
textile products are diverted according to the waste
outputs. Solutions are needed to avoid shifting
hierarchy,127 prioritizing reuse and resale, followed by
responsibility for waste disposal, such as trade recycling and repurposing. Global trade dynamics are
of used textiles to locations that cannot use examined and countries receiving waste they cannot
them and lack the infrastructure to adequately process are supported to create effective solutions
for recycling, recovery, enact other safe solutions or
process textile waste.126 Banning incineration for
redirect and eliminate waste flows.
non-contaminated products (including unsold
stock) could also ensure that textile resources Textile incineration or destruction is prevented
are not wasted and are kept in use longer. except in cases of extreme contamination. Textiles are
reused, recycled or repurposed instead of incinerated
or destroyed. Where contamination makes products
non-viable for further use, disposal is carried out in
line with Basel Convention requirements and the
Human Rights Council Guidelines for good practices
for disposal of toxics. Where hazardous waste can be
repurposed in an environmentally safe manner that
is within all legal restrictions and best practices on
disposal, this should be explored.
THE ROLE OF DIFFERENT STAKEHOLDERS
Brands and retailers can support the development of

effective textile waste management systems, through
funding to innovative solutions, engaging consumers
on how to manage textile waste, and potentially
offering recycling or reuse solutions directly as a
medium-term solution. They can also ensure that
they have a robust policy on dealing with unsold stock,
counterfeit stock and other common situations where
they are required to directly manage potential waste
streams, so that incineration and landfill are not seen

126 BBC News (2021). Fast fashion: The dumping ground for unwanted
clothes.
127 UNEP (2013). Global Environment Outlook: Healthy Planet, Healthy
People.
as solutions to these issues. Instead, they can create

66 collaborations with other stakeholders to assess and Box 15: Case studies – Waste management
redirect these materials, and provide suitable and
safe disposal methods for those materials that are too NGO, brand and producer example: The Circular
contaminated to be processed any other way. Fashion Partnership is a sector-wide collaboration
by the Global Fashion Agenda with brands,
Innovators and recyclers can provide better waste manufacturers and recycling organizations
management solutions including solutions that divert working together in circular commercial
from landfill or incineration for brands, consumers collaborations to valorise the magnitude of
and potentially for municipal waste disposal post-industrial textile waste in manufacturing
organizations. They can work with experts to monitor regions. This partnership has supported the
the flow and availability of textiles resources, and further development of the textiles recycling
leverage market analysis to identify opportunities industry in Bangladesh, creating new recycled
for new solutions to address particularly important textile raw materials for new products and is
segments of the market. They can explore suitable currently being established in Cambodia and Viet
solutions for handling and even repurposing Nam. The partnership also engages regulators,
hazardous waste streams, in collaboration with other as well as investors to address the current
industries and experts on safety and relevant legal barriers of scaling waste collection, sorting and
requirements. recycling infrastructures to capture economic
and sustainability opportunities and proactively
Communication and consumer engagement actors shape the circular textiles economy from a
can engage consumers on alternative behaviours, manufacturing perspective. The programme aims
solutions or technologies that will enable them to decrease virgin material use, increase uptake of
to avoid sending items to landfill, with a focus on recycled materials, and provide a robust business
keeping items in use as long as possible, and ensure case for expansion to more countries.
that management of used products away from landfill
becomes the norm. Policymaker example: In 2020, France
implemented an anti-waste and circular economy
Policymakers can create incentives for companies bill, aiming to eliminate waste and pollution from
to divert from landfill, including extended producer the design stage and transform the system of
responsibility (EPR) or other tax schemes that production, distribution and consumption from
are focused on encouraging a shift in behaviour a linear to a circular economic model. As part of
of brands and retailers towards circular models, this bill, new regulations are coming into place
designs and solutions, bans on specific behaviour or to ensure that fashion and textile companies
incentives towards innovative solution development. provide consumers with information revealing
They can engage consumers on behaviour change, the environmental impact of products sold, and
particularly if in combination with improved textile to prohibit the destruction of new, unsold textile
waste handling solutions both from the public or merchandise except where they represent a
private sector side. They can support effective waste health hazard. According to the French Agency
handling processes through aligned regional or global for Ecological Transition, unsold textiles stock was
mechanisms for identifying materials, inputs and worth 1.7 billion euros in France in 2019, equivalent
other key sorting information, set regulations on the to 4.1 per cent of the industry’s turnover. 5 per cent
destruction of unsold goods, and clearly regulate the of this unsold stock was destroyed, with 23 per cent
acceptable conditions for management of hazardous sold at a discount through other organizations,
products where incineration is disincentivized. 20 per cent donated to charities, and 10 per cent
upcycled or recycled. Those currently destroying
unsold stock for whatever reason will now be
obligated to use one of these other options, or to
find innovative solutions for unsold stock that
does not result in its destruction.

