Circular Economy Practices

The European Parliament has officially passed Extended Producer Responsibility (EPR) legislation that fundamentally shifts the responsibility for textile waste management to fashion brands and retailers – with far-reaching global implications. This new law requires all producers, including e-commerce platforms, to cover the full cost of collecting, sorting, and recycling textiles, regardless of whether they are based within or outside the EU. The financial burden of Europe's textile waste now falls squarely on the brands that create it. What are the critical business implications? UNIVERSAL SCOPE: The legislation applies to all producers selling in the EU market, including those of clothing, accessories, footwear, home textiles, and curtains. No company is exempt based on location. FAST FASHION PENALTY: Member states must specifically address ultra-fast and fast fashion practices when determining EPR financial contributions, creating cost penalties for unsustainable business models. GLOBAL SUPPLY CHAIN DISRUPTION: As the world's largest textile importer, the EU's new rules will ripple across global supply chains, particularly impacting exporters from Bangladesh, Vietnam, China, and India who supply much of Europe's fast fashion. TIMELINE PRESSURE: Officially adopted September 2025, this creates immediate operational and financial planning requirements. COMPETITIVE RESHAPING: Brands and retailers will inevitably pass increased costs down their supply chains, fundamentally altering supplier relationships and pricing structures globally. What are the implications for various stakeholders? For CEOs and board members: This represents more than regulatory compliance – it's a complete business model transformation. Companies must now integrate end-of-life costs into product pricing, rethink supplier partnerships, and accelerate circular design strategies. For sustainability and decarbonisation executives: This creates unprecedented opportunities for circular economy solutions, sustainable material innovation, and traceability system development across global supply chains. Link: https://lnkd.in/dTyHtHuD #sustainablefashion #circulareconomy #textilwaste #epr #fashionindustry #sustainability #supplychainmanagement #fastfashion #environmentalregulation #businessstrategy #decarbonisation #textilerecycling #fashionceos #boardgovernance #climateaction #wastemanagement #producerresponsibility #fashionsustainability #textileindustry #greenbusiness

The impact of global warming is so severe that fashion shows are now being held on landfills in Chile and it's turning heads for all the right reasons. The sad truth about fashion industry is that we're overwhelmed with discarded clothing. Globally, we produce 100 billion garments every year but recycle only 1% into new clothes. The rest end up in landfills, incinerators, or illegally dumped in natural environments. Chile's Atacama Desert has become a showcase of this problem. Each year, 60,000 tons of used clothing arrive in Chile, with 39,000 tons finding their way to this desert wasteland. It's a stark reminder of our throwaway culture. But amidst this sea of waste, creativity bloomed. Recently, models strutted down a "runway" of discarded clothing, wearing outfits crafted from the waste beneath their feet. The good news is that change is on the horizon. The circular economy is gaining momentum, with the secondhand apparel market growing 18% in 2023 - that's 15 times faster than the broader retail clothing sector! As business leaders, we have the power to accelerate this shift. Here's how we can start- 1️⃣ Circular design- Build products for easy repair, recycling, and modularity, with take-back programs to extend life. 2️⃣ Recycling tech- Invest in advanced recycling and closed-loop systems to reuse materials. 3️⃣ Consumer education- Offer clear labels and interactive tools to teach about product lifecycles. 4️⃣ Secondhand partnerships- Create resale platforms and incentivize returns for refurbishment or recycling. 5️⃣ Support circular policies- Advocate for laws that promote circular practices and standardized recycling. Are you ready to make a difference in fashion? Share how you're doing it below! #circulareconomy #sustainability #environment #fashion

The Circular Strategies Scanner 🌎 This diagram, developed by the Technical University of Denmark (DTU) and its Nordic partners, provides a great framework for identifying practical strategies to embed circular economy principles across business operations. The Circular Strategies Scanner highlights three core action areas: recirculating parts and products, recirculating materials, and rethinking or reconfiguring business models. These categories cover the full lifecycle of products and materials, from raw material sourcing to end-of-life management. Key strategies for recirculating parts and products include repair, maintenance, reuse, refurbishment, remanufacturing, repurposing, and upgrades. These interventions aim to extend existing use cycles and maximize the value extracted from products. Material recirculation focuses on recycling (both chemical and physical), cascading uses across industries, recovery processes such as composting or energy recovery, and integrating secondary or renewable materials. This is critical for reducing dependence on virgin resources and minimizing waste. The model also emphasizes rethinking value creation. Business model strategies such as product-as-a-service, buy-back agreements, and sharing platforms are essential for shifting from linear consumption patterns to circular, access-oriented systems. Impact reduction is addressed through restorative sourcing, lean manufacturing, and efficient use-phase operations. Optimizing logistics, reducing idle capacity, and designing for longevity are also integral components of a robust circular approach. Importantly, the scanner provides a visual link between traditional linear processes and the opportunities to intercept waste and inefficiency at every stage. It underscores the importance of full decoupling of environmental impact from growth through systemic change. Circular economy success depends not only on individual strategies but on their integration across the value chain. This framework offers a strong foundation for companies and industries aiming to transition toward circularity in a structured and impactful way. Source: CIRCit - Circular Economy Integration in the Nordic Industry #sustainability #sustainable #business #esg #circulareconomy

