In today's rapidly changing world, the fast-fashion industry has gained immense popularity. However, beneath the surface of affordable clothing and quick style changes lies a dark secret. The environmental impact of this industry is significant. In an effort to address the growing environmental impact associated with the fast-fashion industry, the European Union (EU) announced on the 5th of last month that it has adopted a revised plan aimed at supporting sustainable management of textile waste and assigning producers the responsibility for the entire lifecycle of textile products.
According to the EU Commission, textile consumption ranks as the fourth-largest contributor to climate change and environmental impact after food, housing, and transportation. The EU's Environment Committee, a committee under the executive commission, has emphasized the need to support sustainable waste management systems in the clothing industry and has agreed to strengthen the content of the Extended Producer Responsibility (EPR) framework regarding apparel waste disposal.
ESG Controversy: 'Shein,' at the heart of the fast-fashion industry
Shein is a Chinese fast-fashion company that offers clothing at an average price of 12,000 KRW. It aims to supply trendy clothing quickly by minimizing the time required for production and distribution. However, Shein has faced ongoing criticism due to allegations of forced labor and environmental pollution. The main points of criticism against Shein have been forced labor allegations and environmental pollution. The Swiss citizen organization "Public Eye" dispatched investigators in 2021 and published a report on the working conditions at Shein's subcontractors. It revealed that some workplaces lacked windows and emergency exits, and workers in sewing factories in Guangzhou testified to working 75 hours per week. Someone pays the price for the fast production speed. Environmental pollution resulting from mass production was also unavoidable. In 2021, Shein emitted 6.3 million tons of carbon dioxide, 99% of which was generated during the supply chain process, including manufacturing and distribution.
The Mounting Apparel Waste: Equivalent to a Truckload Every Second
According to the "Pulse of the Fashion Industry" report published in 2019 by the Global Fashion Agenda and Boston Consulting Group, almost all fibers lose their value after clothing use, accounting for 87% of the total fiber input into clothing, which is landfilled or incinerated.
This equates to an opportunity loss of over $100 billion annually. 73% of materials input into the clothing system are lost after the final clothing use, and 10% is lost during the clothing production process (e.g., scraps). Additionally, an additional 2% loss occurs during the collection process, resulting in a truckload of fiber being landfilled or incinerated every second. In addition to this significant loss of value, apparel waste incurs substantial costs.
For example, in New York City alone, more than $20 million is spent annually on landfilling and incinerating textiles, with the majority being clothing waste. The cost to the UK economy due to clothing and household textile landfilling is estimated to be approximately £82 million ($188 million) annually.
The Blade of Extended Producer Responsibility (EPR) Expands to the Apparel Industry
To increase the low recycling rate of textile waste, the EU Commission expanded the scope of the Extended Producer Responsibility (EPR) system to include the apparel industry. The revised plan is based on the EU's Strategy for Sustainable and Circular Textiles, announced by the European Commission last year. In the future, when the EPR system is introduced at a level similar to the packaging and electronics industries, clothing manufacturers will bear the cost of managing textile waste and have their costs adjusted based on their environmental performance in the textile sector. ESG Today has predicted that this move will encourage companies to invest the management costs into collection, sorting, reuse, and recycling technologies, thus contributing to the improvement of the circularity of the textile sector.
It is also connected to import policies for textile products. Once the framework is implemented, the EU plans to apply rules to address the issue of illegal exports by fast-fashion companies and require evidence of environmentally friendly waste management in order to permit imports. This highlights the need for a comprehensive response strategy within the fast-fashion industry from a sustainable supply chain perspective.
Frans Timmermans, Executive Vice-President of the European Green Deal, stated, "The wasteful relationship we have developed with textiles pollutes our world. It uses excessive amounts of water and energy, harms nature, and drives greenhouse gas emissions across the globe. That's why we will require producers to take stronger responsibility for the textile waste created."
In conclusion, the adoption of Extended Producer Responsibility (EPR) for apparel waste disposal by the EU represents a significant step toward addressing the environmental impact of the fast-fashion industry. By placing responsibility on clothing manufacturers, it encourages the adoption of sustainable practices and contributes to the improvement of the circular economy. At this point, it is crucial for the fast-fashion industry to develop response strategies from a sustainable supply chain perspective.
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