4
In particular, for circularity, there are no identified,
68 open access, global structures to support coordination
between policymakers, brands, and other key
stakeholders on the key challenges of the transition
to circular systems, or set and monitor plans. There is
a need for a coordination mechanism to give cohesion
and a focal point to support the delivery of existing
What is needed work and encourage other actors to participate and

address further gaps.
to deliver the The goal of such coordination is to help facilitate

dialogue between actors, setting and monitoring
building blocks?
targets and plans, support the development of data
and decision support tools to help evaluate progress,
and coordinate existing action on circularity. The aim
is not to replicate existing efforts but rather to provide
Based on analysis of existing a forum for existing activities and collaboration on
goals, initiatives, and activities, addressing gaps. Close coordination with existing
initiatives will help drive action, recognizing and
and acknowledging the many connecting to existing mechanisms on ‘conventional’
organizations already working to sustainability.
convene action at global level on
How is UNEP currently supporting coordination?
specific areas of ‘conventional’
sustainability (i.e. not circularity) UNEP convenes an expert community on sustainability and
circularity in the textile value chain with over 850 members
in the textile value, certain
from all regions. The objective of the expert community
specific additional structures is to share knowledge and foster collaboration, including
would support the transition to a through a repository of relevant initiatives and publications,
and regular newsletter updates. Members of this expert
sustainable and circular textile community may also be called on for their insights and
value chain at a global level. guidance, as was the case in the crucial consultation
process of this report.
How will UNEP further support coordination?
UNEP is well placed to deliver global coordination – jointly

with its partners – under its Textile Flagship Initiative.
UNEP’s Textile Flagship Initiative aims to trigger system
change to accelerate the just transition towards a
sustainable and circular textile value chain, as outlined in
this report. The initiative has a strong partnership approach
to avoid duplication and support existing initiatives to scale
the impact of their work.
Gaps that coordination efforts must address are

outlined below. Working to close these gaps will support
stakeholders across the value chain to collaborate to
deliver both on their own activities and shared goals.
Dialogue should also be facilitated between public

Shared global industry targets and private sector to ensure that approaches are 69
coordinated, and the complexities of private sector
A set of agreed industry targets should be put forward progress requirements are shared with policymakers.
to set a clear agenda and effectively monitor progress.
Where targets already exist, these should be explicitly How is UNEP currently supporting policymakers
recognized with information on how they are being to create strategies on sustainable and circular
monitored. Where gaps exist, or targets can be made more textiles?
specific or measurable, stakeholders should collaborate
to add or clarify targets, or supporting organizations There are existing structures that can be leveraged to
should set these targets and commit to measuring them. support policymakers on setting and implementing
Existing assessment and reporting mechanisms should strategies for sustainable and circular textiles: The United
be leveraged wherever possible to streamline monitoring Nations Environment Assembly is the world’s highest-level
and reporting at the industry level. decision-making body on the environment, with a universal
membership of all 193 Member States. The Assembly
How is UNEP currently supporting the meets biennially to set priorities for global environmental
development of aligned industry targets? policies and develop international environmental law.
Through its ministerial declaration and resolutions, the
The Global Fashion Agenda is working to identify and align Assembly provides leadership, catalyses intergovernmental
the industry around directional targets under the Fashion action on the environment, and may serve as an appropriate
CEO Agenda priority framework. In this context, UNEP is forum for high-level policy alignment. In response to
partnering with GFA on a global consultation that seeks to UNEA resolution 4/1,128 UNEP is also working, through
identify and converge existing industry aligned targets as its EU-funded InTex project, to provide evidence of the
well as formulating new targets where targets are currently environmental and socioeconomic impacts of the different
missing to provide an industry aligned route of travel in sustainable economic models in the textile value chain, to
line with the building blocks and priorities set out in this help bridge the science-policy gap and raise awareness on
report, as well as UNFCCC 1.5°C pathway and GFA’s vision the potential impacts of adopting and fostering innovative
of a net-positive fashion industry that gives back more to sustainable and circular policies and practices.
society, the natural world and the economy than it takes
The Global Alliance on Circular Economy and Resource
out. This includes the development of circularity targets.
Efficiency (GACERE)129 is an alliance of governments
working together on and advocating for a global just circular
economy transition and more sustainable management of
Cohesive global policy response and formalized natural resources at the political level and in multilateral
measurable national plans forums. One of its working areas is to take forward and
support sectoral partnerships for the circular economy
Policymakers in key production and consumption transition to disseminate best practices while avoiding
countries should be facilitated to identify and address duplication.
synergies and geographical trade-offs from (potential)
global and national policy interventions, and forge UNEP is further supporting governments in various regions
cooperative trans-national efforts and a global policy to strengthen their policies on sustainable and circular
response on circular textiles. Such facilitation should textiles.
take place through existing structures, and can
leverage existing international forums.
Policymakers should also create (or update)

