24 September 2024
What Textile and Footwear brands need to know about the EU Deforestation-free Regulation
- Production
On the 18th of September, COSH! visited the Circular Textile Days in the Netherlands, an event dedicated to the future of circular fashion and workwear. The event provided a platform for brands, innovators, and policy experts to discuss solutions to the pressing sustainability challenges in the textile industry. This year, the overarching theme that connected various discussions was “harmonisation”—specifically within the sustainable fashion sector. Harmonisation between brands, supply chains, legislation, and the various technologies aimed at improving transparency and circularity is becoming increasingly necessary. Here are some of the panels from the day 1 of the event, and key takeaways from each!
Patagonia: Sharing Knowledge for a Better Future
One of the most insightful talks was by Patagonia’s Willem Swager, where he discussed Patagonia’s bold new business model—making Earth their only shareholder. All profits now go toward environmental preservation and fighting climate change, shifting their business focus to prioritise impact and performance. He shared that Patagonia has never been a “fashion” brand, emphasising that their products are built to last for years, not seasons.
Swager highlighted that one of the biggest problems in the fashion industry is the lack of open collaboration. Too many brands are secretive, keeping their processes and innovations to themselves, which slows down collective progress. He told an eye-opening anecdote about a CEO dinner where two mid-sized brands discovered they were unknowingly working on the same project with the same vendor. This type of “gatekeeping” in the fashion industry is typical, and hurts the potential for innovation and efficiency. As Patagonia advocates, the industry must share more successes and failures if we are to make significant progress in circular fashion.
Patagonia’s work with their Worn Wear trucks was also a perfect example of how sustainability goes beyond the product itself. Their trucks travel across the country, repairing customers’ clothes. But the primary goal isn’t to repair as many garments as possible — it’s to build deeper, more personal connections with their customers, fostering a sense of community and engagement that is rare in today’s fashion industry.
They also spoke about their ongoing battle to eliminate toxic chemicals from their products. While they’ve managed to remove these chemicals from 99% of their products, there’s still the challenge of dealing with zippers. Zippers are often made by third-party suppliers, making it difficult to guarantee every component of a garment is 100% free of harmful substances. This highlighted a broader challenge faced by many brands: the difficulty of regulating an entire supply chain when you don’t control every aspect of it.
Digital Product Passports: The Future of Transparency?
A recurring topic throughout the event was the implementation of Digital Product Passports (DPP). Candour Digital and other innovators showcased the potential of these systems to track the entire lifecycle of a garment. Amsterdam brand New Optimist in collaboration with Candour Digital set up an innovative return system to support their circular business model. By embedding QR codes in products, brands can keep track of where the items go after being sold — whether they’re repaired, recycled, or resold. This offers significant opportunities for brands to not only improve their transparency but also create new business models, such as repair and resale services, which can build customer loyalty and boost circularity.
Bever’s pilot project is aiming to make 50% of its revenue from circular services in the future. Their use of QR codes stitched into garments allows consumers to request repairs easily or understand more about the product’s journey. This push toward transparency helps foster deeper trust between brands and consumers, highlighting how these new systems are making the industry more interconnected.
Legislative Harmonisation: A European Challenge
Harmonisation doesn’t just apply to brands and their supply chains—it’s a legislative issue too. During one of the panels, the speakers discussed how the European Green Deal is shaping the future of textile regulation. Out of the 16 pieces of legislation proposed under this deal, only the Corporate Sustainability Reporting Directive (CSRD) is currently in place, which focuses on reporting sustainability practices. But there’s still a long road ahead, with the upcoming Digital Product Passport mandate, the Extended Producer Responsibility (EPR) scheme, and others still in development.
One of the key challenges highlighted was the role of Very Large Online Players (VLOPS). These international companies operate across multiple jurisdictions, making it difficult for EU laws to effectively regulate them. There’s also the need to define how recycling will be regulated by 2050, as all products will need to contain recycled content by then. But how will recycling be managed across borders? How can we ensure that standards are harmonised throughout Europe, rather than fragmented across 27 different national schemes?
The Product Environmental Footprint (PEF) system, a life cycle assessment (LCA) methodology, will play a critical role in this process, helping brands measure the environmental impact of their products. Meanwhile, the Corporate Sustainability Due Diligence Directive (CSDDD) and the Green Claims initiative will further guide brands in verifying the sustainability of their supply chains and preventing greenwashing. But for these systems to be effective, there needs to be greater coordination and consistency across the continent.
Blockchain and Supply Chain Transparency
One of the most interesting discussions centred around the use of blockchain technology to improve supply chain transparency. Haelixa is pioneering the use of physical tracers—DNA markers embedded in textiles at various stages of production, from cotton ginning to recycling. This allows brands to verify exactly where their materials come from, adding a layer of accountability that goes beyond digital data.
The conversation also touched on NFC chips, which can be embedded in products to provide real-time data on a garment’s journey. Combined with DPPs, these technologies offer a robust way of ensuring supply chain transparency. Impactful companies like Portance, Aware, and Ecolife all contributed to this discussion lead by Jolanda Kool, founder of Tex-Tracer, demonstrating how traceability is becoming more accurate and reliable, thus building more trust with consumers and regulators alike.
Conclusion: A Call for Greater Collaboration
At Circular Textile Days, the message was clear: the fashion industry must move away from its closed-off, competitive mindset. If we’re going to solve the challenges of sustainability and circularity, brands need to stop gatekeeping information and start collaborating. The first step may be small—like sharing knowledge about supply chains or product innovations — but it’s crucial for building momentum.
The future of fashion lies in its ability to harmonise across sectors — whether through legislation, supply chains, or new technologies like DPPs and blockchain. If we want to move beyond a capitalist system where each brand works in isolation, then transparency and openness must become the new norm. Only by working together can we truly transform fashion into a circular, sustainable industry.
