Behind the Seams: Weaving Circularity into the Fashion Industry through RFID threads by Nina Gbor

RFID threads, Alison Jose, Eco Styles Nina Gbor 1

Image source: Circlolink via Springwise

Only 1% of clothing is recycled into new garments per year—a shockingly low figure given the fashion industry's bold sustainability promises. This leads to over 300,000 tonnes of clothing being sent to landfill or exported from Australia every year. Even more troubling is that 86% of fashion brands still lack clear, measurable targets to phase out coal, while 95% of major fashion companies remain silent on the types of fuel powering their supply chains

This lack of transparency is not necessarily deliberate deception, as current legislation, particularly in Australia, does not require disclosure of such information. However, it highlights a critical gap in accountability, especially when compared to the European Union’s progressive legislative frameworks, such as the Eco-design for Sustainable Products Regulation (ESPR), which mandates that brands take responsibility for emissions across their manufacturing and transportation processes.

Instead of addressing these issues, the Australian government is giving Seamless Industry Awards, which, when compared to the ESPR, highlight a failure to implement meaningful change. Seamless must also require brands to set targets and deadlines to mitigate emissions from manufacturing and transport, as well as offset through sequestration. These are crucial questions, given that emissions from these areas, along with landfill waste, are the two biggest hotspots for pollution. Without enforcing such measures, the Minister for the Environment will struggle to meet government targets. This situation shows that real change is urgently needed to stop the fashion industry from continually exploiting the planet unchecked. But how can we achieve this?

Alison Jose, founder and CEO of the Global Circular Network, believes that the future of transparency in fashion hinges on brands pivoting to circular economy business models using smart tools to connect all stakeholders. 

The one tool that can achieve this is the world’s first Radio Frequency Identification Tag (RFiDs), that is housed in a single washable thread. This cutting-edge technology integrates a thin metallic thread embedded with a chip into garments during the labelling process, or slipped into quality recovered products to also engage the second hand and rental markets now. Washable, discreet, and flexible, RFiD THREADS® are connected to a cloud app to hold vital information about material specifications and can be updated in real-time. 

They are washable - up to 200 degrees and this includes carpets. The RFiD THREADS® is a digital passport that stays with products throughout their entire lifecycle to gather comprehensive circular product data in real-time. Using long-lasting DPPs means we can collect unprecedented full circular product data which is the key to creating financially sustainable local and global circular economies.

Their main function is to connect businesses to enhance the identification, sorting, and categorisation of both desirable and undesirable products, facilitating product life extension and reuse all before recycling simply by reading one or bulk products simultaneously with RFiD handheld or fixed system readers. With RFiD THREADS®, the fashion industry will finally have a smart tool to unlock a fully interconnected circular economy at scale.

To delve deeper into this promising solution, insights from a recent interview with Alison Jose reveal how RFiDs can not only transform the fashion industry but also address the pressing challenges of transparency and sustainability. We spoke with her and captured her thoughts on the potential of RFiDs to reshape the industry’s future while highlighting the hurdles that may lie ahead.

Daphne: “What sparked your passion for making a difference in the fashion industry?”

Alison: “I came to the circular economy from being a sustainable textile wholesaler, manufacturer, and developer working with mills in India, Indonesia, and China. In 2020, I developed CircStretch, a new bio-stretch textile aimed at reducing plastic in performance stretch garments like activewear using specialty yarns from Lenzing Group and Asahi Kasei, who developed the world’s first Cradle to Cradle Gold Standard elastane. 

Once I understood the complexity of textile fibers and the production limitations at the beginning of the supply chain, I shifted my focus to how we can recover these resources and support what's called the reverse logistics value chain to make products more circular. I also recognized the need for shared responsibility across the entire fashion waste ecosystem, rather than placing the burden solely on the resource recovery sector to solve the ‘waste’ crisis. Additionally, we need to actively integrate the incredible reuse creative sector, which is at the heart of circularity.

Additionally, my background as an art curator and PR consultant has always influenced my approach to sustainability. When people ask how we can transition to more sustainable textiles, my answer is simple: through beauty. By harnessing creativity and aesthetic appeal, we can engage consumers emotionally, helping to shift them away from the take-make-waste model and towards more conscious choices. Combining smart technology with creativity, human-centered design, and strong regulations can make sustainable options both attractive and accessible. This approach encourages consumers to make informed, joyful, and easy choices that are better for the planet.

