Apparel sector – circularity’s potential positive social impacts

Can circular systems lead to a more equitable future in apparel and textiles, or will they exacerbate global inequalities? How can we ensure circularity drives genuine impact for people, planet, and profit?

The questions and others were addressed by the panel at a recent Innovation Forum webinar, featuring the following industry experts: 

Moderated by Ian Welsh, the discussion centred on the practical implementation of circularity, the partnerships needed to scale initiatives, and what’s missing from the conversation. Below is a summary of the key insights and takeaways.

Fashion remains entrenched in a take-make-waste model, generating 92m tonnes of textile waste annually – a figure projected to reach 134m tonnes by 2030 according to Global Fashion Agenda. However, circular systems are gaining traction. Since 2009, Eileen Fisher Renew has collected over 2.6m garments, while United Repair Hub collaborates with over 25 brands to extend clothing lifespans. These models are scaling rapidly, proving that circularity is both feasible and commercially viable.

Despite the challenges, the business case for circularity is clear. Eileen Fisher’s Renew programme – which collects, repairs, and resells pre-worn clothing – has become profitable. United Repair Centre provides repairs for brands and consumers while training individuals from the labour market as tailors. It currently operates at a break-even point, with profit margins for some participating brands. These initiatives showcase that sustainable solutions can be integrated into business strategies and are already driving real impact without compromising financial viability.

To secure buy-in from leadership and customers, businesses must demonstrate the holistic value of circularity – not just financial returns, but social and environmental impact. Customer engagement is a key driver: United Repair Centre reports a 10-20% increase in customer satisfaction for those using repair services, with these customers showing three times higher lifetime value.

Eileen Fisher’s $5 coupon incentive for returning old garments has attracted 25,000 garments monthly, despite being promoted only three times. Workers also benefit: Paul Kerssons points out that their operations have upskilled 60 individuals from 20 nationalities, bringing them into the workforce.

Circular models also enhance environmental impact. Repair initiatives at United Repair Centre reduce waste by salvaging garments before they are discarded. Localising repair and reuse mitigate pollution rather than outsourcing it.

In an increasingly regulated industry, circular initiatives provide critical data for legislative compliance, including upcoming ESPR (Ecodesign for Sustainable Products Regulation) mandates. Engaging with garments for longer also improves design processes, creating feedback loops for better product development.

Carmen Gama highlights an “entrepreneurial mindset” as key to scaling circularity. She advocates for rapid testing of ideas through partnerships and small-scale experiments, allowing businesses to refine their models before full-scale implementation. Partnerships remain crucial – from textile-to-textile recycling to streamlining repair logistics – as the industry works to scale sustainable practices.

As the sector looks to scale business models and close the loop of supply chains, Hakan Karaosman highlights the need to take a broader view of a system that remains largely top-down, driven by cost-reduction structures.

Scaling circularity in a way that aligns with the just transition requires a systemic shift from top-down decision-making driven by cost reduction to inclusive, relational governance. 

Three core principles underpin this transition. 

Circularity can be either a short-term solution focused on technology or a long-term framework integrating waste reduction and social welfare. Achieving the latter requires asking critical questions about inclusion and purpose. United Repair Centre and Eileen Fisher exemplify a long-term approach by fostering collaborative, people-centred partnerships. But there are always ways to go further, and as Carmen Gama highlights, “we need to start asking those questions right now”. 

“In the whole ladder of circularity, we want to focus on the reuse piece” Paul Kerssens, United Repair Centre 

All panellists stressed the importance of the waste hierarchy, prioritising prevention and reuse before recycling and recovery to maximise impact. Eileen Fisher’s Renew programme categorises garments into multiple pathways: resale, donation (via partners like Soles4Souls), remanufacturing, or fibre-to-fibre recycling. Paul Kerssens says that United Repair Centre’s focus is on reuse. And as circularity scales, brands must remain mindful of overall consumption and address systemic overproduction.

As circularity gains traction, businesses should focus on:

 

Despite global uncertainty, scaling circular initiatives with tangible human impact is achievable. While Eileen Fisher leads the way for brands, Carmen Gama acknowledges the need to “go deeper”, urging the industry to ask critical questions about a just transition. The growing momentum in apparel and textiles signals a shift towards sustainable alternatives to the take-make-waste model, paving the way for potential systemic change.

Join us at our sustainable apparel and textile conference series, where we target forward-thinking leaders in the apparel and textiles industry, bringing together a variety of stakeholders behind closed doors to focus on essential strategies for tackling today’s challenges: