Retail

Last updated: 10 Jun 2025

Sustainable Practices in Fashion Retail

Introduction

In the circular economy, retail plays a pivotal role by influencing both product lifecycle and consumer behaviour. Retailers are uniquely positioned to bridge the gap between sustainable production and consumer adoption, making them crucial agents in the transition towards a more sustainable fashion industry. They serve as the final point of interaction between the sustainable products and the consumers, providing opportunities to promote and facilitate environmentally responsible purchasing decisions.

By integrating principles of the circular economy into their business models—such as facilitating product returns for recycling or resale, offering repair services, and encouraging the shift towards durable and repairable products—retailers can significantly extend the lifespan of products and reduce waste. Furthermore, through educational campaigns and transparent marketing, retailers can raise consumer awareness about the environmental impacts of their purchases, fostering a culture of sustainability. By doing so, they not only contribute to environmental preservation but also build a sustainable brand image that can drive consumer loyalty and trust.

Matching Supply and Demand

Aligning production with actual consumer demand is essential for minimising waste and enhancing sustainability within the fashion industry. Developments in artificial intelligence (AI) and advanced data analytics are revolutionising demand forecasting, enabling retailers to detect and respond to market signals from a variety of sources. These technologies analyse consumer behaviour, sales data, market trends, and even social media sentiments to produce more accurate forecasts. By incorporating AI into their forecasting processes, retailers can adjust production dynamically, ensuring they manufacture quantities that more accurately reflect consumer needs and thus avoid overproduction.

Implementing just-in-time production strategies, bolstered by AI-driven insights from real-time data across retail points, can significantly optimize inventory management and reduce excess stock. This approach not only cuts down on waste but also improves operational efficiency, leading to a leaner, more responsive supply chain. For a deeper understanding of how AI and analytics are enhancing demand forecasting and inventory management, the McKinsey report on the state of fashion offers comprehensive strategies and insights.

Service Business Models/Shared Ownership

Service-oriented business models such as clothing rental, leasing, and subscription services are fundamentally transforming the traditional buy-to-own approaches in the fashion industry. These innovative models contribute to a circular economy by extending the lifecycle of garments and significantly reducing waste. They achieve this by maximising the utility of each item through shared ownership, allowing multiple users to enjoy a single garment over its useful life. This not only decreases the number of items that end up in landfills but also reduces the demand for new production, thus conserving resources and reducing pollution.

Companies like Rent the Runway and Le Tote have pioneered these models with considerable success, demonstrating consumer readiness to embrace non-ownership ways of enjoying fashion. Rent the Runway, for instance, offers a diverse array of high-end clothing options for rental, effectively catering to consumers' desires for variety without the need to purchase. Similarly, Le Tote provides subscription services where customers can borrow clothes and accessories for a monthly fee, promoting continual renewal of wardrobe choices without perpetual buying.

Exploring these models can be a strategic move for retailers aiming to innovate within a circular economy framework. It allows them to remain competitive and relevant in a market increasingly driven by sustainability concerns while also building brand loyalty and attracting a demographic that values ethical consumption. The successful implementation of such models not only meets emerging consumer trends but also aligns with global sustainability goals by reducing environmental impacts associated with the traditional fashion lifecycle.

The growth of these models is further supported by advancements in technology and logistics, which streamline the process of renting, returning, and managing inventory, making it as convenient as traditional shopping for the end consumer. As the market for these services expands, they could redefine fashion consumption patterns globally, making sustainable fashion accessible and desirable for a broader audience.

Retail of Second-hand Garments

The market for second-hand garments is rapidly expanding as consumers increasingly prioritise sustainability in their purchasing decisions. Retailers have a significant opportunity to capitalise on this trend by integrating pre-owned clothing sections into their stores or by establishing dedicated platforms for second-hand goods. Such initiatives not only cater to a growing demographic looking for eco-friendly shopping options but also support the principles of a circular fashion economy, where the lifecycle of garments is extended through reuse and recycling.

Online platforms like ThredUp and Loanhood exemplify the potential of the second-hand market. ThredUp, as highlighted in its Annual Resale Report, provides extensive data demonstrating the robust growth and future potential of the resale sector. Loanhood takes a slightly different approach by offering a peer-to-peer rental service, allowing users to lend and borrow clothing within their community. This model not only promotes the reuse of garments but also fosters a sense of community and shared responsibility towards sustainable fashion.

By leveraging these online platforms, retailers can reach a wider audience and facilitate the transition from traditional retail models to more sustainable practices. This approach not only attracts environmentally conscious consumers but also sets a precedent for the industry, encouraging a shift away from fast fashion and towards more sustainable consumption patterns. The success of these platforms indicates a significant shift in consumer behaviour, where value is increasingly seen in sustainability and reuse rather than in newness and ownership.

Educating Consumers on Garment Aftercare

Educating consumers about proper garment care is pivotal in extending the lifespan of clothing and diminishing its environmental impact. Retailers play a crucial role in this educational process by providing detailed care labels, which guide consumers on how to wash, dry, and handle their clothes to minimise wear and tear. Beyond labels, retailers can actively engage with customers by hosting workshops and seminars focused on garment care techniques, such as effective stain removal, mending tears, and sewing buttons. These sessions not only empower consumers with practical skills but also promote a culture of care and longevity over disposability.

Additionally, retailers can leverage their digital platforms to share content about best practices for washing, repairing, and storing garments. This content can include blog posts, videos, and social media campaigns that provide easy-to-follow advice on maintaining the quality of clothes and making environmentally conscious choices, such as using cold water for washing or opting for air drying instead of using a dryer.

Promoting the use of eco-friendly laundry products is another area where retailers can make a significant impact. By recommending or selling detergents that are biodegradable and free from harsh chemicals, retailers help reduce the runoff of pollutants into water systems. The Care Label Project by AEG exemplifies how brands can lead in this area by advocating for lower washing temperatures and the use of sustainable laundry products to minimise environmental damage.

Through these initiatives, retailers not only contribute to the sustainability of the fashion industry but also build stronger customer relationships by aligning with the values of a growing demographic that prioritises environmental responsibility.

Responsible Marketing

Responsible marketing in fashion not only involves promoting products in a way that accurately reflects their environmental benefits and sustainability but also requires a commitment to transparency about the lifecycle impacts of products. This approach helps to avoid greenwashing, where claims might mislead consumers about the true environmental impact of their purchases. By being transparent and honest, retailers can strengthen consumer-brand relationships, fostering trust and loyalty.

Retailers can leverage these relationships to nudge consumers toward more sustainable practices. For example, by openly sharing information about the sourcing of materials, the conditions under which garments are made, and the company's environmental initiatives, brands can educate consumers and influence their purchasing decisions. Such initiatives encourage consumers to choose products that are not only good for them but are also beneficial for the planet.

Moreover, brands can use their platforms to advocate for sustainable fashion by highlighting the environmental and ethical attributes of their products. This might include details on recyclable materials, energy-efficient manufacturing processes, or fair labor practices. The Fashion Transparency Index by Fashion Revolution provides excellent guidelines on how brands can enhance transparency and implement ethical marketing strategies. This index serves as a benchmark for fashion brands to assess themselves against best practices in the industry.

By integrating these practices into their marketing strategies, brands can effectively contribute to a more sustainable fashion industry while building stronger and more meaningful relationships with consumers. This relationship, built on trust and shared values, not only enhances brand loyalty but also empowers consumers to make more informed choices that align with their personal values and the broader goals of environmental sustainability.

Offering Repair Services

Offering repair services is a significant step for retailers aiming to promote sustainability by encouraging consumers to extend the lifespan of their garments instead of discarding them. Retailers can establish in-store or online repair services, providing a convenient way for customers to mend or refurbish damaged clothing. This initiative not only reduces waste but also educates consumers about the value of garment longevity.

Patagonia's Worn Wear programme exemplifies this practice. It not only offers repair services but also provides detailed repair guides to encourage consumers to take care of their own garments. This programme supports the brand’s commitment to durability and sustainability by promoting a culture of repair rather than disposal. The initiative also strengthens customer loyalty, as consumers appreciate the additional value and service provided by the brand.Furthermore, by integrating such services, retailers can foster a deeper connection with their customers, creating a community around sustainable practices. These services can be a unique selling point, differentiating brands in a competitive market. For instance, offering customisation options during repair can personalise the experience, enhancing customer satisfaction and engagement.

Retailers might also consider partnering with local artisans or repair specialists to offer these services, which supports local businesses and economies. This approach not only enhances the retailer's sustainability efforts but also embeds them within the larger community, contributing to a more comprehensive impact on local development and sustainability. Overall, the implementation of repair services by retailers represents a proactive approach to environmental responsibility, encouraging a shift in consumer behaviour towards more sustainable consumption practices.

Collection Points for End-of-Life Garments

Collection points for end-of-life garments are crucial in facilitating the recycling and repurposing of used clothing. Retailers and category buyers can play a significant role by establishing these collection points within stores or in partnership with community centres and recycling organisations. This not only provides customers with a convenient way to dispose of unwanted garments responsibly but also supports environmental sustainability efforts. For retailers, this initiative enhances customer engagement and brand loyalty by demonstrating a commitment to sustainable practices. Effective collection systems help ensure that textiles are diverted from landfills and instead are directed towards facilities where they can be processed for reuse or recycling, thus contributing to a reduction in environmental impact.

Enabling a Closed Loop Model

Enabling a closed loop model in the retail sector involves creating systems where post-consumer garments are brought back into the production cycle. Retailers and category buyers are pivotal in implementing such systems by partnering with recycling firms and fashion manufacturers to reintegrate recycled fibres back into new products. This approach requires a well-orchestrated collaboration across the supply chain to ensure that returned garments are collected, sorted, and recycled efficiently. By promoting and facilitating a closed-loop model, retailers can minimise waste and reduce reliance on virgin materials, leading to a more sustainable fashion industry. This system not only lessens the environmental footprint but also aligns with growing consumer demand for sustainable products.

Textiles and Material Harvesting

Textiles and material harvesting involve the process of collecting and repurposing fabric from end-of-life garments. Retailers and category buyers can support this initiative by establishing relationships with specialised recycling operations that can extract usable fibres from old clothing. These fibres can then be processed and reused in the production of new garments, reducing the need for new raw materials and decreasing the overall environmental impact of the production processes. Effective material harvesting requires a keen understanding of material compatibility and recycling technologies, which can significantly influence the quality and feasibility of recycled textiles. For retailers, investing in textile harvesting can lead to innovations in product offerings and contribute to a circular economy, enhancing the brand's sustainability credentials and market competitiveness.

Conclusion

Retail strategies in the fashion industry have significant implications for sustainability. By adopting practices such as aligning supply with demand, embracing service models, integrating second-hand retail, educating on garment care, engaging in responsible marketing, and providing repair services, retailers can play a pivotal role in advancing the circular economy. These strategies not only mitigate environmental impacts but also build consumer trust and drive long-term business sustainability.

Clothing, fashion and textiles: policies and standards

EU Circular Economy Action Plan 1 & 2: The EU Circular Economy Action Plan 1 (CEAP 1), launched in 2015, set the foundation for transforming the European economy from a linear to a circular model. The plan introduced 54 targeted actions, including legislative proposals to revise the Waste Framework Directive, Landfill Directive, and Packaging Waste Directive. It focused on improving product design to facilitate repair and recycling, enhancing waste management systems, and developing a functioning market for secondary raw materials. Sector-specific initiatives included the EU Strategy for Plastics in a Circular Economy, which aimed to make all plastic packaging recyclable or reusable by 2030; measures to reduce food waste by setting a common EU methodology to measure food waste levels; and efforts to ensure the secure supply of critical raw materials through improved recycling and reuse.

Building on the successes of the first, the EU Circular Economy Action Plan 2 (CEAP 2), introduced in 2020 as a core component of the European Green Deal presented a more comprehensive and ambitious strategy. The CEAP 2 identified critical shortcomings in current product design, which often fail to prioritise durability, reusability, repairability, and recyclability throughout the product lifecycle. It also highlighted the lack of accessible information and affordable sustainable choices for both consumers and businesses. To overcome these obstacles and foster a truly circular economy, the CEAP 2 emphasised the need for a well-functioning internal market for sustainable products. A central pillar is the proposed Ecodesign for Sustainable Products Regulation (ESPR), which will set requirements for products to be more durable, reusable, repairable, and easier to recycle. This includes measures like digital product passports, mandatory green public procurement criteria, and a ban on the destruction of unsold durable goods. It also targets resource-intensive sectors with high circularity potential textiles with the EU Strategy for Sustainable and Circular Textiles (published in 2022).

• EU Strategy for Sustainable and Circular Textiles: The EU Strategy for Sustainable and Circular Textiles, published in March 2022, is an initiative aimed at transforming the textile industry to become more sustainable, circular, and resource-efficient. This strategy, part of the broader European Green Deal and Circular Economy Action Plan, focuses on reducing the environmental impact of textiles throughout their lifecycle, from production to end-of-life. It addresses key issues such as waste generation, resource consumption, and pollution associated with the textile sector. Key components of the strategy include promoting the design of textiles for durability, repairability, and recyclability. It also emphasises the importance of using sustainable and recycled materials, improving waste management, and fostering innovative business models like reuse and recycling. The strategy aims to ensure that textile products placed on the EU market are long-lasting and recyclable, and produced in an environmentally friendly manner. By setting clear guidelines and supporting research and innovation, the EU Strategy for Sustainable and Circular Textiles seeks to drive the industry towards greater sustainability and circularity, benefiting both the environment and the economy.

• The Ecodesign for Sustainable Products Regulation (ESPR): ESPR is a framework directive, which came into effect on 18th July 2024, and forms the foundation of the Commission's strategy for promoting environmentally sustainable and circular products (2020 Circular Economy Action Plan). It enables the setting of performance and information conditions – known as ‘ecodesign requirements’ e.g. recyclability, recycled content, durability, and repairability – for almost all categories of physical goods. It aims to help the EU meet its environmental and climate goals, double its material use circularity rate, and achieve its energy efficiency targets by 2030. The working plan 2025–2030, published on the 16th April 2025, identified key product groups that will be the focus of eco-design requirements and energy labelling efforts over the next five years. Textile (apparel) has been prioritised for regulatory development in the final products category. The Working Plan 2025–2030 has also identified two horizontal measures: repairability for all products, and recyclability and recycled content (electrical and electronic equipment). Preparatory studies and stakeholder consultations for textile-specific requirements are already underway in 2025, with draft delegated acts expected by late 2026, and adoption of binding ecodesign requirements anticipated in 2027. The first Ecodesign Forum meeting was held on the 19-20 February 2025 and a stakeholder consultation survey was conducted in during summer 2025.

  • Product regulations (Eco-design requirements): ESPR offers a framework for setting ecodesign requirements. Article 5 of the ESPR presents the 16 eco-design requirements as follows: durability; reliability; reusability; upgradability; repairability; the possibility of maintenance and refurbishment; the presence of substances of concern; energy use and energy efficiency; water use and water efficiency; resource use and resource efficiency; recycled content; the possibility of remanufacturing; recyclability; the possibility of the recovery of materials; environmental impacts, including carbon footprint and environmental footprint; expected generation of waste. These requirements can be applied to specific or horizontal product groups. They can take the form of product performance or information or both. Performance requirements may set minimum or maximum levels for specific product parameters (e.g. energy use, recycled content) or introduce non-quantitative rules (e.g. banning design features that hinder repair). Information requirements should provide clear data on environmental and carbon footprints, durability, repairability, disassembly, reuse, recycling, and the presence of substances of concern. This information must be accessible via a Digital Product Passport and, where relevant, also appear on the product, its packaging, labels, manuals, or a free-access website. The EC's Joint Research Centre (JRC) is conducting a detailed Preparatory Study to create the scientific basis for new rules in order to inform future binding Product Regulations (Eco-design requirements), Green Public Procurement criteria, and EU Ecolabel revisions for textiles. The Study continues throughout 2025 focusing on environmental and economic analysis. In 2026, the EC aims to develop an Impact Assessment of Design Options and publish a Delegated Act containing the specific rules for textiles. An 18-month period will follow the adoption of the delegated act before the rules apply. Therefore, the first eco-design requirements for apparel will not be in force before this time.

  • EU Digital Product Passport (DPP): The proposed EU Digital Product Passport (DPP) is a key initiative under the ESPR, designed to provide comprehensive, standardised information on a product’s environmental and sustainability profile throughout its entire lifecycle. It aims to provide detailed information about the entire lifecycle of textile products and increase transparency and traceability related to the sustainability across all products, clothing as a final product is being prioritised in regulatory development. For example, by embedding digital tags or QR codes on garments, consumers, businesses, and regulators will be able to access data on the materials used, manufacturing processes, and environmental impact. This initiative aims to empower consumers to make more informed choices, foster sustainable practices among manufacturers, and facilitate efficient recycling and waste management processes. In the context of textiles and fashion, DPPs are particularly crucial due to the sector's considerable environmental footprint. As of May 2025, data requirements for the DPP have not been finalised and are now expected to be delayed to 2026. A public consultation was launched by the European Commission (EC) from April to July 2025 is gathering stakeholder input on data management and potential certification for DPP service providers. EC received 250+ responses. The feedback will inform the development of an effective functioning of the DPP system. The EC has yet to confirm horizontal or sector-specific data requirements, including for textiles. Another survey was launched during summer 2025 for impact Assessment.