measurable national action plans for circular textiles
in collaboration and consultation with a range of
relevant national and international stakeholders
including financial institutions, brands and producers
to ensure alignment and long-term certainty, while
understanding how well their strategy matches the 128 U
NEP (2019b). Innovative pathways to achieve sustainable
global roadmap laid out in this report and key regional consumption and production.
129 GACERE is an initiative of the European Commission on behalf of
priorities. the European Union and the United Nations Environment Programme,
in coordination with the United Nations Industrial Development
Organization.
Data and improved analysis tools for effective How is UNEP currently supporting effective
70
decision-making consumer communication?
The lack of impact data on various elements of UNEP is releasing in June 2023 a new playbook for
circularity policy, models and design is a barrier sustainable fashion communication that unites and
to effective decision-making for both companies aligns communicators towards the Paris Agreement
and policymakers. Data is crucial in furthering and wider UN Sustainable Development Goals. This has
transparency and traceability efforts, which are key to resulted in a communication commitment integrated in
achieving all of the building blocks presented in this the renewed UNFCCC Fashion Charter shared at COP26,
report. It should be an urgent priority to gather more and is a first step to promoting a new narrative directed
complete, relevant, and specific impact data (as well towards a positive fashion future. The playbook will serve
as creating tools for analysis) to facilitate progress and as a published guideline outlining how communication
avoid unintended consequences of circular solutions must be a driving force in fashion’s sustainable transition
and policies. This data should be made available with specific guidance and examples of best practice for
without existing barriers (paywalls, membership implementation and measurement. It acknowledges the
commitments) to ensure access for all stakeholders. confusion or greenwashing that currently exists within
All data gathering should build on existing work and sustainability communication as well as the cultural power
data sources and link to initiatives already exploring the fashion sector has through its storytelling and visual
data solutions. It could be supported and carried out language, and the role renewed aspiration could play to
by a wide range of stakeholders in a coordinated way avert the triple planetary crisis. Its development and launch
to ensure that data sources and resulting analysis and are an opportunity for greater stakeholder engagement and
tools are consistent with each other and adhere to an education, and a deliverable of UNEP’s Sustainable Fashion
agreed framework and methodology. Communication Strategy.130
How is UNEP currently supporting data

gathering and methodologies?
UNEP (through its Life Cycle Initiative and the Global

LCA Data Access network) is increasing the access to
environmental and lifecycle data so that textiles businesses
and policymakers can make better informed decisions and
implement relevant strategies. UNEP’s work on providing
impact evidence of different textile value chain models
outlined above also contributes to data.
Knowledge on consumer communications and

