Closed-Loop Fashion 101: the What, Why, and How

Take. Make. Waste. Oh, at a very fast pace too.

That is the system that the fashion industry revolves around: taking cues from erratic trends on the runway or social medias, mass produce products at a low cost (and at a cost to workers and the planet), and at the end of its lifespan of being worn and used, the items are then disposed and incinerated. And the cycle goes on. Such a system is known as a linear economy, or an open-loop system.

Competition within the fashion market (which is already incredibly saturated as it is) gets fiercer every year, pressuring brands and retailers to launch new collections on a weekly, or even a daily basis, wasting no time to seize our attention and sales. Discounts come and go rapidly, in order to make way for new lines for the next season. Profit remains the utmost priority for most businesses, with no one taking responsibility for the waste created, nor the workers exploited.

"Waste" by Maja Weiss, 2016. An installation at Copenhagen's International Fashion Fair featuring 17 tons of discarded clothing.

With global clothing consumption doubled over the past 15 years, it looks like the ‘fast fashion’ phenomenon isn’t stopping anytime soon. It also doesn’t help that the so-called ‘throwaway culture’ has permeated our society. Due to fast fashion apparels being of flimsy quality, and at a cheap price, they’ve somehow become almost single-use, disposable items. In the UK alone, consumers throw away around 336,000 tons of clothes each year, that’s the equivalent of a whopping $14.3 billion worth of clothing getting discarded in a year!

Despite the overarching mantra of ‘reduce, reuse, recycle’, only less than 1% of clothing is recycled worldwide each year. So what happens to the rest of them? The rest are simply incinerated, shredded and downcycled, or discarded into landfills. Did we even mention the massive amount of waste that occurs during the production process? Here are some key facts on waste in the fashion industry:

Key facts:

Fewer than 1% of clothes actually get recycled. (Recovery Worldwide, 2019)
The average person buys 60 percent more items of clothing every year and keeps them for about half as long as 15 years ago, generating a huge amount of waste. (The Balance Small Business, 2019)
The average consumer throws away a massive 70 pounds (31.75 kilograms) of clothing and other textiles every year. (Make Good)
13 million tons of textile waste are created globally each year, 95% of which could be reused or recycled. (The Pretty Planeteer, 2019)
Less than 11% of brands are implementing recycling strategies for their products. (Peppermint Magazine, 2019)

At the heart of the waste issue is our buy-and-throw-away culture, whereby excessive consumerism of high volume/low value products compounds the problems of waste and pollution. The throwaway culture does not only harm the environment, they also limit the opportunities for the fashion industry to succeed in the long term. As public awareness for sustainability grew, fast fashion brands have been under close scrutiny for their unethical practices in recent years. In order to combat this, the fashion and textile industry must embrace the ‘closed loop’ system, rethinking and redesigning the way products are made, used, and discarded. You may have come across the term, ‘closed loop’, also known as ‘circular loop’, ‘circular economy’, and the like. But what exactly is it? We’ll break it down for you in this concise guide to closed loop fashion, and how you can make an impact from the comfort of your home.

THE WHAT

According to Ellen McArthur Foundation, a circular economy is a new way to design, make, and use things within planetary boundaries, avoiding the use of non-renewable resources, and preserves or enhances renewable ones.

It is based on three core principles:

Design out waste and pollution
Waste and pollution are not accidents, but the consequences of decisions made at an early stage of the design process, where around 80% of environmental impacts are determined. Waste is generally viewed as an afterthought, from the construction of cities and roads, to extraction of raw materials, to fashion. Waste is fundamentally a design flaw, costing cities and industries outrageous amounts of time and money just to manage them. By changing our mindset to view waste as a design flaw and harnessing new materials and technologies, we can ensure that waste and pollution are not created in the first place, essentially eliminating the entire concept of waste.
Keep products and materials in use
The Earth’s resources are not without limit, thus we could not afford to keep on wasting them. What if we build an economy that keeps and uses resources and materials infinitely, circulating within society for as long as possible, rather than using them up? Aside from making things that last forever, items can be designed in a way that they can be reused, repaired, and remanufactured, keeping its lifecycle in a loop. By designing and using products with the end of their shelf life in mind, the materials should be able to be extracted to be repurposed, so they don’t end up in landfills. Such an approach would see brands manufacturing and repurposing clothes from safe and renewable materials, with maximum usability, minimum impacts and waste generation, and with the most efficient use of energy and resources.
Regenerating natural systems
In nature’s ecosystem, there is no concept of waste; one species’ waste is another’s food, i.e. a leaf that falls from a tree feeds the forest. By returning valuable nutrients to the soil and other ecosystems, we can actively improve and enhance the environment and its resources. The circular system’s mimicry of biology creates value for every player in the vast ecosystem, regenerating resources and opportunities that enhance the quality of life, community and environment. In the long run, communities will reinvent numerous possibilities and thrive by supporting a regenerative economy.

