A NEW TEXTILES ECONOMY:REDESIGNING FASHION’S FUTURE

S U M M A RY O F F I N D I N G S

2EXECUTIVE SUMMARY
It is hard to imagine living in a world without textiles. Nearly everyone,
everywhere comes into contact with them nearly all the time. This isespecially true of clothing, the focus of this report. Clothes provide
comfort and protection, and for many represent an important expression ofindividuality. The textiles industry is also a significant sector in the global
economy, providing employment for hundreds of millions around the world.
These benefits notwithstanding, the way we design, produce, and use clothes
has drawbacks that are becoming increasingly clear. The textiles system
operates in an almost completely linear way: large amounts of non-renewable
resources are extracted to produce clothes that are often used for only ashort time, after which the materials are mostly sent to landfill or incinerated.
More than USD 500 billion of value is lost every year due to clothing
underutilisation and the lack of recycling. Furthermore, this take-makedispose model has numerous negative environmental and societal impacts.
For instance, total greenhouse gas emissions from textiles production, at
1.2 billion tonnes annually, are more than those of all international flights andmaritime shipping combined. Hazardous substances affect the health of bothtextile workers and wearers of clothes, and they escape into the environment.
When washed, some garments release plastic microfibres, of which aroundhalf a million tonnes every year contribute to ocean pollution – 16 times morethan plastic microbeads from cosmetics. Trends point to these negative
impacts rising inexorably, with the potential for catastrophic outcomes infuture. This linear system is ripe for disruption.
This report outlines a vision for a system that works, delivering long-term
benefits – a new textiles economy based on the principles of a circular
economy. It offers a direction of travel on which the industry can agree andfocus its efforts. In a new textiles economy, clothes, textiles, and fibres are
kept at their highest value during use and re-enter the economy afterwards,
never ending up as waste. This vision is distinct from, and complements,
ongoing efforts to make the textiles system more sustainable by minimising
its negative impacts. With specific emphasis on innovation towards a
different system, a new textiles economy presents an opportunity to deliver
substantially better economic, societal, and environmental outcomes.
Transforming the industry to usher in a new textiles economy requires
system-level change with an unprecedented degree of commitment,
collaboration, and innovation. Existing activities focused on sustainability
or partial aspects of the circular economy should be complemented by aconcerted, global approach that matches the scale of the opportunity. Suchan approach would rally key industry players and other stakeholders behindthe objective of a new textiles economy, set ambitious joint commitments,
kick-start cross-value chain demonstrator projects, and orchestrate andreinforce complementary initiatives. Maximising the potential for successwould require establishing a coordinating vehicle that guarantees alignment
and the pace of delivery necessary.

IN SUPPORT OF THE REPORT“This ground-breaking report lays the foundation for a new mindset and createsa shared vision for a circular fashion industry. It’s a call for action for systemiccollaborations and is aligned with our efforts in making sure that economic andsocial development can happen in a way that the planet can afford.”
KARL-JOHAN PERSSON, CHIEF EXECUTIVE OFFICER, H&M GROUP“Each year more than 18,000 tons of textiles find their way into the City of
Phoenix waste and recycling streams. Our city is working on creative solutions
to redirect textiles from the waste stream and back into the circular economy asa valuable resource, to ultimately stimulate the local economy. This report puts
these efforts in the context of a system-level change that delivers long-term
benefits.”
GREG STANTON, MAYOR, CITY OF PHOENIX“How can we change a wasteful global apparel industry into one that isrestorative and regenerative? This is a question that we, at C&A Foundation, aretrying to answer. Through our partnership with the Ellen MacArthur Foundation,
we are pleased to support this report – an important first step towards aligning
the industry on what it takes to build a circular fashion industry.”LESLIE JOHNSTON, EXECUTIVE DIRECTOR, C&A FOUNDATION“The Circular Fibres Initiative and the partnership with Ellen MacArthur
Foundation intends to bring circular economy to scale in the textile industry.
From our experiences, we are convinced of the benefits that circular economy
can bring, in both the technical and biological cycles. With our innovative
RefibraTM branded lyocell fibres, we are closing the loop on textiles using cotton
scraps from the value chain. I sincerely recommend this report as it provides thevision and first steps to make progress towards a regenerative system for fibres.”
ROBERT VAN DE KERKHOF, CHIEF COMMERCIAL OFFICER, LENZING GROUP“At Nike, we are pursuing new business models that move away from the take,
make, and waste linear models of the past. Our success depends not only on thework within our own value chain, but on disruptive partnerships across a broader
textile production and manufacturing ecosystem. This report is an important
step in signaling the type of systemic innovation and collaboration required to
unlock a future that protects our athletes and the planet while also powering
sustainable business growth.”
CYRUS WADIA, VP, SUSTAINABLE BUSINESS & INNOVATION, NIKE, INC“It is evident that the moment for mainstreaming circularity and changing
our consumption and production system is here. There are strong signals andevidence from the science on current and future resource constraints andplanetary limits, and growing political and business leadership around theopportunities it offers. This report will surely inspire many success stories, newsolutions and practices from all actors which are called to transform the textile
value chain”.
TIM KASTEN, DEPUTY DIRECTOR, ECONOMY DIVISION, UN ENVIRONMENT
4

“This report reimagines the textiles system. New business models, technologicalinnovation, radical collaboration, and most importantly, rapid acceleration are
critical steps the report identifies to catalyse this critical transformation.”
JASON KIBBEY, CEO, SUSTAINABLE APPAREL COALITION“At the Hong Kong Research Institute of Textiles and Apparel (HKRITA) weare very excited about the release of this report. Having seen the issues andchallenges of the current fashion and apparel supply chain, we know there isan urgent need for a new model for sustainable production and consumption.
Suboptimal production practices, the lack of logistics coordination, and ourcurrent linear incomplete business models have resulted in the unnecessary
creation of huge volumes of waste, and the shortening of the useful life ofmaterials. We want to understand the facts and participate in the solutions.”
EDWIN KEH, CEO, HONG KONG RESEARCH INSTITUTE OF TEXTILES AND APPAREL“I believe the circular economy provides unprecedented business opportunities
for the fashion sector. The report is a much needed push towards a fundamental
shift in industry practices providing the necessary arguments for change, bothfinancially and environmentally. Global Fashion Agenda is excited to further
build momentum around the important report recommendations and amplify
its messages to a mainstream audience using the convening power of our many
wide-reaching platforms, including the Copenhagen Fashion Summit.”
EVA KRUSE, CEO, GLOBAL FASHION AGENDA“The British Heart Foundation (BHF) welcomes this timely report on clothing
impacts and challenges. The BHF’s 560 clothing shops re-use thousands oftonnes a year and, along with the wider charity retail and re-use sector, havea vital role in keeping them in circulation. We also have appetite and capacity
to further improve the circularity of textile flows, working with manufacturers,
retailers and other partners in this initiative. The charity retail re-use model
not only improves the environmental footprint of textiles, it creates social andeconomic resilience through employment, volunteer opportunities and supplyof affordable goods, whilst raising millions of pounds for good causes. We hope
this call to action will drive a more joined up re-use and recycling supply chain
and look forward to playing a part in future developments.”
MIKE TAYLOR, DIRECTOR, BRITISH HEART FOUNDATION“The Circular Fibres Initiative and this report serve as a launchpad moment for
those of us actively engaged in working to shift the global textiles economy
towards a circular framework. Through our Fashion Positive initiative, the Cradle
to Cradle Products Innovation Institute is proud to have been part of developing
the report, which represents a monumental re-thinking of textile production anduse throughout the entire value chain – establishing a truly circular platform forthe industry and our economy. We encourage other organisations, businesses
and governments to use this report as their own platform for taking immediate
action.”LEWIS PERKINS, PRESIDENT, CRADLE TO CRADLE PRODUCTS INNOVATION INSTITUTE
5

“The potential for circularity in clothing and apparel, where raw materials are
kept in continual circulation, is completely achievable yet the barriers preventing
it are challenging. We are extremely excited to see the dedicated team at the
Ellen MacArthur Foundation applying its systemic approach to aggregating
key players in the industry to work together and overcome these challenges.
This report will no doubt play a crucial role in increasing exposure, intensifying
efforts, and driving momentum towards a circular resource model for clothing
and textiles to a time where the concept of textile waste has been relegated tothe history books.”
CYNDI RHOADES, CEO, WORN AGAIN“The circular economy provides an unprecedented opportunity to build
restorative and fair approaches in the apparel industry. For the first time thisreport illuminates the challenges and resulting opportunities in creating endlessflows of fibres. The report sets the stage for businesses to embrace and embedcircular business models and technologies and more importantly forms a basis
for systemic collaboration and convergence toward a new normal.”
JEFFREY HOGUE, CHIEF SUSTAINABILITY OFFICER, C&A“It is easy to say that we need to change from a linear economic system to acircular one, it is much more difficult to do it. The report is addressing the textile
story in a concrete and comprehensive way. Worth reading and even more worth
supporting in practice the steps proposed.”
JANEZ POTOCNIK, CO-CHAIR, INTERNATIONAL RESOURCE PANEL“Understanding the true impact of the fashion industry requires an in-depth
review of the value-chain. Fibres are the first building block of this chain and acore element that needs to be understood to support the efforts on sustainable
solutions for the industry. Based on the analysis provided through this report, it
is possible to see new opportunities for rethinking the fashion systems that canbe adapted both by designers and fashion businesses around the world.”
BURAK CAKMAK, DEAN SCHOOL OF FASHION, PARSONS SCHOOL OF DESIGN“Painting a new vision of a future fashion system is a challenging task. This
report accurately portrays the complexity of issues in the current failed
system, and articulates in a holistic way to all stakeholders what needs to be
done. Today’s garments cannot be reproduced into garments, and globally
we lack collective focus on innovations that enable massive investments inglobal recycling systems. We at Mistra Future Fashion, a research program on
sustainable fashion since 2011, see that this important report can play a keyrole globally in highlighting the challenges, especially within recycling, andmobilising multiple stakeholders towards a joint systemic goal.”
SIGRID BARNEKOW, PROGRAM DIRECTOR, MISTRA FUTURE FASHION

