Alternatives to Extended Producer Responsibility: Producer-Focused Alternatives
- Deborah King
- EPR, Fashion, Sustainability
Introduction
Producer-focused alternatives tackle textile waste right at its source, encouraging the fashion industry to adopt more sustainable practices and innovative business models. These strategies focus on reducing waste during production, making better use of resources, and embracing circular economy principles. By integrating these approaches, producers have an opportunity to minimize their environmental footprint, meet the growing demand for ethical fashion, and drive meaningful change in how the industry operates.
This sub-article explores the following solutions:
1. Sustainable Design Practices
2. Rental/Product-as-a-Service Models
3. Certification for Sustainable Clothing
4. Incentivized Product Take-Back and Resale Programs
5. Subsidies and Grants for Sustainable Production
6. Carbon Offset Programs
1. Sustainable Design Practices
Description
Sustainable design practices encompass a range of strategies aimed at reducing waste and maximizing efficiency during garment creation. These practices include zero-waste design, which eliminates textile waste during the design phase, and other innovative approaches like the use of deadstock fabrics, upcycling, and minimizing cutting waste (Zhang et al., 2024; Gupta & Sharma, 2024). Traditional “cut-and-sew” methods often result in pre-consumer waste around 20%, but each 1% reduction in cutting waste could save millions of meters of fabric globally.
Designers adopting these practices intentionally focus on material efficiency from the outset. Zero-waste design techniques create patterns that use every bit of fabric, leaving no scraps behind, while upcycling breathes new life into existing materials by transforming them into new garments (Milke Pavlova, 2024; Gupta & Sharma, 2024). Deadstock fabrics— which are typically surplus or discarded materials from previous production runs—are incorporated into designs, preventing them from going to waste.
Digital cutting programs, such as Clo3D, are becoming widely adopted to optimize pattern layouts and improve cutting accuracy (Zhang et al., 2024; Gupta & Sharma, 2024). These tools, alongside manual techniques like modular designs and subtraction cutting, enhance sustainability by reducing offcuts and promoting efficient resource use. Together, these practices push the boundaries of traditional garment production, integrating sustainability into every step of the design process.
Benefits
- Reduces Textile Waste: Sustainable design practices significantly decrease the amount of offcuts and surplus materials discarded during production.
- Conserves Resources: Efficient use of materials, such as deadstock fabrics, lowers the demand for virgin textiles, saving water, energy, and raw materials typically consumed in textile production.
- Minimizes Environmental Impact: Strategies like upcycling and optimizing fabric usage reduces waste destined for landfills or incineration.
- Drives Design Innovation: Sustainable principles challenge designers to think creatively, leading to innovative garment designs that integrate upcycled elements or modular features, redefining traditional production norms.
- Enhances Cost Efficiency: Utilizing deadstock fabrics and improving cutting efficiency through digital tools like Clo3D reduces material waste and production costs.
- Supports Circular Economy Goals: Practices like upcycling and designing for durability align with circular economy principles, keeping textiles in use longer and reducing reliance on finite resources.
- Strengthens Brand Appeal: Embracing sustainable design practices enhances a brand’s commitment to environmental responsibility, resonating with eco-conscious consumers and fostering trust and loyalty.
Challenges
- Complexity of Implementation: Sustainable design practices, such as integrating deadstock fabrics or reducing cutting waste, require an overhaul of traditional workflows, necessitating advanced planning, technical skills, and innovative thinking to ensure efficiency and minimal waste.
- Training and Expertise: Designers, pattern makers, and production teams need specialized training in sustainable practices like upcycling, digital cutting tools, and zero-waste techniques, posing a barrier for brands with limited access to resources or education in these areas.
- Time-Intensive Process: Incorporating sustainable design principles often involves trial and error, precision in planning, and creative problem-solving, which can extend production timelines, particularly during the transition phase.
- Scalability Challenges: While techniques like upcycling or zero-waste design can work well for small-scale production, adapting them for mass production is complex and may require technological investments to maintain material efficiency across high volumes.
- Material Availability: Sourcing consistent supplies of deadstock fabrics or materials suitable for upcycling can be unpredictable, limiting the scalability and feasibility of these approaches for some brands.
- Consumer Perception: Garments produced with zero-waste or upcycled techniques may have unconventional aesthetics, which could deter consumers who prioritize traditional or polished designs.
- Fabric and Design Constraints: Factors such as fabric width, stretch, and quality can limit the effectiveness of zero-waste or other sustainable techniques, requiring additional adjustments or material substitutions to achieve the desired results.
- Technology Dependence: Relying on digital tools, such as Clo3D or automated cutting technologies, requires upfront investment and ongoing maintenance, which may be unattainable for smaller brands.
Potential Costs
- Design and Development Costs: Developing sustainable designs often requires significant time and effort during initial implementation. Teams may spend additional resources on trial and error to optimize layouts and incorporate materials effectively.
- Training and Skill Development: Designers, pattern makers, and production staff must be trained in sustainable practices, including advanced techniques for reducing cutting waste, leveraging deadstock fabrics, or using digital cutting tools. Workshops, certifications, and hiring experienced professionals can add to operational expenses (Gupta & Sharma, 2024).
- Higher Initial Labor Costs: Precision in sustainable design techniques, such as modular or subtraction cutting, can slow down production in the early stages, leading to increased labor costs until workflows become more efficient.
- Technological Investments: Advanced tools, such as 3D modeling software, automated cutting technologies, or digital pattern-making platforms, play a key role in optimizing sustainable practices. However, these tools require upfront investments and ongoing maintenance.
- Market Education Costs: Educating consumers about the benefits of sustainable design practices, including upcycled or zero-waste garments, may require investment in marketing campaigns and clear, compelling communication strategies.
- Operational Adjustments: Integrating sustainable practices into existing workflows may require reconfiguring existing patterns, updating processes, or hiring specialized staff, adding to operational expenses.
Examples
- BC-based Pom & Chi, a pet boutique specializing in sustainable goods for small dogs, collaborates with a local studio to produce zero-waste bandanas using deadstock fabrics, ensuring minimal environmental impact.
- Supramorphous, an Ottawa-based avant-garde design studio, creates genderless fashion pieces with a zero-waste mindset. They reincorporate fabric scraps into new designs and creatively utilize deadstock materials, breathing new life into otherwise discarded textiles while reducing their environmental impact.
- Anne Mulaire, a Métis-owned fashion brand, implements a zero-waste program by repurposing fabric scraps into accessories like scrunchies and face masks, ensuring that every part of the fabric is utilized.
2. Rental / Product-as-a-Service (PaaS) Models
Description
The Rental or Product-as-a-Service (PaaS) model shifts the focus from ownership to access, allowing consumers to rent clothing for a set period instead of buying it outright. This approach embraces circular economy principles, extending the lifecycle of garments by enabling multiple users to enjoy the same piece while reducing the need for constant new production (Mu & Li, 2021; Arrigo, 2022).
Rental platforms typically fall into two categories: business-to-consumer (B2C) and peer-to-peer (P2P). In the B2C model, companies like Rent the Runway or Nuuly manage the inventory, offering clothing through subscription services or one-time rentals. P2P platforms like By Rotation or Pickle allow individuals to rent directly from one another, creating a community-driven exchange of fashion (Bodenheimer et al., 2022; Arrigo, 2022; Rim, 2024).
These services provide solutions for everything from everyday wardrobe staples to outfits for special occasions. Many subscription-based models include additional benefits such as complimentary shipping, professional cleaning services, and flexible rental agreements. Some programs feature rent-to-own options or resell previously rented inventory, extending the lifespan of garments and minimizing waste (Bodenheimer et al., 2022; Arrigo, 2022).
What makes the PaaS model so appealing is its ability to offer variety, affordability, and sustainability. It’s especially popular among younger generations, like Gen Z and Millennials, who value access to high-quality or designer clothing without the environmental and financial costs of ownership (Rim, 2024).
Benefits
- Reduces Overproduction: By promoting shared use of garments, rental services decrease the demand for new clothing production, directly reducing the industry’s environmental footprint (Mu & Li, 2021; Arrigo, 2022).
- Extends Garment Lifecycle: Items are reused multiple times, maximizing their utility and keeping them in circulation longer, which helps divert textiles from landfills (Arrigo, 2022; Rim, 2024).
- Accessible High-Quality Fashion: Consumers gain access to designer or high-quality garments at a fraction of the purchase price, making sustainable and luxury fashion more affordable and attainable (Bodenheimer et al., 2022; Rim, 2024).
- Supports Sustainable Consumption: Encourages consumers to embrace a “use rather than own” mindset, aligning with growing trends toward eco-conscious consumption and minimalism (Arrigo, 2022; Rim, 2024).
- Flexibility and Variety: Rental services allow consumers to refresh their wardrobe frequently without committing to purchases, catering to those seeking variety for special occasions or seasonal changes (Rim, 2024).
- Economic Opportunity for Brands and Individuals: Peer-to-peer platforms offer a secondary income stream for individuals renting out their wardrobes, while businesses benefit from a recurring revenue model through subscriptions or rentals (Bodenheimer et al., 2022; Rim, 2024).
- Promotes Circular Economy: Integrates clothing into a closed-loop system where garments are shared, repaired, and reused, reducing overall waste and resource use (Mu & Li, 2021; Arrigo, 2022).
Challenges
- High Operational Costs: Managing rental services involves significant expenses for cleaning, logistics, storage, and garment maintenance, which can impact profitability, especially for smaller businesses (Bodenheimer et al., 2022; Arrigo, 2022).
- Scalability Challenges: Expanding rental operations requires significant investments in infrastructure and technology, which can be a barrier for new entrants or smaller-scale platforms (Mu & Li, 2021; Rim, 2024).
