Waste isn’t waste until we waste it

Repair as a best practice in reducing pre-consumer industrial fashion waste.

By Ramesh De Silva

The global textile industry today is massive. Fuelled by the apparel, home, automotive, and other industries, it is the biggest it has ever been. The apparel industry alone is a $1.8 trillion industry, producing 150 billion garments each year, that's nearly 19 items for every human being on the planet

Fashion Waste

Despite this alarming statistic, the industry's incessant production of inexpensive, disposable clothing persists, further exacerbating the issue. The fashion industry generates a staggering 92 million tons of waste annually, where 1 garbage truck of clothes is burned or landfilled every second. To put that into perspective, it's equivalent to the weight of an empty Burj Khalifa multiplied by 24 thousand! 

This whitepaper explores the challenges, opportunities, and crucial regulations confronting apparel manufacturers amidst swift changes in EU legislation. It delves into the escalating legal demand for sustainability and discusses how enhancing a circular business model, such as garment repairing, could play a pivotal role in alleviating the severity of the clothing waste crisis.

Sustainability comes with a cost

The Triple Bottom Line (TBL) is a concept that emphasizes the importance of a business’s impact on social, environmental, and economic aspects. We believe that manufacturers will be the ones to drive transformation in the fashion industry as 72% of the emissions happen before the goods are shipped. But although manufacturers must be the ones to drive the industry’s change, they also cannot do it alone. Brands and policymakers must support. 

Paradigm Shift in the Garment Industry 

Regulations are an important driver in defining future sustainability initiatives. Unless brands and retailers are preparing now to measure and evidence their outcomes with sustainability data, they may struggle to substantiate ESG claims or risk fines and a possible consumer backlash when progress cannot be suitably substantiated.

The Paris Agreement, adopted in 2015 by 196 countries including Sri Lanka, is the world’s first legally binding agreement to combat climate change. The primary goal is to limit global temperature rise to well below 2C above pre-industrial levels, ideally 1.5C to avoid more severe climate impacts. Progress is assessed through a global stocktake. 

The first global stocktake will happen at COP28 in Dubai on 30 November 2023, international delegations will descend on Dubai for the 28th annual United Nations Conference of the Parties (COP). The two-week event plays host to world leaders, activists, media, businesses, and civilians, all with the common goal of limiting climate change. 

The topics discussed and the treaties negotiated at COP can have a direct impact on global fashion supply chains. This conference is an opportunity for fashion professionals to make their voices heard on key issues affecting the industry. Fashion’s presence at COP has historically been limited, with a small number of brands and non-profits fighting to be taken seriously alongside the big hitters of energy and agriculture. That’s now starting to change, as this year, LVMH, Eco-Age, and Global Fashion Agenda will be among those taking on the mantle. 

The previous year's conference unexpectedly shifted focus at the eleventh hour when negotiators approved a loss and damage fund. This addressed longstanding pleas to aid countries most affected by climate disasters, despite their minimal contributions. All eyes will be on whether this gets pushed through in Dubai, and what the consequences will be for industries like fashion, where this global inequality plays out in supply chains. “Fashion brands do much of their production in the Global South, and the burden of textile waste often falls on the Global South. Hopefully, this will result in crucial financial support for manufacturers to accelerate tangible action towards driving ESG practices thereby reducing emissions and waste across the fashion supply chain. 

Sustainability 

Environmental, social, and governance (ESG) is at the forefront of customers' and end-consumers' concerns, with evolving regulatory frameworks aligning with ESG demands. Given that the apparel industry is the 2nd most polluting industry, and contributes 10 percent of global greenhouse gas emissions, the impact on the industry is notably significant. Furthermore, the current recycling rate for clothing is less than 1 percent, resulting in a growing issue of landfills and pollution. And, as 2030 has been set as the target year for full circularity in the EU market, pressure from regulatory bodies is ever-increasing. Given this, apparel manufacturers will soon face stressors across different dimensions including circularity, traceability, and decarbonization. 

