Looking in the mirror - Usedfully
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Looking in the mirror. A review of circularity in the clothing and textiles industry in Aotearoa. BY BERNADETTE CASEY AND BRIAN JOHNSTON The Formary, November 2020 / © All rights reserved – contains confidential information that is the sole property of The Formary
Contents Executive Summary 3 Textile Flows in Aotearoa 27 The Case For Collaborative Change 6 Textile Industry Perspectives 35 Introduction 9 Conclusion: A Vision Of A Future State 47 Methodology 10 Acknowledgements 51 Global Context 12 Bibliography 53 Developing Technological Solutions 19 Appendices 56 Increasing Regulation 20 Appendix 1: Biographies 56 Rising Expectations 22 Appendix 2: Usedfully – Textile Reuse Programme 57 NZ Context 23 What We Found 26 2
Executive Summary When we started the research for this products. The industry’s linear production report in April 2020 Aotearoa was in system is delivering more and more textile Stage 4 lockdown in response to the global to market, while at the same time this textile COVID-19 pandemic. The clothing industry is increasingly difficult to reuse, repair, was in free fall, with long established supply- repurpose and recycle. Alternative routes for chains ground to a stand-still. Brands unwanted textiles such as the rag trade, and were left scrambling to secure alternative shipping to less affluent nations for resale production, and priorities were upended are becoming less viable. The volume of in response to the closure of retail stores. unsuitable textiles being donated to charities For many the pandemic has also triggered is increasing rapidly, increasing sorting and reflection on the non-financial impacts of the disposal costs, and hampering their ability to industry’s underlying business model and generate income for their causes. In addition, future direction. the rising trend for countries to restrict imports of textile waste effectively puts the In recent years the clothing industry, and responsibility back on the source country. to a lesser extent the wider textile industry Already in Aotearoa the majority of textile has come under considerable public waste ends up in landfill - an estimated criticism for conspicuous overproduction 220,000 tonnes every year. and environmentally wasteful practices, such as disposal of off-spec and unwanted 3
There is no doubt the world is on the the potential roles of each organisation, threshold of a rapid and far reaching shift business, or person in the value chain. To- across all of the foundational sectors of the date in Aotearoa there has been a lack of economy: materials, information, energy, local information to develop an overview food and transport. What is unfolding now of textile material flows - not only clothing, is not incremental but era-scale change. but also linen, home textiles, and carpets. In This includes a shift away from very large addition, the various efforts of stakeholders scale centralised industrial production in the textile space to adopt more circular systems which the textile industry has been and resource-efficient solutions, including dependent on for several decades, towards product stewardship have so far been distributed models and supply-chains. This fragmented. A strong and broad foundation migration will create more autonomous is needed, in order for the industry to start production regions, which combined with driving the necessary change to a circular technology advances such as fibre-to-fibre, textiles system. transparency platforms and sorting systems, Clothing and textile waste in Aotearoa has, and supported by organising systems such as until recently, been viewed as fairly inert laws and regulation, will facilitate the arrival and unimportant. While much attention of emergent circular systems. and funding has been focused on the issue If we are to transition to a new economic of plastic pollution, this has not included model, we must understand the resources synthetic clothing - an important contributor. in the system which are available to us - Nor does it address clothing in its own both in terms of characteristics like volume right as a major contributor to waste and and material type, but also in terms of climate impacts. Although there are signs of 4
consumer sentiment shifting away from ‘fast’ beyond the point of sale, as well as greater use of textiles, the industry has so far failed collaboration between brands and between to gain acknowledgement and support from sectors, between government, industry and the government to implement change. community. As our reaction to the COVID-19 pandemic has shown, we have the potential As a geographically remote small island to pivot and to change our ways of working. nation of approximately five million people, The challenge now for the wider textile our clothing and textile industry is very industry is to turn towards a more circular, small on a global scale, made up of even resource-efficient way of making, using, and smaller sub-sectors, from corporate fashion reusing textiles in Aotearoa. and commercial retailers, commercial and domestic textile and flooring suppliers, We are grateful to the Ministry for the garment manufacturers, designer and Environment’s Te Pūtea Whakamauru Para bespoke brands and wholesalers. What – Waste Minimisation Fund and the Textile we have discovered through this research Reuse Programme Foundation Partners, is an industry highly aware of two of the Alsco NZ, Barkers Clothing, Deane Apparel critical transitions the world needs to make – and Wellington City Council for their support. transitioning to a low emissions living and the To everyone who has supported Usedfully transitioning to a low waste society. We also - Textile Reuse Programme on our journey, found an industry with a strong appetite for especially everyone who contributed to this improved models that serve our communities report, thank you for sharing your insights, and our environment better. To achieve this your knowledge and your time. locally will require those who bring products to market to take more responsibility 5
The Case For Over the past decade, the fashion industry has demonstrated tremendous growth – Collaborative a steady 4-5% economic increase each year (though expected to dip in 2020 because Change of COVID-19). By 2030, the industry is expected to reach $3.3 trillion in value, Jason Kibbey – CEO Higg Index with 102 million tonnes of merchandise manufactured globally.1 As an ever more inclusive and diverse industry, apparel remains unsurpassed as the most personal and expressive consumer goods industry on the globe. 6
