Industry Overview

Today’s linear system uses large amounts of resources and has negative impacts on the environment and people. 

The textiles industry relies on 98 million tonnes of non-renewable resources in total per year including oil to produce synthetic fibres, fertilisers to grow cotton, and chemicals to produce, dye, and finish fibres and textiles (Ellen MacArthur Foundation).

An additional 93 billion cubic metres of water are used annually for textiles production (including cotton farming), contributing to problems in some water-scarce regions (Ellen MacArthur Foundation)

Low rates of utilisation lead to high levels of throughput, and with low levels of recycling the current linear system is putting increasing pressure on resources. 

Lack of supply chain transparency is causing worker ethics concerns.

The fashion industry has multiple negative societal impacts. Many workers face dangerous working environments due to both unsafe processes (e.g hazardous substances used in production) and high cost and time pressures leading to poor working conditions (long hours, low pay).

E.g Rana Plaza factory collapse 2013

“The potential for negative societal impacts does not stop at the factory door. Local communities, while benefitting from employment in the industry, may suffer from its poor environmental practices. For example, discharging untreated production wastewater pollutes local rivers used for fishing, drinking, or bathing. ”
– Ellen MacArther Foundation

Profitability of the industry is at risk. 
The Pulse of the fashion industry report projects that by 2030, fashion brands would see a decline in earnings of more than three percentage points if they continue business as usual. This would translate into a profit reduction of approximately EUR 45 billion (78 billion NZD) for the industry as a whole.

Sources:

Ellen MacArthur Foundation. “A New Textiles Economy: Redesigning Fashion’s Future.” 2017.

Lehmann, Morten, et al. “Pulse of the Fashion Industry.” Global Fashion Agenda and The Boston Consulting Group, 2018.