- Inventory Management Complexity: Maintaining an adequate selection of sizes, styles, and available garments to satisfy customer preferences can be particularly difficult, especially during high-demand periods (Rim, 2024).
- Environmental Costs of Logistics: Frequent shipping and returns associated with rentals can lead to increased carbon emissions, potentially offsetting some of the environmental benefits of reduced production (Bodenheimer et al., 2022; Rim, 2024).
- Garment Durability Issues: Rental items are subject to frequent wear and cleaning, requiring high-quality, durable garments that can withstand repeated use, which may limit inventory options (Arrigo, 2022; Rim, 2024).
- Consumer Hygiene Concerns: Some consumers may feel uncomfortable wearing previously rented clothing, which could limit the model’s appeal despite professional cleaning services (Bodenheimer et al., 2022).
- Changing Consumer Behavior: Encouraging consumers to shift from ownership to rental requires sustained education and cultural change, particularly in markets where ownership is deeply valued (Arrigo, 2022; Rim, 2024).
- Limited Applicability for Everyday Wear: While rental works well for special occasions or high-end fashion, it may not be as practical or appealing for everyday clothing needs (Bodenheimer et al., 2022; Arrigo, 2022).
Potential Costs
- Technology Investments: Developing and maintaining digital platforms or apps to facilitate rentals, manage subscriptions, and track inventory involves high upfront and ongoing expenses (Arrigo, 2022; Rim, 2024).
- Inventory Management: Managing a diverse inventory, including storage, tracking, and ensuring availability, requires robust systems and facilities (Bodenheimer et al., 2022; Arrigo, 2022).
- Logistics and Shipping: Frequent transportation of rental items between customers adds significant costs, including shipping, packaging, and reverse logistics for returns (Bodenheimer et al., 2022; Rim, 2024).
- Sustainability Trade-offs: Costs may arise from balancing sustainability efforts, such as using eco-friendly packaging and optimizing shipping routes, which can increase operational complexity (Rim, 2024).
- Cleaning and Maintenance: Professional cleaning services are necessary to maintain hygiene and garment quality (Bodenheimer et al., 2022; Rim, 2024).
- Garment Durability and Replacement: Repeated use and cleaning wear down garments, necessitating periodic replacements, especially for items that fail to meet durability standards (Rim, 2024).
- Marketing and Consumer Education: Promoting the rental model and educating consumers about its benefits requires sustained investment in advertising, outreach, and user-friendly communication strategies (Bodenheimer et al., 2022).
- Customer Service and Support: Rental models require dedicated resources for handling customer inquiries, managing subscription issues, and addressing potential complaints (Arrigo, 2022; Rim, 2024).
Examples
- The Fitzroy was established in 2016 and is Canada’s first dress rental service. It offers a curated selection of designer dresses, jumpsuits, and accessories for various occasions, available online and at its Toronto studio.
- Founded in 2019, Montreal-based Beyond the Runway, offers a curated selection of garments and accessories for various occasions, with free shipping across the country.
- Reheart is a B2B online wardrobe-sharing platform, which allows users to rent, buy, sell, and lend dresses, clothing, bags, and accessories.
3. Certification for Sustainable Clothing Options
Description
Certification programs offer a structured approach to assess and communicate the environmental and social impact of garments. These systems establish clear benchmarks for brands, covering areas like responsibly sourced materials, ethical labor practices, and sustainable production processes. Through comprehensive audits, certified brands can showcase their dedication to sustainability, helping them build credibility and trust with consumers (Oelze et al., 2020).
The certification process typically involves several key steps:
- Alignment with Standards: Brands must meet specific guidelines, which might include reducing energy and water use, managing chemicals responsibly, minimizing waste, and ensuring ethical labor practices (Ranasinghe & Jayasooriya, 2021).
- Documentation and Reporting: Companies submit detailed records of their supply chain activities, ensuring transparency from raw materials to production (Oelze et al., 2020).
- Third-Party Verification: Independent auditors validate the information provided and ensure compliance with the certification’s criteria (International Labour Organization, 2021).
- Certification and Labeling: Once certified, brands can use the certification’s label—like Global Measure Inc., GOTS, OEKO-TEX, or Fair Trade—on their products, giving consumers a clear and credible way to identify sustainable options (Ranasinghe & Jayasooriya, 2021).
Certification schemes assess various aspects of a garment’s lifecycle, including:
- Sustainable Materials: Verifying inputs like the use of deadstock materials, recycled fibers, or responsibly sourced materials.
- Eco-Friendly Manufacturing: Evaluating energy efficiency, water conservation, and chemical safety in production.
- Social Responsibility: Ensuring fair wages, safe working conditions, and ethical treatment of workers.
- Circularity: Encouraging designs that focus on durability, repairability, and recyclability at the end of a garment’s life (Ranasinghe & Jayasooriya, 2021).
Certifications typically act as a bridge between brands and consumers, offering a trusted and transparent way to validate sustainability claims. They can further help address the lack of transparency in global supply chains while driving the adoption of better practices across the industry (International Labour Organization, 2021).