  • Green Public Procurement: The ESPR aims to make Green Public Procurement (GPP) rules mandatory for specific products, shifting from their current voluntary status. Member States will have flexibility in applying these policies, but public authorities will be required to purchase products that meet the highest sustainability and circularity standards. This mandatory approach is expected to significantly increase demand for sustainable products, encouraging companies to invest more in eco-friendly innovations. GPP is part of the broader framework of Strategic Public Procurement (SPP), which also includes Socially Responsible Public Procurement (SRPP) and Innovation Procurement. The core of GPP is the use of clear, verifiable, and ambitious environmental criteria for products and services, grounded in a life-cycle perspective and scientific evidence. The ESPR allows mandatory minimum requirements for public procurement. An implementing act will set GPP requirements.

  • Substances of Concern (SoC): Substances of concern (SoC) are those that pose risks to the environment or human health or hinder the recyclability of products. These substances are defined by specific criteria including being identified as a Substance of Very High Concern (SVHC) under REACH, classified under certain hazard classes in the Classification, Labelling and Packaging (CLP) Regulation, or regulated under the Persistent Organic Pollutants (POPs) Regulation. Substances that negatively affect the reuse or recycling of materials in a product are also included, with specific substances determined on a product-by-product basis. The ESPR requires tracking these substances throughout the product's lifecycle, from production to end-of-life. Information on material composition and any substances of concern in the product will be included, together with information on how it can be safely used, recycled and disposed of in the DPP. The legal obligations regarding SoC will be set out in Delegated Acts. No final Delegated Acts have been adopted that set specific SoC requirements for any product group. The work is in the preparatory phase.

  • Ban on the destruction of unsold textiles and footwear: The ESPR introduces a ban on the destruction of unsold textiles and footwear. Unsold products in this context, can be either overstocks (products that are produced but have never been sold), obsolete products (products for which there is no longer any demand) or products that are damaged or recalled by their manufacturer because of quality issues. Under the ESPR, from July 19, 2026, large companies will be prohibited from destroying certain unsold products with specific rules for apparel and footwear. Medium-sized enterprises have until July 18, 2030, to comply with both disclosure and destruction rules. Micro and small enterprises are exempt. ESPR also imposes a transparency obligation. Large companies are required to start publicly disclosing the number and weight of all unsold products they destroy (and their reasons for doings so), starting from their 2025 financial year with disclosures due in 2026. The ban on destroying unsold goods in the ESPR is divided into two separate regulations:

    • An Implementing Act which defines the scope by specifying which product types are covered. It also sets the format for disclosing information and the methods for verifying this information. The consultation period regarding the draft Act has closed on the 10th of July 2025, and currently the EC adoption is expected by the end of 2025.

    • A Delegated Act which specifies the limited justifications (exemptions) for destroying unsold apparel and footwear, such as safety risks, legal non-compliance, or damaged goods. The consultation period on the draft Act has closed on the 11th of August 2025, and currently the EC adoption is expected by the end of 2025.

The Green Claims Directive 2024: The Green Claims Directive is an EU initiative aimed at ensuring that environmental claims made by companies about their products and services are clear, accurate, and substantiated. This directive addresses the growing issue of greenwashing, where misleading claims about environmental benefits are made. To combat greenwashing, the directive sets strict guidelines requiring businesses to provide verifiable evidence for their environmental claims. Companies must substantiate claims using recognised scientific methods and have them verified by independent accredited bodies before making them public. They must specify the scope of claims whether they apply to the entire product, a part of it, or a specific aspect of its lifecycle. They also must undergo ex-ante verification, meaning all voluntary environmental claims must be assessed before being presented to consumers. This verification process must be completed within 30 days to ensure timely compliance. The directive covers various aspects such as carbon footprint, resource efficiency, and recyclability. Furthermore, vague or generic environmental claims such as "eco-friendly," "green," "ecological," or "environmentally friendly" without clear and prominent substantiation will be effectively banned if they cannot meet strict criteria. This directive entered into force on the 26 March 2024 and member states must now incorporate its requirements into national law by 26 September 2026. It complements the Directive to Empower Consumers for the Green Transition, which entered into force on the 27 March 2024, further strengthening consumer rights against misleading sustainability claims.

EU Waste Framework Directive: The Waste Framework Directive (Directive 2008/98/EC) is a cornerstone of the EU's waste management policy. It requires that waste be managed without endangering human health and harming the environment, without risk to water, air, soil, plants, or animals, without causing a nuisance through noise or odours and without adversely affecting the countryside or places of special interest. This directive sets the basic concepts and definitions related to waste management, including the "waste hierarchy" which prioritises waste prevention, followed by reuse, recycling, recovery, and disposal as the last resort. The directive also introduces the concept of Extended Producer Responsibility (EPR), holding producers accountable for the entire lifecycle of their products, including take-back, recycling, and final disposal. A 2023 Amendment to the Waste Framework Directive requires that by January 1, 2025, EU Member States must implement separate textile collection systems. To achieve this, significant investments are needed to enhance infrastructure and develop new technologies for collection, sorting, reuse, and recycling of textiles. As of June 2025, the revision of the Waste Framework Directive has now been postponed to October 2025.