The global textile industry is at a critical juncture, grappling with an escalating waste crisis. Each discarded garment adds to the mountain of textile waste, contributing to resource depletion, environmental degradation, and a growing strain on our planet. In this scenario, India’s unique position offers both a challenge and an opportunity. With 𝟕.𝟖 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐭𝐨𝐧𝐧𝐞𝐬 𝐨𝐟 𝐭𝐞𝐱𝐭𝐢𝐥𝐞 𝐰𝐚𝐬𝐭𝐞 generated annually, India accounts for significant waste streams, including 51% domestic post-consumer waste, 42% pre-consumer industrial waste, and 7% imported post-consumer waste. Despite a cultural heritage steeped in reusing and repurposing, only a fraction of this waste is recycled at high quality. Brands like Fashion for Good are leading the charge with innovative platforms like the "World of Waste", an open-source initiative that brings transparency to waste streams by mapping hotspots and providing detailed data. 𝐖𝐡𝐲 𝐢𝐬 𝐭𝐞𝐱𝐭𝐢𝐥𝐞-𝐭𝐨-𝐭𝐞𝐱𝐭𝐢𝐥𝐞 𝐫𝐞𝐜𝐲𝐜𝐥𝐢𝐧𝐠 𝐜𝐫𝐮𝐜𝐢𝐚𝐥? 🔺 It reduces dependence on virgin resources. 🔺 It curbs greenhouse gas emissions from incineration and decomposition. 🔺 It alleviates the burden on overfilled landfills. 🔺Cotton and blends constitute 61% of waste, while 🔺synthetic materials, particularly polyester blends (19%), are rising due to shifting fashion trends. Recycling these materials not only preserves the environment but also opens pathways for sustainable innovation, enabling startups and established players to lead the charge toward a circular economy. India’s growing startups and innovators in sustainable fashion are showing the way. Companies like 🔺 B Label and 🔺 ReshaMandi have started integrating eco-friendly practices, proving that recycling is not just a solution but a lucrative business opportunity. It’s time to view waste as a resource, fostering collaboration across industries to build robust recycling ecosystems and infrastructure. 𝐅𝐚𝐬𝐡𝐢𝐨𝐧 𝐒𝐡𝐨𝐰𝐬 𝐀𝐝𝐨𝐩𝐭𝐢𝐧𝐠 𝐑𝐞𝐜𝐲𝐜𝐥𝐞𝐝 𝐓𝐞𝐱𝐭𝐢𝐥𝐞𝐬: 🔹 Lakmé Fashion Week 2024: Focused on “Circular Fashion,” showcased garments made from post-consumer textile waste by brands like House of Anita Dongre and H&M Conscious Collection.🔹 Indian Textile Fair: Highlighted startups converting industrial textile scraps into wearable art. 🔹 Levi’s India: Introduced a recycling program where customers return old denim to be repurposed into new products. 🔺 Arvind Limited, a leading textile manufacturer in India, has implemented waterless dyeing technologies and textile recycling units, reducing waste and environmental impact. Media Spotlight: 🔺The Hindu recently covered the rise of startups like Chindi, which collaborates with designers to upcycle fabric scraps into high-quality, market-ready products. 🔺Economic Times featured Birla Cellulose, recognized for its circular economy innovations, recycling pre- and post-consumer textile waste into fibers.

Sustainability only becomes a true business-driver when it is baked into the strategic business plan and is a core value championed by CEO downwards. The truth is that operating a business that acts responsibly is really hard. I refer to the GANNI Responsibility Report when I teach Innovative Leadership to the MBA students at Istituto Marangoni Maragoni and what always shocks them is that a huge effort is required to move the needle even a small amount. Andrea Baldo was the architect of putting responsible trading at the heart of GANNI during his time as CEO there, no small feat given they were owned by L Catterton – PE and sustainability rarely sit easily together. Last Friday I listened to him talk about his new role as CEO of Mulberry England, hosted at King's Business School as part of their Impactful Collaboration Series. Andrea offered a compelling blueprint for how strategy and sustainability intersect—deeply, deliberately, and with measurable impact. The conversation, joined by Prof. Giana Eckhardt and Gillian Brooks, PhD, also explored the evolving role of consumer research, marketing innovation, and leadership in shaping responsible fashion. At GANNI, sustainability was part of the cultural DNA, championed by its founders. At Mulberry England, Andrea has recognised it is a strategic lever. From repurposing leftover materials into new product lines such as the new dog collection, embedding circularity through the Mulberry Exchange and ‘preloved’ retail sections, the brand is reimagining the brand — one rooted in heritage, transparency, and longevity. And even though leather has a very high carbon footprint (virgin leather was actually discontinued in 2023 at Ganni because of this) a Mulberry England bag should last a lifetime. Andrea shared that 43,000 bags are sold annually, with nearly 10,000 repaired or resold—a powerful signal that quality and circular design are not mutually exclusive. More strikingly, in a recent data-led initiative, 20% of customers paid 30% more for sustainably produced products, demonstrating the commercial viability of conscious production. That said, Andrea was vocal in how Mulberry England needs to evolve. The brand still hasn’t recovered from the ill-fated uber-luxury elevation from a decade ago and winning back lost customers, especially in the UK is hard. But there remains great goodwill towards the brand and the turbulence in the luxury sector could actually work well for them. DHR Global #KingsCollegeLondon #Circulareconomy #Innovation