Benefits
- Builds Consumer Trust: Certifications provide a clear, third-party-verified way for consumers to identify sustainable clothing, enhancing confidence in a brand’s environmental and ethical claims (International Labour Organization, 2021).
- Increases Transparency: Certification schemes require brands to document and share supply chain data, promoting greater visibility and accountability in an industry often criticized for its opacity (Oelze et al., 2020).
- Drives Sustainable Practices: By setting clear standards, certifications encourage brands to adopt eco-friendly materials, reduce resource consumption, and improve labor conditions, creating systemic change across the fashion industry (Ranasinghe & Jayasooriya, 2021).
- Supports Regulatory Compliance: Certifications can help brands meet legal requirements related to environmental and social governance, preparing them for evolving regulations (Ranasinghe & Jayasooriya, 2021).
- Encourages Circular Economy Practices: Many certification schemes promote circularity by focusing on recyclability, durability, and responsible disposal, reducing textile waste over the long term (Ranasinghe & Jayasooriya, 2021).
- Differentiates Brands in a Competitive Market: Certification labels give brands a competitive edge, signaling quality and responsibility in a crowded marketplace (Oelze et al., 2020).
- Promotes Long-Term Cost Savings: While initial certification costs may be high, adopting sustainable practices often leads to resource efficiency and operational savings over time.
- Educates Consumers and Industry: Certifications raise awareness about sustainability issues, empowering consumers to make informed choices and encouraging brands to improve their practices.
Challenges
- High Costs for Brands: Larger certification bodies often require significant financial investment, including audit fees, documentation costs, and ongoing compliance, which can be prohibitive for smaller businesses.
- Resource-Intensive Process: Preparing for certification involves extensive record-keeping, supply chain audits, and compliance efforts, which demand time and expertise that not all brands may have readily available.
- Challenges with Supply Chain Transparency: Brands may struggle to obtain detailed information about their supply chains, particularly when working with multiple tiers of suppliers across different countries (Oelze et al., 2020).
- Lack of Standardization: The variety of certification schemes available can create confusion for both consumers and brands, as criteria and benchmarks may differ between programs (Oelze et al., 2020).
- Limited Consumer Awareness: Many consumers remain unfamiliar with certification schemes and their significance, reducing the impact of these labels in influencing purchasing decisions.
- Complexities for MSMEs: Micro-, small-, and medium-sized enterprises (MSMEs) often lack the resources to meet certification requirements for larger bodies, limiting their ability to compete in a market increasingly driven by sustainability claims.
- Evolving Standards: Certification criteria may need frequent updates to reflect new sustainability challenges, requiring brands to adapt continuously, which can be costly and time-consuming.
Potential Costs
- Audit and Certification Fees: Depending on the certification body, brands may incur fees for initial audits, periodic re-certifications, and licensing fees to use certification labels, which can be costly, particularly for smaller businesses.
- Costs of Third-Party Verification: Audits are a critical part of certification, which can involve hiring independent verification bodies, adding to the overall expense.
- Monitoring and Enforcement: Ensuring continued compliance, especially for certifications with evolving standards, requires regular audits and monitoring systems, which can be resource-intensive.
- Adapting to Evolving Standards: As sustainability benchmarks change, brands may need to invest in updating their practices and processes to maintain certification.
- Supply Chain Transparency Costs: Gathering detailed data across multi-tiered supply chains often requires investment in tracking tools, software, and external consultants.
- Operational Changes: To meet certification requirements, brands may need to invest in upgrading processes, adopting sustainable materials, or implementing cleaner technologies, all of which come with upfront costs.
- Training and Workforce Development: Educating staff and suppliers about certification criteria and ensuring compliance across the supply chain can require additional resources.
- Documentation and Reporting: The administrative burden of maintaining thorough records for compliance involves ongoing labor costs, as well as potential investments in data management systems.
- Marketing and Consumer Education: Promoting certification labels and educating consumers about their significance often requires dedicated marketing campaigns, which add to overall expenses.
Examples
- Global Measure Inc., Canada’s first social enterprise certifying sustainable and ethical fashion, is specifically designed to support small fashion businesses by offering accessible certification tailored to their unique needs and challenges.
- OEKO-TEX® STANDARD 100 is a globally recognized certification that ensures textiles are tested for over 1,000 harmful substances, verifying that each component—from threads to buttons—is safe for human health.
- WRAP (Worldwide Responsible Accredited Production) certifies factories in the apparel, footwear, and sewn goods industries, ensuring they adhere to ethical, legal, humane, and safe manufacturing practices.
4. Incentivized Product Take-Back and Resale Programs
Description
Incentivized product take-back and resale programs provide an effective solution for reducing textile waste while promoting circular economy principles. Consumers are encouraged to return unwanted clothing, which is then evaluated for potential resale, recycling, or upcycling. Through incentives such as discounts, loyalty rewards, or vouchers, brands make sustainable practices more accessible and appealing to their customers (Arzaga, 2017; Tari & Trudel, 2023).