• EU Extended Producer Responsibility (EPR) Scheme for Textiles: The European Commission has proposed a mandatory EPR scheme for textiles across all EU countries. The amendment was adopted by the European Parliament in March 2024, and as of September 2025, the European Parliament has now passed the revision of the WFD, including binding measures targeting textiles and food waste. The final approval was given on 9 September 2025. The law will now be signed by both co-legislators, ahead of its publication in the EU Official Journal. EU countries will have 20 months following its entry into force to transpose the rules into national legislation. EPR schemes must be fully operational within 30 months (with micro enterprises given an extra 12 months). EPR schemes are designed to reduce waste, promote recycling, and encourage more sustainable product designs. The EPR Scheme for Textiles targets producers of textiles, which include manufacturers, importers, distributors, and even online platforms that sell textile-related products directly to end-users. The scope is comprehensive, covering a wide variety of textile, textile-related, and footwear products. This includes everyday items such as clothing and footwear, as well as household textiles like curtains and bed linen. By including such a diverse array of products and producers, the scheme aims to ensure that all stages of the textile lifecycle are managed responsibly, promoting sustainability and reducing waste across the entire industry. By requiring producers to contribute financially based on the circularity and environmental performance of their products—a concept known as "eco-modulation"—EPR schemes incentivise the creation of more sustainable textiles. Manufacturers, Importers, distributers, and brand owners are directly responsible for the cost and organization of waste management (collection, recycling, disposal) and must register with EPR authorities and report data (e.g., how much packaging, electronics, or textiles they place on the market). They are often required to pay fees to Producer Responsibility Organizations (PROs). Several countries, including France, The Netherlands, Hungary and Latvia have already implemented EPR schemes for textiles with notable success. These existing schemes serve as models, demonstrating how EPR can drive improvements in collection, sorting, reuse, and recycling infrastructure. Other European countries, such as Italy and Sweden, already have plans in place, with others following soon. This will complement the new Regulation on waste shipments, which ensures that textile waste is only exported when there are guarantees that the waste is managed in an environmentally sound manner.

Regulation on Waste Shipments: The EU Waste Shipment Regulation (EU) No. 2024/1157 aims to limit the export of textile waste, particularly to non-OECD countries. The new Regulation on waste shipments entered into force on 20th May 2024. However, most provisions will apply from 21 May 2026 and most export rules will apply from 21 May 2027. A central EU system is proposed for the disclosure of waste shipment-related data from May 2026. This includes any basic information on the waste that is shipped, like the quantity, treatment, origin, and destination. This proposal aims to prevent the EU from exporting its waste problems by ensuring environmentally sound management and strengthening enforcement against illegal shipments both within the EU and to third countries. It also seeks to improve the traceability of waste shipments inside the EU to better facilitate recycling and reuse.

Corporate Sustainability Due Diligence Directive (CSDDD): This directive entered into force on 25 July 2024. It aims to promote responsible corporate conduct by requiring companies to identify and address human rights and environmental impacts across their operations and value chains, both within and outside the EU. Large companies must also adopt climate transition plans aligned with the Paris Agreement and EU climate targets. An Omnibus package adopted in February 2025 simplifies due diligence requirements. Member States must transpose the Directive by 26 July 2027, with phased application starting in 2028 and full implementation by 26 July 2029.

Corporate Sustainability Reporting Directive (CSRD): Under CSRD, companies with over 1,000 employees are required to disclose risks, opportunities, and impacts related to social and environmental issues, including their effects on people and the planet. Textile companies especially large ones, listed SMEs, and non-EU businesses earning over €150 million in the EU must publish detailed sustainability reports, even if textiles are not their core business. By requiring regular disclosures on environmental and social matters, the CSRD aims to help investors, consumers, and other stakeholders understand and compare textile companies' sustainability performance.

Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation (REACH): REACH is the main EU law to protect human health and the environment from the risks that can be posed by chemicals. This is done by earlier identification of the intrinsic properties of chemical substances and by taking measures, such as phasing out or restricting substances of very high concern (SOC). REACH also aims to enhance innovation and the competitiveness of the EU chemicals industry. The Commission is currently revising the REACH Regulation, in line with the Commission’s Better Regulation provisions. It will include a thorough assessment of the possible impacts of potential changes to REACH on the protection of human health and the environment, the use of animal testing, the functioning of the internal market and the competitiveness and innovation of European industry and businesses. Under REACH, the Commission has adopted new measures to specifically restrict the use undecafluorohexanoic acid (PFHxA) and PFHxA-related substances which are subgroups of per-and polyfluoroalkyl substances (PFAS). For the textile sector, this includes the ban on the sale and use of PFHxA in consumer textiles, such as rain jackets. Manufacturers will need to ensure that materials and components do not contain prohibited chemical substances.

Relevant standards

This section highlights various international, European, and industry-specific standards that provide guidance on resource efficiency, waste management, responsible sourcing, and transparency. This overview covers key standards shaping sustainable practices in the fashion and textile sector, including ISO environmental management systems, circular economy frameworks and textile-specific sustainability certifications. This section is divided into horizontal standards, which apply broadly across industries, and sector-specific standards, tailored to the unique sustainability challenges of the textile and fashion sector.

ISO 14001 Environmental Management System: ISO 14001 is an international standard for environmental management systems, providing a framework for organisations to minimise their environmental impact, comply with regulations, and continuously improve their environmental performance.

ISO 26000 Social Responsibility: ISO 26000 provides guidance on social responsibility, including labour practices, human rights, and community engagement. While not specific to the textile industry, it is relevant for fashion brands seeking to address social issues in their supply chains.

ISO 59000 Family of Standards: The ISO 59000 family of standards focuses on establishing a comprehensive framework for implementing and managing circular economy practices and are located within ISO/TC323. These standards provide guidelines on key areas such as terminology, principles, action planning, performance evaluation, and continuous improvement. The primary aim is to harmonise the understanding and application of circular economy concepts, supporting organisations in achieving sustainable development goals. The first three standards were published in 2024 and are ISO 59004 (key terminology, framework and principles), ISO 59010 (guidance on business models and value networks related to circularity), and ISO 59020 (measurement and assessment of circularity). Recently a new standard was published in 2025, ISO 59040:2025 (product circularity data sheet).

CEN/CLC/JTC 10/WG 8 Method to Achieve Circular Designs of Products: CEN/CLC/JTC 10/WG 8 is a working group focused on developing methods to achieve circular designs of products. The methods developed by CEN/CLC/JTC 10/WG 8 address various aspects of product design, including material selection, manufacturing processes, and end-of-life management. Published in November 2024, EN 45560 provides a standardized method for integrating circularity into product design. Key aspects of the standards include life cycle thinking, material efficiency and design guidance. EN 45560 serves as a horizontal standard, applicable across various product categories, especially where specific product standards are absent. It supports alignment with EU initiatives like the Ecodesign for Sustainable Products Regulation and the Circular Economy Action Plan. In addition, CEN/CLC/JTC 10 launched a series of standards related to reuse, repair, and recycling (EN 4555X Series). These include EN 45554:2020 (methods to assess the ability to repair, reuse, and upgrade energy-related products), EN 45555:2019 (methods for assessing the recyclability and recoverability of energy-related products), EN 45556:2019 (methods for assessing the proportion of reused components in energy-related products) and EN 45557:2020 (methods for assessing the proportion of recycled material content in energy-related products). Initially the standards were focused on energy-related products sector related to the Ecodesign directive. Under ESPR, the JTC 10 is required to broaden out its standards development to cover and be relevant to all products.

CEN/TC473-Circular Economy: CEN/TC 473 is the European standardisation committee focused on developing standards for the circular economy. This committee aims to create a coherent framework that supports the transition to a circular economy by setting clear and practical guidelines for industries. The standards developed by CEN/TC 473 address various aspects of circularity, including product design, resource efficiency, waste management, and the use of secondary raw materials. CEN/TC 473 has initiated work through four dedicated Working Groups (WGs), each concentrating on a specific area: WG 1 focuses on circular economy terminology, framework and principles, WG 2 focuses on establishing standards for sharing information related to circular economy practices, WG 3 focuses on Extended Producer Responsibility (EPR) and WG 4 focuses on circular business models.

Regarding the development of the ESPR, there are potential standards under development on DPP including CEN/CLC/JTC 24 (Digital Product Passport: Framework and System), ISO/PWI 25534-1 (Global DPP Standard System).