It is especially important to connect people with local communities to create jobs and boost local economies, while also making it easy for them to experience that 'warm, gooey feeling' that helps change habits of overconsumption, wish-cycling, or simply throwing things away. By providing easier access to circular options and educating people on how to use the planet's resources wisely—from transport to textiles—and incorporating reward systems, we can unlock significant opportunities to redirect the revenue that currently ends up in landfills."

Daphne: “Can you share the origin story behind the idea of establishing the Global Circular Network and using RFiD technology along with QR codes?”

Alison: "In 2020, I received a grant from the NSW EPA to create Australia’s first Circular Textile Waste Service, and I began collaborating with a disability enterprise to sort and dismantle textile waste. During this sorting process, I realized that almost 99% of the products were untraceable, highlighting the urgent need to reconnect them with their originators to encourage their engagement. Additionally, at least 80% of the textiles were technically unidentifiable. Currently, the responsibility for managing fashion waste primarily falls on local councils and recyclers, which isn’t fair. Both brands and consumers must share this responsibility. To address this issue, I reached out to a colleague at Deakin University, who connected me with Dr. Anura Rathnayake, an expert in RFiD thread technology. Our collaboration began in 2022, and I have since built the cloud app and circular solution from there.

Daphne: “What specific information can this thread store and transmit?”

Alison: “The threads themselves do not store data; instead, they are connected to a cloud app that allows us to store infinite product data and delete this data when the product is recycled, helping to prevent unnecessary data storage and energy waste.

By integrating RFiD THREADS® into garments, businesses can effectively communicate and report on their circular design strategies, especially regarding material types and traceability. For instance, current recycling technologies face significant challenges with blended materials. It is crucial for recyclers to know which chemicals were used during textile manufacturing. Activewear and uniforms often contain 'forever chemicals,' which can complicate recycling. By identifying and diverting these harmful substances during the sorting stage, we can support a cleaner recycling process, improve product safety, and tackle the issue at scale.

Embedding an RFID thread from the outset simplifies the recycling process, allowing recyclers to efficiently identify, recycle, remanufacture, or repurpose materials, ultimately creating safer feedstocks. Additionally, it employs smart technology to engage and support the R-cyclers, who are vital for extending a product's life through repair, resale, rental, redesign, and remaking. This approach puts the “economy into circularity," keeping products in circulation longer before recycling and redirecting valuable resources to the second creative heart of circularity.”

Daphne: “What are the biggest challenges that the Global Circular Network is facing, and how are you planning to overcome them?”

Alison: “Well the answer to both is: collaboration; it's the biggest challenge and it's the solution. Thankfully, the EU Commission is stepping up, leading the global shift toward a circular economy with groundbreaking legislation. Through Cirpass-2, the commission has mandated the use of Digital Product Passports (DPPs) to enforce the Ecodesign for Sustainable Products Regulation (ESPR). This will guide all industry stakeholders toward circularity and it’s profoundly exciting to be part of the teams who are driving circularity through collaboration and inclusivity but understand that smart tech and regulations are the only way to pivot this industry and reduce emissions at-scale.

Yes, the scope of this transition is vast and daunting, but it also presents an extraordinary opportunity for positive change. This shift has the potential to impact local and global supply chains, encouraging brands to work more closely with their suppliers but also employ EPR strategies and engage with the resource recovery sector. With this collaboration and direction, brands can opt for better materials, increase revenue, uphold the Modern Slavery Act, pay Living Wages, and leverage real-world data to identify environmental hotspots, creating a more immediate and meaningful impact that is reportable.

A critical part is that our RFID thread technology can withstand wear and tear, enable unprecedented data collection for Life Cycle Assessments (LCA) plus instant unfakeable product authentication which is an enormous bonus to customers, brands and resellers. Combined with a connected QR code and/or NFC ring, brands can use this technology not just to track the product’s journey but to reveal their circular journey to customers, fostering brand loyalty and consumer education.

Consumers today are hungry for information on how and where to repair, resell, rent, or donate products. Brands have the opportunity to connect customers with local networks, encouraging them to donate, swap, or connect with creative redesigners who upcycle items. This extends the product's life and builds emotional attachment to possessions, while guiding consumers to proper recycling options, reducing the issue of “wishcycling”  that ultimately goes to landfill or simply throwing things away.