Fashion Circularity 

The Paris Agreement lays the groundwork for the concept of a circular economy, offering substantial potential to significantly contribute to climate change mitigation and adaptation efforts. The key principle of a circular economy is to create a closed-loop system where resources are used efficiently, products are designed for longevity and recyclability, and waste is minimized. 

Shifting to a circular economy is a complex and interconnected challenge that extends beyond the capabilities of any single company. A collaborative approach involving multiple stakeholders across various sectors is imperative for a successful transition. Unlike traditional linear business models, embracing a circular economy requires a systemic change that involves not only rethinking product design and manufacturing but also reshaping supply chains, consumption patterns, and waste management practices. 

Future Regulations Affecting The Fashion Industry 

There are over 60 different legislative initiatives with potential implications for apparel manufacturers. Legislators in the Global North are making significant moves to enact sustainability-related legislation. While these laws originate from places such as the EU, the United Kingdom, and the United States, they will impact companies operating outside of these jurisdictions. While suppliers may not, in all cases, be directly subject to the obligations created by these Global North laws, they may still experience knock-on effects as they form an integral part of the global apparel value chain and produce goods for multinational brands and retailers who have increasing compliance obligations. Here are very few of the key regulations. 

1. CSRD (Corporate Sustainability Reporting Directive): Starting in 2024, it applies to 10,000+ organizations, requiring disclosure of social and environmental impacts across the global supply chain.

2. CSDDD (Corporate Sustainability Due Diligence Directive): Obliges EU fashion brands and their suppliers to investigate and address harmful environmental and human rights effects.

3. Digital Product Passport (DPP): Requires foundational systems for visibility from raw materials to finished goods, ensuring adherence to quality, sustainability standards, and circularity.

4. EU Sustainable Finance Taxonomy: Directs investments into circular economy practices, compelling fashion companies to disclose environmental impacts throughout their supply chains.

5. New York Fashion Act: Expected to mandate due diligence and reporting, enhancing transparency on the environmental and social impact of apparel and footwear production.

The era of the fashion industry's self-regulating sustainability is drawing to a close around the world. New regulations across jurisdictions are poised to affect both consumers and fashion players. Brands and manufacturers must adapt their business models to align with these forthcoming changes. A recent survey done by McKinsey reveals that a substantial 87% of fashion executives anticipate that sustainability regulations will have an impact on their businesses in 2024.

Repairing

Repairing clothes is a better way to reuse old clothes without going through the textile recycling process which is energy and resource-intensive. This is not a new concept, garment repairing or mending originates from the 1930s-40s, when families had very little economic ability or material resources during the World Wars. Even today, repairing is a way of life for people in developing and developed countries as repairing and restoring a garment is far cheaper than buying a new one and by extending the life of clothing, garment repair reduces the demand for new clothing production, which is one of the most resource-intensive and environmentally damaging aspects of the fashion industry.

Significance of Garment Repair for Circular Economy 

Garment repair is a promising circular business model for reducing pre-consumer industrial waste by repairing and restoring damages found in the textile manufacturing process. Repairing extends the life of a garment, preventing it from becoming waste and reducing the demand for new resources. 

According to the waste hierarchy, garment repair holds a higher value even more than recycling as the damaged garment is transformed to a wearable export quality garment at its highest value. 

Repairing a new garment is far easier than repairing a used, worn-out garment. As per calculations published by research organizations, repairing one garment can conserve approximately 2 kgs of CO2, 2,500 liters of water, 25Kw of electricity, and 10 kgs of waste. 

Compreli has repaired and restored We have repaired and restored 10 million garments to date and as per the above calculation, this achievement is equivalent to conserving 100,000 metric tons of CO2, saving 5 billion gallons of water, preserving 210,000 MW of electricity, and preventing 100,000 metric tons of waste, whilst generating USD 7-10 million in bottom line savings to textile manufacturers. 

Furthermore, research indicates that 72% of fashion industry emissions stem from upstream activities before the garments are exported, and out of which, 90% of that emission happen even before the fabric is laid on the cutting table. Finished textiles and garments that have been produced but cannot be exported due to some defect, the creative, physical, financial, and especially the natural resources invested in them are lost. By delving into the roots of pre-consumer waste, it becomes clear that optimizing supply chain processes and ensuring tried and tested circular business models such as repairing is not only critical for business performance but also plays a crucial role in combating climate change. 