ISO 5157 Textiles — Environmental aspects — Vocabulary: ISO 5157:2023 is a comprehensive standard established to ensure the quality, safety, and sustainability of products across various industries. This standard outlines the requirements for environmental management systems, focusing on reducing environmental impacts, enhancing resource efficiency, and promoting sustainable practices. By adhering to EN ISO 5157:2023, organisations can demonstrate their commitment to environmental responsibility and improve their operational performance. The standard provides a framework for identifying and controlling environmental aspects, setting objectives, and implementing policies that align with global sustainability goals. It also includes guidelines for continuous improvement and compliance with relevant legal and regulatory requirements. EN ISO 5157:2023 helps businesses minimise their environmental footprint and contribute to a greener economy.

ISO standards for the fashion and clothing sector: ISO 22120:2021 (Recycled Textile Materials) for criteria for defining and certifying recycled content in textiles. ISO 105-C06:2010 (Colour Fastness Tests) to ensure durability and longevity of textiles to minimize waste. ISO 18383:2016 (Quantification of Fibre Content) to support recycling and material reuse through accurate identification. ISO 15797:2017 (Industrial Washing and Finishing) to address durability and quality retention in professional applications.

Some CEN standards are more specific for the fashion and textile sector such as CEN/TR 16985:2016 (Textile Recycling Symbols), CEN/TC 248 (Sustainability and Circularity in Textiles), Draft CEN/TC 248 Textiles & Textile Products (Circular economy for textile products), EN 16848:2016 (Bio-based Products Communication and EN 16732:2014 (Dimensional Change in Washing).

TRUST – Trader Recycling Universal Standard: The TRUST (Trader Recycling Universal Standard) is a pivotal certification programme designed to bolster the transparency and accountability in the recycling industry, particularly for traders of secondary raw materials. This standard establishes rigorous criteria to ensure that trading operations adhere to best practices in environmental, quality, and traceability processes. By complying with TRUST standards, traders can demonstrate their commitment to responsible recycling practices, thereby fostering trust among consumers, partners, and regulatory bodies. This certification not only enhances a trader's reputation but also encourages a more sustainable and efficient global recycling chain. The implementation of such standards is crucial for maintaining the integrity of the recycling industry and for promoting the reuse of materials in an environmentally responsible manner.

More information

British Retail Confederation - Voluntary Guideline on Second-hand and Preloved Items: The British Retail Consortium (BRC) has developed a set of voluntary guidelines focused on second-hand and preloved items. These guidelines are designed to encourage retailers to engage more with the circular economy by facilitating the resale and reuse of goods. This initiative not only helps reduce waste but also promotes sustainable consumer practices by providing clear standards for managing pre-owned goods. By following these guidelines, retailers can ensure that items are processed, presented, and sold in a way that maintains quality and safety standards, thereby building consumer trust in second-hand markets. The guidelines also aim to standardise practices across the industry, creating a more reliable and accessible market for preloved items, which in turn can help in reducing the environmental impact associated with new item production and disposal. Link here.

WRAP (Waste and Resources Action Programme): WRAP (Waste and Resources Action Programme) offers a variety of standards and guides across different sectors including textiles to support sustainable practices in waste management and recycling. Key resources provided by WRAP include the Sustainable Clothing Guide. This guide helps manufacturers and retailers increase the durability and quality of clothing through best practices in design, production, and selling, aiming to extend the lifecycle of garments and reduce waste.

Global Fashion Agenda: This organisation provides a Circular Fashion System Commitment, which fashion retailers can sign up for to pledge specific actions toward increased circularity. Actions include designing for durability, increasing the volume of used garments collected, and integrating recycled materials into new products. Link here.

The Ellen MacArthur Foundation: The Ellen MacArthur Foundation's Circular Economy Guidelines: The Foundation offers specific guidance for fashion retailers to transition towards circular business models. This includes designing for longevity, encouraging recycling and reuse, and considering the full lifecycle impacts of garments. These guidelines help retailers rethink how goods are designed, used, and reused to create a more sustainable business model.

The Circular Transition Indicators (CTI) framework: The CTI framework is an innovative tool designed to guide businesses in assessing and improving their circularity. This framework, as outlined in the white paper marking the first milestone of the CTI Fashion Initiative, serves as a comprehensive metric system for organisations aiming to transition towards more sustainable, circular business models. The CTI framework helps companies to measure and quantify their circular performance across various operational aspects, including material usage, waste management, and lifecycle extension. By providing clear indicators and benchmarks, the CTI framework supports businesses in the fashion industry to identify areas for improvement, make informed decisions about resource utilisation, and track their progress in achieving circular economy objectives. This initiative is crucial for companies looking to reduce their environmental impact and promote sustainability in an increasingly eco-conscious market.