behaviour
Current communication from both the public

and private sector on circular textiles often fails
to leverage psychological insights for effective
engagement of consumers and citizens. To
address this, leading communication and
research organizations can support private
and public sector actors to effectively engage
with consumers and citizens. This can be
done through tools and solutions that support
dissemination of key messages, gathering of
data on targeted and appropriate messages to
consumers, and culturally and psychologically
relevant approaches to incentivize a diverse range of
people to shift expectations, values and behavior. 130 UNEP (2021c). Sustainable Fashion Communication Strategy 2021-
2024.
5
This transformation will require a degree of
72 coordination, investment, regulation and business
model adaptation that has never been seen before,
while creating new models and opportunities for
all. If all efforts are made in alignment with the
recommendations from this report, the textile value
Conclusions
chain would contribute to addressing the triple
planetary crisis through reaching net zero emissions
(climate), preserving biodiversity and achieving
a net-positive balance (nature), and significantly
Unsustainable production and
reducing resource use and pollution arising from the
consumption is the common thread textile value chain and moving towards zero waste
between the triple planetary crisis (pollution and waste).
of climate change, nature loss Implementing the building blocks outlined in this
and pollution.131 All efforts must roadmap could have significant impacts, including:
be made to transform the textile

• Circular business models could
value chain towards sustainability enable the industry to eliminate
and circularity, where it should approximately 143 million tons of GHG
emissions in 2030.132
act as a crucial lever for an overall
• Reducing overproduction by even 10
transformation to a circular per cent could reduce emissions by
economy. approximately 158 million tons in 2030,
while eliminating all overproduction
would result in a significantly greater
benefit.133
• Doubling the average uses of a garment
could reduce GHG emissions by 44 per
cent.134
• Improving energy efficiency by 15
per cent per production unit in the
processing phase of the value chain
has a potential benefit of 64 Mt CO2e
between 2019 and 2030.135
• Transitioning towards a circular
economy across sectors could create
a net total of 6 million new jobs by
2030, compared to a business-as-usual
scenario.136
132 M
cKinsey and GFA (2020). Fashion on Climate.
133 M
cKinsey and GFA (2020). Fashion on Climate.
134 EMF (2017). A new textiles economy: Redesigning fashion’s future.
131 U
NEP (2020). Triple planetary crisis: forging a new relationship 136 ILO (2018). World Employment Social Outlook 2018: Greening with
between people and earth. Jobs.
Conclusions
Data is still needed to fully quantify the benefits of the The first action is to explore how UNEP can use its
nine building blocks, including a need to supplement neutral position to support the textile value chain 73
metrics on climate with a range of additional data on in coordinating and in delivering action at scale
other environmental, social and economic benefits. on circularity under its Textile Flagship Initiative.
This will be explored in collaboration with leading
Policymakers have a key role to play in creating a organizations working on circularity in the textile
level regulatory playing field for the private sector, value chain, with a particular focus on the ways to
addressing policy barriers to action, creating facilitate global policy coordination, making clear
effective incentives for change, and investing in key links to the programmes of existing initiatives on
infrastructure. Their decisive leadership will enable circularity and conventional sustainability.
all other actors to drive ambitious change.
The second action – in support of the United Nations
It also remains critical that consumers and citizens Environment Assembly (UNEA)-4 Resolution 1
should be supported to take part in this systematic on “Innovative pathways to achieve sustainable
shift. The private sector as well as those who consumption and production” adopted in March 2019
communicate to consumers and citizens specifically – is to build on these findings to provide quantitative
must play a strong role in creating and communicating analyses of the environmental, economic and
a more sustainable and circular textile value chain, social outcomes of diverse sustainable and circular
while also moving towards a more just and equitable pathways for the textile industry. This analysis can
system. This includes the wider landscape of brands, support both public and private stakeholders in
advertisers, media, influencers and more who reach prioritizing actions and understanding potential
their audiences most frequently, who must become global trade-offs from specific interventions.
part of the solution to develop and perpetuate a new
narrative for the sector, building demand, shaping UNEP thanks all of the stakeholders who kindly
desire and demanding change from all stakeholders shared their feedback for this report and helped
globally. shape its recommendations, and looks forward to
continuing to engage with governments, businesses,
UNEP aims to provide leadership and convene partners civil society and other actors to advance this agenda.
to advance towards a sustainable and circular textile
value chain. This will contribute to achieving the 2030
Agenda for Sustainable Development, especially SDG
12 on responsible consumption and production and
many of the other SDGs. This report has laid out a
roadmap of shared priority actions needed to advance
sustainability and circularity in the textile value
chain. The next steps are twofold:
Sustainability and circularity in the textile value chain — Global stocktaking References
74
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For more information, contact:
United Nations Environment Programme
Industry and Economy Division -
Consumption and Production Unit
Building VII 1 rue Miollis, 75015 Paris
Tel: +33 1 44 37 14 50
Email: [email protected]
Website: www.unep.org