Post-Consumer Textile Waste

Garment repair is a promising circularity business model for reducing post-consumer waste and for fuelling the recommerce market, which has now become the latest buzzword among brands to reduce the heaps of waste piling up in cities. 

The EU Commission is currently proposing a directive on common rules promoting the repair of goods. This proposal affects producers who sell their goods and sellers who sell third-party goods in the EU. Repair of defective goods will now have priority over replacement. 

There are several benefits to garment repair. First, it helps to reduce waste by keeping clothing in use for longer, which in turn reduces the amount of clothing that ends up in landfills. Second, it helps to promote a more sustainable and conscious approach to fashion consumption. By repairing and maintaining their clothing, consumers can learn to appreciate the value of quality garments and reduce their reliance on fast fashion. 

Pre-Consumer Textile Waste

When discussing the issue of textile waste, the conversation often centers around fast fashion and the disposal of clothes at the end of their life, termed post-consumer waste, which poses a substantial challenge, especially in the global north. However, there's a significant but overlooked issue a few steps earlier in the manufacturing process known as pre-consumer waste. This encompasses all waste materials generated in the supply chain during the manufacturing of a product, an aspect that has not received adequate attention from both brands and policymakers. 

Unlike post-consumer waste, pre-consumer waste holds a greater potential for recovery and diversion from landfills or incinerators as the fabric or the garment is essentially brand new, despite one or more repairable defects. And often, some of these defects are not noticeable to an average shopper. 

Most common defects found in textile and apparel manufacturing.

There are 60+ different defects found in textile manufacturing, and most are repairable. By investing in repair infrastructure, apparel manufacturers can help build a more sustainable and resilient economy. Garment repair can create new job opportunities in the repair and refurbishment sector, which can help support local economies and communities.

60+ other less frequent defects found in textile and apparel manufacturing.

With the expansion of the fashion industry, the quantity of pre-consumer textile waste has increased. Whilst globalization, outsourcing, and offshoring, continue to be important drivers of competitive advantage. One downside of these strategies is that they can increase supply chain complexity. 

The fashion industry produces significant waste due, in part, to its complexity and the disconnection between players along the value chain. Retailers, brands, garment manufacturers, textile mills, and accessory suppliers, as well as various departments within these entities, often operate independently, resulting in significant inefficiencies in the supply chain. Each entity tends to order excessive amounts and build-in buffers to account for potential situations that may prevent them from fulfilling customer orders.

Various research teams have been working on building statistics and data to estimate the volumes of industrial waste from fashion production. Unfortunately, any public data on this matter is globally inaccessible. However, based on research mapping out pre-consumer waste in 20 countries, across 1,200 manufacturers, it's estimated that up to 47% of all fiber entering the fashion value chain becomes waste across various stages of production, from fiber and yarn to fabric and the final garment. 

Most common pre-consumer waste happens, firstly, due to over ordering, manufacturers order 3- 10% more material than necessary and secondly due to inconsistencies in fabric. Thirdly cutting residues, when fabrics are marked, laid, and cut out into desired shapes and sizes, even with conscious effort as much as 8-12% of the fabric, referred to as textile scraps and roll ends can end up on the cutting room floor. 

Producing textiles in large volumes often leads to weaving errors, printing mistakes, and color variations. In the inspection stage, when these defects are identified in large fabric rolls, one common approach is to cut the fabric into smaller rolls using Acceptable Quality Level (AQL) system, which establishes the permissible number of defects in a single fabric roll. However, while this quality control method fits a linear model, it doesn't align well with the principles of circularity. A more circular-friendly approach would involve cutting rolls to match multiples of the marker length, thereby reducing cut pieces and roll ends. This shift supports the aim of minimizing waste and optimizing resource utilization in a circular fashion model. 

Here is the breakdown of this 47% waste. 

