The EU is Addressing Fashion's Open Secret: Eliminating the Destruction of Unsold Goods
December 7, 2023
Clothing waste is a well-known issue in the fashion industry. Unsold items are often sent to incinerators, handbags are deliberately damaged to prevent resale, and usable products end up in landfills to avoid discounts. The European Union is taking steps to end these unsustainable practices through a series of new policies.
"It is time to end the model of 'take, make, dispose' that is so harmful to our planet, our health, and our economy," stated Member of the European Parliament (MEP) Alessandra Moretti. The EU has recently prohibited the destruction of unsold textiles and footwear, aiming to shift the way fast fashion manufacturers produce their goods.
This ban is part of a broader effort to tighten sustainable fashion legislation, introducing new policies related to ecodesign, greenwashing, and textile waste over the next few years. The ban on destroying unsold goods has a longer lead time, with large businesses given two years to comply and SMEs granted up to six years. The impact on companies headquartered in the EU or operating there, as well as the implications for regions outside of Europe, is yet to be clarified.
This decision is welcomed by many as it indirectly addresses issues of overproduction and degrowth. While not directly limiting production, policymakers are penalizing those who overproduce, signaling a positive shift according to Eco-Age sustainability consultant Philippa Grogan.
Note: Some clarifications are expected
Scott Lipinski, CEO of Fashion Council Germany and the European Fashion Alliance (EFA), emphasizes the need for clarification on terms like "unsold goods" and "destruction." The EFA urges the EU to consider remanufacturing and upcycling as valid practices that provide a second life to unsold products, promoting creative freedom. Concerns are also raised about the fate of unsold goods if not destroyed.
Disclosure Requirement for Large Companies
Large companies will now be obligated to disclose the number of unsold consumer products discarded each year and the reasons behind it. This rule aims to curb overproduction and destruction. However, the EFA expresses concerns about potential reputational risks for brands.
Shifting Supply Chains and Embracing Innovation
Dio Kurazawa, founder of sustainable fashion consultancy The Bear Scouts, sees this as an opportunity for brands to enhance supply chain agility and move away from the wholesale model. He suggests embracing innovations like pre-order and on-demand manufacturing to reduce unsold goods. Technology, particularly AI, can assist brands in forecasting and producing more intentionally.
Enforcement Challenges
Enforcement remains a key question. Brands often cite a lack of transparency in fashion supply chains as an excuse for questionable practices. The challenge with the EU's new ban lies in proving the destruction of unsold goods and understanding the extent of such practices.
Source: Original article from Vogue Business
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