These programs typically operate through a few key channels:
- In-Store Collection Points: Retailers may set up drop-off locations where customers can return their used clothing in exchange for immediate rewards.
- Online and Postal Return Options: Leveraging pre-paid return labels and digital platforms customers can conveniently send back items.
- Community Drives: By partnering with local organizations, brands can organize large-scale collection events, building community engagement and increasing participation (Kelderman, 2019; Adesoga et al., 2024).
Once collected, garments are sorted for either resale or repurposing. Items in good condition are cleaned and resold at a lower price, either through the brand’s own platforms or via partnerships with resale marketplaces. Clothing that isn’t suitable for resale is repurposed into new products, recycled into fibers, or redirected to industries like insulation or furniture (Charnley et al., 2024; Tari & Trudel, 2023).
Benefits
- Reduces Textile Waste: By reclaiming and repurposing used garments, these programs prevent textiles from ending up in landfills or incinerators, directly reducing environmental impact (Arzaga, 2017; Tari & Trudel, 2023).
- Extends Garment Lifecycle: Reselling or upcycling returned items gives clothing a second (or even third) life, maximizing the value of the resources used to produce them (Kelderman, 2019; Charnley et al., 2024).
- Promotes Circularity: Encourages a closed-loop system where garments are reused or recycled, supporting the transition to a circular economy (Arzaga, 2017; Tari & Trudel, 2023).
- Encourages Sustainable Consumer Behavior: Incentives like discounts and loyalty points make it easier and more rewarding for consumers to adopt eco-friendly habits (Arzaga, 2017; Kelderman, 2019).
- Builds Customer Loyalty: By offering tangible benefits for participation, brands can strengthen relationships with customers and differentiate themselves in a competitive market (Chen, 2023; Arzaga, 2017).
- Taps into Growing Resale Market: Resale programs capitalize on the increasing demand for secondhand fashion, particularly among eco-conscious Millennials and Gen Z shoppers (Chen, 2023; Kelderman, 2019).
- Reduces Demand for New Production: By redirecting demand to secondhand goods, these programs lower the need for new garments, conserving water, energy, and raw materials (Charnley et al., 2024).
- Aligns with Sustainability Goals: Helps brands meet ESG (Environmental, Social, Governance) objectives and align with consumer expectations for transparency and responsibility (Arzaga, 2017; Tari & Trudel, 2023).
- Fills Gaps in EPR: These programs address areas where Extended Producer Responsibility policies may fall short, particularly by involving consumers directly in waste reduction efforts (Tari & Trudel, 2023; Adesoga et al., 2024).
Challenges
- High Operational Costs: Collecting, sorting, cleaning, and storing returned garments can be resource-intensive, especially for smaller brands without existing infrastructure (Arzaga, 2017; Tari & Trudel, 2023).
- Logistical Complexity: Managing the transportation of returned items, particularly for online or postal return options, can increase carbon emissions and operational challenges if not efficiently coordinated (Kelderman, 2019; Tari & Trudel, 2023).
- Consumer Engagement: Encouraging consumers to return garments, even with incentives, can be difficult due to convenience barriers or lack of awareness about the program (Chen, 2023; Kelderman, 2019).
- Quality of Returned Items: Not all garments are suitable for resale or recycling due to poor condition, contamination, or low material quality, limiting the effectiveness of the program (Arzaga, 2017; Charnley et al., 2024).
- Recycling Limitations: Currently, textile recycling is not available at an industrial scale, and the infrastructure needed to create a fully circular textile economy is still lacking. As a result, many collected garments may never be recycled, undermining the potential impact of these programs.
- Scalability Issues: Expanding these programs to meet growing demand requires significant investment in infrastructure and technology, which may not be feasible for all brands (Arzaga, 2017; Tari & Trudel, 2023).
- Consumer Perception of Resale: Despite growing interest in secondhand fashion, some consumers may still view resale items as less desirable compared to new products, limiting market growth (Chen, 2023; Kelderman, 2019).
- Inconsistent Policy Support: A lack of standardized regulations or government incentives for take-back programs can hinder their widespread adoption and long-term viability (Kelderman, 2019; Adesoga et al., 2024).
Potential Costs
- Collection Infrastructure: Setting up and maintaining collection points, whether in-store or through online channels, requires investment in logistics and space (Arzaga, 2017; Tari & Trudel, 2023).
- Sorting and Processing: Assessing the quality of returned items, cleaning garments for resale, and preparing them for recycling or upcycling incurs labor, equipment, and facility costs (Kelderman, 2019; Charnley et al., 2024).
- Inventory Management: Storing returned garments, especially if resale is delayed, incurs warehousing costs and requires efficient inventory management systems (Kelderman, 2019; Tari & Trudel, 2023).
- Transportation and Logistics: Moving collected garments from collection points to sorting or resale facilities, especially for postal return programs, adds transportation costs (Kelderman, 2019; Tari & Trudel, 2023).