Yarn and cotton waste contribute to 45.5% of total wastage. Although some systems recover value from cutting-room waste, much of it is downcycled, losing its highest value. 

Cut pieces and roll ends (21.8%), primarily stems from sub-optimal processes and human negligence. 

This type of waste is frequently sold at a discounted rate or, regrettably, incinerated or sent to landfills. 

Another 23.3% of the waste is attributed to over-produced and defective fabric (9.9%), and over-produced and rejected garments (17.8%) Adopting time-tested practices such as mending or repairing defects within the supply chain could substantially diminish this waste. 

Waste to wealth 

If at least 10-15% of (23.3% of repairable waste) this quantity can be transformed into finished products and then repaired to export standard, manufacturers could achieve significant cost savings, possibly reaching millions. 

Globally we consume 100 billion garments annually whilst generating equal amount of garments as waste. If the below calculations are correct, we over-produce and/or reject 15.3 billion garments annually. 

This offers a prime opportunity for brands and manufacturers to generate extra revenue without the necessity of producing new clothes. Successfully repaired garments can be sold at full price, while those few with minor defects could be discounted, and sold in secondary market such as the preloved fashion market.

The implementation of the digital product passport (DPP) will further amplify transparency, exposing hidden waste. Taking a proactive stance to address this waste is crucial, presenting manufacturers and brands with opportunities to boost revenue whilst driving circularity within the supply chain. 

Repairing 3% of defective garments in a small manufacturing facility could yield over USD 1 million in annual bottom-line savings. If approximately 10-15% of the concealed waste is converted into finished products and then repaired to meet export standards, manufacturers stand to achieve substantial cost savings, potentially reaching a couple of million dollars. Moreover, if a brand pledges to repair 5-10% of defective garments across its supplier base, the resulting hard savings could approach close to a billion USD annually.

Benefits of repairing to the textile manufacturers 

Repairing a garment can often be done quickly and inexpensively, and it has many benefits to the manufacturers and brands. Each garment you repair and export fetches you export value instead of scrap value and eliminates the added cost burden of having to discard that item. Also, manufacturers do not need to reproduce the shortfall to fulfill the customer order quantity which takes up a lot of time and effort whilst disrupting the entire flow of production and incurring possible airfreight and chargebacks. Furthermore, once manufacturers are confident of repair capabilities, having to use special markers to cut around defective fabric diminishes, thereby further reducing cutting wastage which is a key component of pre-consumer fashion waste. 

The fashion industry is facing a business-critical situation, needing to showcase progress in sustainability, possibly as early as 2024. Numerous tools, best practices, and circular business models in textile manufacturing exist that brands can endorse. Garment repairing stands out as a simple, scalable, impactful, and cost-effective model, and avoids depleting natural resources or emitting greenhouse gases, aligning well with the circular economy principles.

While many fashion businesses tend to prioritize immediate concerns over climate-related risks, the structure of the industry's supply chains makes it particularly vulnerable to increasing climate volatility. A mindset shift is crucial in 2024, recognizing that maintaining the status quo is unsustainable. Climate risk should be treated as an urgent, immediate concern rather than a long-term project.

One crucial aspect is the need for companies to transcend the traditional mindset of competition and embrace collaboration. Companies must recognize that the circular economy is not a zero-sum game; success for one company doesn’t come at the expense of another. Instead, it necessitates a collective effort to redesign entire systems and value chains for sustainability. the African proverb wisely notes, “If you want to go fast, go alone. If you want to go far, go together.” 

The author of this article, Ramesh De Silva, is the co-founder of Compreli and Wearnrepair. Compreli is a pioneer in textile repair, restoration, and order fulfillment. 

We believe the shift towards circularity needn’t be complicated. Therefore we have designed a flexible step-by-step onboarding process that enables brands and manufacturers to join the circular economy. Our manufacturing partners especially benefit from an additional source of revenue, less disruptions to production process, increased sustainability credentials and the time to grow their business, safe in the knowledge that our processes are agile, ethical, sustainable.

To find out more about Compreli, please contact Ramesh De Silva at ramesh@compreli.com