The transition to good fashion - report - authors Sophie Buchel Chris Roorda Karlijn Schipper Derk Loorbach - Dutch Research Institute for ...
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report
The transition
to good fashion
date authors
November 2018 Sophie Buchel
Chris Roorda
Karlijn Schipper
Derk Loorbach
design & graphics
Ruiter Janssen
1
Contents
p. 3 Foreword
p. 6 Introduction
p. 10 1. A systems analysis of global fashion
p. 17 2. Dynamics in the fashion transition
p. 24 3. Fashion as a force for good
p. 29 4. Moving towards good fashion
p. 39 5. Fostering the transition towards good fashion
p. 43 Endnotes
2Foreword
The deeply rooted issues in the global fashion But, this report has also raised further
industry need solutions and collaboration that questions:
can disrupt the status quo. Significant positive
momentum has emerged, for example, in 1. How can we strengthen our collaboration
innovative materials with lower environmental with other actors to create the conditions for
footprints, in small-medium sized companies transformational alternatives to scale?
breaking the traditional mold of linear business
models and in multi-stakeholder collaboration 2. What positive dynamics of change are
to improve working conditions. happening outside of the European context
that we can learn from and utilise?
We all share a desire to create a fashion
industry that allows people and ecosystems 3. How can circular economy promote equity
to thrive. But, what pathways have the most and inclusion in the fashion industry?
power to disrupt and transform, and does this
include circular fashion? All of these questions have a common theme
- additionality. We have an opportunity to
We posed this question to the systems change build bridges between different areas of
research institute, DRIFT, because we wanted sustainability, in different geographies and in
to stress test our hypothesis that a transition different parts of the value chain. We hope
to circular fashion is indeed necessary and that that this report provides inspiration to find
we have the right strategies in place to foster more ways to work together to accelerate the
this transition. transition to good fashion.
The analysis by DRIFT shows that circular
fashion does have a critical role in transforming Katrin Ley
the sector, but it also shows that there is room Managing Director Fashion for Good
to improve our strategies. C&A Foundation
has responded by increasingly focusing on Douwe Jan Joustra
facilitating the implementation of circular Head of Circular Transformation,
business models, as well as by thinking beyond C&A Foundation
the apparel sector in policy advocacy. In
addition, Fashion for Good will build more
processes that connect mainstream and niche
players, so that innovation has a better chance
of moving beyond experimentation in the
margins.
3About DRIFT About C&A Foundation
DRIFT is a leading research institute in C&A Foundation is here to transform the
the field of sustainability transitions. We fashion industry. We give our partners the
develop and share transformative knowledge financial support, expertise and networks
to support people, cities, sectors and so they can make the fashion industry work
organizations to engage proactively with better for every person it touches. We do this
transitions. DRIFT has four main activities that because we believe that despite the vast and
complement, ground and inspire each other: complex challenges we face, we can work
academic research, consultancy, education together to make fashion a force for good.
and public dialogue. Together with the many
people and institutes we collaborate with, we www.candafoundation.org
aim to accelerate transitions towards more
just, sustainable and resilient societies.
www.drift.eur.nl
About Fashion for Good
Fashion for Good is the global initiative that
is here to make all fashion good. It’s a global
platform for innovation, made possible
through collaboration and community. With
an open invitation to the entire apparel
industry, Fashion for Good convenes brands,
producers, retailers, suppliers, non-profit
organisations, innovators and funders united
in their shared ambition.
www.fashionforgood.com
4“ We built our
business
models based
on infinite
growth. There
needs to be a
new model that
sells something
different.
”
Edwin Keh, Hong Kong Institute of
Textile and Apparel
5Introduction
The global fashion industry has developed levers for change and suggested interventions
into a highly complex system entrenched in (see Chapters 5 and 6). The transition
economic and physical structures, cultures pathways build on the dynamics of change
and practices that enable fast and large- that already exist in the industry (and other
scale production of apparel and provides sectors), and by convening actors around
employment to millions across the world. these pathways this energy can be leveraged
Within this system, a myriad of persistent to accelerate the transition.
challenges has emerged over the last few
decades resulting in negative environmental
impacts and severe social issues. Private,
public and civil society actors have APPLYING A TRANSITIONS
condemned these issues, and the movement PERSPECTIVE
towards a more sustainable fashion industry
is growing with increasing pre-competitive Transitions are large-scale shifts in societal
collaboration and a broadening variety of systems that emerge over decades. They
alternative practices, materials and business occur in societal systems that face complex
models that pave the way for the fashion and persistent problems due to historical
industry of the future. path dependencies and lock-ins. Based on
scientific research on transitions, we can
So far, however, sustainability efforts in the see transitions as non-linear and relatively
industry have not yet managed to add up to uncontrolled structural shifts resulting from
a transformation of the fashion system, and the interaction between increasing societal
the fashion industry shows signs of initiative pressures, internal crises and competing
fatigue and slow progress. There is a need to alternatives. It usually takes decades for such
understand how initiatives are reinforcing or pressures to build, after which, in a relatively
challenging the status quo and how collective short period of time (a few years), the status
efforts in the industry can more effectively quo is disrupted, a fundamentally different
add up to transformative change. way of thinking, doing and organizing
becomes dominant and the system reaches a
The deeply-rooted issues in the global new equilibrium.
fashion industry call for solutions that
fundamentally challenge the current status A current and well-known example of this
quo. For this reason, C&A Foundation and is the energy transition, which has been
Fashion for Good asked DRIFT to develop a gradually building momentum since the
systems change map to better understand 1970s in countries in the global north. Only
the dynamics of change from a transitions with the large-scale diffusion of renewable
perspective and to provide recommendations energy technologies and the pressures of
for transformative change towards a climate mitigation policies of the last decade
regenerative and restorative fashion industry. has real acceleration started to take place.