“Circular is the new black! We need a fashion industry based on threeprinciples: clean, fair and good.”
ANTOINETTE GUHL, DEPUTY MAYOR OF PARIS, IN CHARGE OF CIRCULAR ECONOMY“This is an incredibly thorough investigation of the problem and theopportunities that a circular economy for textiles presents to business andto society. We are honored to be included in this research, and are excitedabout the potential to collaborate to see regenerative textile technologies
commercialised at scale.”
STACY FLYNN, CEO, EVRNU“It is obvious that the current fashion system is failing both the environment
and us. This report sets out a compelling vision of an industry that is not only
creative and innovative, but also circular. To achieve such a necessary systemchange that will benefit society as a whole will require strong political will.
Whilst this may not be straightforward, the way is now clear.”
IDA AUKEN, MEMBER OF PARLIAMENT, DENMARK“At Fashion for Good, our ambition is to reimagine the way fashion is designed,
made, worn and reused. But this type of systemic change can not happen in a
bubble. An open innovation culture is crucial, and this report makes a strong
case that pre-competitive collaboration between brands and producers is a key
step in the transition to a circular textiles system.”
KATRIN LEY, MANAGING DIRECTOR, FASHION FOR GOOD

“The textile, apparel, and footwear industries have long been a strong force ofindustrialisation across the globe. At VF, we believe this unique position will
be even stronger if the overall industry continues to transition to a new textiles
economy based on a circular system that regenerates materials by offering
opportunities for innovative design and increased consumer engagement while
capturing economic value. This report illuminates the exciting opportunities forour sector, helping companies to understand circularity in practice.”
ANNA MARIA RUGARLI, SENIOR DIRECTOR, SUSTAINABILITY AND CORPORATE SOCIALRESPONSIBILITY, VF EMEAACKNOWLEDGEMENTS
PHILANTHROPIC FUNDER

CORE PARTNERSKNOWLEDGE PARTNER

AFFILIATE PARTNERS

G LO B A L

FA S H I O N

AG E N DA

CORE PROJECT TEAM
Andrew Morlet, Chief Executive
Rob Opsomer, Systemic Initiatives Lead
Dr Sven Herrmann, Project Lead and Lead Author, Circular Fibres Initiative
Laura Balmond, Project Manager
Camille Gillet, Research Analyst
Lukas Fuchs, Research Analyst

8

We are very grateful for the support we havereceived in producing this report. Special thanks
go to our Advisory Board and Expert Panel for
their support, our Participating Organisations
for their active involvement, and also to themany leading academic, industry, NGO, andgovernment agency experts who provided
invaluable perspectives.

H&M GROUPFURTHER CONTRIBUTORS

Anna Biverstål, Sustainability Business Expert Chemicals

Cecilia Strömblad Brännsten, Circular Economy
Lead, acting Environmental Sustainability
Manager
Emelie Olbrink, Sustainability Business Expert Circular Economy and Innovation
Mattias Bodin, Sustainability Business Expert Materials and Innovation

Laura Coppen, Creative Business Development H&M Group Laboratory

ELLEN MACARTHUR FOUNDATION

Henrik Lampa, Development Sustainability
Manager

Ian Banks, Editor
Jocelyn Blériot, Executive Officer, Head of
Editorial and Public Affairs

LENZING AG

Sarah Churchill-Slough, Design & Branding
Manager

Sonja Zak, Head of Product Management BM
TextilesClementine d’Oiron, Systemic Initiatives
Network Manager

Krishna Manda, Senior Manager Sustainability
Integration

Lena Gravis, Editor

Caroline Ledl, Product Manager

Julia Koskella, Researcher

Christian Weilach, Project Manager Pulp andBiorefinery Technology

Aurélien Susnjara, Research Analyst
Rory Waldegrave, Design Apprentice

NIKE INC.
MCKINSEY & COMPANY

Virginia Borcherdt, Sustainable Innovation
Partnerships Manager

Clarisse Magnin, Senior Partner

Adam Brundage, Senior Manager Data andAnalytics, Sustainable Business and Innovation

Helga Vanthournout, Senior Expert
Saskia Hedrich, Senior Expert

Jim Goddard, GM Science and Technology,
Sustainable Business and Innovation

Pinja Puustjärvi, Consultant
Alexia Semov, Consultant

Susi Proudman, Vice President of Materials(Apparel, Footwear and Equipment)

Hammu Varjonen, Intern

Shannon Shoul, Director of Sustainability
Excellence

C&A FOUNDATION
Leslie Johnston, Executive Director

CONKER HOUSE PUBLISHING

Megan McGill, Programme Manager - CircularTransformation

Joanna de Vries, Editor
Emma Parkin, Editor

Douwe Jan Joustra, Head CircularTransformation

9

EXPERT PANEL

Steve Bethell, President and Partner, Bank andVogue

Sandy Black, Professor of Fashion and Textile
Design and Technology, Centre for Sustainable
Fashion - University of the Arts London.

Sue McLennan, Vice President Sustainability and

Dr Anna Brismar, Founder and Owner, Green
Strategy

BESTSELLER A/SBusiness Development, Bank and Vogue

Dorte Rye Olsen, Sustainability Manager

Burak Cakmak, Dean - School of Fashion,
Parsons School of Design

BRITISH HEART FOUNDATION

Kristy Caylor, Co-founder, For Days

David Roman, Waste & Recycling Manager

Julie Gilhart, Fashion Consultant
Lizzie Harrison, Founder and Creative Director,
Antiform Online

BURBERRY GROUP PLC

Edwin Keh, Chief Executive Officer, Hong Kong
Research Institute of Textiles and Apparel

Jocelyn Wilkinson, Responsibility Programme
Director

Isaac Nichelson, Founder, S3 Source/Chief
Executive Officer, Circular Systems SPC

C&A
Jeffrey Hogue, Chief Sustainability Officer

Elisa Tonda, Head, Consumption and Production
Unit, UN Environment

Charline Ducas, Unit Leader of Global Circular
EconomyPARTICIPATINGORGANISATIONSCATALONIA
Maite Ardevol, Circular Economy Coordinator,
ACCIÓ

ADIDAS AG
Philipp Meister, Director Strategy Social andEnvironmental Affairs

COMMON OBJECTIVE
Clare Lissaman, Director, Product and Impact

Christoph Frechen, Senior Director of Marketing
Alexis Haass, Director of Sustainability, Brand
Strategy & Business Development

DANISH EPA
Emilie Mille Müller, Cirkulær Økonomi & Affald

Connor Hill, Sustainability & Circularity Manager

Anne-Mette Lysemose Bendsen, Miljøteknologi

ADITYA BIRLA GROUPEASTMAN EXPORTS GLOBAL CLOTHING
PVT LTD

Manohar Samuel, President-Marketing, Birla
Cellulose

Ugamoorthi Ramakrishnan, General Manager
Laboratory/Sustainability/R&D

Naresh Tyagi, Chief Sustainability Officer, Aditya
Birla Fashion and Retail

EILEEN FISHER INC.

APEX SPINNING AND KNITTING MILLSLIMITED

Candice Reffe, Chief Impact and Innovation
Officer

Eifaz Ahmed, Director

FARM RIOASOS PLC
Tara Luckman, Senior Sustainability Manager

Taciana Abreu, Head of Marketing andSustainability

BANK & VOGUE / BEYOND RETROFILIPPA K AB

Neda Hashemi, Global PR, Marketing and Events
ManagerElin Larsson, Sustainability Director

10

FUNG GROUPPATAGONIA INC.

Pamela Mar, Director of Sustainability

Nellie Cohen, Worn Wear Program Manager

GAP INC.

CITY OF PHOENIX

Melissa Fifield, Senior Director, Sustainable
Innovation

Ginger Spencer, Public Works Director

REBLENDGEETANJALI WOOLLENS PVT LTD

Anita de Wit, Co-founder

Deepak Goel, Managing Director

REDE ASTA

HOUDINI SPORTSWEAR AB

Alice Freitas, Diretora Executiva

Eva Karlsson, Chief Executive Officer

SOEX GROUPINDITEX

Vittoria Troppenz, Business Development
Manager

Alfred Vernis Domenech, Sustainability
Academic Director

STELLA MCCARTNEY

I:COLLECT

Debra Guo, Sustainability Manager

Paul Doertenbach, Head of Sales & AccountManagement

Claire Bergkamp, Head of Sustainability andEthical Trade

Lydia Schmidt, Key Account Manager

TOMMY HILFIGER

KERING
Cecilia Takayama, Director, Material Innovation
Lab

Esther Verburg, Vice President Corporate
Responsibility Tommy Hilfiger Global/PVH
EuropeLEVI STRAUSS & CO

TRANS-AMERICAS TEXTILE RECYCLING INC.

Liza Schillo, Manager, Product Sustainability

Eric Stubin, Chief Executive Officer

Kelsey Pecherer, Manager, Sustainable Businessand Marketing

VF CORPORATIONLOJAS RENNER

Anna Maria Rugarli, Sustainability &Responsibility Senior Director

Vinicios Malfatti, Senior Manager of
Sustainability and Executive Director of Institute

Julian Lings, Sustainability & Responsibility
Manager, The North Face EMEAMARKS AND SPENCER

VIGGAMark Yates, Head of Innovation and Quality,
MenswearPeter Svensson, Co-founder

WRAP

OVAM/CIRCULAR FLANDERS

Keith James, Textiles Delivery Manager

Veerle Spaepen, Project Manager Circular
Fashion (and Cities), and Co-creator, ‘Close the
Loop’ Platform

Cecile Martin, Technical Specialist

WORN AGAINOVS SPA

Cyndi Rhoades, Chief Executive Officer

Simone Colombo, Head of Corporate
Sustainability

Dr Ashley J Holding, Research Scientist

11

EXPERT CONTRIBUTORSDr Sarah Cornell, Researcher and Project
Coordinator, Stockholm Resilience Centre at
Stockholm University

Antonio Achille, Senior Partner, McKinsey &Company

Paul Cowell, Global Head of Brand Marketing,Archroma

Lucie Ackerman, Project Manager, Valvan Baling
Systems

Gwen Cunningham, Lead, Circle Textiles
Programme, Circle Economy

Marisa Adler, Senior Consultant, Resource
Recycling Systems

Dr Kirsti Cura, Development Manager, Lahti
University of Applied Sciences

Dr Matti Aistrich, Senior Lead, The Finnish
Innovation Fund Sitra

Dr Hanna de la Motte, Recycling Lead, RISE/
Mistra Future Fashion

Dr Weber Amaral, Professor, University Sao
PauloSander Defruyt, Project Manager, New Plastics
Economy, Ellen MacArthur Foundation

Anne-Sophie Andersson, Executive Director,
ChemSec

Richard Delahay, Managing Director,
Sustainability Consult

Charles Arden-Clarke, Head, 10YFP Secretariat,
UN Environment

Dr Michiel De Smet, Project Manager, New
Plastics Economy, Ellen MacArthur Foundation

Enrica Arena, Co-founder and Chief Marketing
Officer, Orange Fiber

Maura Dilley, Fashion Positive Community
Manager, Cradle to Cradle Products Innovation
Institute

Sandra Averous, Programme Officer,
Consumption and Production Unit, UN
Environment

Mart Drake-Knight, Co-founder, Rapanui
Clothing Ltd.

Erik Bang, Innovation Lead, H&M Foundation

Dunja Drmač, Sustainability Officer, Euratex

Ayesha Barenblat, Founder, Remake

Benjamin Durand-Servoingt, Associate Partner,
McKinsey & Company

Sigrid Barnekow, Program Director, Mistra
Future Fashion/RISE

Scott Echols, Programme Director, Zero
Discharge of Hazardous Chemicals

Nicole Bassett, Co-founder, The Renewal
WorkshopJonas Eder-Hansen, Chief Content Officer,
Danish Fashion Institute/Global Fashion Agenda

Achim Berg, Senior Partner, McKinsey &Company

Dr Mika Horttanainen, Professor, Lappeenranta
University of Technology

Matteo Bertelè, Chief Financial Officer, Gr3n
Recycling

Maria Elander, Project Lead SIPTex, IVL Swedish
Environmental Research Institute

Dr Nancy Bocken, Professor, Lund University;
Associate Professor, Delft University ofTechnology

Nik Engineer, Global Partnerships Lead, Ellen
MacArthur Foundation

Martin Böschen, Chief Executive Officer, Texaid

Stacy Flynn, Chief Executive Officer, Evrnu

Dr Julien Boucher, Associate Executive Director,
EA Shaping Environmental Action

Ashley Gill, Senior Manager of Industry Integrity,
Textile Exchange

Clare Brass, Director, Department 22

Dr Kate Goldsworthy, Design Lead, Mistra
Future Fashion/University of the Arts London

Julie Brown, Product Manager, Sustainable
Apparel Coalition

Annie Gullingsrud, Director Textiles and Apparel
Sector, Cradle to Cradle Products Innovation
Institute

James Carnahan, Global Sustainability Manager,
ArchromaNin Castle, Co-founder, Reverse Resources

Sara Li-Chou Han, Research Associate,
Manchester Metropolitan University

Amanda Cattermole, Founder and Chief
Executive Officer, Cattermole Consulting

David Hasanat, Chairman, Viyellatex GroupFranco Antonio Cavadini, Chief Technical
Officer, Synesis s.c.ar.l.

Jukka Heikkilä, Managing Director, LounaisSuomen Jätehuolto Oy, Telaketju Project12

Pirjo Heikkilä, Senior Scientist, VTT, Telaketju
Project

Dieter Messner, General Manager, Europe andAmericas, Esprit Europe GmbH

Lauren Heine, Executive Director, Northwest
Green ChemistryFrank Michel, Executive Director, Zero Dischargeof Hazardous Chemicals

Tonnis Hooghoudt, Chief Executive Officer,
Ioniqa Technologies

Dr Karen Miller, Visiting Industrial Fellow andResearcher, University of Cambridge

Joe Iles, Editor in Chief, Circulate, Ellen
MacArthur Foundation

Jo Mourant, Former Senior Consultant, MADEBY

Sini Ilmonen, Circular Economy Specialist,
Lounais-Suomen Jätehuolto Oy, Telaketju
Project

Clare Ollerenshaw, Circular Economy Manager,
London Waste and Recycling Board
Dr Aldo Ometto, Professor, University Sao PauloDr Reimer Ivang, Chief Executive Officer andCo-founder, Better World Fashion

Lewis Perkins, President, Cradle to Cradle
Products Innovation InstituteThorston Jelinek, Managing Director, Polyterra
Innovation

Dr Pamela Ravasio, Head of CSR &Sustainability, European Outdoor Group

Greg Kelly, Senior Partner, McKinsey & Company

Nathalie Remy, Partner, McKinsey & Company

Gavriella Keyles, Manager of Stakeholder
Engagement, Future 500

Trewin Restorick, Founder and Chief Executive
Officer, HUBBUBJason Kibbey, Chief Executive Officer,
Sustainable Apparel Coalition

Ronnie Robinson, Chief Sourcing Officer, J Crew
Group

Aimee Kim, Senior Partner, McKinsey &Company

Ariadna Rodrigo, Product Policy Campaigner,
Zero Waste Europe

Traci Kinden, Project Manager, Circle Textiles
Programme, Circle Economy

Ann Runnel, Founder, Reverse Resources
Dominik Salzer, Team Leader Corporate Brand
Development, HUGO BOSS AG

Theresa Kjell, Senior Business and Policy
Advisor, ChemSec

Adriana Santanocito, Co-founder & Chief
Executive Officer, Orange Fiber

Kellen Klein, Senior Manager of Stakeholder
Engagement, Future 500

Mauro Scalia, Sustainable Businesses Manager,
Euratex

Jörn Küpper, Senior Partner, McKinsey &Company

Lucy Shea, Chief Executive Officer, Futerra

Deepti Lahane, Chief Manager–Market
Intelligence, Fibre2fashion

Hélène Smits, Business Development Manager,
Recover

Annabelle Lampe, Product Developer, Wolkat

Daniel Solomita, Founder, Loop Industries

Amy Lee, Global Trends and Insights Specialist,
Avery Dennison RBIS

François Souchet, Project Manager, Ellen
MacArthur Foundation

Delphine Lévi Alvarès, European Coordinatorof the #BreakFreeFromPlastic movement andCoordinator of the ‘Rethink Plastic’ Alliance,
Zero Waste Europe

Eveline Speelman, Senior Project Lead,
McKinsey & Company
Dr Katy Stevens, Sustainability Project Manager,
European Outdoor Group

Jerker Ligthart, Senior Chemicals Advisor,
ChemSec

Alexandra Stewart, Scientific Officer, The
Swedish Chemicals Agency

Dr Mats Linder, Project Manager, New Plastics
Economy, Ellen MacArthur Foundation

Colin Strong, Global Head of Behavioural
Science, Ipsos

Karla Magruder, Founder and President,
Fabrikology International

Steven Swartz, Expert Partner, McKinsey &Company

Dr Alenka Majcen Le Maréchal, Professor,
University of Maribor

13

Susanne Sweet, Stockholm School of
Economics and Research Manager, Mistra Future
FashionYannick Vicaire, Detox Campaign Strategist,
Greenpeace
Rachel Wallace, Programme Project Manager,
Zero Discharge of Hazardous Chemicals

Evonne Tan, ‎Information Architect & Creative
Designer, Textile Exchange

Lutz Walter, R&D and Innovation Manager,
Euratex

Sofia Tärneberg, Content Manager, Danish
Fashion InstituteDr Michael Warhurst, Executive Director, CHEM
Trust

David Tyler, Reader, Manchester Metropolitan
University

David Watson, Senior Consultant, PlanMiljø ApS

Dr Natascha van der Velden, Independent
Researcher

Emma Westerholm, Scientific Officer, The
Swedish Chemicals Agency

Kimberly van der Wal, Business Developer,
WolkatStiv Wilson, Campaigns Director, Story of Stuff
Tamara Zwart, Special Projects Europe, Cradle
to Cradle Products Innovation InstituteBert van Son, Chief Executive Officer andFounder, MUD jeans
Martijn van Strien, Founder, The Post-CoutureCollective

14

15

DISCLAIMER
This report has been produced by a team from the Ellen MacArthur Foundation, which takes full
responsibility for the report’s contents and conclusions. McKinsey & Company provided analyticalsupport. While the Participating Organisations, Affiliate Partners, members of the Advisory Board andExpert Panel, and those experts who were consulted and acknowledged on the previous pages haveprovided significant input to the development of this report, their participation does not necessarily
imply endorsement of the report’s contents or conclusions.

To quote this report, please use the following reference:
Ellen MacArthur Foundation, A new textiles economy: Redesigning fashion’s future,(2017, http://www.ellenmacarthurfoundation.org/publications).

Partners of the Ellen MacArthur Foundation

16

CONTENTS
EXECUTIVE SUMMARY3

IN SUPPORT OF THE REPORT4

ACKNOWLEDGEMENTS8SUMMARY OF FINDINGS

18

ENDNOTES34

The full version of this report is available to download fromwww.ellenmacarthurfoundation.org/publications and includes the following:
PART I: THE CASE FOR RETHINKING THE GLOBAL TEXTILES SYSTEM,STARTING WITH CLOTHING5PART II: A NEW TEXTILES ECONOMY IS AN ATTRACTIVE VISION
OF A SYSTEM THAT WORKS
1.

Phase out substances of concern and microfibre release2.

Transform the way clothes are designed, sold, and used tobreak free from their increasingly disposable nature

3.

