Source: www.fibre2fashion.com
While leading on innovation, the global fashion industry finds it difficult to transition to circularity and still largely depends on a linear business model, according to a report by Geneva-based World Business Council for Sustainable Development (WBCSD).
Misaligned incentives and reward systems that do not factor in externalities prevent progress on the more circular and sustainable use of resources, and current incentives do not support the transition to circularity and companies lack actionable decision-making information, it notes.
A standardised framework can help redefine a company’s measure of success, develop action roadmaps for higher degrees of circular resource use and develop strong accountability systems that enable data-based reporting to regulators and transparent communication with stakeholders, it says.
Companies can rely on CTI to understand which circular strategies bring the most positive impacts on their carbon reduction and biodiversity restoration road maps.
The fashion industry’s linear ‘take-make-waste’ model is not sustainable, leading to wasteful practices and detrimental environmental impacts, the report observes.
Though several fashion companies are at the forefront of the transition to a circular economy, scaling circularity across an entire company and the full value chain is proving challenging, it notes.