Yet, this growth has taken an environmental practices are beyond the scope of a single and social toll. 80% of all apparel company, individual brand, or country. merchandise ends up in landfills – a shocking To tackle these systems-level issues at figure, driven by accelerating consumption the required scale, solutions must be and the era of fast fashion. Because collaborative – and I believe we’re beginning of its energy intensive manufacturing to see some promising developments within processes, fashion contributes 10% of global the apparel industry. In my own two decade greenhouse gas emissions, and it can require career in fashion, I’ve watched firsthand more than 2,500 litres of water to produce a as sustainability has moved from a niche single cotton t-shirt.2 Taken together, rapid concern to an overriding imperative. After industry growth tethered to devastating launching the upstart organic apparel brand environmental impact have put fashion on a Pact, I became the first employee of the literally unsustainable path. Sustainable Apparel Coalition, which has The world is waking up to this fact – and grown to be the largest industry cooperation companies, brands, stakeholders, and of its kind. In parallel, collaborative initiatives shoppers are asking: how can we change this like Fashion for Good, The Fashion Pact, broken system? Can we transform the idea of the Clean Clothes Campaign, and Global waste in fashion? How do we improve worker Fashion Agenda have made great progress livelihood? What might fashion look like in creating industry forums for sustainability, in a 1.5º world? But trying to answer these sparking innovation in materials and questions alone can lead a single actor to processes, and scaling promising pilots to feel a sense of despair. Restructuring global more parts of the industry. Now as CEO supply chains and overhauling industrial of Higg, I’m helping to build software 7
tools that enable end-to-end sustainability Zealand to showcase its unique strengths: a measurement, so that brands, retailers, and government committed to positive change, manufacturers can make smart decisions an engaged citizenry, and an industry that’s based on dynamic value chain data. These willing to roll up its sleeves and work together are just some of the many emergent to create meaningful impact. initiatives within fashion that are built upon Without a doubt, our year has been a collaboration and shared data in order to tumultuous one in every category: politics, drive progress on key issues. health, environment, commerce. The whole However, while collaboration within world is looking for practical examples the industry is incredibly impactful, of collaboration on behalf of the greater transformative change requires an even good, that can deliver meaningful benefits deeper level of collaboration: between the now while also providing a positive path for industry, its stakeholders, and government the longer term. It’s incumbent on all of us as well. That’s why I’m so impressed with working in apparel, textiles and sustainability the trends I’m seeing in New Zealand. to initiate and support these types of deep New Zealand has long had a history of public/private sector collaborations. environmental leadership at a government level and strong collaboration amongst its stakeholders. The recently announced Usedfully® Textile Product Stewardship Project for clothing and textiles is the latest example. This sort of multi-stakeholder programme is an opportunity for New 8
Introduction This report forms the first part of the management, and ensuring the maximum – Sustainability Specialist at The Formary ‘Textile Product Stewardship Project’ possible volumes of textiles are diverted from (Coordinator), Juhi Shareef – Sustainability (TPSP), delivered by The Formary under landfill. The concept of ’Product Stewardship’ Lead at Vector, James Griffin – General the Textile Reuse Programme (TRP) which is that the responsibility and cost of product Manager Projects & Advisory at the was established in 2016 as a cross industry waste, which currently sits with local Sustainable Business Network, Lauren collaboration aligning industry players in authorities and ratepayers, is transferred Degenstein – Researcher from Alberta a joint vision and commitment to a circular to producers and consumers in a user pays University, Canada. economy for clothing and textiles in Aotearoa model. Adoption of a voluntary scheme can This ‘Summary Report’ is a condensed driving large-scale cross-value chain projects help industry to meet market expectation version of ‘LOOKING IN THE MIRROR – to develop and implement new systems, and to front-foot potential regulation and A review of circularity in the clothing and business models and technology at scale to policy changes. textile industry in Aotearoa. Full Report’, radically reduce the environmental impacts The TPSP commenced in April 2020 and available at www.usedfully.com of the current linear system and transition the will run until early 2022, and is designed market to a low carbon circular economy. to inform a future Product Stewardship The ultimate goal of the TPSP is to establish a Scheme. It is guided by an Advisory Board national accredited voluntary textile product which reviews project planning and progress stewardship scheme for textiles in Aotearoa, providing expert input into the TPSP. The financing the costs of end-of-life textile Advisory Board comprises Brian Johnston 9
Methodology The starting point for this research was the on-one interviews. A total of 36 interviews relative lack of granular data on existing were completed between August and textile flows, and existing stakeholder October 2020. actions and intentions relating to circularity. Priority stakeholder interviews generated To further uncover the textile and clothing rich but fragmented primary data and landscape the researchers took a mixed valuable real-world insights. These data method approach generating both sets were then combined with secondary quantitative and qualitative data. The data sourced through a number of research methodology primarily involved organisations and individuals - Statistics NZ, the analysis of qualitative data collected WasteMinz, Local Council Data, university through in-depth structured stakeholder and independent research were collected interviews. To ensure a holistic view, industry through direct approach to research owners sectors were identified from across the textile and internet research, data was then value chain. Textile product categories were compiled for analysis. Interview responses identified as Clothing (both personal and from all the participants were collated to commercial), Textiles (home and commercial) allow for comparison and analysis. and Textile Flooring/Carpets. Over 70 priority stakeholders were identified as targets for interviewing and were approached for one- 10
The interviews were structured to explore key aspects of textile manufacture, use, and end-of-life in order to characterise each stakeholder’s understanding of textile flows and circularity, including: – Whether textiles were included in the broader sustainability strategy – Level of current (and planned) activity – Drivers for getting involved, including key stakeholders – Barriers to getting involved – Understanding of textile volumes handled (and end-of-life destinations) 11
