Fashion industry: little progress in the circular economy

Climate sinners: clothing: Using a ten-point scale, the "Circular Fashion Index 2023 (CFX)," international management consultancy Kearney assesses how fashion companies extend the life cycle of their products in terms of a circular economy. The study examined 200 labels from 20 countries in six apparel categories: sports/outdoor, lingerie, luxury, premium/affordable luxury, mass market and fast fashion. This provides companies in the fashion industry with an objective tool to record their own status and initiate improvement measures with regard to the circular economy - actually. Unfortunately, the authors of the study regret that the results are sobering for the industry.

Fashion industry: one of the biggest polluters of the environment

Despite the fashion pact unveiled at the 2019 G7 Summit in France, the industry remains one of the world's biggest polluters. For example, the average CFX score for all 200 global brands is a meager 2.97 out of 10. "Compared to the 2022 results, all brands score between 2 and 6. They have failed to educate consumers about the importance of sustainability and inform them about measures such as recycling, upcycling and clothing rental," says Mirko Warschun, partner at Kearney. "Only 19 of the 200 global brands we surveyed scored more than 5 out of 10, and only the top three brands scored more than 7 across the board. This year's CFX shows that concrete action is needed to close the gap and move the industry toward greater sustainability and circularity," said Frederic Dittmar, co-author of the report and manager at Kearney.

No movement at the top

As in previous years, the top performers are Patagonia, Levi's and The North Face with CFX scores of 8.65, 8.30 and 7.90, respectively. The first two improved slightly: Patagonia, by communicating more about their efforts to recycle more and internally rating the recyclability of their products according to a 10-point program. Similarly, Levi`s, which also communicates its sustainability efforts externally. In addition, the company has launched a dedicated page for recycled denim products. With 6th place in the ranking, the U.S. brand Madewell is the up-and-comer of the year. With its "Madewell Forever" program and the take-back of used goods, the label scores particularly well in the second-hand sector. Swiss outdoor specialist Mammut is also on the right track. It shows up in the areas of recycled materials, communication, care instructions and repair service.

France best average value. India brings up the rear

The regional comparison is also interesting: the majority of the brands surveyed (80 percent) come from the USA, Germany, France, Italy, India and the UK. Five of the ten top-ranked brands come from the USA. France has the best average score of 3.43, but has no label in the top 10, although 50 percent of French brands are in the top quarter with a high proportion of recycled materials. But German brands also do well. German company Esprit, for example, is in the top 10, and Adidas, Hugo Boss and C&A are also in the top quarter. Overall, German brands stand out for their sustainability communication with a score of 3.05. Italian brands are OVS (4th place) and Gucci (5th place), followed by Moncler. Four British brands are in the top 25 percent (Burberry, Alexander McQueen, River Island and Barbour) because of their increased efforts to dispose of old clothes. India is well below average with a CFX score of 1.51. All Indian brands are in the bottom half of the ranking and perform poorly in almost all categories. Source: Kearney The post Fashion industry: little progress in the circular economy appeared first on Organizer.