What’s the problem in fashion?
Driven by technological improvements and a fiercely competitive market, the fashion industry has grown to a value of $1.7 trillion as of 2022. The last 20 years have seen the rise of fast fashion, characterized by increased releases of clothing collections, speed to market, and often very low price points. Clothing is in fact one of the few consumer goods that saw a decline in overall prices over that time period. However, this does not come without its consequences as the price of clothing is artificially low through the reliance of the industry on fossil fuels and exporting labor (and pollution) to low wage countries.This creates a system wherein overproduction is economically viable for brands and consumers are encouraged to buy clothes more often.
Clothing production has almost doubled in the last 15 years, driven by a growing middle-class market in developing countries and increased consumption in developed countries. Coupled with an item of clothing being worn 40% less, the fashion industry has emerged to be one of the most resource-intensive industries globally. The industry produces approximately 100 billion clothing items annually, with more than 60% being disposed of through incineration or the landfill after only 12 months of being made. Examining the local market, around 29% of Filipinos have thrown away their clothing after a single use while the consumption of new clothing has significantly increased. This increased clothing production has accounted for almost 60% of textile production, 52% of which is polyester, a synthetic fiber made out of petroleum. On the whole, this has led to the fashion industry contributing up to 10% of global carbon emissions, exceeding that of international flights and maritime shipping combined.
Despite leading brands’ promises to shift towards more sustainable fashion, industry changes in the past years have failed to move the needle in lessening both its environmental and social impacts. Often touted by fashion brands in their sustainability campaigns, a good example of lackluster initiatives are recycling programs. Due to limited infrastructure and rudimentary recycling technology, less than 1% of all clothing finds its way back into a new piece of garment. Furthermore, a recent life cycle analysis found that upcycling a pair of cotton jeans has almost the same global warming impact as buying and disposing of a new pair of jeans. The difficulty of recycling is exacerbated by the lack of supply chain transparency, making it near impossible to trace which materials go into a piece of clothing. While sustainability initiatives like recycling are a good start for fashion brands, they are unable to address the pervasive issues of overproduction and overconsumption in the industry.
The industry produces approximately 100 billion clothing items annually, with more than 60% being disposed of through incineration or the landfill after only 12 months of being made.
The industry produces approximately 100 billion clothing items annually, with more than 60% being disposed of through incineration or the landfill after only 12 months of being made.
How did Scale360˚ Philippines tackle the problem?
Scale360° Philippines is committed to helping local brands reassess their supply chains through a circular lens by identifying organizations in the circular value chain. In collaboration with the Philippine Fashion Coalition (PFC), Scale360° Philippines launched an online fashion directory in, showcasing over 70 Philippine organizations contributing to a circular economy. This directory fosters collaborative networks, laying the groundwork for a circular fashion industry in the Philippines by connecting businesses, promoting shared practices, and facilitating sustainable growth partnerships.
Why make fashion circular?
The Global Fashion Agenda estimates that textile waste is to increase by around 60% between 2015 and 2030, generating an additional 57 million tons of waste annually and reaching an annual total of 148 million tons. Despite this amount of waste being generated, the current system in the fashion industry has allowed the industry to grow to $1.7 trillion. However, current trajectories of production and consumption are projected to put immense pressure on the industry by 2030, possibly threatening the industry’s growth. Increased scarcity of resources puts fashion brands’ supply chains at risk, facing rising costs of labor, materials, and energy. This is exacerbated by the current linear economy, leaving billions in resources untapped and creating significant negative environmental and societal impacts.
The Ellen MacArthur Foundation estimates that shifting the industry towards a circular economy can unlock a $560 billion economic opportunity for the market. Shifting towards circularity enables the industry to unlock continued, sustained growth while addressing some of the environmental drawbacks that have plagued the industry for years.
The Ellen MacArthur Foundation estimates that shifting the industry towards a circular economy can unlock a $560 billion economic opportunity for the market.
The Ellen MacArthur Foundation estimates that shifting the industry towards a circular economy can unlock a $560 billion economic opportunity for the market.
How do we transition fashion from linear to circular?
Transitioning the fashion industry towards a circular economy requires new business models, design thinking, and production processes. Through new business models, clothing and textiles can be kept at their highest value for longer by increasing clothing use, enabling re-entry into the upstream supply chain after use, and upcycling textile waste. Collaboration across teams will also be crucial in enabling a circular economy, putting an emphasis on rethinking the designing and production processes such that waste is minimized, renewable inputs are prioritized, and used clothes are easily recycled. Circularity in the industry will be strengthened through Material Innovation such that the industry can move away from petroleum-based textiles towards natural fiber textiles.
Circular Fashion Value Chain
The Fashion pillar of Scale360 Philippines aims to create an online directory that features organizations offering products or services that contribute to a circular economy within the fashion industry. In order to aid fashion brands and consumers, these organizations are categorized in the directory according to their role in the fashion value chain.
The value chain used in categorizing the organizations in the directory was based on models created by the Ellen MacArthur Foundation and in the ASOS Circular Design Guidebook. Categories on Packaging and Marketing were also added as crucial aspects to create a fashion brand in order to aid owners to weave circularity through all aspects of their brand.
Descriptions of each value chain category are listed below:
Raw Materials
Organizations that produce/supply raw materials (ex. fibres, yarn, textiles, dyeing, printing) - mainly for other businesses
Production
Organizations that produce garments and accessories - mainly for other businesses
Packaging
Organizations that produce/supply materials for packaging or finished packaging - mainly for other businesses
Retail /
Made to order
Organizations that sell finished or made to order garments/accessories direct to individual consumers
Swapping /
Renting / Reuse
Organizations that help keep clothes in use through organising the swapping or renting of clothes and accepting donations of fashion goods for charitable purposes
Reworking /
Upcycling
Organizations that rework secondhand fashion goods or use upcycled materials to create new garments/accessories
REPAIR
Organizations that offer repair or restoration services for fashion goods