Radically improve recycling by transforming clothing design,collection, and reprocessing

4. Make effective use of resources and move to renewable inputs
Appendix A. Overview of common textile materials
Appendix B. Methodology overview

17

SUMMARY OF FINDINGSThe case for rethinking the global
textiles system, starting withclothingof the total textiles used and is expected toremain the largest application.3

Textiles and clothing are a fundamental partof everyday life and an important sector in the
global economy. It is hard to imagine a world
without textiles. Clothes are worn by almost
everyone, nearly all the time, and for many
are an important expression of individuality.
Globally, the USD 1.3 trillion clothing industry
employs more than 300 million people along
the value chain; the production of cotton alone
accounts for almost 7% of all employment insome low-income countries.1 Clothing2 – thefocus of this report – represents more than 60%

In the last 15 years, clothing production has
approximately doubled (see Figure 1), driven
by a growing middle-class population acrossthe globe and increased per capita sales inmature economies. The latter rise is mainly due
to the ‘fast fashion’ phenomenon, with quicker
turnaround of new styles, increased number ofcollections offered per year, and – often – lower
prices.

FIGURE 1: GROWTH OF CLOTHING SALES AND DECLINE IN CLOTHING UTILISATION SINCE 2000
INDEX 100 IN 2000

NUMBER OF TIMES AN ITEM IS WORN1
CLOTHING UTILISATIONWORLD GDP

>100bnunits(2015)

CLOTHING SALES
200

2x

190
180
170
160
150
140
130
120

~50bn
units
(2000)

110
100
2000
1

2005

2010

2015

Average number of times a garment is worn before it ceases to be used

Source: Euromonitor International Apparel & Footwear 2016 Edition (volume sales trends 2005–2015); World Bank, World development
indicators – GD (2017)18

The current clothing system is
extremely wasteful and polluting

pressure on resources, pollutes and degrades
the natural environment and its ecosystems, andcreates significant negative societal impacts at
local, regional, and global scales (see Figure 2).
The economic value of these negative
externalities is difficult to quantify, although
the recent Pulse of the fashion industry report
estimated that the overall benefit to the world
economy could be about EUR 160 billion (USD
192 billion) in 2030 if the fashion industry wereto address the environmental and societal falloutof the current status quo.6

The current system for producing, distributing,and using clothing operates in an almost
completely linear way. Large amounts of nonrenewable resources are extracted to produce
clothes that are often used for only a shortperiod,4 after which the materials are largely
lost to landfill or incineration. It is estimatedthat more than half of fast fashion produced isdisposed of in under a year.5 This linear system
leaves economic opportunities untapped, puts

FIGURE 2: TODAY’S CLOTHING SYSTEM PUTS PRESSURE ON RESOURCES, POLLUTES THE
ENVIRONMENT, AND CREATES NEGATIVE SOCIETAL IMPACTS

CO2

CO2

CO2

CO2

OIL

$

$

FIBRE
PRODUCTION

CLOTHING
PRODUCTION

USE

Clothing is massively underutilised. Worldwide,
clothing utilisation – the average number oftimes a garment is worn before it ceases to be
used – has decreased by 36% compared to 15
years ago.7 While many low-income countries
have a relatively high rate of clothing utilisation,elsewhere rates are much lower. In the US, forexample, clothes are only worn for around aquarter of the global average. The same patternis emerging in China, where clothing utilisation
has decreased by 70% over the last 15 years.8

AFTER USE

Globally, customers miss out on USD 460
billion of value each year by throwing away
clothes that they could continue to wear,9 andsome garments are estimated to be discarded
after just seven to ten wears.10 Clothing users
are acknowledging this as a problem, with, forexample, 60% of German and Chinese citizens
admitting to owning more clothes than theyneed.1119

FIGURE 3: GLOBAL MATERIAL FLOWS FOR CLOTHING IN 2015

recycled
feedstock fromother industries

>97%

<1%

losses duringcollection and processing

cascadedrecycling2

closed-loop
recycling1

virgin feedstock
PLASTIC (63%)
COTTON (26%)
OTHER (11%)

2%

12%

2%

53

million tonnes

12%

losses inproduction3

1
2
3
4

73%

USE

ANNUAL FIBRE
PRODUCTION FOR
CLOTHING

landfilled orincinerated

0.5 million tonnes
microfibre leakage4

Recycling of clothing into the same or similar quality applications
Recycling of clothing into other, lower-value applications such as insulation material, wiping cloths, or mattress stuffing
Includes factory offcuts and overstock liquidation
Plastic microfibres shed through the washing of all textiles released into the ocean

Source: Circular Fibres Initiative analysis – for details see Appendix B of the full reportLess than 1% of material used to produce
clothing is recycled into new clothing,13
representing a loss of more than USD 100
billion worth of materials each year.14 As
well as significant value losses, high costs areassociated with disposal: for example, theestimated cost to the UK economy of landfilling
clothing and household textiles each year
is approximately GBP 82 million (USD 108
million).15 Across the industry, only 13% of thetotal material input is in some way recycled
after clothing use (see Figure 3). Most of
this recycling consists of cascading to otherindustries and use in lower-value applications,for example, insulation material, wiping cloths,
and mattress stuffing – all of which are currently
difficult to recapture and therefore likely
constitute the final use.16

Today’s linear system uses large amounts ofresources and has negative impacts on theenvironment and people. The textiles industry
relies mostly on non-renewable resources – 98
million tonnes in total per year – including oil
to produce synthetic fibres, fertilisers to growcotton, and chemicals to produce, dye, andfinish fibres and textiles.19 Textiles production(including cotton farming) also uses around
93 billion cubic metres of water annually,20
contributing to problems in some water-scarceregions. With its low rates of utilisation (leading
to high levels of throughput) and low levels ofrecycling, the current wasteful, linear systemis the root cause of this massive and everexpanding pressure on resources.
The industry’s immense footprint extends
beyond the use of raw materials. In 2015,
greenhouse gas (GHG) emissions from textiles
production totalled 1.2 billion tonnes of CO2
equivalent,21 more than those of all international
flights and maritime shipping combined.22 The
industry also has direct local impacts. The useof substances of concern in textile production
has negative effects on farmers, factory workers,
and the surrounding environment. While there
is little data on the volume of substancesof concern used across the industry, it isrecognised that textile production discharges

Even though some countries have highcollection rates for reuse and recycling (suchas Germany, which collects 75% of textiles),17
much of the collected clothing in suchcountries is exported to countries with nocollection infrastructure of their own. Thesevaluable efforts increase clothing utilisation,
though ultimately most of these clothes end
up in landfills or are cascaded to lower-value
applications.18

20

FIGURE 4: THE NEGATIVE IMPACTS OF THE
TEXTILES INDUSTRY ARE SET TO DRASTICALLYINCREASE BY 2050

high volumes of water containing hazardous
chemicals into the environment. As an example,
20% of industrial water pollution globally is
attributable to the dyeing and treatment of
textiles.23

2015

In recent years, the textiles industry has been
identified as a major contributor to the issue ofplastic entering the ocean, which is a growing
concern because of the associated negativeenvironmental and health implications. It has
been estimated that around half a million tonnesof plastic microfibres shed during the washingof plastic-based textiles such as polyester, nylon,
or acrylic end up in the ocean annually.24

RESOURCECONSUMPTION1TEXTILESINDUSTRY’SSHARE OFCARBONBUDGET2

Today’s textiles system also has multiple
negative societal impacts. Many workers face
dangerous working environments due to unsafe
processes and the hazardous substances usedin production. High cost and time pressures
are often imposed on all parts of the supply
chain,25 which can lead to workers suffering
poor working conditions with long hours andlow pay,26 with evidence, in some instances, ofmodern slavery and child labour.27 The potential
for negative societal impacts does not stopat the factory door. Local communities, while
benefitting from employment in the industry,
may suffer from its poor environmental
practices. For example, discharging untreatedproduction wastewater pollutes local rivers used
for fishing, drinking, or bathing.

OIL

2050
OIL
OIL

OIL

98 MILLIONTONNES

300 MILLIONTONNES

CO2

CO2

2%

26%

MICROFIBRESIN THE OCEAN
22 MILLION TONNES ADDEDBETWEEN 2015 AND 2050

The trajectory of the industry points
to the potential for catastrophic
outcomes

1

Consumption of non-renewable resources of the textiles
industry, including oil to produce synthetic fibres, fertilisers
to grow cotton, and chemicals to produce, dye, and finish
fibres and textiles

2

Carbon budget based on 2 degrees scenario

Source: Circular Fibres Initiative analysis – for details see Part Iof the full report

Under a business-as-usual scenario, the growth
in material volume of textiles would see anincreasing amount of non-renewable inputs,
up to 300 million tonnes per year by 2050. On
current trend, the amount of plastic microfibres
entering the ocean between 2015 and 2050
could accumulate to an excess of 22 million
tonnes – about two thirds of the plastic-based
fibres currently used to produce garments
annually.

Demand for clothing is continuing to growquickly, driven particularly by emerging markets,
such as Asia and Africa. Should growth continue
as expected, total clothing sales would reach
160 million tonnes in 2050 – more than threetimes today’s amount.28 This would result in a
substantial increase in the negative impacts of
the industry (including those shown in Figure 4).
On current trend, the negative impacts of theindustry will be potentially catastrophic. If
the industry continues on its current path, by
2050, it could use more than 26% of the carbon
budget associated with a 2°C pathway.29 Moving
away from the current linear and wastefultextiles system is therefore crucial to keeping
within reach the 2°C average global warming
limit.