Global Context Textiles are so ubiquitous their presence price and bringing products faster to market. is profound, covering and protecting us The consequences of this approach are from within moments of birth until we are numerous, including a decline in durability of laid to rest. They adorn homes and offices, product, consumers wearing each item less, provide protection from the elements and rapidly increasing volumes of textiles and from disease. Unlike other consumer being disposed of. As Figure 1 from the Ellen products, peoples’ relationship with clothing Macarthur Foundation shows, the clothing (and therefore textiles) is deeply complex; industry has doubled its output in just 15 consumption is intrinsically bound to the years (faster than global GDP growth) to over concept of self and to social identity.3 The 100 billions units per year, while clothing textile industry is present in every country utilisation is on the decline.4 on Earth, materials and products criss-cross the globe prior to reaching their intended markets. But while the value chain is global it has local consequences. The industry is based on a linear production model geared for growth transforming in recent years with the adoption of the ‘fast fashion’ model; offering consumers more choice for a lower 12
FIGURE 1: Growth of Clothing Sales and GROWTH OF CLOTHING SALES AND DECLINE IN CLOTHING UTILISATION SINCE 2000 Decline in Clothing Utilisation Since 2000 INDEX 100 IN 2000 NUMBER OF TIMES AN ITEM IS WORN1 ‘A New Textiles Economy: Redesigning WORLD GDP CLOTHING UTILISATION Fashion’s Future’, Ellen Macarthur >100bn Foundation (2017) CLOTHING SALES units (2015) 200 2x 190 180 170 160 150 140 ~50bn 130 units 120 (2000) 110 100 2000 2005 2010 2015 1 Average number of times a garment is worn before it ceases to be used Source: Euromonitor International Apparel & Footwear 2016 Edition (volume sales trends 2005–2015); World Bank, World development indicators – GD (2017) 13
The model depends on taking more The textile industry is not alone in its and more resources, processing them into adoption of a linear model cumulatively this products, selling them to consumers and is leading to significant imbalances between then encouraging them to buy more. The resources consumed, and the Earth’s unintended environmental and social ability to renew resources. The organisation consequences of this model have become ‘Earth Overshoot’ measures the short-fall too big to ignore. of resources in comparison to population, calculating that the world overshot its annual Figure 2 illustrates the current global textile ecological resources this year on August value chain model. A linear system, with 22nd, in eight months instead of twelve. some reuse, repair and repurposing occuring, Drawing more from nature than the world but the vast majority of textiles ending up can replace in the whole year, leaving the in landfill or incineration (depending on the world in a resource deficit. destination country). Research suggests that the global clothing industry is currently 97% linear i.e. 97% of materials used as input are virgin, and only 12% of clothing at end of life is recycled in any form. Only 1% of clothing is recycled back into clothing.5 14
FIGURE 2: (Current) Linear Textiles Model © Usedfully® Repair Export Reuse Repurpose Overseas Raw Materials Textile Garment & Product Retailers & Collectors & Users Manufacturers Manufacturers Resellers Aggregators Landfill 15
All types of textile fibre are resource intensive growth path, by 2050, it could be consuming and have an embedded environmental cost more than 26% of the carbon budget from the land, water, energy and chemicals associated with the 2°C pathway to limit used. The industry is starting to bump up global warming.9 against the limits to growth. Natural materials Landfilling textiles at their end of use creates such as cotton or wool require a lot of a further issue, the release of greenhouse land and water for cultivation, the fashion gases as they decompose. While the rate of industry is projected to use 35% more land emissions varies by geography (and level of for fibre production by 2030 – an extra 115 research), there is alignment on the fact that million hectares (or 4.3 times the landmass after food waste, textiles are a hotspot for of Aotearoa) that could be protected, left emissions in landfill. This research estimates for biodiversity, to preserve forest to store that annually 220,800,000 kgs of textiles carbon, or used to grow crops for food to are landfilled in Aotearoa each year. The help to feed an expanding population.7 Ministry for the Environment calculates Synthetic fabrics are generally derived from landfilled textile emissions at 1.80 CO2e per non-renewable fossil-fuels, research has kg.10 Equating to 397,440,000 kgs CO2e per found that textile fibres make about 35% of annum. Vast amounts of money are spent marine plastic pollution.8 Global warming, landfilling these valuable commodities, while and the carbon emissions driving this, are virgin resources continue to be extracted of increasing concern to society. The textile to supply the industry. According to recent industry is a significant contributor with research in Australia by Eunomia,11 textiles global textile production generating about were identified as having the second highest 1.2 billion tonnes of CO2e per year. If the potential both in terms of reduction of con- industry continues on its current consumptive sumption, and improved recycling (Figure 3). 16
FIGURE 3: Analysis of Differing Carbon Impacts Per Waste Stream Hazardous Taken from Melbourne City analysis Other conducted by Eunomia (2019) Inerts Glass E-waste Ferrous metal Non-ferrous metal Wood Textiles Sanitary wastes Food waste Garden waste Paper / card Dense plastic Soft plastics -50,000 -40,000 -30,000 -20,000 -10,000 0 10,000 Tonnes CO2eq Reduction Potential Recycling Potential Landfill Impact 17
The interim secondhand ‘reuse’ route via the originating country. It does not address charities is hugely beneficial for not only the volume of textiles we are consuming and prolonging a textile product’s useful lifetime also does not meet consumer expectations and helping the charity to raise funds for its of resource reuse and environmental cause, but also to provide meaningful work stewardship. The issue is so significant that for those who may be excluded from the in 2016 a block of East African Governments job market. However, the increasing volume proposed a ban on the importation of of donated textiles is testing the ability of secondhand clothes. charities to sort and process efficiently, and much of it is ending up in landfill (damaged or soiled) or sent offshore (to be sold in less affluent countries). The export of our unwanted clothing has a number of negative consequences - it undercuts local clothing production resulting in the loss of skilled jobs, and it replaces localised clothing with used western clothing, with the loss of local interpretation and cultural expression through clothing design. Off-shoring used garments also pushes the associated environmental and social impacts to countries with less infrastructure and less social and environmental protections than 18
Developing Technological Solutions Recycling technology lags well behind the Mechanical recycling operations exist Technologies that loop textile resources ‘fast fashion’ phenomenon. This is in sharp in Europe and North America, however back into fibre and enable the transition to contrast to the situation in the mid 20th many are only able to ‘down-cycle’ textiles a lower emissions industry are being piloted century. During World War II there was a to lower quality forms e.g. clothing to in various locations around the world but global shortage of textiles due to military insulation material. In recent years there still need further development to achieve demand (for uniforms, blankets, tents, has also been a large increase in blended commercial scale. This has been referred to parachutes, bandages etc). In that period, textile production, i.e. textiles made from a as the Achilles heel of the industry and is a the textile recycling business boomed combination of natural and synthetic fibres. hurdle to a lower impact industry. Research meeting the demand for scarce fabrics This presents a huge challenge to current and development of automated, or partly- and yarn. Once the war finished demand (limited) recycling processes, as the blended automated solutions is underway, a good for textile reprocessing plummeted textiles cannot easily be separated back into recent example being the ‘Fibresort’ pilot and technology stalled. Research into their fibre types. US-based business Renewal facility opened in The Netherlands in 2020.13 technological solutions to the ‘textile waste’ Workshop’s research showed over half of the problem is belatedly gearing up, but it is products they assessed for Brands contained already clear that we cannot rely on these blended textiles.12 solutions to ‘solve’ everything. 19
Increasing Regulation Non-financial impacts are increasingly being its diversion from landfill to reuse and factored into the requirements of doing recycling from 18% in 2009 to 36% in 201715 business, particularly in Europe where the Fees charged are based on quantity of European Commission is expected to start textiles brought to market, with a discount developing a new comprehensive strategy for for more sustainable materials. The income textiles. Stakeholders have been lobbying in from fees charged is allocated to fund this space for some time, including releasing sorting operations, community education, a shadow strategy14 to bring the textile communication, research and development industry in line with other industries. and efficiency projects. Although the scheme is driven by waste reduction goals, through Extended Producer Responsibility (EPR) the creation of employment it has also has been applied in Europe to many contributed to increased social and economic product categories. The term is often opportunities. used interchangeably with ‘Product Stewardship’. The leading example of Not all countries with an interest in EPR EPR in textiles has been running in France are adopting a formal product stewardship since 2008 administered by the Producer approach. Research in Nordic countries Responsibility Organisation ‘Eco TLC’ suggests that such schemes focus on (‘Textiles d’habillement, Linge de maison collecting, sorting, and recycling, and do et Chaussures’ i.e. clothing, household not adequately address the sustainability linen, and shoes) The scheme has doubled of the system. 20
’EPR systems have a big tonnes of recovered textile waste 296 new jobs are created in sorting, disassembling impact on collection of and re-use and approx 2000 additional work training, internships and community service used textiles, but little opportunities.17 impact on upstream The Finnish approach is also of interest as it applies the EPR concept without a stages i.e. design. regulatory framework. The ‘Telaketju Conversely, new business project’18 involves a broad engagement of retailers, waste businesses, municipalities, models like leasing/ investors, central government, charities, and research organisations, with the ultimate goal reselling have a clear to build an ecosystem to drive circularity. upstream effect but little Each stakeholder is focused on supporting progress in its part of the ecosystem. impact on collection etc’ Although not a regulated EPR scheme, the approach of ‘Telaketju’ is strongly influenced The research also found ‘A mandatory EPR by two regulations at national level: The system embodies the potential to integrate 2016 ban on organic waste being sent to a range (combination) of complementing landfill (which technically includes organic policy measures’16 creating a good systems textiles), and the upcoming EU member state foundation. The research found social and requirement to start separately collecting economic opportunities beyond waste textile waste by 2025. diversion, estimating that for every 10,000 21
Rising Expectations Through COVID the fragility of the world’s economic model suddenly became more “Collectively we have be flipped into revenue generation and job creation in the textile sorting and recycling apparent. A recent report by environmental created a world where sector. Encouragingly, there are signs that consultancy Trucost19 found that of the top global textile businesses are becoming 20 region-sectors ranked by environmental our emissions have aware of the need to adopt a more circular impacts, none would be profitable if environmental costs were fully integrated destabilised the planet’s approach and to lighten the burden on the Earth. For example, around 12.5% of (paying their full costs). Herein lies the climate and our waste the global fashion market made a public conundrum for business adopting more commitment to circularity in 2019 by signing sustainable behaviours competing in the has disrupted every the Circular Fashion System Commitment.20 same marketplace. The current distributed costs model is a society pays model, ecosystem on the globe.” Consumer sentiment is changing, and expectations of textile businesses and although appearing cheaper to the consumer, – Dr Stephanie Pride government are rising. People have an many costs are none-the-less present but are In the world’s current linear model, goods affinity with the textiles that they wear, absorbed by society and the environment. become a waste cost borne by the holder, and do not want to feel guilty when they Sustainable models represent a user pays the environment and society at their end purchase products. The viewpoint that textile model where all costs are internalised, from of use. Through the establishment of a businesses are the cause of environmental paying workers living wages to paying for more circular model, used resources that and social impacts is a major risk to the environmental impacts of products and are currently incurring a cost could instead entire industry. services offered. 22
NZ Context The local textile industry has undergone also occur offshore also e.g. water pollution, significant change since it was founded carbon emissions and social impacts. over 150 years ago. Deregulation of the However, once the textiles are onshored they textile industry in the 1980s led to the loss tend to remain here. Export of secondhand of a mass-manufacturing, encouraging textiles to less affluent nations does occur, specialisation within the industry but at typically to Pacific Island nations, in particular a much lower level of activity. Wool fibre Papua New Guinea. dominates local fibre production, with A good understanding of the Aotearoa Aotearoa the third largest producer in the context in this space is prevented by a lack world in 2019, producing over 9% of global of data. With only high-level data available in production.22 Very little other textile fibre terms of textile volumes being disposed of in manufacture occurs. Local manufacture of landfill. MfE estimates that textiles comprised textiles also tends to be focused on wool due 4% of total waste volumes to landfill in 2008 to the availability of raw materials, however (126,240t).23 Auckland Council estimates that manufacture of high-value woollen textiles textiles are currently 9% of their landfills, and such as super-fine merino occurs offshore. that at current growth rates this would rise The majority of the textiles that enter the to 14% by 2040. Better quality data capture market originate offshore. Much of the non- would enable better management financial impacts of these textiles therefore of resources and issues. 23
There is currently little to no local operational The Waste Minimisation Act (2008) is textile recycling in Aotearoa. The Textile the foundational legislation at central Reuse Programme has explored some of government level for waste management. the emerging fibre-to-fibre technologies at After many years with few changes to the pilot stage; trialing Moral Fibre’s technology Act, the 2018-2020 Government triggered converting Air NZ polyester uniforms into multiple reviews and a strengthening of its recycled PET (commonly referred to as ‘rPET’) approach to waste management. In 2020 the and BlockTEXX technology separating cotton government confirmed its plan to increase and polyester textiles. Worn Again in the the waste levy charged at landfills that take UK is further potential technology which is household waste, taking the levy from $10 being explored. As these technologies are per tonne to $60 per tonne over successive developed to commercial scale the business years and expanding the scope to cover case for implementing them onshore can additional landfill types (previously there was be advanced. There is some promising no levy on almost 90% of landfills throughout technology developed locally which the country). It is expected that this change can support more efficient textile waste will make disposal less favourable for identification and sorting - a key component textiles, and increase the level of reuse and in the development of commercial textile recycling. Government has also committed to sorting infrastructure. Waikato based improved data collection for better resource technology provider Sagitto combines management which will assist stakeholders miniature spectroscopy with machine to implement improvements and monitor learning models to scan, test and validate progress. The Act includes provision for the composition of textiles. product stewardship schemes, both voluntary 24
and regulated schemes. Although it has Expectations are rising in Aotearoa, been in place for 12 years, it was only recently particularly amongst younger consumers, (in 2020) that the Government designated that the textile industry must adopt a certain products as ‘priority products’ textiles more circular approach. Most awareness is were not included. The following product centred in the fashion industry which has categories have been defined for inclusion in established reuse pathways of donating to a regulated pathway: charity or op-shops, and in recent years the growth of resellers (selling on behalf) such – Plastic packaging as Recycle Boutique. Significant changes – Tyres to the global recycling export market have also had an indirect effect on the textiles – Electrical and electronic products industry in Aotearoa, with many stakeholders (e-waste) increasingly looking to the industry to – Agrichemicals and their containers develop local solutions to its end-of-life textile challenges. – Refrigerants – Farm plastics 25
What We The textile industry in Aotearoa comprises many subsectors. Fashion clothing has a high profile, with much of Found the focus on sustainability, environment and social/ ethical considerations on this sector, However businesses in other textile subsectors are also under increased pressure from customers to provide more sustainable offerings, solutions for end-of-use and greater transparency. Until now, no overview of the textile flows in Aotearoa has been available to inform stakeholder of the scale of the challenge. Given the small size of the local industry and market, a clear overview of the state of current textile flows is an essential starting point for building consensus and collaboration in order to gain better scale. 26
Textile Flows in Aotearoa HIGH-LEVEL OVERVIEW OF FABRIC AND TEXTILE FLOWS Aotearoa is a net-importer of fibre, fabric and textiles. Over 380,000 tonnes of fibre, fabric, and textile products are imported into the country every year. This is significantly higher than the volume of fibre (mostly wool) and textile products produced locally. Importing and local production is mostly for local consumption, excluding the majority of wool which is shipped offshore. Landfill is the main destination for end-of-life textiles in Aotearoa. 27
265,351t/yr FIGURE 4: Overview of FIBRE & FABRIC IMPORTED (1.6% WOOL) Textile Flows in Aotearoa 4,242 t/yr 118,870 t/yr EXPORTED APPAREL REUSE Refer to ‘LOOKING IN THE MIRROR – TEXTILE PRODUCTS IMPORTED A review of circularity in the clothing and textile industry in Aotearoa’ Full Report for further detail. © Usedfully® COMMERCIAL USE CONSUMER USE 137,600 t/yr FIBRE & FABRIC PRODUCTION (100% WOOL – GREASY) 123,997 t/yr TEXTILE PRODUCTS PRODUCTION 141,531t/yr 220,800 t/yr FIBRE & FABRIC EXPORTED FIBRE, FABRIC & (74% WOOL) TEXTILES SENT TO LANDFILL 39,305 t/yr TEXTILE PRODUCTS EXPORTED 28
CARPET TEXTILE FLOWS A limited amount of carpet reuse and recycling is occurring currently in Aotearoa. Aotearoa still maintains a local carpet In the commercial space this is mostly via manufacturing industry, mostly linked to the the ‘Re:Entry’ accredited voluntary product availability of wool fibre for use in carpets. stewardship programme, which diverts 329 Local manufacture of carpets is a similar tonnes of carpet tiles per year to reuse, and volume to imported carpets, although 121 tonnes per year to be recycled back imports are likely to be mostly synthetic in into carpet tiles. In addition, some reuse of composition. Over 112,000 tonnes of carpet residential carpets does occur at a low level, and carpet tiles are installed in Aotearoa including repurposing for uses such as weed per year, with typical lifetimes varying from mats. The vast majority of end-of-life carpets 6 years for commercial use (linked to typical are sent to landfill. space lease contracts) through to an average of 15 years for residential carpets. 29
121 t/yr 3,083 t/yr COMMERCIAL RECYCLING CONSUMER REPURPOSE 329 t/yr COMMERCIAL REUSE 76,231t/yr CARPET IMPORTED 2,055 t/yr CONSUMER REUSE 15 yrs 112,029 t/yr CONSUMER USE 148,341 t/yr CARPET INSTALLED 6 yrs CARPET SENT TO LANDFILL 86,935 t/yr COMMERCIAL USE NZ CARPET MANUFACTURERS FIGURE 5: Carpet Textile Flows in Aotearoa Refer to ‘LOOKING IN THE MIRROR – 12,448 t/yr CARPET WASTE A review of circularity in the clothing and 38,689 t/yr 504 t/yr textile industry in Aotearoa’ Full Report for CARPET EXPORTED PRE-CONSUMER RECYCLING further detail. © Usedfully® 30
APPAREL TEXTILE FLOWS This volume excludes the proportion of donated apparel which is not of sufficient The local apparel industry has declined in quality and condition to be resold (typically recent years due to increasing competition 50% of the donated volume). offshore, however it remains a significant manufacturer of apparel entering the market Commercial reuse of apparel via a rental Local apparel production tends to be in model does occur in Aotearoa, at a relatively niche specialised categories, and less so in low level (in comparison to commercial mainstream categories. A small proportion of linen rental). In recent years there has apparel made onshore is exported, reflecting been a growth in consumer apparel rental the local industry’s niche approach. The vast businesses. While this trend is positive, it majority of textiles end up in landfill at end- was not possible to calculate the actual of-life, before that nearly 7000 tonnes per volume of textiles flowing through this year are channeled via secondhand stores category at this stage. and charities and into the reuse cycle. 31
FIGURE 6: Apparel Textile CONSUMER RENTAL Flows in Aotearoa CONSUMER REUSE Refer to ‘LOOKING IN THE MIRROR – (INFORMAL SHARING) A review of circularity in the clothing and textile industry in Aotearoa’ Full Report for 143 t/yr CONSUMER REUSE (CONSIGNMENT) further detail. © Usedfully® CONSUMER REPURPOSE COMMERCIAL REPURPOSE 6,795 t/yr 19,881t/yr CONSUMER REUSE (CHARITY) APPAREL IMPORTED 4,242 t/yr EXPORTED 8,750 t/yr APPAREL REUSE COMMERCIAL RENTAL Worn 144 times COMMERCIAL USE 34,922 t/yr 18,531 t/yr Worn 98 times APPAREL SENT NZ APPAREL CONSUMER USE TO LANDFILL MANUFACTURERS S 78 t/yr 423 t/yr SECONDHAND APPAREL EXPORTED APPAREL IMPORTED 32
OTHER TEXTILE FLOWS little data was available on rental textiles at end-of-life. Stakeholders reported that most The flows of the remaining textile types e.g. textiles in this condition were unsuitable for linen, towels, curtains, home textiles were further reuse, and were cut into rags. No also mapped in order to characterise this data was available on the volume of rags category and enable some comparison with produced via any textile category locally, but the others. Much less data was available for there was sufficient evidence from interviews this category, and in many cases it was not that it is a common end-of-life ‘repurposing’ possible to estimate data to fill gaps. Again, for linen and towels in particular. Regardless, a similar volume of textile is imported versus the majority of these textiles still find their manufactured locally. way to landfill. Commercial textile rental is a significant and mature circular activity in Aotearoa, and particularly popular with the hotel and healthcare industries. Perhaps linked to this, 33
CONSUMER REUSE FIGURE 7: Other Textiles (INFORMAL SHARING) Flows in Aotearoa CONSUMER REUSE Refer to ‘LOOKING IN THE MIRROR – (CHARITY) A review of circularity in the clothing and textile industry in Aotearoa’ Full Report for further detail. © Usedfully® 91,933 t/yr COMMERCIAL RENTAL CONSUMER REPURPOSE COMMERCIAL REPURPOSE 22,680 t/yr TEXTILE PRODUCTS IMPORTED EXPORTED TEXTILE PRODUCT REUSE COMMERCIAL USE 37,466 t/yr TEXTILE PRODUCTS CONSUMER USE SENT TO LANDFILL 18,531 t/yr 194 t/yr NZ TEXTILE PRODUCT TEXTILE PRODUCTS MANUFACTURERS EXPORTED NOTE: These visualisations are based on the best data available at the time, however they are indicative as significant data gaps remain e.g. available data has in some cases been extrapolated in order to present an overview of the current situation. The intention is to inform the reader and stimulate discussion and thinking about how to both improve the accuracy of this picture, and move from the linear model to a more circular one. 34
Textile From the analysis and distillation of data from the 36 participant interviews, Industry six main themes emerged: Perspectives – Waste and end-of-life – Resource and opportunity loss – Infrastructure and regulation – Competition and collaboration – Reputation and willingness – Expectation and opportunity 35
Waste and End-of-Life While Aotearoa does have limited onshore – “Textile waste is a priority manufacturing, by far the vast majority of environmental issue” textile products are imported fully made up, – “Mixed waste is difficult to address placing the market at the end of the value because it is mixed, better separation chain. Not surprisingly, waste and end-of- is necessary to unlock better outcomes” life were dominant and consistent themes presented by interviewees: – “Waste is a big problem, the lack of processing facilities and technology “Far too much is made, to deal with textile waste” consumed, used and – “The environmental challenge is keeping the stuff out of landfill. The unsold thrown away without unwanted clothing from our charity shops.” having a decent life” 36
A number of participants focused directly on With the rise of the secondhand, reseller the issue of post-consumer product end-of- market, more used clothing flows first life (EOL): through resellers before donation to charity stores. Charities are being left with lower – “Lack of solutions for EOL clothing, lots of quality goods, attracting lower returns and people and brands interested in EOL” higher volumes of waste and disposal costs. – “EOL is too hard” The alternative, exporting clothes for reuse and recycling is perceived as increasingly – “End of cycle stuff, one of the major issues risky. With the closure of borders due to especially for us as a business reselling COVID-19 and the added environmental and clothing” financial costs of transporting used resources – “EOL, there’s been charities and things across borders, international shipments of that we’re giving clothes to, but that’s not used textiles are decreasing. Waste textile sustainable” volumes in Aotearoa are forecast to continue increasing, along with their associated environmental impacts and costs. 37
Resource and Opportunity Loss Several charitable organisations observed – “Volume. Too much stuff, it’s that the sheer volume and seemingly endless overwhelming and time consuming” supply of clothes and large amount of waste – “Low value textiles are not valued by was creating “eco-anxiety” amongst staff the user, so unlikely to be looked after members: or kept long” “Lack of product design – “Donation of textiles at end of life is not for recyclability” sufficient to support repair, repurposing or recycling activity at scale” – “Commercial fitouts are linked to lease term, and not product lifetime” 38
A perceived skills and knowledge loss (of Further observations included how the lack how to use, mend and reuse the resources of onshore circularity of resources results people have) plays into the high level of in a continued over-reliance on virgin raw donated goods. materials. Also that mixed / blend textiles are not designed with their end in mind and Corporate and other donations of textile pose a barrier to recycling. The focus on products to charities do not come with recycled material to market, while positive, financial assistance to convert the donations without the product being designed to into saleable products, leaving the costs be recycled at end-of-life is adding further and risk of repair or re-engineering, stock obstacles to circularity. holding and resale to be borne by the charity The larger brands in Aotearoa perceive “It is time consuming and themselves as small on the global scale, labour intensive. Majority and too small a part of a global supply chain’s customer base to have leverage of donations are junk, with suppliers. cheap manufacturing” To re-engineer donations that are not saleable as is into good quality products requires a high level of skill not readily available in charity’s volunteer staff or within the community skills programmes offered by some charities. 39
Infrastructure and Regulation Multiple respondents noted a lack of “You’ve got the government passing government strategy for textile waste as a legislation, even down to the plasticisation of pain point. Government’s focus on plastics the labels that go on apples, there’s nothing not extending to, or even including synthetic like that in the clothing space. That’s the sort textiles (a significant contributor to plastic of focus that we need to get government to pollution), and a lack of understanding and have, we need to seriously look at building a recognition of the seriousness and impact plant here for end of life garments. We want of textile waste were seen as hindering clarity on approval levels, we want tax breaks, policy and access to funding to support and a strategy in place so that we can drive it and drive change. forward for New Zealand. Similar to what the tyre industry has done here, that would then “Government is a pain point, textile waste has provide some strong traction.” been pushed to the background, don’t pay attention to how big the scale of the problem “There is a clash of ideology, council revenue is in NZ. Legislators when they think about generation from landfills versus impact the environment they focus on clean water, of waste.” food waste but ignore textiles, the elephant in the room.” 40
Lack of infrastructure for post-consumer “Being able to source and to understand textile goods was viewed as leaving little the impact of the textiles that we’re buying. alternative to landfilling. Lack of aggregation, You can’t make decisions if you don’t have sorting and access to clean sorted resources the information. If you compare it to food, is a common issue. The lack of awareness nutrition, you can look on a packet and go, of textile flows and management at landfills, it’s got this much fat. We can’t make that due to most arriving as mixed waste, and the decision around clothing and that’s what we cheap cost of landfilling compared to the were lacking, information to drive informed costs of repurposing were also identified as decision making.” barriers to progress. From a corporate procurement perspective, although wanting to make more holistic decisions, the lack of standardisation and information on textiles leaves businesses procuring textiles and uniforms focused solely on price point decisions. 41
Competition and Collaboration The level of industry fragmentation is notable, In the evolution of the industry to a and while there are lots of small players their lower emissions model, greater strides ability to scale up sustainability initiatives on can be achieved at a faster rate through their own is limited and challenging. The lack collaboration, the pooling of resources and of industry collaboration, within sectors and the sharing of knowledge. While this may be across sectors increases the inefficiencies. A counter to how the industry usually operates, number of brands in this highly competitive the overheads that would need to be carried market have established, or are being for advancement are too great to be carried encouraged to establish individual initiatives by one single organisation alone. to improve circularity and gain market Collating data for this report proved difficult advantage. However, individual initiatives due to a lack of impact measurement in the each with one-off overheads, attract low sector, but perhaps more importantly, the volumes and result in minimal overall impact. absence of measurement and available data indicates there is limited oversight over resources. 42
Reputation and Willingness Risk to reputation was perceived from an 43% of respondents expressed a willingness organisational and industry perspective to be more active, to engage in initiatives but also from a macro, country perspective. to improve the current linear system, or Open source research and availability to actively advance the development of of information from global initiatives left local solutions. some respondents frustrated by what “Want to go to government to drive forward they perceived as a lag between what was a (fibre-to-fibre) solution in NZ. Time is right. happening globally and the state of play That would enable some serious traction.” within their own country. “So how can we do things better? What does “Understanding that if NZ best practice look like? What opportunities are there?” doesn’t do something, we will fall behind what is happening in the world, we have to catch up.” 43
Expectation and Opportunity Both B2C and B2B businesses are under increasing pressure from customers to life cycle out of it, to reduce landfill. And just really make the most of what someone “It’s the reason we’re in provide greater stewardship and EOL doesn’t really want, I guess is probably the this industry, to provide solutions. Some participants described best way to put it because people do want it.” how they used sustainability as a platform people with the most An increase in the awareness of the impacts to express their organisational and personal values system. Participants that of clothing production has led to increased convenient way to recycle demand for second hand and vintage were engaging in circularity and product clothing as a more environmentally friendly their clothing to make the stewardship initiatives also recognised the opportunities for leadership, consumer alternative to new clothing. Globally over the longest life cycle out of it, last three years second hand markets grew loyalty, innovation, impact, collaboration or all of the above. 21 times faster than the retail apparel market. to reduce landfill.” The secondhand market, currently worth “It’s the reason we’re in this industry, to USD$24 billion, is expected to reach USD$51 provide people with the most convenient way billion in five years.24 to recycle their clothing to make the longest 44
FIGURE 8: Transitional Textiles Model © Usedfully® Garment & Product Retailers & Manufacturers Resellers Reuse Textile Raw Materials Users Repair Manufacturers Repurpose Collectors & Aggregators Export Landfill Overseas 45
Some front-footed designer clothing brands The reseller market is positioned between have moved into the reseller space offering retailing of new products and the charity their own product as preloved, generating donation sector, and is changing the retail a new revenue stream without the draw landscape. It is acquiring market share from of virgin resources. This also provides the both quarters with some retailers offering opportunity to re-engage with customers both new and second hand clothing in and further build loyalty. The addition of response, to enhance their offering to mending services builds on established environmentally conscious consumers. sustainability positioning. Coupled with an increased interest in repair 25 and reuse, the linear model is moving towards improved reuse loops and greater potential for circularity (as illustrated in Figure 8), albeit currently operating at low levels. IMAGE: Kowtow 46
Conclusion: A Vision of a Future State Futurists predict a rapid move away from Ten years from now there will be little the current centralised extraction, the tolerance for waste in the value chain. breakdown of resources and large physical Research company McKinsey and Co suggest scale production, to a model of localised that “By 2030, we need to live in a world in creation. Arbib and Seba in their book which 1 in 5 garments are traded through ‘Rethinking Humanity’ calls this fundamental circular business models”.27 At today’s global shift not simply an Industrial Revolution, scale that equates to 20 billion garments but the beginning of the Third Age of produced and reused through a circular Humankind. Foreseeing a migration away system. Pride describes a future state where from a world built on coal, oil, steel, livestock, “waste is an unnecessary burden on us all” and concrete to one built on “photons, and where “low emissions are a key part of electrons, DNA, molecules and (q)bits”26 marketing and a source of pride for business A future production system that relies on and community.”28 technologies we are already using today, Bending the current linear system into a and new technologies like fibre-to-fibre that closed loop means collecting and sorting take used textiles back to their molecular used textile resources in Aotearoa and parts and regenerates them for reuse in new feeding them back into the start of the value filaments and products. Moving industry chain (Figure 9). When most production away from one of extraction to a world starts offshore this seems unlikely to be of creation. 47
feasible or economic. However, in the midst Current uncoordinated initiatives can be of the pandemic, disruption in supply chains harnessed to create meaningful impact resulted in a degree of near-shoring and on- through multi-stakeholder collaboration shoring of production. Predictions of more between sectors and between private distributed and autonomous production business and the public sector. This is an regions suddenly began to seem more imperative given the small size of the textile realistic. To further their adoption Aotearoa sub-sectors – let alone the textile industry would need to re-believe in its potential as as a whole – and will provide an opportunity a manufacturing country. for Aotearoa to move away from high risk, competitive individual activities, to more resilient and scalable collaborative systems. 48
FIGURE 9: (Future) Circular Textiles Model © Usedfully® Garment & Product Retailers & Manufacturers Resellers Reuse Textile Raw Materials Users Repair Manufacturers Repurpose Recyclers Collectors & Aggregators Other Industries 49
Improved data capture and better quality Product Stewardship has been identified by data on textiles and the waste entering the Government as a foundational element landfills in Aotearoa will provide the missing of a low emissions future. If applied to the information needed to support investment textile industry, there is huge potential decisions in new technologies and physical to accelerate the transition to a circular infrastructure. Although technological textiles model. solutions on their own cannot achieve the What this research uncovered in Aotearoa transformation needed to reach a low carbon is a textile industry no longer satisfied with future. What is also needed is the support business as usual. Business owners and of the organising system, society and its employees committed to creating a better institutions, the laws and regulation, to unlock future, with the drive and the tenacity to the potential to reduce environmental and make that future a reality. social impacts in the value chain. Mā pango, mā whero ka oti te mahi Through cooperation, objectives can be achieved 50
Acknowledgements We are grateful to the Ministry for the Paul Edgar Bird – Edgar and Bird Vanessa Thompson – Unravelled Consultants Environment’s Te Pūtea Whakamauru Para Anna Ford – Glassons & Hallenstein Brothers Adele Dubarry – Waste Not Create Space – Waste Minimisation Fund and the Textile Reuse Programme Foundation Partners, Lynette Fielding – Glassons & Hallenstein Zoretta Rose – Recycle Boutique Alsco NZ, Barkers Clothing, Deane Apparel Brothers and Wellington City Council for their support. Mark Cowie – Recycle Boutique James Walker – Mindful Fashion Thank you to all those who participated in Nadine Koruna – Accor Group interviews and shared their knowledge and Jacinta Fitzgerald – Mindful Fashion Manjula Sickler – ADHB perspectives: Geraldine Tew – The Recreators Parul Sood – Auckland Council Gavin Smith – Alsco NZ Caroline O’Reilly – Vinnies Resew Julie Dickenson – Auckland Council Selva Ganapathy – BOP Regional Council Rob Ward – Beverley Productions Ben Kepes – Cactus Outdoor Dylan Ford – Circular Store Emily Miller-Sharma – Ruby Rochelle Flint – Cavalier Bremworth James Stonyer – Deane Apparel Toby Clark – Toby Etc Kay Murray – Connections Trust Joanna Hehir – Danu Natural Sarah Lei – Trevelyan 51
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