By supporting their customers, brands can increase profits and redirect resources. Our washable RFID DPPs can also turn “resource recovery” businesses into network partners, as each scan provides verifiable data on a product’s circular journey. This data will assist in compliance reporting and potentially reduce taxes or levies for proving circularity.

The EU’s crackdown on greenwashing and offshore dumping is another significant step forward. For R-cycler stakeholders, this legislation opens doors for using RFID readers to access our open-source app for free which in turn offers brands solutions that help capture their required circularity data. All businesses can unlock untapped revenue currently being lost to landfills in addition to brands meeting their reporting requirements.

In September the USA state of California passed legislation on a Responsible Textile Recovery Act, also known as SB 707, requiring manufacturers and distributors to participate in an extended producer responsibility (EPR) program for apparel and certain textile products. The hope is that EPR legislation will spread to other countries including Australia as we know that government intervention is the only way to push brands toward implementing full circularity required to meet our local and global environmental targets. 

While we need to start with "circular-ish" efforts, the goal must be a faster transition to a fully circular economy, where brands adopt circular business models plus include a financial shared responsibility alongside a socioeconomic lens such as the Doughnut Economics framework. Simple measures like using second-hand or recycled textiles or offering take-backs and repairs are a basic start but full systems need to be integrated at scale as they aren’t enough to meet our collaborative environmental goals.

Unfortunately, Australia has yet to take regulatory action. The Ellen MacArthur Foundation has warned against diluted versions of circular economy models that won’t deliver the needed results. After years of trying, I’ve received no feedback from Australian industry or government, and brands are unlikely to be able to pivot to full circularity voluntarily. 

The industry won’t change without government regulations as they help determine best-case metrics and Standards, utilise bulk manufacturing initiatives to lower costs and increase equitable participation, plus to avoid the imbalance that is straining the resource recovery sector trying to ‘solve the waste problem’ on behalf of brands and consumers but without their participation. 

The Global Circular Network helps create shared responsibility. After all, we all wear clothes, and their negative environmental impact affects us all. As a member of several Cirpass-2 Expert Working Groups under the EU Commission, I’ve seen the incredible support for micro-businesses and Small to Medium Enterprises (SMEs) which is why we’ve also launched the 100 MILLION THREADS PROJECT. 

Collaboration and regulation are essential to create inclusive, equitable solutions and ensure all businesses transition to circularity in time to meet climate targets.

While QR codes and NFC rings are useful for customer engagement they aren’t full digital passports and won’t solve business-to-business communication and data needs at scale. QR codes and NFC are more like smart swing tags but they also raise concerns about personal data collection which is why we’ve separated them to use RFiD THREADS® to only capture product data through a commercial reader, without involving consumer information.

By adopting these tools, brands can foster greater transparency, which today’s consumers increasingly demand. And by mimicking the strategies of fast fashion—leveraging smart tech and social media—brands can build a more circular industry. This approach offers consumers an eco-friendly “dopamine hit” while advancing holistic goals to reduce landfill, emissions, and pollution, creating a cleaner plus fairer, more supportive industry for all.

Daphne: “What is your long-term vision for the Global Circular Network?”

Alison: "My long-term vision aligns with our short-term goal: to engage as many stakeholders in the circular economy as possible and to connect them all. 

Offering equitable accessibility is crucial for SMEs in the EU, where 99.8% of fashion brands fall into this category. It’s been said that approximately 40% of these businesses may struggle to add DPPs and meet ESPR compliance requirements. 

By launching the 100 MILLION THREADS PROJECT, we aim to include SMEs, Not for Profit Enterprises, charities etc and offer them an efficient DPP at the same equitable price as the big brands who can access via low-cost bulk manufacturing orders.

We want to add RFiD THREADS® into 100 million pieces of clothing. Just imagine if we added 100 million threads to both new and recovered jeans, we then take immediate action to stop emissions being added to the environment the equivalent of 300,000 cars or 2 million hours of domestic flights, 5 million refrigerators, or 70 million smartphones. This is just a start as there's some 15.3 billion pairs of jeans causing emissions as they rot in landfill globally each year.