This report provides a number of strategic Understanding how such transitions evolve
perspectives to accelerate the fashion and develop offers possibilities for achieving
transition in the form of transition pathways, the desired large- scale societal changes
6more quickly than following business-as-usual • The ‘X-curve’ of transition dynamics
scenarios does. From the study of past and (transition curve): this model of transitions
ongoing transitions, insights have been gained shows that transformative change requires
into how actors can make use of the dynamics not only the breakdown of existing
in transitions to influence their direction structures, cultures and practices but also
and speed. From these insights, methods building up a new system. It allows for a
of transition management and transition more nuanced understanding of different
governance have been formulated, elements phases of systems change and how the
of which we used for this study. patterns of build- up and break-down co-
evolve. It allows more specific and targeted
Transitions cannot be predicted, planned or interventions to be developed throughout
managed with management approaches, desired transitions.
as they emerge from complex adaptive
societal systems. However, it is possible to • Envisioning and back-casting transition
anticipate upcoming opportunities, create pathways: a collaborative method to
fruitful conditions for change and reinforce envision narrative pathways towards
developments that together can influence an alternative future by back-casting
the direction and speed of a transition. In from a guiding vision and shaping
order to do this successfully, we have to be principles, through paths to breakthrough
careful not to isolate or over-simplify either interventions.
the persistent problems the fashion industry
faces or the strategies used to address them. • Actor analysis: collaborative mapping of
To understand where and how to intervene relevant actors and their position on the
to foster transformative change, we must first transition curve and the transition pathways
acknowledge the complexity of the system. as developed using the previous tools.
This was the starting point of our analysis.
The systems analysis using these tools was
done in three steps, each enriching the
findings of the previous step: desk study,
APPROACH interviews and participatory sessions. The
literature review mainly used primary and
A systems analysis needs to address the root secondary sources (see references) to inform
causes of persistent problems and identify the the analysis of the current system. Eight
potential patterns, pressures and levers related semi-structured interviews were conducted
to transformative change. Therefore, we have with experts from different parts of the world
used transition tools to map, explore, analyze and different types of organizations. We
and strategize ‘elements of transition’: those facilitated three participatory sessions for
dynamics, actors, innovations, opportunities which we invited small but diverse groups of
and contexts that when combined could change agents, both from within and outside
build towards a desired future of the fashion the fashion industry, who are committed
industry. We used four mapping tools based to a transition in the industry. The sessions
on the scientific theory of transformative focused on describing the current situation
change (transition studies): and developing ways forward to increase the
transformative power of the fashion industry
• The Multilevel Perspective: the multilevel (using the tools mentioned above). In total, 15
perspective allows a snapshot mapping external participants joined our collaborative
of macro-trends, meso-level industry sessions, and another 14 external people
change (or lack of it) and micro-level provided feedback during a presentation
initiatives (niches). This provides a better of preliminary results. We want to thank
understanding of the interactions between
these different levels of change.
7everybody who participated and provided
input throughout the process (including all
the people at C&A Foundation and Fashion
for Good); this report is the result of our
collaborative efforts.
We recognize the myriad of single- and
multi-actor initiatives in the fashion sector
working towards a more sustainable future. In
developing this report, we built upon various
recent publications regarding circular fashion
including (but not limited to) A new textiles
economy by the Ellen MacArthur Foundation
and the Pulse of Fashion reports and CEO
Agenda by the Global Fashion Agenda. We
built upon these efforts and placed emphasis
on transformative change from a transitions
perspective.
STRUCTURE OF THE REPORT
In the next chapter, we analyze the three
levels of the current fashion system: the
landscape, the regime and the niches. In
Chapter 3, the dynamics of build-up and
breakdown of the fashion transition are
described. We explore the guiding vision
and shaping principles underlying the desired
future in which fashion is a force for good
in Chapter 4. In Chapter 5, we introduce
six transition pathways that inspire moving
from the current system to a good fashion
future, including an exploration of levers
of change, milestones and interventions
for each pathway. Finally in Chapter 6, we
highlight some of the key interventions from
all pathways that we feel are essential for
fostering transformative change in the
fashion industry.
8“ The fashion
system leaves
capacities
of people
underutilized
while exhausting
natural resources.
Humanity is
smart enough
to change this.
”
Femke Groothuis, Ex’Tax
91. A systems analysis of
global fashion
This chapter outlines the analysis of the problems; landscape influences that reinforce
current global fashion system from a or challenge the status quo; and niche
transitions perspective. The fashion system developments experimenting with alternative
is analyzed on three levels: the regime or ways of doing, thinking and organizing. The
dominant culture, structure and practices, relations are summarized in Figure 1.
including the root causes of persistent
The current
The current fashion
fashion system
system
Landscape
Reinforcing:
Consumerism
Population & GDP growth
Challenging:
Environmental & climate policies
Resource volatility
Public attention to social issues
Disconnected Uncontrollable
Regime Reinforcing:
Platform economy
Extractive & growth driven Disposable
Revival of cooperatives
Information technology
& blockchain
The regime Fourth industrial revolution
sustains itself
Responsible consumption
Natural capital paradigm
Niches
Figure 1: The landscape, regime and niches of the current fashion system
10DOMINANT CULTURE, STRUCTURE Many brands and retailers argue that the
AND PRACTICES (REGIME) inertia of the industry is due to the lack of
consumer willingness to pay for sustainable
The fashion industry is a huge economic products, and the rising demand for
engine and its supply networks span the affordable clothing supports this claim².
globe. It is the third biggest manufacturing On the other hand, some observe a latent
industry (after automotive and electronics)1, demand for guilt-free consumption, and
generates over 1.5 trillion euros annually2 international surveys report that 55% of
and employs an estimated 60 million people people are willing to pay more for more
worldwide. Furthermore, over 100 million sustainable clothing4. However, research
households depend on the cotton industry for also shows that there is a considerable
their livelihoods3. If the textile industry were a gap between sustainability intentions and
country, it would be the seventh largest based behavior6.
on GDP.4 Because the industry is relatively
easily accessible to low-income countries and From a consumer perspective, clothing
generates employment opportunities and transcended its function as a basic need
income, it is often described as ‘an engine for centuries ago. The way we dress and where
global development’². Furthermore, global we shop both signify and shape personal
clothing production and sales have doubled and group identity and culture. At the same
between 2000 and 2015, with the number of time, consumer choices are influenced by
garments produced annually surpassing 100 marketing images that brands and retailers
billion in 20145. In other words, the fashion publish across a wide variety of media and in
industry is not only large, it is also growing public spaces, promoting new products and
rapidly. trends. The short time horizon of trends and
style-driven purchases leads to the consumer
The dominant regime can be broken down ‘need’ to continuously renew products.
into three elements: culture, structure and Producers and consumers treat garments as
practices. These three aspects of the regime disposable products, which is shown by the
include institutions, social conventions, trend of declining clothing utilization5.
socially accepted behavior, laws, policies and
infrastructures, which together compose and
define the fashion system. Structure
The fashion industry is characterized by
Culture mature production technologies¹ and its
physical infrastructure is based on a linear
The fashion market is highly competitive and production and consumption process. The
demand is growing for increasingly low-cost industry extracts a large amount of natural
products in large quantities. This results in resources, and products mostly end up in
a continuous and accelerated race to the landfill or incineration after use. Less than 1%
bottom. Yet company profits must grow, of apparel waste is recycled into material for
which for a large part of the industry, means new apparel5.
the number of items sold must increase. To
meet these demands, a significant part of The fashion industry is highly fragmented,
the industry has developed and perfected anonymous and globalized. The 10 biggest
the ‘fast fashion’ model over the last decade, brands and retailers have a joint 10% global
which has transformed the seasonal turnover market share, and the top 10 suppliers in
in fashion into a constantly changing stream China have 8% national market share7. The
of trends and new products. The dominant fashion industry involves numerous small and
business model builds on the assumption of medium-sized enterprises (SMEs) throughout
infinite growth. the value chain. This fragmentation
11problematizes collective action. Furthermore, Practices
traditional retailers are increasingly struggling
to compete in the current market (especially The short-term business strategy in much of
compared to online retailers8), leading to an the industry is one of lower prices and higher
estimated closing of almost 10,000 stores in turnover. As a result, manufacturers have to
20179. be increasingly flexible in switching from one
product to another. The traditional design-
Power imbalances exist within the supply to-sales process needs almost two years, but
chain, between governments and companies, the fast fashion model needs four months12.
and between the global north and the global This leads to manufacturers subcontracting
south. However, the levels of consumption and making excessive overtime. This business
in the global south are soon expected model is prone to the exploitation of
to outgrow those in the global north10. manufacturing workers resulting in issues like
In other words, the north-south divide of poverty-line wages, severe health and safety
consumers versus producers no longer holds. issues and worker repression.
Nevertheless, the knowledge-intensive part
of the value chain is still largely concentrated The production of garments depends
in the global north, while the labor-intensive heavily on the intense use of non-renewable
part is based in the global south4. In recent resources (e.g. fossil fuels) and intensive
years, manufacturers and suppliers in Asia have farming practices (e.g. using GMOs, fertilizers,
consolidated (especially in China), thereby pesticides and high volumes of water).
growing more powerful within supply chains. There are also many externalities produced
According to one of our interviewees, most throughout the value chain (e.g. greenhouse
Asian manufacturing entities are multinationals gas emissions, freshwater contamination,
that manufacture in very large volumes. They over-extraction of groundwater) that are partly
are in a position to invest and differentiate a result of meeting the prices demanded by
themselves. Some manufacturers even much of the market.
purchased their customers and are selecting
who they do business with.
However, some other nations in the global
south – such as Bangladesh and Cambodia – THE FASHION REGIME IN
depend largely on the garment industry for CONTEXT (LANDSCAPE)
employment and economic opportunities.
There is lack of regulation on environmental The fashion industry does not operate
standards and little enforcement of labor in isolation. The system is subjected to
regulation of the industry in most (consuming global and autonomous developments
and producing) countries. Although there and trends. These macro-developments
is increasing EU regulation in the health are either reinforcing or putting pressure
and safety domain, such as in the use of on the regime. Some trends strengthen
chemicals². the persistency, contributing to a further
‘lock-in’ of the system. However, these
In response to the lack of enforcement landscape developments could also, as
or regulation, the private sector and civil counter-movements, offer opportunities for
society are working more closely to create, transformation and provide the building
non-binding and in some cases, binding blocks for pathways to a better future.
agreements to address the issues. The most
notable example followed the Tazreen and Demographic developments such as
Rana Plaza factory tragedies where brands and population growth and increasing global
local trade unions formed the legally binding wealth are global trends that lead to a
‘Accord on Fire and Safety in Bangladesh’11. growing demand for clothing and increased
12consumption and thus further reinforce
the current regime. As a result of these EMERGING FASHION ALTERNATIVES
demographic trends, geopolitics and the (NICHES)
global economy, the power dynamics in the
industry are shifting. The market shares of The term ‘niches’ refers to initiatives that
brands and retailers in the global north are experiment with new and/or alternative
declining as competitors in other parts of the ways of doing, thinking and organizing. The
world grow7, and SMEs and online retailers experimentation that is happening in the
gain momentum8. At the same time, they fashion industry is very diverse, but can be
are losing their leadership role as suppliers broadly characterized into three categories:
grow and consolidate, pulling power in their
direction. • Technology and Fibers
Recycling innovations (e.g. automated
Due to the global consumption increase, the sorting, chemical recycling); 3D-printing;
strain on resources has also increased. The virtual prototyping; robotic or AI
modes of production in the fashion industry automation; design for circularity; use of
contribute to the depletion and pollution of new materials (e.g. fruit leather or algae);
natural resources, thereby posing a threat rediscovery of existing materials (e.g. hemp,
to the natural capital on which it depends13. flax); innovations that reduce the impact
The increasing global urgency to deal with of the dyeing process and water, energy
environmental issues and climate change is and chemical use (e.g. with enzymes and
pushing governments to take measures to nanotechnology)
minimize the emissions of greenhouse gasses
(symbolized by the Paris Agreement)14 and • Business Models and Customer Relations
implement strict environmental regulations, Fashion as a service and longer-term or
including policies that integrate measures personalized relationships with customers
related to circular economy (e.g. waste (e.g. lease/rent models, reuse, remake,
management legislation in the EU15, China16 repair, resell, personalization, on-demand
and India17). These policies increase the production); customer behavior and social
pressure on the industry to address its media customer trends (e.g. minimalism,
environmental footprint. capsule wardrobes, zero waste, slow
fashion, sharing initiatives, vintage20)
Consumerist culture is also expanding
around the globe18. The values and behavior • Value Chain Models and Partnerships
of most people feed the current business Ethical brands working closely with
model of the fashion industry because they manufacturers; short supply chains; local for
demand high quantities of new products and local (or regional) production and reshoring;
affordability drives purchasing decisions more radical transparency initiatives; IT-based
than durability. This trend is not limited to the traceability initiatives using blockchain (e.g.
fashion industry, but apparel takes a central Bext360); environmental profit and loss
place in consumer culture. On the other hand, accounting (e.g. Kering)
there is also growing attention to social and
environmental injustices19, not just in the The 2018 Pulse of Fashion report21 contains an
fashion industry, but across industries and overview of disruptive innovations throughout
consumer goods. This public attention puts a the fashion supply chain, including many of
spotlight on the issues of the fashion industry the ones listed above. The report Service-
and creates pressure for change. based Business Models & Circular Strategies
for Textiles by SITRA and Circle Economy22
showcases case studies of a wide variety of
niche innovations and initiatives, including
many (SME) companies working on new
business models or circular products.
13Often niche initiatives also encompass new manufacturers and suppliers carrying a
and/or alternative (power) relations, roles, disproportionate amount of social and
narratives and words. This becomes especially environmental risk).
clear in niches on the consumer side. Vintage
clothing and the use of alternative natural • Uncontrollable
fibers show that niches are not a synonym The industry operates in an unregulated
to new, in that alternatives could also be old global market where negative externalities
solutions reinvented. Niches (or upcoming can be produced freely, becoming a
alternatives) harbor the arguments for ‘footloose’ industry that moves production to
change and thus offer the building blocks for wherever it is cheapest, with strong vested
pathways (see Chapter 5). interests to keep practices opaque.
• Extractive & growth-driven
When price is the major point of competition
UNSUSTAINABILITY OF THE between companies in the supply chain,
CURRENT FASHION REGIME margins and externalities are squeezed to
maximize profits, and sustainability is often
In spite of improvement efforts to turn considered a costly additional feature. The
the fashion industry into a force for good, supply chain relies heavily on non-renewable
it seems that the mainstream industry’s fossil resources and virgin resource inputs.
development pathways remain along the
lines of expansion, optimization, growth, • Disposable
low-cost production and high consumption. The culture in the global north and
This is largely due to the industry’s path increasingly in the global south values
dependency: the established structures, consumption and individualism and often at
networks, routines, technologies and the expense of durability. Customers demand
production processes keep the fashion quantity and novelty and they dispose of
industry locked in. Rather than looking at items quickly.
the symptoms of unsustainability of these
processes, we need to look at the underlying These four characteristics combined help
structural characteristics of the fashion explain both the relatively marginal effect of
industry that keep it locked in. Only when many attempts to move towards sustainability
these fundamental persistent problems are and the longer-term inevitability of structural
structurally addressed (e.g. in a transition) can change. The marginal effects of interventions
the fashion industry secure a future where and sustainability efforts relate to the
people can thrive. complexity and incumbent nature of the
fashion regime: small changes are absorbed
Emerging from the transition perspective and by the regime as it continuously adapts to
our analysis of the fashion regime, we have changing contexts through, for example, the
identified the following four characteristics at geographical movement of manufacturing,
the root of the unsustainability of the fashion the invention of new materials and chemicals
system. These characteristics of the regime that are not yet regulated or illegal practices
– combined with some of the landscape (e.g. forced labor or discarding untreated
pressures – reinforce each other and create a wastewater into the environment). However,
cycle of persistency: a lock-in is also the early phase of a future
transition: society will increasingly push for
• Disconnected structural changes and provide a fruitful
The transactional relationships, fragmentation context for it, and entrepreneurial actors will
and unequal power relations that characterize develop new alternatives. We have described
the industry lead to collective irresponsibility, a number of the niches, but we can also
conservatism and risk aversion (with point to a number of broader landscape
14developments that gradually increase An emerging policy and academic discourse
pressures for transition. on natural capital solutions27 is trying to
develop assessment and reporting standards
While the above landscape trends influence for ecosystems and natural resources to aid
the regime, other landscape influences can the limitation of environmental degradation.
offer inspiration for niche developments in On top of this, geo-political developments
fashion. The growing importance of social – such as the currently strained China-USA
media and digitalization are changing the relations and ‘trade war’28 – affect economic
face of the fashion industry23, pushing retail policies (i.e. increased protectionism) and
online and creating new interactive platforms trade relations within markets or industries.
for communication and interaction between Should this trend continue, it will likely
consumers and producers and within the change the geography of production and
supply chain. The emerging availability of IT consumption as well as the resources used
innovations, for example data tracking and (and wasted) in the fashion industry.
sharing technologies such as blockchain, has
the potential to change traceability in the
industry. The growth of the platform economy
and the sharing/renting economy in other
industries (including fast-growing service
platforms such as Uber, AirBnB and Deliveroo)
is transforming the way value chains operate
and how customers find suppliers.
Other innovations such as 3D-printing and
automation could change the nature of
manufacturing. Besides the opportunities
that the ‘fourth industrial revolution’ has from
a business perspective (to lower production
costs and change the quality of work, for
example), it could also mean the loss of many
jobs in textile and garment manufacturing if
the disruption is unmanaged24.
There is a revival in cooperatives and other
structures of decentralized local ownership
and governance25. These cooperatives
are popping up in agriculture, energy,
healthcare and manufacturing. It could offer
opportunities for the circular fashion industry,
for instance through worker-owned factories
or local closed-loop systems. This trend ties
in with a growing undercurrent of unsatisfied
citizens who are disillusioned by the capitalist
structures and use bottom-up organization
and social media to explore alternative,
more sustainable ways of living, producing
and consuming, including the ‘prosumer’
movement26 in renewable energy and
agriculture.
15“ Money doesn’t
buy the lead.
A lot of
bottom-up,
unexpected
companies
will make the
change.
”
Orsola de Castro, Fashion Revolution
162. Transition dynamics in
the fashion system
The analytical framework used in Chapter 2 emergence, institutionalization and
provides an overview of the multiple levels stabilization. Simultaneously, the existing
that together constitute the fashion system. regime moves along a downward curve from
In this chapter, we will focus on the dynamics a first optimization stage to destabilization,
displayed in the current system by looking chaos, breakdown and phase-out. The
at the change efforts in the sector using transition curve represents the patterns
the x-curve model of transition dynamics of build-up and breakdown that coincide
(represented in Figure 2). and interact in a transition, and they can
reinforce or counteract each other. In reality,
In a transition, the flaws in the current regime these transition dynamics are chaotic and
are challenged by niche developments and non-linear, with actors moving in different
exacerbated by landscape pressures, usually or opposing directions and developments
over a period of several decades. During this in the system occurring at different points
time, an alternative system gradually matures of the transition curve simultaneously.
in the margins. This alternative regime Furthermore, these dynamics are not
emerges from the niches during a period necessarily a conscious process in which
of acceleration in which it is scaled up until actors are aware of the ongoing transition30.
it reaches a tipping point and replaces the Transition dynamics can be mapped along
old regime. These transition dynamics are (roughly) ten stages of transition, five on the
visualized using a transition curve29. downwards “established” curve and five on
the upwards “emerging” curve31 (see Figure
In this simplified model of a transition, 2). This chapter is a snapshot of the transition
niches develop along an upwards curve dynamics in the current fashion system.
from experimentation to acceleration,
Snapshot transition dynamics
Transition dynamics
Optimization
Destabilization
OLD REGIME
Stabilization
Chaos
Institutionalization
Breakdown
Emergence
Phase out
NEW REGIME
Acceleration
Experimentation
Figure 2: The ten stages of a transition, mapped on a transition curve (adapted from Avelino, Frantzeskaki & Loorbach, 201732)
17OPTIMIZATION specific issues, such as chemical discharge
or child labor, or to stimulate improvements
The fashion system shows the dynamics across themes by promoting continuous
of the early stages of transition because improvement and reporting with standardized
many activities focus on optimization of the tools. While some of these have the ambition
current system. This means actors are mainly to make radical changes in the industry, their
focused on improving the status quo through focus is not to inspire fundamental change in
efficiency measures and efforts to minimize the way the system functions34. In some buying
flaws in the regime. countries, governments are trying to take the
reins. The Netherlands35 and Germany36 have
Many forms of compliance fall into this drawn up agreements with industry players,
category – from company Codes of but they mimic performance standards. This
Conduct to workplace safety standards– compliance dynamic has led to a situation
though research has shown that industry- where sustainability is mostly dependent on the
led compliance and auditing have limited willingness of leading companies to improve
results as tools for scalable change33. Multi- their practices. This does not create a level
stakeholder initiatives have been cropping playing field that pushes the laggards forward.
up for over two decades to either tackle
Snapshot transition dynamics
Snapshot transition dynamics
amount
of effort
Optimization
OLD REGIME Destabilization
Stabilization
Chaos
Institutionalization
Breakdown
Emergence
Phase out
NEW REGIME Acceleration
Experimentation
Figure 3: Snapshot of the transition dynamics in the current fashion system
18Furthermore, actors are talking about scarce. The past shows that unless the sector
circularity as a new model for fashion37, fundamentally changes, the supply chain
and there are many experiments that are will continue to be fluid, chaotic and ever-
developing safe production alternatives. changing.
However, most established companies direct
very few resources to producing for closed These dynamics show that the sustainability
loop systems (within and across industries), efforts of the industry are largely reactive
which is underscored by the data that shows because they focus on reducing risks to
that less than 1% of fibers are upcycled5 business as usual. The fashion industry
and the fact that only 23% of targets set by remains one of the most polluting industries
the signatories of the 2020 Circular Fashion in the world producing 8% of global
System Commitment relate to using recycled greenhouse gas emissions42. Production and
inputs38,39. business as usual continues to grow, and this
will eclipse sustainability efforts that focus on
Products that are made from recycled content optimization.
are often produced with synthetic (polyester)
fibers that rely on other waste streams,
like plastic bottles. This is not so much an Experimentation
example of an upcycled or circular product,
but rather delayed discharge of single-use While this analysis has categorized most
plastics, especially since these polyester efforts as optimization, others (people,
garments cannot be recycled into new, high- companies and initiatives) are experimenting
quality fibers with the current technology. in the margins with radically different visions,
This issue is not helped by current waste structures and practices. Niches in the fashion
management policies that often contribute industry are often entrepreneurs, SMEs and
to the lack of high-quality recycling of textiles innovators who choose to opt out of the
because it promotes low value recycling like regime, operate independently and try to
energy recovery or down-cycling textiles to build something new from the ground up. For
insulation materials, contributing to a lock-in instance, many fashion entrepreneurs from
of the linear supply chain model40. the global north directly hire (and sometimes
train) workers and artisans for fair wages
Governments and businesses are investing to sell small-scale lines of products (e.g.
in improving the recycling capacities Mayamiko). In many of these niches, small
of current waste management systems. companies and entrepreneurs are pioneering
While investment in material management alternative business models, technologies
technologies is much-needed and valuable, and value chain models. However,
focusing attention on the current (linear) experimentation also takes place within more
waste system without tackling issues at the established companies. Examples include the
beginning of the product lifecycle reinforces Gold level Cradle to Cradle Certified™ t-shirt
the waste management regime. and jeans developed by C&A in partnership
with Fashion for Good, IKEA partnering with
Meanwhile, while a variety of actors try to Industree in India, and in-store retake and
tackle persistent sustainability problems with resale initiatives by companies such as Eileen
optimization, the industry keeps growing and Fisher and The North Face.
operating within the same model it has been
for decades. For instance, as government Although experimentation is happening
oversight increases in China, there are across the value chain and in many different
instances of Chinese companies setting organizations, most experiments lack the
up apparel factories in Ethiopia41, where transformative capacity needed to make
regulation is less conducive to a sustainable
industry. Labor is cheap and regulations
19an impact on the status quo. It is difficult retailers10, SMEs and individual designers
to disrupt the regime and move beyond also have a leg up in the market because they
optimization and experimentation if niches can reach consumers directly and without
do not find their way into the mainstream. needing retail space. Online platforms such as
There is a lack of adoptive capacity by larger Amazon, eBay, Zalando and AliExpress make
brands, limited industry-wide collaboration it possible for any manufacturer – whether a
and insufficient investment to bring disruptive large Chinese company or an amateur tailor
innovations and niches to scale. Some at home – to sell their products online and
successful innovations are forced to take a reach numerous potential customers. This
backseat to second-best alternatives due to trend is disrupting the traditional status of
risk aversion, lack of investment and a general brands and retailers.
reluctance to move away from business as
usual43.
Acceleration
Destabilization As mentioned above, most of the activity
in the emerging regime is still in the
Incidents in the destabilization phase make experimentation stages and is not yet
the unsustainable nature of the dominant accelerating. Many of the niches in the
structures and practices explicit and increase fashion industry are still in the early stages of
the urgency for change. These events or development and find only a limited market,
changes can lead to disruption of the status especially compared to players in the global
quo if they build on each other, which pushes industry. There are, however, a few initial signs
the system into chaos and breakdown. It is of acceleration.
difficult to judge these events objectively,
because their interpretation depends on Increasingly, brands and retailers have
the position and ambitions of the actor more invested and long-term relationships
experiencing them. with their suppliers, making it possible to
negotiate on more than price and speed of
In the fashion industry, signs of disruption in product delivery. Transparency efforts are
the current system have been adding up over also gaining support throughout the industry,
the years. The sweatshop controversies were although the transformative capacity of these
among the first, but other factory disasters, initiatives lies in what is publicly disclosed.
most notably the tragedy of Rana Plaza,
forced many actors and citizens to confront Actors such as Fashion for Good, Patagonia,
some of the unsustainable practices of the Levi’s and Nike are trying to accelerate
industry. Public pressure on brands has also niches through funding, innovation labs and
increased due to consumer-facing campaigns accelerator programs. In a few niche markets,
focusing on the social and environmental like the Dutch workwear industry, circular
issues in the industry, such as the Greenpeace production has accelerated over the last few
Detox campaign. Climate mitigation policies years44, leading to new supply chain coalitions
shake the industry from the outside in, as do and creating space for the development of
more localized policies regarding hazardous recycling technologies and radical traceability
chemical use or discharge and waste initiatives45. However, this effect still sits
production. between the niche and regime space, as
only a few players are providing innovative
A disruptive force that has already changed alternatives.
the face of the industry over the last few years
is the rapid rise of online retail. In recent Overall, policies and investments in the
years, not only have consumers bought more circular economy and clean energy are
clothing online from existing brands and increasing across sectors. Climate and energy
20policy is more mature, but circular economy Influencing transition dynamics
policy is gaining traction and reaching the
acceleration phase. This will also have an After the transition tipping point, old
effect on the linear production (and waste) structures are abolished and practices
model of the fashion industry because these unlearned in the breakdown stage. Certain
transitions overlap. On top of this, awareness- routines, professions, connections and
raising initiatives such as Fashion Revolution patterns disappear. At the same time,
and NGO campaigns are getting attention institutionalization renders the change to
in mainstream media. Both in traditional the new system irreversible; new rules and
media and on social media, there is more structures emerge and new power relations
attention on sustainable fashion, which seems form. In this phase, the change becomes
to be going hand in hand with increasing self-evident and gradually a new stability is
customer support for sustainability. People created. Afterwards, the last remnants of the
are increasingly looking for bigger ethical old system are removed in the phase-out
statements from brands and retailers, and stage and the new system is broadly accepted
brands in turn are realizing the importance of as the ‘new normal’, around which institutions
values-based business. and structures form and processes are
optimized (stabilization). The fashion system
still has a long way to go before actors can
Chaos work on these stages of the transition.
At this stage, the dominant structures, A high-level mapping we did of over 200
patterns and routines become unstable or non-profit initiatives from the fashion industry
even partly disappear. It is apparent that in this model indicates that most are active
change is necessary, but the resistance within the optimization or experimentation
hardens against the threatening degradation spheres with signs of moving towards
of the status quo. There is not much activity acceleration. Only some are making efforts
in the chaos stages of the fashion transition in the destabilization space of transition. The
yet, although the problems with waste and high-level mapping did, however, reveal that
the volatility of cotton46 and fossil fuel prices many initiatives have the potential to move
are pushing into this category. However, these towards destabilizing the current system and
span industries. A sign of increasing chaos in even working on the emergence of a just and
the fashion industry is the ban on the import regenerative fashion system. In other words,
of second-hand clothes that the East African if they can be inspired to take on these roles,
Community is enforcing by 201947. especially in collaboration and distributed
over build-up/breakdown and the various
levers and pathways, they can have more
Emergence transformative power.
In this phase, new solutions and structures This transition perspective helps to
surface. The direction of change becomes understand how momentum for deep
clearer, though there are opposing interests systemic change develops and thereby
and views on the future. In the fashion provides a basis for governance, policy and
industry, a few initiatives have emerged as strategic intervention. However, it also points
new industry standards, such as forced labor to the inevitability of such changes in the
regulations, eco-labelling and standards for long term: if a system is unsustainable, its
organic and non-toxic materials (e.g. the future demise is inevitable. When niches and
Global Organic Textile Standard). Public regimes do not interact systematically, as in
disclosure of supply chains, gender justice this industry, it is very difficult to disrupt the
and circular fashion are also emerging as a regime and move beyond optimization and
shared vision for the largest players in the experimentation. But with enough pressure
industry. from the landscape level, the regime will
21eventually destabilize. At this point, if there
are enough tried and tested alternatives,
regime actors can reach out and adopt
these to avoid collapse. Therefore, it is in
the best long-term interest of all actors to
work on accelerating niches. The future
course and outcomes of a transition are,
however, inherently uncertain. Following the
perspective on increasing systemic pressures,
emerging niches and the growing willingness
of regime actors to help accelerate and guide
systemic change, the question arises: what
type of industry would we like to transition to?
The challenge now is how to play into the
emerging transition dynamics and mobilize
the transformative power of maturing
alternative discourses, business models,
technologies and practices to help guide and
accelerate the fashion industry’s sustainability
transition in this direction.
22“ We need a
large company
to disrupt
the market
with rental,
triggering
others to move
to new business
models.
”
Andrew Morlet,
Ellen MacArthur Foundation
233. Fashion as a force for
good
As described in Chapter 2, the fashion
industry has had a major impact on the GUIDING VISION FOR THE
world and has contributed to shaping our TRANSITION TO GOOD FASHION
economies, communities and cultures. The
industry has brought obvious benefits to The search for a broader transition of
many workers and economies around the the industry has been emerging from
globe. Apparel touches the life of every sustainability initiatives in the industry for
single person on the planet and many people some time. From previous envisioning
experience joy in self-expression through done by the C&A Foundation48, Fashion for
clothing. At the same time, the industry has Good49 and the Ellen MacArthur Foundation
caused or exacerbated environmental and a number of recurring elements arise.
social problems on a grand scale, most of Together these values represent an inspiring
which are only increasing. Efforts to mitigate vision to help guide and accelerate the
such negative impacts have so far only fashion transition. While such an enormous
resulted in marginal improvements and have and complex transition will take decades
not led to the increasingly urgent structural to materialize, this guiding vision can help
transformation of the industry. How can the facilitate, stimulate and connect short-
fashion industry transition to becoming a term transformative actions. This vision can
force for good? therefore inform short-term decision making,
investment and action. Fashion can only be
a force for good when it meets the following
five conditions.
Fashion as a force for good
Fashion as a force for good
Regenerates ecosystems
Strengthens Provides safe
economies and and just working
communities GOOD
GOOD
conditions
FASHION
FASHION
Enhances Captures
customer full value
wellbeing of materials
Figure 4: A vision of fashion as a force for good
24• Workers of every gender and background are
Enhances customer wellbeing
treated with respect and dignity in their (work)
environments;
The fashion industry enhances the wellbeing
of people by providing them with clothing • Every worker in the industry can support a family on
that is accessible, of good quality, functional, their wages;
safe and healthy. The industry enables
customers to thrive because the products • Every worker has the ability to use their voice and
and services are tailored to their needs and influence working conditions (through unions or other
wishes, and they in turn act as agents using forms of participation);
their purchasing power for good fashion.
• Working conditions in the industry are safe, healthy
and free from environmental or constructional
hazards.
Examples of milestones:
• Fashion provides comfort, functionality and
protection;
Captures the full value of materials
• Fashion enables people to express themselves,
shape their identity and feel good;
The fashion industry captures the full value of
• Fashion is accessible to everyone (diversity, garments. They are designed for circular use
affordability); and the materials flow from one product to the
next. The price of fashion reflects the true cost
• Fashion is safe and does not negatively impact of the production process and resource use.
health;
• Customers feel good about contributing to the
Examples of milestones:
fashion industry, because they trust that the supply
chain has not harmed people or the environment
• The majority of apparel items go through several
and has positively contributed to people’s lives and
use cycles before returning to the materials flow;
even the planet.
• The majority of materials used come from recycled
sources, the rest is from renewable resources;
• All fashion products are designed for technical and
Provides safe and just working conditions biological product cycles;
The fashion industry provides workers with • No use of substances of concern;
good livelihoods through fair wages and just
• Zero waste in production processes, no overstock;
working conditions. The industry enables
workers to thrive, because they live and work • End of use is a new beginning for the raw
in safe and dignified conditions in which they materials through redesign, recycling/upcycling and
are respected, and able to make changes in biodegradation;
their work and lives.
• Infrastructures and systems are in place to enable
take-back.
Examples of milestones:
• There are no human rights violations, no child
labor, no slavery and no emotional or physical
harassment from farm through to retail;
25• Artisan skills are conserved, taught and valued;
Regenerates ecosystems
• The fashion industry contributes to services for
The fashion industry only uses renewable the communities of their workers (education, child
energy and materials as inputs, and treats care, health services, housing).
‘waste’ as resource streams in materials
management. It regenerates natural
ecosystems by cleaning the water, air and soil.
Examples of milestones:
SHAPING PRINCIPLES THAT ENABLE
• Production facilities are located and designed in A GOOD FASHION FUTURE
harmony with surroundings and are regenerative
where possible; The vision above describes the aspired
functioning of the fashion industry. But
• Production facilities run on renewable energy and
which underlying conditions have to
support clean energy systems in the surrounding
change to enable the industry to transition?
communities;
By definition, this transition implies a
• Water and soil are conserved, used sparingly, fundamental change in the underlying
purified and regenerated; structural relations and the economic
exchanges of the industry. Incumbent
• No negative environmental impacts are produced interests and power dynamics sustain the
locally or globally. status quo, and the prevalent economic
model based on profit growth and efficiency
works against internalizing environmental
costs and social justice.
Strengthens economies and communities The necessary fashion transition needs to shift
the systemic power relations and the value
The fashion industry promotes strong and model of the industry. We identified four
diverse economies that generate benefits shaping principles as underlying conditions
for all parties involved, while every party that enable the fashion system to transform
adds value. Benefits are distributed between into a force for good. They are the reverse
partners in the supply chain and within of the four root causes of the persistent
communities. problems in the industry, as described in
Chapter 2. The first two – connected and
accountable – are linked to power; the other
Examples of milestones: two – internalized and valued – are linked to
value.
• The fashion industry contributes to the
diversification of economies in production regions
by deploying business activities with higher added
value, educating workers and enabling them to
develop within or beyond fashion production;
• The fashion industry deals with automation
with workers in mind – through proper mitigation
processes, retraining, reskilling – so that ultimately,
everyone benefits;
26Shaping principles
Shaping principles
CONNECTED ACCOUNTABLE
Power The value chains in the industry are Governments, NGOs, citizens and companies
transparent and traceable. Value chain create transformative change through
partners share ownership of risks and legislation, taxation, financing and advocacy.
benefits.
INTERNALIZED VALUED
Value
Fashion production considers and cherishes The industry appreciates materials by
the ecosystems and communities they rely designing for circular product cycles.
on. All impacts, costs and benefits are Customers treat products like valuable
internalized. resources.
Figure 5: Shaping principles for a future in which fashion is a force for good
Connected Internalized
The value chains in the industry are The activities, processes and products that
transparent and traceable. They are make up the fashion industry consider and
characterized by reciprocal and long-term cherish their context: the ecosystems and
relationships between value chain actors, communities they interact with and rely on.
who treat each other as partners, and across ‘Externalities’ are something of the past as all
geographical regions. Value chain partners impacts, costs and benefits are internalized in
share ownership of risks and benefits in their design, decision-making and price setting.
value chain.
Accountable Valued
The industry is less free to seek the path of Society values the materials that go into
least resistance in environmental and social making fashion. The industry appreciates
issues because it is held accountable by other these materials, by designing for technically
actors. Governments, NGOs, customers and and biologically circular product cycles,
companies create transformative change whether long-lasting or quickly dissolving.
through legislation, taxation, advocacy Customers respectfully use the fashion
and financing. Workers are emancipated products, by maximizing their use and treat
through living wages, equality, education and the materials as the valuable resources that
freedom of association. Their communities are they are.
equipped with the skills to stand up for their
wellbeing and for the environment.
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