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Karim Emami

How Apparel Brands are Embracing Sustainability Factors and Circular Economy Practices

Updated: Jun 16, 2023

68% of US consumers are willing to pay more for sustainable products and a whopping 91% of Gen Z consumers (ages 18-26) want to buy from sustainable companies, according to the 2023 Business of Sustainability Index conducted by PDI Technologies.


Sustainable Textile

As the awareness of sustainability and ESG (Environmental, Social, and Governance) considerations grows, more and more consumers are demanding sustainable practices from the brands they support. In the world of all things apparel, athleisure, footwear, accessories, and overall fashion, this trend is significantly shaping how brands are evolving their business strategies. In this blog, we will explore the ways in which sustainability practices are impacting the industry and how brands are responding to this change.



Why Sustainability Matters for the Fashion Industry

  • Environmental and climate Impacts: The fashion industry is notoriously resource-intensive, consuming vast amounts of water, energy, and raw materials, while generating significant waste and pollution. By focusing on sustainable practices, apparel brands can reduce their environmental footprint and contribute to a sustainable planet.

  • Social Impacts: From labor practices to human rights concerns, the fashion industry has long faced social challenges. ESG factors push manufactures and brands to address these issues, ensuring that workers are treated fairly and ethically throughout the supply chain.

  • Consumer Demand: Today's consumers are increasingly aware of and concerned about sustainability and ethical practices. Brands that prioritize these values authentically, not only attract and retain a loyal customer base, but also create a competitive advantage and mitigate operational risks.


 

With around 80% of a product’s environmental impact locked at the design stage, fashion creators have the power to make decisions to significantly improve the circularity of their products.[2]


Circular Fashion Diagram


Key Strategies for Sustainable Apparel Brands

1. Sustainable Materials and Production

  • Use of eco-friendly and recycled materials, such as organic cotton, Tencel, and recycled polyester.

  • Implementing closed-loop production systems to reduce waste and conserve resources.

  • When possible, using renewal energy sources in manufacturing, warehousing, or corporate office buildings.

  • Packaging innovations such as the use of recyclable material, compact packaging to avoid outer boxing, fillers, and air gaps.

  • Partnering with suppliers and manufacturers that prioritize sustainability and adhere to environmental standards.

2. Ethical Supply Chain Management

  • Administering fair labor practices and safe working conditions throughout the supply chain.

  • Implementing traceable and transparent supply chain processes to establish accountability.

  • Encouraging stakeholder and supplier collaboration to drive positive change.

3. Waste Reduction and Circular Strategy

  • Utilizing Zero Waste design principles and packaging to minimize waste throughout the production process.

  • Implementing take-back programs to recycle or upcycle used clothing, reducing waste and promoting a circular economy.

  • Encouraging consumers to repair, repurpose, or donate their clothing, extending the life cycle of garments and reducing landfill waste.

4. Transparent Reporting and Communication

  • Disclosing sustainability reports that outline ESG performance, goals, and initiatives. Starting with an annual report with updates on a quarterly or semi-annually basis is becoming a standard for many companies.

  • Stakeholder engagement, including customers, investors, suppliers, executive team, employees, and industry associations, to address concerns and drive continuous improvement.

  • Communicating sustainability achievements, progress, and gaps through marketing channels to build brand reputation and trust.


Sustainability Benefits Business Profitability

  • Brand Loyalty: Consumers are increasingly loyal to brands that align with their values, and sustainability is a key value driver for many shoppers. By incorporating sustainability into their practices, apparel brands can cultivate a dedicated customer base.

  • Risk Mitigation: Addressing ESG factors can help brands identify and mitigate potential risks in their supply chain and finances, such as labor disputes, product sourcing issues, environmental damage, and investor sentiment.

  • Value Creation and Cost Savings: Sustainable practices can drive innovation and inspire brands to explore new materials and processes, often leading to cost savings, increased efficiency, and consumer awareness.


A Unique Opportunity

Apparel, Footwear and Accessory brands have a unique opportunity to embrace sustainability and ESG factors, upgrading their business practices and reaping the benefits of the growing consumer demand. By investing in sustainable materials, ethical supply chains, circular economy initiatives, and transparent reporting, brands can position themselves as industry leaders and create lasting, positive change for the planet and society. As a partner in this journey, Earthara can provide guidance and support to apparel and footwear companies in achieving their sustainability goals.



 

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