A key focus is ensuring equitable access for SMEs, especially in the EU, where 99.8% of fashion brands fall under this category. It's estimated that around 40% of these businesses could face challenges in implementing DPPs and meeting the compliance standards to be outlined in the ESPR.

To address this, the 100 MILLION THREADS PROJECT aims to include not only SMEs but also nonprofits, charities, and other organisations. Our goal is to provide them with an affordable DPP solution, on par with what larger brands can access through low-cost bulk manufacturing.

The plan is to manufacture 100 million RFiD THREADS® to add to 100 million pieces of clothing. Now imagine the impact if we added these threads to both new and recovered denim jeans: we could prevent emissions equivalent to 300,000 cars, 2 million hours of domestic flights, 5 million refrigerators, or 70 million smartphones. And that’s just the beginning because we’ve not even calculated their EPR—each year, 15.3 billion pairs of jeans rot in landfills, contributing significantly to global emissions.

Any sized brand can join by pre-ordering via an Expression of Interest and jump onto a bulk manufacturing order to purchase affordable, efficient DPPs at the same low bulk buying price as the big brands. 

We need to support these businesses so that we don’t forever change the landscape into one that’s dominated by fast fashion and large global brands. SMEs are the backbone of our society; they are where creativity flourishes, which is at the core of why I started this project. By supporting these smaller businesses, we can ensure that innovation and creativity helps to drive a circular economy."

Daphne: “What message would you like to share with young people and sustainability advocates?”

Alison:  “My message to young eco-entrepreneurs striving to pivot to circularity is to stay connected to your purpose. For me, that purpose centers around the environment and ensuring a better future for my son and the generations to come. It breaks my heart to see the urgency of our climate crisis and realize that we can't afford to wait as the 2030 targets are now obsolete.

Also to learn more about the people who are connected to both your supply chain and the resource recovery providers. This is where the gold is, the storytelling that connects us all, seeing the differences and the similarities but especially the gifted ‘makers’ who create, decommission and then recreate our products and materials.

Together, we can transform this industry into one that prioritises the planet and future generations."

Daphne: “Is there anything you believe every fashion consumer should be aware of when purchasing clothing?”

Alison: “Manufacturing and transport are the two biggest contributors to emissions in an industry ranked among the top three driving the climate crisis.

By learning more, every fashion consumer can consider the full impact of their purchasing decisions and acknowledge the true cost of producing their clothes and our role in over consumption. Just recently, the Australian Institute reported that Australia has the highest fashion consumption rate in the world, which is alarming. On the same day, temperatures soared to 52.2 degrees in Delhi, where one of my recyclers operates. There, women wearing saris made with 5 metres of plastic polyester sit amidst piles of wool garmentsunder metal roofs without air conditioning in that heat, as they decommission our discarded clothes for recycling.

It’s the people in the Global South who bear the brunt of our waste crisis, and it's crucial that we engage them as active participants in a circular economy. With RFiD THREADS® this is now possible and easy. 

Daphne: “What are some real-world impacts we can see by using RFiD THREADS®?”

Alison: “I’m excited to divert funds from the 100 Million Thread Project, which aims to make a significant difference in these communities. Funds will go towards renewable energy solutions aligned with Project Drawdown’s Distributed Solar Photovoltaics energy initiative, benefiting both garment production factories and decommissioning businesses in the Global South. 

Our goal is to support factories that lack the financial resources to transition to renewable energy, improving working conditions while providing brands with a dual advantage. Not only will this reduce energy consumption in key production areas, but it will also enhance their ESPR reporting by addressing critical energy hotspots.

We can also use our data to build LLM AI to determine the best-case choices based on geography plus which materials and solutions to choose to help brands shift faster to better solutions based on real-world LCA metrics.

Brands can choose to connect their Supply Chain Management and LCA software platforms with ours via a “digital bridge”. Connectivity to SCM is disconnected at Point-of-Sale or by request and is then open-source to be all-inclusive and offered for free to the resource recovery sector.

SCM connectivity automatically solves one of the industries biggest waste problems; returns. Implementing RFiD THREADS® means returns can be bulk scanned and put ‘back onto the shelves” instantly to fix the enormous problems caused by manual re-entry leading to out-dated clothing being dumped. Many brands build these financial losses into their linear models so this loss of revenue is now an easy fix . 