Profitability of the industry is at risk. The Pulseof the fashion industry report projects that, by
2030, fashion brands would see a decline inearnings before interest and tax (EBIT) margins
of more than three percentage points, if they
were to continue business as usual. This would
translate into a profit reduction of approximately
EUR 45 billion (USD 52 billion) for the industry.30

21Additionally, the negative impacts of theindustry are becoming more transparent andunderstood by digitally-enabled customers,
leading to reputational risks for brands and to
regulatory trends that could affect the profits
of businesses that fail to respond. High-profile
incidents, like the Rana Plaza disaster in 2013
in which over 1,000 workers were killed,31 havedrawn international attention to the societal

impacts associated with the clothing value
chain and NGOs are generating awarenessof the industry’s negative environmental
impact.32 Recently, the industry has also beenchallenged to find systemic solutions to tackle‘overconsumption’, moving beyond downstream,
short-term approaches to reduce the industry’s
impact.33

A new textiles economy – basedon circular economy principles –would lead to better outcomes
In recent years, the industry and its customers
have become increasingly aware of the negativeenvironmental and societal impacts of thecurrent system. Brands and retailers havestarted to address specific environmental or
societal challenges within their supply chains,both individually and through industry-wideorganisations and initiatives. However, mostof these efforts are focused on reducing
the impact of the current linear system – forexample, by using more efficient production
techniques or reducing the impact of materials– rather than taking an upstream, systemic
approach to tackling the root cause of thesystem’s wasteful nature directly, in particular,
low clothing utilisation and low rates ofrecycling after use.

quality, affordable, and individualised clothing,while regenerating natural capital, designingout pollution, and using renewable resourcesand energy. Such a system would be distributive
by design, meaning value is circulated among
enterprises of all sizes in the industry so that allparts of the value chain can pay workers welland provide them with good working conditions.
A new textiles economy relies on four ambitions(see Figure 5). It would lead to better economic,
environmental, and societal outcomes, capturing
opportunities missed by the current, linear,textiles system. When implementing theseambitions, each will come with a variety ofdifferent solutions for different applications, andtheir interactions need to be taken into account.
Realising these ambitions will not happen
overnight. While there are some immediate
profit opportunities for individual businesses,
collaborative efforts across the value chain,
involving private and public sector actors, arerequired to truly transform the way clothes
are designed, produced, sold, used, collected,
and reprocessed. However, this should notdiscourage or delay action. The time to act isnow, and the ambitions below offer an attractive
target state for the industry to align on andinnovate towards.

This report proposes a vision for a new textiles
economy aligned with the principles of acircular economy:34 one that is restorative andregenerative by design and provides benefits
for business, society, and the environment.35
This vision is distinct from, and complements,
ongoing efforts to make the textiles system
more sustainable by minimising its negative
impacts.
In such a new textiles economy, clothes, fabric,
and fibres are kept at their highest value duringuse, and re-enter the economy after use, neverending up as waste. This would provide a
growing world population with access to high-22

FIGURE 5: AMBITIONS FOR A NEW TEXTILES ECONOMY

2

1

INCREASE CLOTHINGUTILISATIONPHASE OUT SUBSTANCESOF CONCERN AND
MICROFIBRE RELEASE

3
RADICALLY IMPROVERECYCLING

MAKE EFFECTIVE USE OFRESOURCES AND MOVE TO
RENEWABLE INPUTS

4ANAEROBICDIGESTION &COMPOSTINGRENEWABLY
SOURCEDFEEDSTOCKOTHER
MATERIAL
STREAMSat all stages of the value chain. Improved
transparency along the value chain, arobust evidence base, and common
standards would facilitate the phase-out
of substances of concern. While somehazardous substances could be phasedout quickly, innovation will be required tocreate new process inputs (e.g. dyes andadditives), production processes, as well as
textile materials, to fully phase out negative
impacts related to substances of concern.

Phase out substances ofconcern and microfibre release
First and foremost, a new textiles economy
needs to ensure that the material input issafe and healthy to allow cycling and to avoid
negative impacts during the production,use, and after-use phases. This means that
substances that are of concern to health or theenvironment are designed out and no pollutants
such as plastic microfibres are inadvertently
released into the environment and ocean.

•• Drastically reduce plastic microfibre
release. New materials and production
processes that radically reduce the numberof plastic microfibres shed by clothing,alongside technologies that work effectively
at scale to capture those that do still shed,
are essential for this to be feasible. A better
understanding of the causes of microfibre
shedding will continue to inform solutions
and identify gaps.

The following two areas of action could kickstart this transition:•• Align industry efforts and coordinate
innovation to create safe material cycles.
Elimination of substances of concern isneeded to enable large-scale recycling, as
well as to avoid various negative impacts

23

use between many different people, forcertain clothing types and customer
segments, quality and durability can beof value even if there is only one or a few
users. In these segments, many customers
value high-quality, durable clothes, but alack of information prevents the full value
capture. For clothes that have already beenused and become unwanted, but which
are still durable enough to be used again,
enhanced resale models offer an attractive
opportunity. A focus on delivering quality
purchases that last longer also encourages
new technologies to be exploited that offer
better fit and customisation for maximum
customer satisfaction.

Transform the way clothes
are designed, sold, and used
to break free from theirincreasingly disposable nature
Increasing the average number of times clothes
are worn is the most direct lever to capture
value and design out waste and pollution in
the textiles system. Designing and producing
clothes of higher quality and providing accessto them via new business models would help
shift the perception of clothing from being adisposable item to being a durable product. As
the acts of buying and wearing clothes fulfil acomplex array of customer needs and desires, avariety of sales and service models is needed ina new textiles economy. Economic opportunities
already exist in various market segments, andbrands and retailers could exploit these throughrefocused marketing. The take-up of newopportunities would benefit from collaborative
action to stimulate the development ofinnovative business models. Such action would
also help unlock potential where the immediate
economic case is not yet evident at scale.

•• Increase clothing utilisation further throughbrand commitments and policy. Driving highusage rates requires a commitment to design
garments that last – an industry transition
which could be advanced through common
guidelines, aligned efforts, and increasedtransparency. Policymakers can also have an
important role in further increasing clothingutilisation.

Three areas of action would speed the transition
towards this ambition:

Radically improve recycling bytransforming clothing design,collection, and reprocessing•• Scale up short-term clothing rental. When
garments can be worn more often thana customer is able or willing to do, rental
models could provide an appealing business
opportunity. For customers desiring
frequent outfit changes, subscription-basedmodels can offer an attractive alternative tofrequently buying new clothes. For garments
where practical needs change over time, forexample, children’s clothes or those for oneoff occasions, rental services would increase
utilisation by keeping garments in frequent
use rather than in people’s closets. For allthese models, refocused marketing – using
the vast experience and capacity that brands
and retailers have – and optimised logistics
are key enablers for stimulating growth of
new service offerings.

There is a compelling case for radically
improving recycling to allow the industry tocapture the value of the materials in clothes
that can no longer be used. Increasing recycling
represents an opportunity for the industry tocapture some of the value in more than USD 100
billion worth of materials lost from the systemevery year, as well as to reduce the negative
impacts of their disposal.36
A combination of demand and supply-side
measures in the following four areas would beneeded to realise this ambition:•• Align clothing design and recycling
processes. Currently, clothing design andproduction typically do not consider what
will happen when clothes cannot be usedanymore. Converging towards a range ofmaterials (including blends where those are•• Make durability more attractive. While
short-term clothing rental can capture thevalue of durability by distributing clothing24

needed for functionality), and developing
efficient recycling processes for these, isa crucial step in scaling up recycling, as is
the development of new materials, where
current ones do not provide the desired
functionality and recyclability. Alignment isalso needed to provide tracking and tracing
technologies to identify materials in therecycling process.

Make effective use of resources
and move to renewable inputs
The need for raw material inputs in a new
textiles economy would be drastically reduced
due to higher clothing utilisation and increased
recycling (Ambitions 2 and 3 above). However,virgin material input will likely always be
required. Where such input is needed andno recycled materials are available, it should
increasingly come from renewable resources.
This means using renewable feedstock forplastic-based fibres and regenerative agriculture
to produce any renewable resources.

•• Pursue technological innovation to improvethe economics and quality of recycling.
Existing recycling technologies for common
materials need to drastically improve theireconomics and output quality to capture
the full value of the materials in recovered
clothing. A shared innovation agenda isneeded to focus efforts and investments
towards recycling technologies for common
materials. Improved sorting technologies
would also support increased qualityof recycling by providing well-defined
feedstock, in particular in the transition
phase until common tracking and tracing
technologies exist.

In addition, transitioning to more effective andefficient production processes – that generateless waste (such as offcuts), need fewer inputsof resources, such as fossil fuels and chemicals,
reduce water use in water-scarce regions, areenergy efficient, and run on renewable energy –can further contribute to reducing the need for
non-renewable resource input. Accounting forand reporting the costs of negative externalities
would further support the shift to better
resource use and production processes, andthereby generate system-wide benefits.

•• Stimulate demand for recycled materials.
Increasing demand for recycled materials
through clear commitments to using morerecycled input could drastically accelerate
the uptake of clothing recycling. Better
matching supply and demand throughincreased transparency and communication
channels, as well as policy, would further
help stimulate demand.
•• Implement clothing collection at scale.
Clothing collection needs to be scaledup dramatically alongside recycling
technologies and, importantly, implemented
in locations where it currently does not exist.
Creating demand for recycled materials will
increase markets for non-wearable items,
dramatically improving the opportunity
for collectors to capture value from thesematerials. Guidelines on comprehensive
collection – based on current best practices
and further research on optimal collection
systems – would help scale up collection.
These guidelines should include a set ofglobal collection archetypes, allowing forregional variation but building on a set ofcommon principles.

25

Achieving a new textiles economy
demands a new level of alignmentand collaboration
To move beyond incremental improvements
and achieve a shift to a new textiles economy,a concerted, global, systemic, and collaborative
approach is needed that matches the scale ofthe challenge and the opportunity.

• Broad stakeholder buy-in and time-boundcommitments to a vision-led transformation

Transforming the textiles industry
into a circular economic model
requires system-level change• Unprecedented levels of collaboration andalignment in areas of action• Demonstration that the vision is possible,
with large-scale, pre-competitive, crossvalue-chain collaboration

Research undertaken for this report, including
numerous interviews with textiles industry
experts, small and large brands, textile
collectors, academics, and stakeholder
workshops, concluded that many efforts are
already being made by brands, retailers, andother organisations to change the industry.
These efforts offer solutions and demonstratepromising progress in various areas, but are
fragmented and often only effective at small
scale. Ensuring the critical characteristics for
system-level change are in place would harness
this momentum and accelerate the transition.