- Quality Control: Ensuring that resold items meet consumer expectations for cleanliness and usability adds costs for inspection, repairs, and packaging (Kelderman, 2019; Charnley et al., 2024).
- Technology Investments: Developing and maintaining digital platforms or apps for managing take-back requests, tracking returns, and facilitating resale requires upfront development and ongoing maintenance costs (Arzaga, 2017; Tari & Trudel, 2023).
- Recycling and Disposal Costs: For items that cannot be resold, recycling or disposing of textiles responsibly involves additional expenses (Kelderman, 2019; Tari & Trudel, 2023).
- Consumer Incentives: Offering discounts, loyalty points, or vouchers as part of the take-back program represents a direct financial cost to brands, particularly if participation grows rapidly (Arzaga, 2017; Kelderman, 2019).
- Marketing and Awareness Campaigns: Educating consumers about the program and encouraging participation requires investment in advertising, promotional materials, and community outreach (Chen, 2023; Kelderman, 2019).
- Program Scalability: Expanding the program to multiple locations or larger customer bases requires resources, including staffing, logistics, and technology upgrades (Arzaga, 2017; Tari & Trudel, 2023).
Examples
- Arc’teryx’s ReGEAR™ program encourages customers to trade in their gently used gear, which is then inspected, refurbished, and resold, promoting sustainability by extending the lifecycle of their products.
- The North Face’s Renewed Take-Back program invites customers to return their used gear to retail or outlet stores, where items are inspected, cleaned, and refurbished for resale, promoting a circular economy and reducing waste.
- Birds of North America’s ReNesting program invites customers to return pre-loved garments, which are then laundered, inspected, repaired, and resold, with a portion of each sale supporting the Toronto Wildlife Centre.
5. Subsidies and Grants for Sustainable Production
Description
Subsidies and grants for sustainable production are vital tools to help fashion brands and manufacturers overcome financial barriers and adopt more environmentally responsible practices. By providing targeted financial support, these programs make it possible to integrate sustainable technologies, use eco-friendly materials, and improve operational processes, driving the industry toward meaningful change.
Subsidies include government-provided incentives like tax breaks, cost-sharing programs, or rebates designed to offset the costs of green initiatives. For instance, subsidies can help brands transition to renewable energy or invest in energy-efficient manufacturing equipment (Signoret & Cieszkowsky, 2024; Conley & Botwright, 2023).
Grants are non-repayable funds, awarded to support specific projects that align with sustainability goals. Programs like the Fashion Climate Fund and Good Fashion Fund focus on funding initiatives that scale decarbonization and recycling technologies, targeting solutions that have significant industry impact (Apparel Impact Institute, 2023; New York City Economic Development Corporation, 2023).
Key Areas of Focus
- Energy Efficiency: Many grants, such as those under the Climate Solutions Portfolio, fund projects that introduce energy-efficient systems or renewable energy to reduce production emissions (Apparel Impact Institute, 2023).
- Innovative Technologies: Initiatives like the Good Fashion Fund enable brands to pilot and scale cutting-edge technologies in recycling and waste reduction (Good Fashion Fund, n.d.).
- Support for SMEs: Programs such as the Fashion Manufacturing Initiative (FMI) provide crucial support for smaller businesses, helping them adopt sustainable practices and enhance local economies (New York City Economic Development Corporation, 2023).
Benefits
- Lowers Financial Barriers: Subsidies and grants make sustainable production more accessible by reducing the upfront costs of adopting eco-friendly technologies, materials, and processes (Signoret & Cieszkowsky, 2024; Conley & Botwright, 2023)
- Encourages Innovation: By funding research and development, these programs drive the creation and scaling of groundbreaking technologies, such as advanced recycling methods and energy-efficient machinery (Good Fashion Fund, n.d.; Apparel Impact Institute, 2023).
- Supports Small and Medium Enterprises (SMEs): Grants like the Fashion Manufacturing Initiative (FMI) provide critical funding to smaller businesses, helping them integrate sustainable practices that they might otherwise struggle to afford (New York City Economic Development Corporation, 2023).
- Promotes Circular Economy Practices: Grants targeting textile recycling, waste reduction, and upcycling contribute to circular economy models, ensuring resources are used more efficiently (Good Fashion Fund, n.d.; Apparel Impact Institute, 2023).
- Enhances Supply Chain Transparency: Subsidy and grant programs often require detailed reporting, encouraging brands to map and monitor their supply chains more effectively (Conley & Botwright, 2023; New York City Economic Development Corporation, 2023).
- Drives Regional Economic Growth: Local grant initiatives, such as NYCEDC’s FMI Grant Fund, support sustainable production while creating jobs and strengthening regional economies (New York City Economic Development Corporation, 2023).
- Prepares Brands for Regulatory Compliance: By supporting early adoption of sustainable practices, subsidies and grants help businesses align with evolving environmental regulations (Conley & Botwright, 2023; Apparel Impact Institute, 2023).