The concept of shared responsibility extends to encouraging brands to help consumers take accountability for their choices. By educating customers that even the transport involved in online shopping returns carries a “cost” to the planet, we can foster a deeper awareness. Encouraging consumers to pay a small fee to ‘draw down’ the associated emissions will lead to meaningful habit changes and phenomenal sequestration opportunities as awareness grows.

These small financial contributions add up, helping to infuse the ‘economy’ into circularity. Brands stand to benefit by increasing profits, offsetting eco-related expenses, and supporting essential waste management efforts, as well as driving advancements in textile technology. This approach helps brands, consumers and the resource recovery sector to collaborate in creating a more circular future.”


Article by Daphne Vryghem is passionate about the circular economy and dedicated to advancing innovative strategies for sustainable environmental preservation. 




















The Halloween waste economy; creating a more circular and sustainable Halloween by Nina Gbor

Halloween waste sustainable Halloween Nina Gbor 1

Image credit: Nikola Johnny Mirkovic

Halloween is gradually becoming synonymous with waste with its rituals of single-use costumes, party kits and other paraphernalia. Overconsumption and excessive waste levels can be high at any given time of the year; however, holidays like Halloween spike the charts of environmental degradation. Australia, the US, and the UK are big-time celebrating Halloween with the usual accoutrements of costumes, food, decorations, and candy/sweets.

In a Halloween waste article last year, we wrote more in depth about the economic and environmental categories of the holiday celebrations. Here's an update on Halloween spending in these countries for 2024:

Australia is set to spend A$450 million (approximately USD 296 million or £228 million). 21% of Australians are celebrating Halloween, and each celebrant will spend an average of A$93 ($61 USD or £47), according to the Australian Retail Association and Roy Morgan.

The US is set to spend USD 11.6 billion (approximately A$17.6 billion or £8.9 billion). 72% of Americans are celebrating with an average $104 USD spent per person (A$158 or £80), based on data from the National Retail Federation.

The UK is set to spend £776 million (approximately A$1.5 billion or $1 billion USD). 58% of Brits are celebrating to an average of £25 per person (A$50 or $39 USD) according to Finder.

Australia

The Halloween categories Australians will have spent on this year, according to Roy Morgan and the Australian Retail Association, include:

•         Trick or treating - 45%

•         Treats for trick-or-treaters – 38%

•         Halloween costumes – 37%

•         Home decorations - 32%

•         Attending or hosting – 18%

The USA

The 2024 Halloween spending in the US from the National Retail Federation are:

  • Costumes - $3.8B (USD)

  • Decorations - $3.8B

  • Candy - $3.5B

  • Greeting cards - $0.5B.

The UK

The UK's 2024 Halloween spending according to Mirror UK:

•         Plastic-wrapped sweets – 85%

•         Decorations – 74%

•         Costumes – 70%.

Halloween’s toll on the environment

While these figures may be gold for some aspects of the economy on the surface and also the retail sector, they are a tragedy for the environment. These high surges in holiday product sales result in enormous plastic, paper, food and other material waste. For instance, 46 million products, such as decorations and costumes, are thrown out each year in the UK. But there is hope. By choosing sustainable alternatives, we can significantly reduce this waste.

Costumes and physical health

83% of Halloween costumes are made with non-recyclable, oil-based plastics, so they will likely end up in landfill. They are often made with the cheapest and poor-quality polyester, nylon and acrylic materials. They are designed through a planned obsolescence strategy with a single-use intention. These store-bought costumes usually release microplastics into the air and shed microplastics if washed. Another disconcerting fact is that more than 63% of plastic Halloween costumes can take hundreds of years to decompose. And only 1% of these costumes and the materials they comprise are recycled. With the US spending $3.8 billion USD on costumes and 37% of Australia's Halloween spending going to costumes, plus 70% of the UK's Halloween purchasing also going to costumes, the costume waste from these countries alone will be outrageous.

According to a 2024 textiles waste report by The Australia Institute, Australia is the biggest consumer of clothing in the world per capita. Australia also happens to be one of the world's biggest consumers of single-use plastics per capita, according to a plastic waste makers index by the Minderoo Foundation. However, these statistics also present an opportunity for change. By rethinking our approach to Halloween, we can significantly impact Australia's environmental footprint.

