Winners of the Lake Macquarie Business Excellence Award for Sustainability 2024. And finalists in the Business Hunter Awards.
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      Circular Fashion Explained - In 5 mins

      Source: https://www.ellenmacarthurfoundation.org/circulate-products-and-materials

      Now is the time for fashion businesses to reinvent themselves. The circular economy offers more than just reducing harm—it’s a visionary concept that can inspire a new era in the industry. It’s a chance to create a fashion sector that addresses climate change, biodiversity loss, waste, and pollution, while also ensuring long-term prosperity.

      These statistics reflect the growing importance and impact of circular fashion, emphasizing its economic, environmental, and social potential:

      Some Circular Fashion Statistics:  


      Market Size and Growth:

      • The global circular fashion market was valued at approximately $4.5 billion in 2020 and is expected to grow at a CAGR* of 10.6% from 2021 to 2026.
      • In the EU, the circular economy could generate a net economic benefit of €1.8 trillion by 2030.
      Sources: Circular Fashion Report 2021 by Global Fashion Agenda and The Boston Consulting Group, European Environment Agency.


      Consumer Behavior:

      • 72% of consumers in the U.S. and Europe are willing to change their purchasing habits to reduce their environmental impact.
      • 64% of global consumers say they will pay more for sustainable products.

      Source: Nielsen Global Corporate Sustainability Report.


      Textile Waste and Recycling:

      • Annually, 92 million tons of textile waste are generated globally, expected to increase by about 60% by 2030.
      • Only 12% of clothing material is recycled into new garments.

      Sources: Ellen MacArthur Foundation, Textile Exchange.


      Environmental Impact:

      • The fashion industry is responsible for 10% of annual global carbon emissions, more than all international flights and maritime shipping combined.
      • Circular fashion could reduce emissions by 45% by 2030 if adopted widely.

      Sources: United Nations Environment Programme (UNEP), Ellen MacArthur Foundation.


      Economic Benefits:

      • Transitioning to a circular economy in the fashion industry could save $500 billion annually by reducing costs associated with the negative impacts of waste.
      • Extending the life of clothes by an extra nine months of active use would reduce carbon, water, and waste footprints by around 20-30% each.

      Sources: Ellen MacArthur Foundation, WRAP (Waste and Resources Action Programme).


      Employment and Innovation:

      • Circular fashion practices are estimated to create 6 million jobs worldwide by 2030.
      • Investment in innovative recycling technologies and circular business models is projected to exceed $2 billion by 2025.

      Sources: International Labour Organization (ILO), The Business of Fashion and McKinsey & Company.

      Circular Economy: Circulate Products and Materials Model explained: 


      Objective: Keep products and materials in use, maintaining their highest value to prevent waste.


      Two Fundamental Cycles:


      1. Technical Cycle:
      Reuse: Products maintained and reused without significant changes.
      Repair and Refurbish: Extending product life through maintenance.
      Remanufacture: Rebuilding products using used but serviceable components.
      Recycle: Breaking down products to their raw materials for reuse.

      2.Biological Cycle:
      Composting: Decomposing organic materials to enrich the soil.
      Anaerobic Digestion: Breaking down organic matter in absence of oxygen, producing biogas and digestate.
      Design for Circulation: Products should be designed for ease of repair, maintenance, and eventual recycling or composting.

      For more detailed information, visit the Ellen MacArthur Foundation website.

      We are excited to announce our upcoming book club in June, featuring "Circular Fashion: Making the Fashion World Sustainable" by Peggy Blum. If you're interested in joining, please let us know soon, as spots are limited.

      We encourage you to bring your mending or upcycling projects to our meetings. Together, we can normalize these practices and inspire others. The book club will be conducted as a think tank, using Blum's book to guide our discussions and ideas. 

      Love,

      Yvie xo

      *CAGR stands for Compound Annual Growth Rate. It is a measure used to describe the mean annual growth rate of an investment or market over a specified period longer than one year. CAGR is useful for comparing the growth rates of different investments or markets because it smooths out the volatility that can occur over shorter periods.

      In the context of the global circular fashion market, a CAGR of 10.6% from 2021 to 2026 means that the market is expected to grow at an average annual rate of 10.6% over those years, compounding each year. This indicates a significant and steady increase in the market's value over time.