Accelerating Circular Fashion: Global Brands and Organisations Inform New Research on Reverse Logistics
4 September 2024: Global Fashion Agenda (GFA), supported by its Insight Partner, Maersk, has released a new report, Reverse Logistics for Circular Fashion Systems. The report expands on how fashion brands, retailers, value chain partners, and logistics providers can leverage reverse logistics to cultivate an effective and holistic circular fashion system.
The publication is the culmination of extensive research, including consultations with and input from eight renowned experts from eight brands and organisations - Maersk, Nike, H&M Group, Target, PUMA Group, Ellen MacArthur Foundation, VF Corporation, and Circle Economy Foundation. It highlights the critical role of logistics in supporting fashion companies to adopt more circular systems by managing the reverse flow of materials and products from end-users, and returning them back into the system for resale, remaking or recycling, extending their lifecycle, maximising value, and minimising waste.
Over 520 global regulations are currently in place, urging companies to rethink their sourcing and design strategies, emphasising regionalisation and circularity. Moreover 45% of brands surveyed by Global Fashion Agenda and the United Nations Environment Programme earlier this year reported that they have set targets to derive at least 10% of their revenue from circular business models by 2040. However, despite the potential, the fashion industry lacks a comprehensive system for circularity, with current fragmented approaches failing to achieve commercial viability. Deeper collaboration with logistics partners can support more streamlined operations, while aiding compliance with tightening regulatory requirements and in demonstrating positive environmental impacts.
To guide stakeholders, the publication outlines essential elements for implementing effective reverse logistics, including:
- Network design: Expanding reverse logistics beyond consumer returns to capture and valorise post-industrial textile waste flows and unsold goods.
- Financial ownership: Establishing clear financial models to define roles, responsibilities, and profit-sharing, enhancing collaboration and investment.
- Boosting collection volumes: Developing infrastructure for efficient collection and processing of textile waste, essential for scaling solutions and reducing recycled fibre costs.
Federica Marchionni, CEO, Global Fashion Agenda, says: "Global Fashion Agenda’s new report on reverse logistics, supported by our Insight Partner Maersk, is a crucial guide for the fashion industry, offering clear strategies for embracing circular systems that not only enhance business operations but also harness the opportunities of used textiles. I strongly encourage leaders to engage deeply with their logistics partners, use innovative technologies, and adopt a comprehensive approach to circularity. By doing so, we can collectively extend the lifecycle of products, reduce waste, and create substantial economic value."
Kaisa Tikk, Head of Commercial Sustainability, Maersk, says: “Logistics is an integral part of any successful circular system. Circularity requires both fashion companies and their logistics providers to rethink the setup of linear supply chains. Collaborating with logistics providers will provide fashion companies guidance on how logistics can help enhance fashion supply chains’ transition to circularity and avoid logistics being a road blocker during implementation of circular systems.”
This landmark report is a call to action for the entire fashion industry to embrace reverse logistics to establish a truly holistic and highly effective circular fashion system. Fashion brands, retailers, manufacturers, logistics providers, and textile recyclers are invited to join Global Fashion Agenda and Maersk in advancing this collectively.
Reverse Logistics for Circular Fashion Systems is an openly accessible resource and available to download here.
For more information contact: press@globalfashionagenda.org
About Global Fashion Agenda
Global Fashion Agenda (GFA) is a non-profit organisation that fosters industry collaboration on sustainability in fashion to accelerate impact. With the vision of a net positive fashion industry, it drives action by mobilising, inspiring, influencing and educating all stakeholders.
The organisation has been leading the movement since 2009 and presents the renowned international forum on sustainability in fashion, Global Fashion Summit in core fashion regions around the world. GFA influences policy through its advocacy efforts including the Global Textiles Policy Forum, publishes thought leadership including The GFA Monitor, Fashion CEO Agenda and Fashion on Climate, implements impact programmes including the Renewable Energy Initiative and the Global Circular Fashion Forum, presents educational guidance through the GFA Academy, and connects companies with solutions through the Innovation Forum.
Working in partnership with a wide ecosystem of companies and organisations across the value chain, GFA spearheads the fashion industry’s journey towards a more sustainable future. Through its work, GFA reaches thousands of stakeholders including brands, innovators, NGOs, policy makers, manufacturers, investors and more.
About Maersk
Maersk is a global integrator of logistics, offering comprehensive end-to-end logistics services, a growing suite of digital solutions and a global delivery network spread across +130 countries. By connecting and simplifying global trade, Maersk empowers its customers and broader society to create value, grow and thrive. But Maersk only succeeds when this growth is decoupled from negative impacts on individuals, communities, the planet and resources we all share. The Maersk vision to become the Global Integrator demands an accelerated transition to decarbonise global supply chains and enables trade with less climate impact for our growing world.
To learn more, visit the Maersk website or contact Maersk directly via Fashion supply chain management - Contact us | Maersk
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