Challenges
- Limited Awareness and Accessibility: Many SMEs are unaware of the availability of subsidies and grants or lack the resources to identify suitable programs, making it difficult for them to apply.
- Complex Application Processes: The administrative burden of applying for subsidies and grants can be daunting, often requiring detailed proposals, extensive documentation, and technical expertise, which many brands may lack.
- Competition for Funding: The demand for grants and subsidies often exceeds the available funding, leaving many applicants without support despite having viable sustainability initiatives.
- Lack of Clarity on Eligibility: Ambiguities in eligibility criteria or a lack of transparency about selection processes can discourage brands from applying or lead to inconsistent results
- Short-Term Focus: Many grants provide one-time funding for specific projects, which may not be enough to support long-term transitions to sustainability.
- Resource-Intensive Compliance: Meeting the reporting and accountability requirements for grants and subsidies can strain already-limited resources, especially for smaller brands.
- Insufficient Funding for High-Impact Projects: Some sustainability initiatives, such as overhauling supply chains or adopting cutting-edge recycling technologies, require significant financial investment that surpasses typical grant amounts.
- Dependency Risks: Over-reliance on external funding can create dependency, potentially stalling projects if subsidies or grants are discontinued.
Potential Costs
- Administrative Costs: Designing, managing, and monitoring grant and subsidy programs require significant administrative resources, including staff, technology, and reporting systems.
- Evaluation and Compliance: Regular audits and evaluations to ensure recipients use funds appropriately can add costs for both the granting organization and the recipients.
- Oversight and Fraud Prevention: Ensuring funds are used for their intended purpose requires investment in monitoring systems to prevent misuse or fraud.
- Training and Capacity Building: Educating potential recipients about available programs and how to apply involves outreach efforts, workshops, and informational campaigns.
- Mismatch Between Funding and Needs: Some grants may provide insufficient funding for large-scale projects, requiring brands to secure additional investments, which could strain budgets.
- Application Preparation: Brands may need to hire consultants or dedicate internal resources to prepare detailed applications and proposals for grants or subsidies.
Examples
- NSCAD University is leading a regional initiative to develop sustainable agriculture and textiles, supported by a four-year, $3.2 million NSERC-SSHRC Sustainable Agriculture Research Initiative grant. Associate Professor Jennifer Green heads the “Flax Fibre to Fabric” project, collaborating with 14 researchers from five Atlantic Canadian universities to strengthen rural economies and establish a local, sustainable textile supply chain.
- The New York City Economic Development Corporation (NYCEDC) and the Council of Fashion Designers of America (CFDA) awarded over $1 million through the 2024 Fashion Manufacturing Initiative (FMI) Grant Fund to support 18 NYC-based fashion manufacturing companies. Since its inception in 2013, the FMI has invested nearly $7 million across grants and workforce programs, significantly benefiting New York City’s fashion manufacturing sector and its 3,708 employees.
- The Good Fashion Fund offers long-term financing to textile and apparel manufacturers in India and Bangladesh, enabling the adoption of cutting-edge, sustainable production technologies that minimize environmental harm and enhance social well-being.
6. Carbon Offset Programs
Description
Carbon offsetting programs aim to counterbalance greenhouse gas (GHG) emissions by funding activities that reduce or capture an equivalent amount of carbon. They can be compliance-driven, where organizations must meet legally required emissions limits, or voluntary, where businesses take additional steps to achieve carbon neutrality beyond what regulations demand (Franki, 2022; Kristjónsdóttir, 2019).
To begin, businesses start by calculating their carbon footprint, which includes direct emissions (such as energy used in direct garment production) and indirect ones (like the environmental impact of raw material production, transportation, and outsourced supply chain operations). Once emissions are quantified, organizations purchase carbon credits, with each credit representing the reduction or removal of one metric ton of CO2. These credits are then applied to “offset” their footprint (Kristjónsdóttir, 2019; Montgomery et al., 2024).
Offsets come from a range of projects, including:
- Renewable Energy: Funding solar, wind, or hydropower projects to replace fossil fuels.
- Nature-Based Solutions: Protecting forests, restoring ecosystems, or planting trees to absorb CO2.
- Energy Efficiency: Supporting technology upgrades or infrastructure improvements to cut energy consumption.
- Carbon Capture and Storage (CCS): Innovating ways to directly remove CO2 from the atmosphere (Franki, 2022; Kristjónsdóttir, 2019).
Carbon offsets are usually purchased through platforms or brokers that connect buyers with certified projects.
Benefits
- Balances Unavoidable Emissions: Offsetting provides a practical way to address emissions that can’t be eliminated immediately, helping organizations potentially move closer to carbon neutrality (Franki, 2022; Kristjónsdóttir, 2019).
- Supports Global Climate Objectives: Offset programs play a role in addressing climate change by supporting initiatives such as renewable energy development, reforestation, and other carbon reduction efforts, aligning with broader international climate action goals (Franki, 2022; Kristjónsdóttir, 2019).
