Quantumrun

IMAGE CREDIT:

iStock

Upcycled and circular fashion: True sustainability or greenwashing?

Fashion brands are investing in biodegradable materials and sustainable supply chains, but time will tell if these are just marketing strategies.

Author:
Author name
Quantumrun Foresight
September 16, 2022

Insight summary

The fashion industry, known for its heavy environmental impact, is shifting towards eco-friendly practices like circularity and upcycling amid rising ethical consumerism and climate concerns. Despite efforts by brands to adopt sustainable methods, skepticism remains about their motives, with accusations of greenwashing and continued harmful practices. This trend towards sustainability is leading to new business models, technological advancements in recycling, and stricter regulatory standards, reshaping the industry's future.

Upcycled and circular fashion context

The fashion industry is notorious for its unsustainable production methods and the severe pollution they generate. The industry causes harmful environmental effects throughout production, sales, and consumption. Fashion labels are trying to rehabilitate this perception through more eco-friendly practices such as circularity and upcycling. Regardless, critics are doubtful about these companies’ true intentions.

It is common practice for brands to destroy some of their merchandise to artificially create scarcity and promote an environment of exclusivity. For example, in 2017, the British luxury brand Burberry generated USD $3.6 billion in revenue and destroyed merchandise worth USD $36.8 million. When news of this practice emerged, some consumers pledged to boycott Burberry’s products, while others went as far as contacting members of the Parliament in an attempt to involve the government. Their efforts paid off: in 2018, Burberry revealed that it would no longer destroy its excess products.

With increased ethical consumerism and societal concerns over climate change, brands have drastically changed their business models since then. One highlight was the 2021 London Fashion Week, where circularity was the event’s defining principle (designing without waste). Meanwhile, upcycled garments involve using textile waste materials to create new clothes. Several brands are already collaborating with alternative materials companies to develop textiles from biodegradable components like mycelium, the fungus responsible for mushroom growth. For instance, Adidas is adopting the mycelium-based fiber Mylo on its Stan Smith sneakers.

Disruptive impact

In 2021, high fashion label Gucci announced that the company had been steadily moving towards circular fashion. Its strategy to incentivize a circular economy focuses on utilizing recycled and regenerated materials in the final product and every step of the production process to avoid using non-recycled plastic. The brand also encourages using fibers and materials derived from post-industrial textile waste, such as yarn and unissued fabric.

In 2016, Gucci became the first luxury brand to use ECONYL regenerated nylon yarn in its products. The nylon yarn is obtained from pre and post-consumer waste, such as abandoned fishing nets and carpets. Not only does this help reduce pollution caused by plastics that harm marine life, but it also prevents old materials from ending up in landfills.

However, while many fashion brands have committed to circularity and recycling, critics are wary that this is merely another greenwashing strategy. Some environmentalists agree that the concept has the right motive but warns that public relations could hijack it. The documentary Fashionscapes: A Circular Economy revealed mounds of discarded fashion apparel arriving at the Kantamanto market in Ghana.

The documentary highlighted that although clothing is reconditioned or upcycled, the quality is too poor, rendering it useless. According to the director of Fashionscapes, Andrew Morgan, about 40 percent of clothes labeled upcycled are still in landfills. Some critics argue that circularity has become a marketing tool where brands put recycling bins in their stores but still use carbon-emitting supply chains.

Implications of upcycled and circular fashion

Wider implications of upcycled and circular fashion may include:

Fashion labels partnering with startups that specialize in developing alternative and biodegradable materials.

Buyers becoming more selective of which brands to support, favoring small businesses that employ local communities.

Green investors comparing environmental, social, and governance (ESG) policies to determine their future fashion sector investments.

Fashion labels increasing their investments in supply chain transparency and sourcing practices, potentially incorporating blockchain supply chain technologies to track how their clothes are made.

More accusations of fashion labels doing greenwashing to mask the unethical labor and unsustainable manufacturing processes still being made in developing economies.

A surge in the rental and second-hand clothing market, encouraging consumers to embrace alternative modes of consumption.

Advancements in textile recycling technologies addressing challenges in recycling blended fabrics and enhancing the quality of reclaimed materials.

Enhanced regulatory frameworks and standards for sustainable practices in the fashion industry, promoting environmental responsibility and ethical labor practices.