Toxic chemicals from the materials used in Halloween costumes are a terrifying fact about the holiday.  Harmful chemicals such as PFAS, phthalates, BPA, lead and cadmium are found on products made by many costume and fast fashion suppliers. The accumulation of these chemicals in the body can lead to heart, liver and kidney problems, infertility, congenital disabilities, migraines, skin irritations, endocrine disruption and other ailments. Scientists found twenty times the amount of lead that's considered safe in a toddler jacket made by the ultra-fast fashion brand Shein. Lead is known to affect the brain and nervous system as well as create intellectual inabilities, behavioural disorders and other developmental problems in children. Children's clothing with Disney characters had to be recalled 2022 by a company called the Bentex Group for containing high amounts of lead.

Food

According to Hubbub, in 2023, 15.8 million pumpkins were set to go to waste during Halloween in the UK, which is the equivalent of 95 million meals ending up in the bin.  

In Australia, 7.6 million tonnes of food are wasted in a year. Holiday rituals are typically highly wasteful, and Halloween waste could potentially contribute to food waste as an increasing number of Australians are celebrating the holiday (currently, 21%).

It’s been reported that almost 2 billion pounds of pumpkins are produced in the US each year, with more than 1.3 billion pounds of pumpkins thrown away based on information from the U.S. Department of Agriculture. The US will also spend USD $3.5 billion on candy and sweets this year. Some of it might go to waste but it will lead to increased plastics pollution because many candy wrappers are made of plastic.

Plastic

In addition to costumes, tremendous plastic waste accompanies Halloween celebrations, such as popular trick-or-treat buckets with the jack-o-lantern image used by many children and the barrage of ‘landfill fillers’ single-use, disposable party cutlery, plates, and cups.

Creating a more circular and sustainable Halloween

However, there are ways to enjoy the holiday without polluting the planet or making it another annual waste disaster.

1. Adopt a circularity mindset

First and foremost, with all holiday celebrations, adopt a mindset that EVERYTHING you purchase or use for holiday celebrations must be something you can and will use again. And at worst, be recyclable.

2. Halloween costume swap

Instead of buying brand new costumes yearly, people can host costume clothes swaps in their schools, homes, neighbourhoods and social groups. This reduces the flow of costumes to landfill and high levels of toxic chemicals from brand-new costumes. Swapping can also include costumes from activities such as book week.

3. Decorate a reusable bag or create a reusable Halloween bag

The world uses around 5 trillion plastic bags a year. Australia alone uses 6.9 billion plastic bags a year, of which 3.6 billion are plastic shopping bags, while Americans use an average of 365 plastic bags per person per year.

Halloween is an opportunity to get into the habit of reusable bags by painting a reusable bag in your favourite holiday look and colours. Alternatively, you can repurpose a pillowcase or tie together an old t-shirt.

4. DIY Costumes

Search online for easy, fun Halloween costumes you can make with friends, alone or with children. Costume-making can be an exciting social activity that people enjoy. Use platforms like TikTok, YouTube, Instagram and Facebook for ideas and inspiration. There can be a level of pride and confidence in children making their own costumes.

5. Shop secondhand

Diverting reusable stuff from landfill is a purposeful act. Before you hit the conventional online and in-person retail spots for holiday stuff, check out the secondhand stores first. You might even have local online neighbourhood groups such as Buy, Sell, and Swap groups on Facebook or other preloved platforms such as Craigslist, Gumtree, Marketplace, etc.

6. Compost, preserve or store food

Whether it’s leftover party food, candy, sweets or pumpkin flesh from your carved jack-o-lantern, you can freeze, refrigerate, compost, or even donate leftover food to charity to prevent it from becoming waste.

7. Hire, borrow or rent disposable party gear and utensils

Search for party kit hire places in your local area or online to prevent buying new, disposable stuff. Considering the items will only be used for a single holiday celebration, it’s possibly not worth buying brand new.  

Article by Nina Gbor

Ethical Clothing Australia: Insights on what an ethical industry looks like by Nina Gbor

"Our purpose is to give the faceless a face and the voiceless a voice" -- That was the remarkable opening message that Rachel Reilly, Ethical Clothing Australia National Manager, gave before the start of the panel for the Ethical Clothing Australia Week in Sydney, in partnership with The University of Sydney's Modern Slavery Unit and the Business School's MBA Dimensions Program.

Image supplied by ECA.