Shifting the system from a linear to a circular one involves everyone and everything: corporations, governments, and individuals; our cities, our products, and our jobs. Looking beyond the current take-make-waste extractive industrial model, a circular economy aims to redefine growth, focusing on holistic positive benefits for everyone. It includes progressively decoupling economic activity from the consumption of limited resources, and designing waste out of the framework. Underpinned by a transition to sustainable and renewable energy sources, the circular model builds economic, natural, and social capital.

THE WHY

Our planet’s resources are not finite. Over the last several decades of rapid industrial growth, we have depleted a third of the earth’s natural resources, and a growing body of research underscore the reality that we’re at risk of exhausting them entirely. A 2019 report by the House of Commons Environmental Audit Committee in the UK Parliament states “We are unwittingly wearing the fresh water supply of Central Asia and destroying fragile ecosystems.”

The way clothing is typically designed and made undeniably creates a lot of waste and pollution. That’s why some companies and brands are utilizing the closed-loop system to create a more ethical and sustainable fashion supply chain, benefiting the environment, consumers, workers, and designers.

The possibilities of a closed-loop model are boundless. Here are just a few:

Reducing dependence on imported and virgin raw materials, thereby cutting down on carbon footprint
Less vulnerable to price volatility of newly-minted resources and materials
Providing new business opportunities
Better societal well-being
48% reduction of carbon dioxide emissions by 2030
Massive savings for businesses and households

By employing the three aforementioned guiding principles and treating the economy as a circular as opposed to a linear system, we will see benefits to businesses, society, and the environment.

THE HOW

How to Implement a Closed-Loop system

Recycling Programs
As consumers are gradually becoming more environmentally-conscious, brands could come up with recycling programs to collect old clothing, which they would turn into yarn and textiles that can then be made into new products. That not only lessens the need to source for virgin materials, but also saves time and energy, hence more brands are investing on recycling initiatives. Companies could reward the customers who send back or bring in their worn out garments with discounts or coupons. Eco-conscious customers are more likely to buy from a brand that is aware of their own impact and footprint.

Recycling Technologies
Tech-forward companies are constantly coming up with new and innovative technologies to recycle old clothing into new yarns and textiles, while simultaneously using less water and chemicals. The process of regenerating fibers from old recycled clothes aids in minimizing the amount of raw materials that are used in the linear economy model, therefore reducing the environmental impact than having to produce garments completely from scratch.

Promoting Consumer Recycling of Garments
Brands and businesses have the responsibility to encourage consumers to be involved in the closed-loop economy. Through channels such as video platforms and social media, brands can spread awareness of the concept of closing the loop, in addition to convincing audiences of the significance of sustainable consumption. Brands could set up garment collection points, upcycling programmes, and more to facilitate the process of recycling for consumers. Besides, having a willingness to disclose and be transparent about the production process is key to gain trust and respect from consumers.

Improve Forecasting
Brands typically manufacture and stock products through their forecasting of upcoming trends, either from the runway or what’s trending on social media. However, since such predictions could be a hit-or-miss, a misstep on forecasting could lead to tonnes of deadstock and clothing left unsold, not to mention the amount of water and energy used. Therefore brands could leverage the use of machine learning and Artificial Intelligence (AI), to better analyze upcoming trends and improve accuracy in predictions, leading to less waste and fabric deadstock. More on the environmental impacts of AI utilization in fashion can be read here.

Adopting the ‘Cradle-to-Cradle’ (C2C) Approach
Closing the loop doesn’t start at the end of an item’s lifecycle, it starts at the very beginning. The Cradle-to-Cradle approach is a concept that is inspired by nature, ensuring products remain in a continuous circuit where there is no waste. Hence, businesses could adopt a whole lifecycle or the C2C approach at the earliest stage of design; by deliberately identifying what can be salvaged, where waste can be reduced, and what can be recycled or reused. Every segment of product design, production, to marketing and retail plays a crucial role in lessening the amount of waste, or even better, completely abolishing the concept of waste .

How Businesses Does It

A number of brands have stepped up to the mark by cultivating consumer awareness, running recycling and repairing initiatives, and innovating recycling technologies.

The ‘Looop’ garment recycling system in one of H&M's Drottninggatan stores in Stockholm. Source: H&M Group

H&M
Despite the Swedish clothing giant’s front-runner status in the fast-fashion landscape, the company is actively taking steps to cut down its footprint. In 2013, H&M kickstarted their journey towards sustainability by running a garment collection scheme, and customers could earn rewards by dropping off their old clothes and textiles, regardless of brand, at any of their stores.
On top of that, together with their research partners, they came out with Looop, the world’s first in-store garment-to-garment recycling system, now installed at H&M in Stockholm. Looop transforms an old garment into a new one in just eight steps, without the need for water or dye. The only thing added to the system is some sustainable material to strengthen the yarn. Therefore in this case clothing is used as a resource, as nothing’s too old or battered to be recycled. Customers may soon have the opportunity to watch the system shred their old clothing and knit them into something new in their store. H&M’s efforts in closing the loop doesn’t stop there, in fact they are the first retailer to use Circulose, which is an innovative, biodegradable fiber derived from discarded textiles, without compromise on quality.