🛍️ Department Stores Are Becoming Curators of Conscious Consumption From conciergerie services to dedicated “Re-” corners — department stores are reimagining what it means to serve today’s customer. A standout example? Reselfridges at Selfridges London — a concept that seamlessly integrates resale, rental, repair, refill, and recycling under one roof. It’s more than a corner; it’s a commitment to circular fashion and a redefinition of luxury through sustainability. 🔁 Why this matters: For customers: • Convenience: Having repair, resale, and rental services within the store means fewer steps between intention and action. • Empowerment: Customers can participate in sustainability without compromising style or experience. • Personalization: The conciergerie model adds a human touch — guiding shoppers through their “re” journey with tailored support. For brands and retailers: • Extended product lifecycle: A chance to extract more value from each item produced. • Deeper engagement: Building relationships not just at the point of sale, but across the full life of the product. • Differentiation: In a saturated market, circular services elevate the store’s role from seller to sustainable facilitator. ⚠️ Of course, challenges remain: • Operational complexity: Managing inventory, authentication, repairs, and rentals requires new capabilities and partners. • Brand alignment: Not all labels are ready to embrace second life strategies — especially in the luxury sector. • Customer education: Circularity still needs a strong narrative to be fully understood and adopted. Still, the shift is undeniable. Department stores are no longer just places to buy — they’re evolving into ecosystems of experience, care, and conscious choice. Have you come across inspiring “Re-” corners in Paris or elsewhere? Let’s exchange notes 👇 #RetailInnovation #CircularFashion #CustomerExperience #Reselfridges #DepartmentStores #SustainableLuxury #RetailStrategy #londonretail #topretailexpert #realretail #retailconsulting #selfridges

I’ve spent a significant amount of time in India over the years with many of our partners, including advocating for our efforts in Mathura-Vrindavan – a major pilgrimage centre, where rising population and visitor numbers are placing increasing pressure on already stretched waste management systems. Without intervention, the gap between waste generation and effective management will only widen. In this article, I share how we’ve worked with local authorities and partners such as Recity to establish a more formalised system – one that connects collection, sorting, and material recovery, helping to close a critical gap in the waste value chain. The early impact is encouraging: a facility that can process up to 300 tonnes of municipal waste per day, formal employment opportunities for local workers under safer conditions, and the foundations of a system that improves traceability and accountability across the value chain. It is still early days in India and there is no single model that will work across its diverse contexts. At the Alliance, we are focused on bringing together stakeholders across the ecosystem to build practical, locally grounded systems that make circularity work in real-world conditions.

3.3 million sanitary pads, 5,000 metres of leather, 50 houses … all made from what we once threw away. A new wave of material innovation may well be transforming waste into sustainable products that could be worth billions. In recent months, I’ve been tracking enterprises rooted in material innovation — not just because they are climate-forward, but because they demonstrate what's possible when design, local sourcing, and business sense come together. Here’s what I found … → Bliss Naturals (Coimbatore) – Using kenaf fibre (a pickle-making staple) to create sanitary napkins. These napkins are 143 times less carbon-intensive than traditional ones. What began as a college project now boasts 3.3 million units sold. Their customer retention rate is 80%. → The Bio Company (Surat) – Transforming tomato waste into biodegradable, PU-free leather. India, the world’s second-largest tomato producer, grows 44 M tons annually. The company transforms 30–35% of this (around 13M tons of waste) into 5,000 metres of leather every month. This addresses both fashion and agricultural waste simultaneously. → Hexpressions (Jaipur) – Building cement-free homes using honeycomb panels made from recycled paper and fly ash. They’re built without cement and with local labour. They’re fireproof, waterproof, and shock-absorbent. They have an 80% lower environmental impact compared to conventional construction. However, these innovations face significant challenges … 📍 Biodegradable materials often have higher production costs and face raw material constraints. 📍 Despite growing consumer demand, regulatory hurdles and limited consumer awareness remain obstacles. At the same time, the sustainable materials market is projected to grow from $357 B in 2025 to $800 B by 2032 (Coherent Market Insights, 2023). In closing, these businesses may not just be solving today’s waste problem. They may well be designing the foundation for tomorrow’s new materials economy. P.S. What other sustainable alternatives like these have caught your attention lately? #MaterialInnovation #CircularEconomy #ClimateEntrepreneurship #Sustainability