Resale’s Role in Decarbonizing: How Circular Strategies Can Lead to Carbon Reduction?
The fashion industry accounts for approximately 2-4% of global carbon emissions and needs ways to become a catalyst for decarbonization. This study probes a critical question: Can circular business enable fashion brands to thrive and grow while significantly reducing carbon emissions simultaneously? The answer is “it depends.”
In this study, we explore what it depends on. Trove, a leader in branded resale, and Worldly, the leading impact intelligence platform for the apparel industry, conducted and authored this study. Together, they created a model and gathered insights to help brands understand how circular models can contribute to decarbonization, beginning with resale. While this study focuses on emissions and does not consider profitability or customer relevance, as regulations in the apparel industry emerge, businesses will need to report ESG data to remain competitive in the market and protect their brand reputations. This paper guides businesses to understand the steps they can take toward decarbonization across their global supply chains. The model and insights underwent a rigorous review process involving circular fashion experts to ensure their accuracy and quality.
This study shows how circular strategies can help fashion brands grow while reducing carbon emissions. It offers practical advice to brand leaders on navigating the challenges of growth and environmental progress so they can succeed while making the fashion industry more sustainable.
Insight 1: Resale is a meaningful decarbonization strategy for Premium Apparel and Outdoor Brands. By 2040, resale initiatives have the potential to lower annual carbon emissions for these brands by 15-16%.
Insight 2: Brands maximize emissions benefits by increasing the value of their products in the resale market. Minor changes to sensitive resale program parameters will have outsized effects on emissions benefits.
Insight 3: Brands can maximize the Greenhouse Gas (GHG) accounting benefits of resale programs by maximizing operational control and used product revenue.