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Sustainability

Figure 1: Stakeholders associated with the textile value chain 13

Figure 2: Representation of activities in a circular textile value chain 18

Figure 3: The value chain in relation to supply chain and lifecycle 20

Figure 4: The tiers in the textile value chain 21

Figure 6: Climate impact across the global apparel value chain 26

Figure 8: Land-use impact across the global apparel value chain  29

Figure 9: Social risks across the apparel value chain 31

Figure 10: Improved impacts of recycling technologies 35

Figure 11: Financing needs by value chain step 36

Box 3: What is a hotspot? 22

Box 4: Gender in the textile value chain 32

Box 6: Case studies – Circular business models 44

Box 7: What is textile overconsumption? 47

Box 8: Case studies – Consumption and production 48

Box 9: Case studies – Design 51

Box 10: Case studies – Product care 53

Box 11: Case studies – Production processes 56

Box 12: Case studies – Just transition and social/labour improvements 59

Box 13: Case studies – Raw materials 62

Box 14: Case studies - Infrastructure 64

Box 15: Case studies – Waste management 66

Table 1:: Existing global industry goals 23

Table 2:: Existing climate goals 27

Table 3:: Existing biodiversity goals 30

Table 4:: Existing circularity goals 33

Table 5:: Existing raw materials goals 35

Table 6:: Existing financial goals 36

in revenue2, and provides products Circularity requires a fundamental shift in how we

1 UNEP (2020) Sustainability and Circularity in the Textile Value

INFRASTRUCTURE IMPROVED PRACTICES

Optimising practices and

These priorities are interconnected and require a PATTERNS, IMPROVED PRACTICES

Progress in focus area

Source 100% sustainable cotton

Progress in focus area Progress in focus area

All textile waste is

Brands and retailers Policymakers

Raw materials producers and manufacturers Financial institutions

Innovators and recyclers Communication and consumer engagement

Non-governmental, representative, and

WHAT COMES NEXT?

While acknowledging that many organizations and

8 UNEP (2020). Triple Planetary Crisis: Forging a New Relationship

Figure 1: Stakeholders associated with the textile value chain

Ginners Retailers Manufacturers Waste

Yarn and fabric Consumption

Financial institutions Non-governmental organizations Workers / employees Innovators

20 Statista (2022) Revenue of the apparel market worldwide from 2014

27 In 2023, UNEP will publish The Sustainable Fashion Communication

Box 1: The role of individual consumers in this report 15

However, it is also important to recognize that each

29 UNEP (2020a). Emissions Gap Report.

As conceptualized in the UNEP circularity platform,

sustainability and and dispose” extractive industrial model and redefine

UNEP’s circularity approach builds on nine value

While a sustainable and circular textiles industry

Figure 2: Representation of activities in a circular textile value chain

Used in another Raw material

Figure 1: Stakeholders associated with the textile value chain 13

Figure 2: Representation of activities in a circular textile value chain 18

Figure 3: The value chain in relation to supply chain and lifecycle 20

Figure 4: The tiers in the textile value chain 21

Figure 6: Climate impact across the global apparel value chain 26

Figure 8: Land-use impact across the global apparel value chain 29

Figure 9: Social risks across the apparel value chain 31

Figure 10: Improved impacts of recycling technologies 35

Figure 11: Financing needs by value chain step 36

Box 3: What is a hotspot? 22

Box 4: Gender in the textile value chain 32

Box 6: Case studies – Circular business models 44

Box 7: What is textile overconsumption? 47

Box 8: Case studies – Consumption and production 48

Box 9: Case studies – Design 51

Box 10: Case studies – Product care 53

Box 11: Case studies – Production processes 56

Box 12: Case studies – Just transition and social/labour improvements 59

Box 13: Case studies – Raw materials 62

Box 14: Case studies - Infrastructure 64

Box 15: Case studies – Waste management 66

Table 1:: Existing global industry goals 23

Table 2:: Existing climate goals 27

Table 3:: Existing biodiversity goals 30

Table 4:: Existing circularity goals 33

Table 5:: Existing raw materials goals 35

Table 6:: Existing financial goals 36

38 GFA (2022). Fashion Industry Target Consultation. 38