Patagonia

Patagonia is a good case in point. Patagonia defied the odds of our consumer culture and published a daring ad in the New York Times back in 2011, urging readers not to buy their jacket, and proceeds to detail the environmental impacts and waste produced in making the jacket. This audacious marketing stint is part of their Common Threads Initiative, or Worn Wear program. Through Patagonia’s Worn Wear program, customers could trade in any used Patagonia gear, shop for used pieces, and even send in worn pieces for repair. With such well made and durable products, it would be best if customers wore their Patagonia pieces long enough to reach the end of its lifecycle on its own. However, since styles change and consumers get tired of wearing the same item, Patagonia’s Worn Wear program ensures that there’s no excuse to leave a Patagonia jacket sitting unused in your closet. Traded pieces that are still in good condition are washed, repaired, and then resold on their website.

With “if it’s broke, fix it!” being their company motto, Patagonia also operates a repair service under Worn Wear, that takes in tattered items and repairs or upcycles them. The chronicles of giving these items a new lease of life after being chewed by dogs, burned, or torn by sharp trees and rocks can be seen on Worn Wear’s Instagram account, that document before and after pictures of repairs.

For Days
The sustainable, closed loop fashion startup For Days offers a line of loungewear and basics on a membership model. Through the membership model, customers can get a certain amount of garment for different prices, and when they are done with them — no matter the condition, whether they’re stretched out, stained, or ripped — they can send it back to the company to be upcycled into new garments. Each used piece is shredded, pulp, and reinforced with sustainable virgin materials before being spun back into yarn, which is used to make new products.

For Days rewards its customers who send back clothing with points, which allows members to accumulate credits to be used towards future swaps for discounts on products every time they return a used piece. Their disruptive business model rewards its customers for living more sustainably, while keeping waste out of the cycle.

How 4tify does it

We at 4tify acknowledge that the fashion industry as it stands today has a long way to go in implementing the circular model. Thus we utilize a multi-pronged approach in closing the loop, which led us to achieve several certifications along the way, namely the GOTS (Global Organic Textile Standard) certification and the BlueSign System Partners certification.

Upcycling Technology
4tify’s upcycling technology follows the system of ‘Make - Wear - Discard - Make’, where we utilize disposed garments to churn out new ones, powered by renewable energy and sustainable solutions. The discarded fabric is shredded into pieces, and dissolved into a slurry using our proprietary organic solvents. The solution is then spun out with electricity, forming sheets of fabric that can be worn until the day it is discarded, and be made into new fabrics and products again and again, thereby closing the loop on fashion.
We are always on the lookout for more eco-friendly ways of production and recycling, and are constantly working on technologies to upcycle different types of fabric (both natural and synthetic), as well as dyes and finishings of organic nature.

Consulting
4tify offers consulting services to support more businesses to join the closed-loop revolution. Whether they are brands who are in the early stages or changing their model, or brands that do not have the means, or access resources to become fully closed-loop on their own, we lend a hand in devising solutions to make sure that they start their circular journey on the right foot, from materials, to dyes and finishings, etc. This is because to create real change in the environment, all businesses require access to resources and technologies that help them to close the loop.

Collaboration
In one of our never-ending endeavors to make fashion sustainable, we signed a memorandum and partnership agreement with Vertical Europe to develop a jointly sustainable solution for the textile and fashion industry. The coalition will involve 4tify’s technology of functional chemistry and textile customization with the help of AI, and Vertical’s research on closed-loop fashion and sustainable material development, to harness the potential of chemistry and biotechnology on solving issues that pervade the industry such as textile waste and recycling. We also welcome collaborations from eco-conscious brands, research institutes, labs and so on, as it takes a village to turn the tide on waste.

It is clear that for the fashion industry to thrive in the future, it needs a fundamental redesign by embracing closed-loop economy principles, to shift away from the take-make-waste model that it characterizes today. In fact, there is no better time to implement it than now as consumers and companies are becoming increasingly aware of the consequences of widespread consumerism and climate change.

The circular commerce does not only amount to making adjustments aimed at mitigating waste and saving energy and resources. At the same time, it signifies a systemic shift that builds long-term resilience, stimulating business and economic growth, and benefits the environment and societies at scale. With recent technological advances, fervent environmental activism, and companies desiring to appear green to consumers, a global circular economy is closer than you might think.

Us at 4tify are always all ears for inquiries and opportunities regarding sustainability in fashion.

Have a budding apparel business and are looking to jumpstart your path to circular fashion? Shoot us a mail and we’ll work it out!