Moving towards a circular economy goes far
beyond traditional measures to reduce thenegative impacts of the current linear system.
It entails shifting to an entirely new system, andcannot be achieved merely through incremental
improvements.
Systems thinking has gained increased attention
in recent years as a required approach forovercoming complex, systemic issues. It is still
a new science and only a few case studies
and enabling tools are available to support
companies and industries to transform. Even if
such tools were available, changing a complex
system is not something that can be plannedand executed in a static, deterministic way. A
design-thinking approach is required, bringing
actors together from across the system tocollaborate, prototype, learn, refine, and scale
what works.

Alignment on the case for change.
Transforming a system requires a great deal ofeffort and therefore a compelling rationale.
Together with other recent publications,38
this report presents a clear need to change
the current textiles system, capture economic
opportunities and prevent potentiallycatastrophic outcomes. Crucially, Part I of thefull version of this report reinforces the casefor change at the systems level, identifying
the current linear business model, with its low
rates of utilisation (leading to high levels ofthroughput) and low levels of recycling, as aroot cause of many issues of the current system.

The key characteristics of a systemlevel change approach to movea value chain towards a circular
economy are emerging, and some ofthem are already partially in place inthe textiles industry

A positive vision for a new system. By its very
definition, system change entails moving froman existing system to a new one. This requires apositive vision of the system to move towards:“If we can imagine it, we can achieve it”.39 The
extent of the take-up of the circular economy
framework – virtually unknown until just a few
years ago – is an example of the power of such a
positive vision to mobilise action.

Based on the Ellen MacArthur Foundation’s
research on the theory and practice ofsystem-level change and the experience of
the Foundation from working with businessand government on the transition to a circular
economy – including the New Plastics Economy
initiative37 – some key characteristics that
support system shifts have been identified:• Alignment on the case for change• A positive vision for a new system
26

Recently, various efforts have been made to
identify the elements of a better textiles industry
and this report presents for the first time adetailed vision of a new textiles economy basedon the principles of a circular economy (see Part
II of the full report).40 This vision is distinct from,and complements, ongoing efforts to make thetextiles system more sustainable by minimising
its negative impacts. With specific emphasis
on innovation towards a different system, a
new textiles economy presents an opportunity
for delivering substantially better economic,
societal, and environmental outcomes.

important, as no single actor can achieve systemchange alone.
No large-scale demonstration project
representing the full extent of the vision
currently exists, but there are promisingsmall-scale efforts. One example of such a
collaborative initiative is ‘Relooping Fashion’in Finland, which pilots a unique production
experiment of cotton clothing recycling, andhas developed a cross-value-chain businessecosystem in line with the principles of thecircular economy.43
Unprecedented levels of collaboration andalignment on areas of action. Various actions
are needed to support the transition, including: a
dialogue mechanism (involving the whole value
chain and existing initiatives), an open evidence
base, innovation for system solutions, informed
enabling policy, and new industry standards
and guidelines. These actions are interrelated
and mutually reinforce each other. As such, theintended large-scale system change can only beachieved by orchestrating them in a coordinatedmanner.

Broad stakeholder buy-in and time-boundcommitments to a vision-led transformation.
To achieve system change, buy-in to the visionneeds to be built across different actors,
including industry, government and cities, civilsociety, and the broader public. None of thesegroups can do it alone. In particular, ambitious,
common, time-bound commitments to thevision are required.
The extent of ongoing activities in the
textiles industry, both individual and multistakeholder, shows an increasing buy-in to
the need to address the range of issues; many
significant sustainability initiatives are gaining
momentum. This report demonstrates theneed to complement these with commitments
towards the vision and ambitions of a new
textiles economy. Such commitments would
need to be made by industry leaders, forexample major brands. While existing individual
brand commitments are a first important step,
concrete collaborative commitments towards
this positive vision would be needed to delivera step-change towards a more circular system.
There are already efforts underway to get
commitments to some of the ambitions of a
new textiles economy. For example, the Global
Fashion Agenda is gathering commitments toimmediate action points for cycling clothes
within the system, to be achieved by 2020.41
The Detox campaign by Greenpeace collectedcommitments to the phase-out of substances ofconcern.42

For the textiles industry, research to date has
identified a large number of industry efforts
aimed at enabling the transition. The main gap
is not necessarily the lack of activity in any ofthese areas; rather it is coordination, alignment,
and the deepening of the impact of existing
initiatives. See Box A, p.30, for the areas ofaction to move towards a new textiles economy
and existing industry efforts.

A new approach is needed to close
gaps, reinforce current efforts, andunlock system-level change
The case for changing the textiles system isclear, and the vision proposed in Part II of thisreport represents an attractive target state. To
reach unstoppable momentum towards a new
textiles economy, the existing efforts to change
the system should be consolidated by a new
approach that would serve to:

1. ALIGN KEY INDUSTRY PLAYERS ON
A CLEAR VISION AND SECURE THEIRCOMMITMENT TO IT

Demonstration that the vision is possible,
with large-scale, pre-competitive, crossvalue-chain collaboration. Demonstrator
projects, conducted collaboratively by various
stakeholders along the value chain, are required
to test new models at scale and provide
evidence for their success. This is particularly

Commitments of leading industry players
towards the new vision and ambitious
targets would enable more effective systemwide progress. New, aligned commitments,

27

together with a joint action plan to achieve
them – covering all four ambitions of a new
textiles economy and building as appropriate
on existing initiatives – should consider, forexample, targets on the phase-out of substancesof concern and plastic microfibre release, qualityand durability standards, requirements to design
for recyclability, and minimum levels of recycledcontent in clothing.

of ongoing activities is required to understandthe landscape and to quickly identify not
only gaps and barriers in any area of action,
but also opportunities to spark high levels of
collaboration. Monitoring and broadcast of
new crucial findings surfacing from any area ofaction would reinforce each initiative’s impact.

4. BROADLY ENGAGE STAKEHOLDERS
AND ENSURE WIDE PROMOTION OF
THE VISION

2. DRIVE LARGE-SCALE, CROSS-VALUECHAIN DEMONSTRATOR PROJECTS

Further actions to more widely engage
stakeholders along the textiles value chain andprovide them with the relevant support, tools,
and insights to progress towards the vision.
Critical actions include:

A new level of collaboration should be sparked
by the undertaking of cross-value-chain
demonstrator projects. Concrete collective
actions, involving many brands working together
pre-competitively, would in the short term
initiate the transition and demonstrate progress.
While further analysis is needed to identify what
the most promising areas of these collective
actions would be, examples include:• Broadcasting evolving best practices andinsights gained to stakeholders along the
global textiles value chain• Engaging policymakers and sharing of policy
best practices• Large-scale projects in major pilot cities,
including several brands, city councils,collecting/sorting/reprocessing actors,
jointly engaging the public in large-scalecollection efforts, carried out as publicprivate initiatives, and realising the value ofcollected streams• Broadly communicating the nature of thecurrent situation and the vision of a new
textiles economy• Continually involving additional actors incommitments

5. ESTABLISH A COORDINATINGVEHICLE THAT TAKES ON THESE FOURACTIVITIES• Joint implementation of common design andmaterial selection standards or guidelines,
developed as part of a pre-competitive
collaboration between several designers,
buyers, textile mills, and recyclers, taking
into account all aspects of a new textiles
economy, including durability, recyclability,
the absence of substances of concern, andthe minimisation of microfibre release

To ensure a step change in industry mobilisation,
an independent vehicle would need to beestablished to drive and coordinate the four
activities of the new approach. It would need
to be set up in a way that is complementary to,and value-adding for established programmes,
convening the many stakeholders relevant for
the transition.

• Collaboration projects for implementing new
business models at scale, jointly identifying
barriers and pulling the levers to overcome
them (e.g. new technologies, joint marketing,or informed public policy)

Different organisations cancontribute to the transition in theirown unique ways

3. ORCHESTRATE COMPLEMENTARYINITIATIVES AND REINFORCE THEIRIMPACT

Businesses throughout the textiles value chain,policymakers at various levels, as well as otherorganisations, all have an important role to playin the transition towards a new textiles economy.
Any approach to systemic change in the textiles
system must recognise the unique roles of these
actors and engage them in the transformation.
Alignment, collaboration, and coordination
between them is critical to create large-scalechange and overcome issues such as the lack

Orchestration should take place to steer existing
and future key initiatives in such a way thatthey complement each other, to ensure that
progress in the different areas of action (seeBox A, p.30) is amplified, and that progress
towards one ambition does not impede progress
towards another. A comprehensive mapping28

of standards in certain areas and the absenceof alignment between clothing design and what
happens after their use.

way, and stimulating innovation. Setting theright policy can also support the transition inseveral ways (see Box A, p.32).

Businesses are naturally placed to play aleading role in the transition. Businesses of all
sizes throughout the textiles value chain – frombig brands, through manufacturers and textile
collectors, to small enterprises and innovators –can contribute to systemic change in the textiles
system. In particular, brands and retailers are ina unique position, given that they are the ones
who design and sell clothing in the first place.
They can drive change through their visibility,
global supply chains and power in the market.
They have the ability to influence purchasing
behaviour by changing their value proposition
and using their strong marketing know-how.
They also determine the pace of introductionof new products and the material compositionof clothing. Clothing manufacturers and fibre
producers are also crucial as so many of thesystem impacts occur during their activities.
Businesses involved in collection, sorting,processing, refurbishing, and recycling canplay a key role in developing the techniques
and technologies to ensure that garments andmaterials stay within a closed-loop system, as
well as in providing valuable feedback that can
inform designers and manufacturers about whatis needed to maximise value after use.