- Promotes Innovation: Investment in projects like carbon capture and storage (CCS) promotes advancements in technology and solutions that tackle climate challenges more effectively (Franki, 2022).
- Encourages Accountability: Carbon offsets require businesses to measure and track their emissions, driving transparency and motivating internal reductions over time (Kristjónsdóttir, 2019; Montgomery et al., 2024).
- Improves Brand Image: Engaging in offset programs demonstrates a commitment to sustainability, which may resonate with eco-conscious consumers and stakeholders (Montgomery et al., 2024).
- Supports Local and Global Communities: Many offset projects, such as renewable energy or reforestation, have co-benefits like job creation, improved air quality, and enhanced biodiversity in the communities where they operate (Franki, 2022; Montgomery et al., 2024).
Challenges
- Quality and Verification Issues: Not all offset projects are created equal. Poorly managed or uncertified projects may fail to deliver the promised carbon reductions, undermining their credibility (Kristjónsdóttir, 2019; Montgomery et al., 2024).
- Lack of Regulation and Standardization: The carbon offset market lacks consistent global standards, making it difficult to ensure transparency and accountability across projects (Kristjónsdóttir, 2019; Montgomery et al., 2024).
- Temporary Solutions: Offsetting is not a substitute for reducing emissions at the source. It risks being seen as a short-term fix rather than a pathway to systemic change (Kristjónsdóttir, 2019).
- High Costs for Businesses: Purchasing high-quality offsets, especially for large-scale emissions, can be expensive and may deter smaller businesses from participating (Franki, 2022; Montgomery et al., 2024).
- Challenges in Accurate Measurement: Precisely calculating emissions and determining the appropriate number of offsets can be particularly difficult for industries with intricate supply chains, such as fashion (Kristjónsdóttir, 2019; Montgomery et al., 2024).
- Limited Consumer Trust: Growing skepticism about the effectiveness and transparency of offset programs can make it harder to gain public support (Montgomery et al., 2024).
Potential Costs
- Measuring and Reporting Emissions: Accurately assessing a company’s carbon footprint demands specialized tools, software, and professional expertise (Kristjónsdóttir, 2019; Montgomery et al., 2024).
- Administrative Costs: Managing the purchase of offsets, monitoring their impact, and ensuring compliance with reporting requirements often require dedicated personnel or external consultants (Kristjónsdóttir, 2019).
- Carbon Credit Purchases: High-quality offsets, especially for companies with substantial emissions, can come at a premium. Costs vary depending on the project type and certification, with nature-based solutions like reforestation generally being less expensive than technological alternatives like direct air capture (Franki, 2022; Kristjónsdóttir, 2019).
- Verification and Certification: Ensuring that offsets conform to recognized standards like Gold Standard or Verified Carbon Standard usually involves additional expenses for audits and certification processes (Franki, 2022; Montgomery et al., 2024).
- Ongoing Funding Commitments: Many offset initiatives require sustained investment over several years to maintain their effectiveness, representing a significant financial obligation for participating businesses (Franki, 2022; Montgomery et al., 2024).
- Consumer Engagement and Education: Informing customers about the purpose and impact of carbon offsets involves resources for marketing and clear communication strategies to build trust and understanding (Kristjónsdóttir, 2019; Montgomery et al., 2024).
Examples
- Tentree actively offsets its carbon emissions by planting ten trees for every item purchased. Additionally, Tentree offers various Climate+ packages, enabling individuals to offset their personal carbon footprint by funding global reforestation initiatives that sequester carbon dioxide and promote environmental restoration.
- Canada Goose has committed to achieving net-zero carbon emissions by 2025, aiming to reduce Scope 1 and 2 emissions by 80% from their 2019 baseline. To address current emissions, the company invests in carbon offset projects that neutralize 200% of its annual greenhouse gas emissions, effectively achieving carbon neutrality as of March 2020.
- The ALDO Group has been certified climate neutral since 2018, offsetting 100% of the carbon emissions from its corporate stores, offices, and distribution centers. The company focuses on reducing emissions through energy efficiency and sustainable materials, and offsets unavoidable emissions by investing in environmental projects.
Conclusion
Producer-focused alternatives highlight the power of innovation and sustainable practices to transform how garments are designed, produced, and managed. These strategies tackle waste at its root, reducing environmental impacts while supporting more ethical production methods. But addressing textile waste isn’t a one-size-fits-all challenge. To dive into other solutions, like industry-wide approaches and consumer-focused initiatives, click here to head back to the main article for a broader look at how we can reshape Canada’s fashion industry.
Deborah King
Deborah is a sustainable fashion expert located in Toronto, Canada. She’s an Industrial Engineer with a post-grad in Sustainable Fashion Production. She grew up on the tiny island of Tortola in the British Virgin Islands, and has been sewing her own clothing since the age of 10. She founded Global Measure to help authentically sustainable and ethical fashion businesses stand out from the greenwashing noise through third-party certification.
Curious to explore EPR further or interested in potential collaborations? Dive into our comprehensive Case Study for a deeper understanding.
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