The Environmental Impact of the Fashion Industry
The fashion industry faces a severe issue: the destruction of textiles. The European Environment Agency (EEA) estimates that 4% to 9% of unsold textiles in Europe are disposed of annually, generating up to 5.6 million tons of CO2 emissions, equivalent to one million gasoline-powered vehicles.
In response, the European Union has implemented a new law aimed at addressing sustainable textile management and significantly reducing waste generated by the fashion industry. This legislation, effective as of this year, sets clear guidelines for the reuse, recycling, and responsible disposal of textiles.
Source: Developed by ETC CE
The new European law emphasizes the importance of the circular economy and promotes extending the life of garments through repair, reuse, and recycling. It also introduces specific measures to limit textile incineration and encourage more sustainable practices throughout the fashion supply chain.
In this context, the European Environment Agency (EEA) plays a critical role in supervising and enforcing these regulations. The EEA collects data, evaluates environmental impact, and provides guidance to ensure the law’s objectives are met effectively. It also collaborates closely with the fashion industry, environmental organizations, and other stakeholders to promote the adoption of more sustainable practices.
Fashion corporations will be prohibited from discarding unsold clothing, accessories, and footwear two years after the law's implementation, which is currently in the approval process.
Awareness of sustainability in fashion is growing, and this new European legislation represents a significant step toward a more environmentally responsible sector. As the industry adapts to these regulations, innovations in design, production, and textile management are expected to reduce waste and the associated carbon emissions.
Europe Battles the Environmental Impact of Fashion: 20% of Returns and the 33% Challenge of Unsold Textile Destruction
The average return rate for clothing is 20%, meaning one in five items is returned to manufacturers. This figure is even higher for online shopping, reaching between 22% and 37%. The return rate for online purchases is up to three times higher than for items bought in physical stores.
Source: Makov et al., 2023; EURATEX, 2023b; Samfunnsøkonomisk analyse AS, 2022; ADEME, 2021; Watson et al., 2020
In addition to returns, the fashion industry also struggles to manage a significant volume of stock that remains unsold in both physical and online stores. Rapidly evolving trends and seasons contribute to this phenomenon, as numerous new designs are launched each year, many of which fail to find buyers before the next collection is released.
For online purchases, it is estimated that between 22% and 43%, with an average of 33%, of returned clothing is ultimately destroyed. This practice has severe environmental and climate-related consequences and has been a persistent issue in the fashion and textile industry for decades.
Despite active return management, available information on the volumes and percentages of unsold textiles remains limited. Research suggests that, on average, 21% of textiles are unsold, with approximately one-fifth of this unsold stock being destroyed.
From Destruction to Sustainability
Why are textiles destroyed?
Overproduction: The textile industry produces more garments than it can sell, leading to an excess that ends up being destroyed.
Returns: Returns in e-commerce are a growing issue, with many returned items not being resold.
What are the consequences of textile destruction?
Environmental Damage: The incineration of textiles releases toxins into the environment, and landfills contaminate the soil and water.
Economic Loss: The destruction of textiles represents a significant economic loss for companies.
What can we do?
Reduce Overproduction: Companies should produce only as many garments as they can sell.
Reduce Returns: Consumers should buy responsibly and only return items that truly don’t fit or meet their needs.
Support Sustainable Companies: There are companies like Dawa working to reduce the environmental impact of the textile industry.
Dawa: A Sustainable Solution
Dawa positions itself as a leading tech company providing comprehensive return management services for e-commerce. Our mission is to reintegrate returned products into the market, preventing unnecessary waste. With a holistic approach, Dawa handles:
Refurbishment: Repairing and cleaning returned items to reintroduce them to the market for resale.
Donation: Directing unsellable items to charitable organizations, contributing to social causes.
Dawa is a strategic ally for the fashion industry by offering an innovative and sustainable solution. By mitigating textile destruction, we actively contribute to environmental preservation and foster the circular economy. We firmly believe in giving every returned product a second chance. Our vision materializes through excellence as a SaaS technology in the reverse logistics ecosystem, key to achieving this goal and positively transforming the fashion supply chain.