Education and research institutions can
support the transition through embedding
circular economy principles in their teaching
and creating evidence and proof points.
Bringing circular economy principles into
education, from school through to professional
development, will equip learners with thesystems-thinking skills and mindsets needed
to become active shapers of a circular
economy in general, and a new textiles
economy in particular. Further research – atuniversities, other research institutions orin targeted initiatives and programmes – isneeded to develop the evidence base for a
new textiles economy and establish the best
ways to implement it. Collaboration between
researchers, businesses, and other relevantorganisations is crucial, for example to address
specific knowledge gaps identified in the market
or to demonstrate feasibility through pilot
projects.
Other organisations, including industry
associations and initiatives, NGOs, andinternational bodies, also play importantroles. Industry associations and initiatives
could facilitate and foster collaboration
among businesses across the value chain
and create alignment between actors on the
broad transition to a new textiles economy
as well as on individual aspects of it. They
connect stakeholders and could also help share
information, case studies, best practices, andlessons learned. The involvement of NGOs
and international bodies is required to ensurethat broader environmental and societal
considerations are taken into account in future
solutions.

Policymakers at various levels can set direction
for the transition and create the right enabling
conditions. Cities and municipalities often
control the after-use collection infrastructure
and can be key partners in initiatives related to
textile collection and processing. Policymakers
are well positioned to contribute to the change
through realigning incentives, connecting
different players pre-competitively, influencing
aspects of design and standards in a positive

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BOX A: AREAS OF ACTION TO MOVE TOWARDS A NEW TEXTILES ECONOMY
Analysis and research to date have identified areas of action with the potential tocollectively realise the required impact. These enablers interact and mutually reinforce eachother, and the large-scale systemic change intended can only be achieved by addressing
them in a coordinated manner.
A ROBUST EVIDENCE BASE
To guide the transformation towards, and to evolve the vision of, a new textiles economy,a robust evidence base is needed to create transparency on the impacts of the system andto aid stakeholders in defining actions required to change the system. While this report,
together with a number of other recent efforts, aims to provide initial answers, more
research is required.
In addition to this, existing economic and scientific evidence needs to be consolidated
and made readily accessible to stakeholders across the value chain, for example via ahighly referenced open-source platform, to make it easier to make decisions in line withthe principles of the new textiles economy. This would also highlight knowledge gaps andprompt different actors to undertake complementary research to bridge those gaps. Initialfurther studies could include:
Investigating customers’ motives for using and buying clothes as well as the businessmodels that can meet their needs• Determining the size of the different market segments based on customer needs
and desires, the opportunities for different models to satisfy them, and thecurrent barriers to customer adoption to provide a starting point for businessmodel transformation• Undertaking research on the key criteria for assessing durability and quality thatwould drive customers’ demand for quality• Investigating the elements needed for innovative business models to confidently
lead the way to increased clothing utilisation
Researching the optimal balance of collection and recycling systems• Building a comprehensive understanding of the current landscape of informal
recycling and collection activities• Understanding local cultures and which collection infrastructures would succeed
in different regions• Further researching the barriers and opportunities for the recycling of cellulosebased fibres, as well as economically attractive options for the recycling of
blended materials• Investigating the most efficient logistics to return materials to processers, forexample centralised vs localised solutions and the best mix of these
Better understanding the different actors in the textiles system and their interactions• Creating a detailed overview of the different actors and their interactions, forexample through a systems map• Identifying key actors to create starting points for change• Creating a better understanding of the specific stakeholders that need to act inconsort to create large-scale change

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Better understanding the economic, environmental, and societal impacts of substances ofconcern and microfibres in the ocean• Developing a robust evidence base on the usage of chemicals, including theamount used, as well as identification of substances of concern and the impactsof these• Exploring of the socioeconomic impacts of microfibres in the ocean• Better understanding the root causes of the release of plastic microfibres fromtextile washing in order to inform innovations in textiles construction and tocreate materials fit for a circular system
Further understanding the relevance and value of cross-flows into other industries• Conducting investigations into the viability of creating high-value cross-sectormaterial flows that would allow multiple applications in different industries
Research is already underway in several of these areas. Some approaches aim to cover all
aspects of the clothing system, such as Mistra Future Fashion with its mission to provide“research for systemic change in fashion – via closed loops and changed mindsets”.44 WRAP
has also undertaken extensive research into the efficiency of the textiles system with afocus on the UK.45 Many other organisations are investigating individual aspects, such as
Fashion Positive, which is focusing on “positive materials” for clothing,46 or the European
Outdoor Group Microfibre Consortium, which is looking at enhancing the evidence base on
microfibres.47
INNOVATION
A significant number of innovators exist today and brands are starting to engage with themin various ways. With a growing evidence base (see above), these innovators can be steered
towards the vision of a new textiles economy. Two key actions should support future
innovation:
Steer innovation investments towards the common vision. Innovators should be supported
at all stages, whether at the initial concept stage or when launching to market. They should
be guided in the right direction, and promising innovations should receive the financial
support needed to achieve scale. Brands should be involved in defining which innovations
are needed, mindful of the common vision.
Innovation could include, for example, the search for material flow opportunities fromother industries as an input into clothing manufacturing; the development of patterns
that generate no leftover fabric when manufactured; innovative collecting and sorting
technologies; textile-to-textile chemical recycling technologies that are able to separate andextract polyester and cotton; or the development of garments that last but which adapt
themselves to changing styles.
Mobilise large-scale, targetted ‘moonshot’ innovations. In areas where existing innovationis sparse but a significant impact could be expected, innovation ‘moonshots’ should be
mobilised. Stakeholders from across the industry would gather and spark innovation. One
area for such innovations could be the search for a ‘super-fibre’ with similar properties tomainstream ones, but suitable for a circular system, with no negative externalities.
Existing programmes are already supporting and steering innovation, such as Fashion for
Good, an initiative supporting fashion innovators at various stages;48 Fabric for Change, a
global initiative by Ashoka and the C&A Foundation “to support innovators for a fair andsustainable apparel industry”;49 or the H&M Global Change Awards, an innovation challenge
run by the H&M Foundation, to seek innovations that can support fashion to become
circular.50

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POLICY
Policies at supranational, national, regional, and city/municipality levels can support thetransition. Policymakers should be engaged with the common vision and provided withthe relevant tools, data, and insights related to textiles so that they can make informed
decisions to support the industry in key areas.
Policies that set direction and show commitment. Clear policies and communication can
encourage private and public investment in relevant research and business development.
Advancing the transition requires a coherent focus and systematic approach, including
integration of the ambitions of a new textiles economy into existing government initiatives.
For example, policies could provide targets and strategies for substances of concern,
microfibres, durability, or recyclability. Clear and binding policies, laid out as a roadmap,
would provide the visibility needed to coordinate infrastructure development andinvestment planning. Existing efforts can be seen in the EU’s Circular Economy Action
Plan, adopted in 2015, with a package including long-term targets to reduce landfilling andincrease recycling and reuse.51
Regulatory frameworks that enable transition and remove current policy barriers. Somecurrent policies, typically focused on individual areas rather than taking a systemic view,cause unintended barriers to adopting circular economy models. Detailed analysis ofregulations – conducted with businesses and other relevant stakeholders – could identify
these barriers and provide a basis for recommending policy changes that support a new
textiles economy. For example, policymakers could set targets or incentives for collection.
They could, for example, create extending producer responsibility (EPR) schemes for
textiles, such as that existing in France, obliging clothing companies to contribute to therecycling and waste management of the clothes they put on the market. New policies
could remove barriers that are caused by the definition of used textiles as waste, oraddress barriers to trade, such as import or export bans. Policymakers can also play animportant role in stimulating demand by incentivising the use of recycled materials and/or
disincentivising the use of virgin materials.
Public procurement and infrastructure investments. As governments often control
large budgets for procurement and infrastructure spending, acquiring textiles throughnew service models and directing infrastructure spend where it most supports a new
textiles economy would not only have a clear impact but would also lead the way for theprivate sector to follow. For example, public procurement recommendations that support
promising, scalable circular business models for textiles could help kick-start such models
and stimulate their wider adoption in the market. Public procurement policies can also
increase demand for recycled materials by specifying targets for recycled content in
clothing used by the public sector. Focusing infrastructure investments on schemes such as
integrated after-use collection systems and sorting and reprocessing facilities could support
circular economy activity and investment by the private sector.

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TRANSPARENCY
Transparency on a product’s content, production history, and properties for use and afteruse, for example information on substances of concern and resource use, durability and careinformation, or details on material content and recycling options is crucial to inform actions.
Measurement tools, for example, can help assess products’ content and the negative
impacts of individual actors within the textiles industry, as well as their ongoing efforts totransform their practices for a new textiles economy. The Sustainable Apparel Coalition, forexample, is contributing to this with the Higg Index.52
MARKETING
Implementing a new textiles economy depends upon customers embracing alternativemodels of accessing clothing. With their vast experience in marketing traditional sales, andgreat expertise and capacity, brands are in a good position to market new models as an
attractive and fashionable option.
CIRCULAR-ECONOMY-DRIVEN INTERNAL STRATEGIESTaking maximum advantage of circular models requires decision makers throughout
organisations to appreciate the benefits of a circular economy and take these into accountin business decisions. To put the ambitions of a new textiles economy into practice, current
and prospective employees need training to better understand the aspects and advantagesof circular economy models in general, and a new textiles economy in particular. In addition,
the right incentives need to be in place to take the ambitions of a new textiles economy into
account in business decisions.

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ENDNOTES
1Euromonitor International Apparel & Footwear 2016 Edition(volume sales trends 2005–2015); https://www.worldwildlife.
org/industries/cotton; Fashion United, Global industry
fashion statistics: International apparel (2016), https://
fashionunited.com/global-fashion-industry-statistics

20

Ibid.

21

Circular Fibres Initiative analysis – for details see Appendix Bof the full report

22

International Energy Agency, Energy, Climate Change &Environment: 2016 insights (2016), p.113

2

Excluding footwear

3

Wood Mackenzie presentation, Product developments inmanmade fibres: Is cotton able to compete? (2016)

23

Kant, R., Textile dyeing industry: An environmental hazard,
Natural Science, Vol. 4, 1 (2012), p.23

4This is true for plastic-based fibres, but also for cellulosebased fibres such as cotton, which usually requires fossilbased fertilisers and pesticides.

24

5

McKinsey & Company, Style that’s sustainable: A new fastfashion formula (2016)

O’Connor, M.C., Inside the lonely fight against the biggest
environmental problem you’ve never heard of, The Guardian(27 October 2014); International Union for Conservationof Nature, Primary microplastics in the oceans: A global
evaluation of sources (2017), pp.20–21

25

6

Global Fashion Agenda and Boston Consulting Group, Pulseof the fashion industry (2017), p.19

7

Circular Fibres Initiative analysis based on Euromonitor
International Apparel & Footwear 2016 Edition (volume sales
trends 2005–2015). All numbers include all uses until thegarment is discarded, including reuse after collection andresale.

Kamath, N., Handbook of research on strategic supply chain
management in the retail industry (2016); GS1 UK, Where
did your profitability go? Managing the apparel omnichannel
cost-to-serve (2016), p.13

26

Greenpeace, Time out for fast fashion (2016), p.3; Doane, D.,
Living in the background: Home-based women workers andpoverty persistence (2007)27

Bureau of International Labor Affairs, Findings on the worst
forms of child labor (2013), pp.10, 30, 31, 56, 59, 110, 146, 171,368, 369, 561, 775, 776; Verité, Help Wanted (2010), p.5; AntiSlavery International, Slavery on the high street (2012); see
http://www.safia-minney.com/slave-to-fashion.html; https://labs.theguardian.com/unicef-child-labour

28

See Appendix B.3 of the full report for assumptions andmethodology behind the extrapolations in this section

29

Compared to the IEA 2°C pathway 2050 which allows for15.3 giga tonnes of CO2 equivalent

30

Global Fashion Agenda and Boston Consulting Group, Pulseof the fashion industry (2017), p.23

31

Kasperkevic, J., Rana Plaza collapse: Workplace dangers
persist three years later, reports find, The Guardian (31 May
2016)

32

See, for example, http://www.greenpeace.org/international/en/campaigns/detox; Changing Markets Foundation Dirty
fashion: How pollution in the textiles supply chain is making
viscose toxic (2017); WRAP, Valuing Our Clothes: The costof UK fashion (2017); Greenpeace, Time out for fast fashion(2016)

33

Greenpeace, Fashion at the crossroads (2017)34

See https://www.ellenmacarthurfoundation.org/circulareconomy/overview/concept

35

These benefits have been investigated for example in: Ellen
MacArthur Foundation, Circular economy in India: Rethinking
growth for long-term prosperity (2016) and Ellen MacArthur
Foundation, SUN, and McKinsey Center for Business andEnvironment, Growth Within: A circular economy vision for acompetitive Europe (2015)

8

Ibid.

9

Calculation based on Circular Fibres Initiative materials flow
analysis (for details see Appendix B of the full report) andEuromonitor International Apparel & Footwear 2016 Edition(volume sales trends 2005–2015). In 2015, 46% (in mass)of collected garments were reused. If 100% of discarded
clothing were collected, 22.2 million tonnes would be reused
instead of 5.6 million tonnes as at present, meaning 16.6
million tonnes of new garment sales would be avoided, witha value of USD 460 billion.

10

11

Barnardo’s, Survey of 1500 women as part of#MyBarnardosDonation – Campaign (2015); Morgan, L.R. and
Birtwistle, G., An investigation of young fashion consumers’
disposal habits (2009)
Greenpeace, After the binge, the hangover: Insights into theminds of clothing consumers (2017), p.4; WRAP, Clothing
durability report (2017), p.15

12

Circular Fibres Initiative materials flow analysis (for details
see Appendix B of the full report)

13This includes recycling after use, as well as the recyclingof factory offcuts. Expert interviews and some reportssuggest that the rate of recycling clothing after use could be
below 0.1% (see, e.g. Wicker, A., Fast fashion is creating anenvironmental crisis, Newsweek (1 September 2016)).

14

Estimate based on Circular Fibres Initiative analysis on theshare of materials and on a price of USD 2.8/kg for cotton
yarn and USD 1.7/kg for polyester yarn (see http://www.
globaltexassociates.com/price.html).

15

WRAP, Evaluation of the end markets for textile rag and fibre
within the UK (2014), p.8

16See, for example, Watson, D., et al., Exports of Nordic used
textiles: Fate, benefits and impacts (2016)

36

Estimate based on the material cost of yarn

37

See https://newplasticseconomy.org

17

Fachverband Textilrecycling, Konsum, Bedarf und
Wiederverwendung von Bekleidung und Textilien in
Deutschland (2016), p.37

38

18

Watson, D., et al., Exports of Nordic used textiles: Fate,
benefits and impacts (2016), p.67

19

Circular Fibres Initiative analysis – for details see Part I of thefull report

See, for example, Greenpeace, Time out for fast fashion(2016); Changing Markets Foundation, Dirty fashion: How
pollution in the textiles supply chain is making viscose toxic(2017); Global Fashion Agenda and Boston Consulting
Group, Pulse of the fashion industry (2017); WRAP, Valuing
our clothes: The cost of UK fashion (2017); Fashion for Good,
The five goods (2017), https://fashionforgood.org/the-fivegoods; GLASA, The state of the apparel sector (2013)

34

39

William Arthur Ward

40

See, for example, Global Fashion Agenda and Boston
Consulting Group, Pulse of the fashion industry (2017),
p.74; Fletcher, K., Sustainable fashion and textiles: Design
journeys, second edition (2014); Greenpeace, Fashion at thecrossroads (2017)45

See http://www.wrap.org.uk/category/materials-andproducts/textiles

46

See http://www.fashionpositive.org

47

See http://www.europeanoutdoorgroup.com/news/outdoorindustry-microfibre-consortium-formed

41

See https://www.copenhagenfashionsummit.com/
commitment

48

See https://fashionforgood.com

49

See https://www.changemakers.com/fabricofchange

42

See http://www.greenpeace.org/international/en/campaigns/
detox/fashion/detox-catwalk50

See https://globalchangeaward.com/articles/about

43

See http://reloopingfashion.org

51

See http://ec.europa.eu/environment/circular-economy/
index_en.htm

44

See http://mistrafuturefashion.com

52

See http://www.apparalcoalition.org/the-higg-index

35

ABOUT THE ELLEN
MACARTHUR FOUNDATIONThe Ellen MacArthur Foundation was established in 2010 with the aim of accelerating the transition toa circular economy. Since its creation the charity has emerged as a global thought leader, establishingcircular economy on the agenda of decision makers across business, government, and academia. With
the support of its Core Philanthropic Partners, MAVA and SUN, and Knowledge Partners (Arup, IDEO,
McKinsey & Company, and SYSTEMIQ), the Foundation’s work focuses on five interlinking areas:

EDUCATION(Danone, Google, H&M, Intesa Sanpaolo, NIKE
Inc., Philips, Renault, and Unilever) to develop
scalable circular business initiatives and toaddress challenges to implementing them.

Inspiring learners to rethink the future throughthe circular economy framework
The Foundation has created global teaching,learning, and training platforms built aroundthe circular economy framework, encompassing
both formal and informal education. With anemphasis on online learning, the Foundation
provides cutting edge insights and content
to support circular economy education, andthe systems thinking required to accelerate atransition.

The Circular Economy 100 programme brings
together industry leading corporations,emerging innovators, affiliate networks,
government authorities, regions, and cities, tobuild circular capacity, address common barriers
to progress, understand the necessary enabling
conditions, and pilot circular practices, in acollaborative, pre-competitive environment.

The Foundation’s formal education work
includes Higher Education programmes withpartners in Europe, the US, India, China, andSouth America, international curriculum
development with schools and colleges, andcorporate capacity building. The informal
education work includes the global, online
Disruptive Innovation Festival.

INSIGHT AND ANALYSIS
Providing robust evidence about the benefits
and implications of the transition
The Foundation works to quantify the economic
potential of the circular economy model anddevelop approaches for capturing this value.
These insight and analysis feeds into a growing
body of economic reports highlighting therationale for an accelerated transition towards
a circular economy, and exploring the potential
benefits across stakeholders and sectors.

BUSINESS AND GOVERNMENT
Catalysing circular innovation and creating theconditions for it to reach scale

The circular economy framework is evolving,
and the Foundation continues to widen its
understanding by working with international
experts, key thinkers, and leading academics.

Since its launch, the Foundation has emphasised
the real-world relevance of the circular economy
framework, recognising that business innovationsits at the heart of economic transitions. The
Foundation works with its Global Partners

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SYSTEMIC INITIATIVESCOMMUNICATIONSTransforming key material flows to scale thecircular economy globally

Engaging a global audience around the circular
economyTaking a global, cross-sectoral approach tomaterial flows, the Foundation is bringing
together organisations from across value chainsto tackle systemic stalemates that organisations
cannot overcome in isolation. Plastics was
identified through initial work by the Foundation
with the World Economic Forum and McKinsey& Company as one of the value chains mostrepresentative of the current linear model, andis the focus of the Foundation’s first Systemic
Initiative. Applying the principles of the circular
economy, the New Plastics Economy initiative,
launched in May 2016, brings together key
stakeholders to rethink and redesign the futureof plastics, starting with packaging. Building on
the success of this first Systemic Initiative, textile
fibres became the Foundation’s second material
stream focus, with the launch in May 2017 of the
Circular Fibres Initiative.

The Foundation communicates cutting edge
ideas and insight through its circular economy
research reports, case studies, articles andbooks. It uses relevant digital media to reachaudiences who can accelerate the transition,
globally. The Foundation aggregates, curates,
and makes knowledge accessible throughCirculate, an online information source
dedicated to providing unique insight on circular
economy and related subjects.

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© Copyright 2017 Ellen MacArthur Foundationwww.ellenmacarthurfoundation.org
Charity Registration No.: 1130306
OSCR Registration No.: SC043120
Company No.: 6897785

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