California-based Trove, a leader in branded resale, and Worldly, an impact intelligence platform for the apparel industry, have released a groundbreaking study highlighting the pivotal role of circular fashion models in helping brands reduce carbon emissions.
Circular practices, like resale and recycling, are examined alongside supply chain interventions for maximum environmental impact.
Valuable insights to enhance sustainability efforts
The study, titled “Where Are Circular Models Effective Sustainability Strategies for Fashion Brands?”, analyses the environmental impact of combining resale practices with supply chain interventions in the fashion industry.
By assessing how circular models affect carbon emissions across different product types, the study provides valuable insights for brands to strategically enhance their sustainability efforts.
Key insights from the study reveal that resale is a potent decarbonisation strategy, particularly for premium apparel and outdoor brands. It can result in a substantial 15-16 per cent reduction in annual carbon emissions by 2040, alongside annual revenue growth and reduced reliance on new production by 23-35 per cent.
To maximise emissions reduction through resale, brands should focus on enhancing the value of their products in the secondary market, with factors like product durability, design, and craftsmanship playing crucial roles.
Additionally, operational control over resale operations is key for effective greenhouse gas (GHG) accounting. Brands that manage their resale activities and maximise revenue from used products can capture the most significant share of emissions benefits, particularly within the Scope 3 emissions category.
These insights provide valuable guidance for fashion brands looking to align their sustainability efforts with circular fashion models and reduce their carbon footprint in the industry effectively.
Gayle Tait, CEO of Trove says, “As the fashion industry adopts resale for carbon reduction, our study offers a vital guide to measure the impact of circular programmes. In partnership with Worldly, we’re committed to catalysing industry change and assisting brands on their sustainable journey. With emerging regulations, reporting ESG data is essential for competitiveness and brand integrity. Our paper helps businesses to evaluate their initiatives.”
Worldly EVP, Market Impact, Del Hudson adds, “We’re thrilled to be Trove’s partner in this white paper, providing the technical expertise essential to understanding how circular strategies can impact carbon reduction efforts.”
“As climate change becomes more severe worldwide, consumers are demanding action and governments are implementing regulation. Both business model and policy decisions must be informed by credible data. We’re proud to partner with organisations like Trove to provide insights that help measure and validate the effectiveness of their innovative programmes.”
Brief about Trove and Worldly
Trove claims to be a market leader in branded resale and trade-in solutions, serving brands like Canada Goose, lululemon, Patagonia, and others. Using its Recommerce Operating System, Trove help brands establish and grow sustainable resale programmes, enabling customer trade-ins, precise item identification, site management, and data analytics for more than a decade.
Worldly is an impact intelligence platform trusted by more than 40,000 major brands, retailers, and manufacturers in various industries. It specialises in collecting precise, primary data related to companies’ value chains, operations, and products, offering insights into carbon, water, chemistry, and labor impacts.
With an extensive library of materials and product impact data, Worldly helps businesses integrate responsibility into their global operations, comply with emerging regulations, and meet sustainability expectations. It collaborates with industry-standard methodologies and solutions, such as ZDHC, Bluesign, and the Higg Index, to provide actionable insights for reducing environmental and social footprints.
