he fashion sector is facing a conundrum. Modelling by McKinsey & Company (2020) indicates that if the global fashion industry is to align itself with a 1.5˚C pathway by 2030, absolute greenhouse gas emissions must be reduced to around half those of the present day. Yet in recent decades, the amount of clothes produced has done nothing but grow; clothes are used less and less, and the impact on the environment is increasing.

It is becoming clear, however, that the principles embedded within circular economies can deliver the emission reductions needed in the fashion industry, while also providing numerous economic and social benefits. Realising this, the British Fashion Council’s Institute of Positive Fashion commissioned 3Keel to lead foundational research for its flagship initiative, the Circular Fashion Ecosystem (CFE) Project. The findings, which were published during London Fashion Week in September 2021, provided the industry with a clear vision of what a circular fashion ecosystem in the UK could look like, and how to get there.

The research, conducted in collaboration with QSA Partners, Flourish CSR, the Adam Smith School of the University of Glasgow and Icaro Consulting, indicated that the UK is well positioned to implement a circular fashion economy. Not only is the UK a world leader in collecting used clothing, most of which is exported abroad, but there is also an appetite for change. Among the more than 30 stakeholder representatives consulted for the project, reducing production and consumption of new clothing was listed as a top priority. There was also a consensus that brands and retailers should embrace circular and sharing business models and empower consumers to make environmentally responsible choices. In addition, stakeholders agreed that the UK government should lead on creating policy, developing incentives, and investing in enabling infrastructure and technology.

To showcase how this is feasible, the report provided a blueprint built on three target outcomes: a reduced volume of new physical clothing passing through the system; maximised clothing use; and optimised sorting and materials recovery. This is a future where digital prototyping is used to design both virtual and physical garments with circular design principles in mind; where pre-owned clothing, virtual clothing, rental clothing, and clothing subscription is mainstream and available through both online and physical retail; and where improved sorting enables textile-to-textile recycling. This circular fashion ecosystem represents significant changes to material flows, industry operations and consumer practices across the UK fashion value chain and ecosystem (see below).