Ethical Clothing Australia (ECA) is an accreditation body that collaborates with local textile, clothing, and footwear (TCF) businesses to protect and uphold the rights of Australian garment workers. Their accreditation program maps a business' supply chain from design to dispatch, including initial design, pattern making, cut, make, trim, and all value-adding services.

Each year, ECA hosts a series of events, both virtual and in-person, to commemorate Ethical Clothing Australia Week. Now in its fourth year, it was an opportunity to celebrate the skilled workers in Australia who create and distribute the garments we wear and love. The week also recognised the businesses that have taken action to prove their ethical credentials by becoming Ethical Clothing Australia accredited and raising awareness about the issues regarding unfair worker treatment and different forms of exploitation.

James Cockayne, Nina Gbor, Ethical Clothing Australia Modern slavery 1

From left to right: Ava Kalinauskas, Ella Spencer, Nina Gbor, Dr James Cockayne. Image credit: Lucie Davies, Ethical Clothing Australia.

This year's program ran from October 7-13, with events hosted in Victoria, New South Wales, and Queensland. In New South Wales' capital city, Sydney, the was called Ethical Clothing Australia Week 2024 x The University of Sydney's Modern Slavery Unit and the Business School's MBA Dimensions Program. The commemoration brought together several ECA member brands, such as The Social Outfit and Citizen Wolf. The NSW Anti-slavery Commissioner, Dr James Cockayne, was also present for the event which had an insightful panel discussion, and many more industry professionals in attendance.

Ethical Clothing Week Sydney Rachel Reilly 1

From left to right: John Fields, Heather Chai, Andrew Quinn, Jenny Kruschel, Martijn Boeresma, Sarah Kaine, Carolyn Kitto, Rachel Reilly. Image credit: Lucie Davies, Ethical Clothing Australia.

Moderated by Heather Chai, Director Modern Slavery Unit at The University of Sydney, the panel featured:

  • The Hon. Dr Sarah Kaine MLC 

  • Jenny Kruschel | TCF National Secretary | CFMEU, Manufacturing Division 

  • Associate Professor Martijn Boersma | The University of Sydney 

  • Carolyn Kitto OAM | Co-Director | Be Slavery free 

  • Andrew Quinn | Director | ABMT Apparel

The panellists shared personal anecdotes from their experiences in the industry, providing a unique perspective on the challenges that still exist and how they can be overcome. 

Image credit: Hermes Riviera

Ethics in the fashion industry

A persistent issue in the fashion industry is the rise of numerous “sustainable” labels with different criteria and definitions. Sustainability is often limited to the effects of clothing on the environment. However, sustainability should not be assessed solely through an environmental lens. The discourse should always include the impact on people, especially industry workers. It defies logic to label anything as “sustainable” if it requires the use of modern slavery to achieve its production goals.

The ethical issues in the fashion industry are extensive: unfair working conditions, extensive hours, forced labour and low pay are just a few of them. To provide some context, Fashion Checker (2023) states that 93% of some of the largest international brands are not paying garment workers a living wage. Besides that, many garment factories do not have the appropriate infrastructure for their workers to be safe and comfortable. Incidents like the 2013 Rana Plaza garment factory building collapse in Bangladesh killed more than 1,000 people died and injured over 2500 people. This greatly impacted the industry, exposing the need for significant changes to guarantee workers’ fundamental human rights and safety.

The fashion industry is considered one of the leading industries responsible for the existence of modern slavery. As a matter of fact, a 2018 report conducted by the Walk Free Foundation revealed that the garment industry is the second largest contributor to modern slavery, with technology being the first. The term modern slavery refers to when an individual is exploited by others for personal or commercial gain either through trickery, coercion, forceful labour or loss of freedom of some nature. Long work hours and correspondingly low wages are common characteristics of modern slavery. Workers are sometimes forced to work extended periods just to buy basic supplies.

According to the International Organisation for Migration’s 2021 study, Global Estimates of Modern Slavery, led by Walk Free, the International Labour Organization and the International Organization for Migration, 27.6 million workers were estimated to be in a situation of forced labour, across the world. These workers were in countries with high and low wealth, economic and developmental levels. According to Walk Free statistics, in 2021, 1.6 out of every 1000 people in Australia were living in modern slavery, meaning 41,000 individuals were living in modern slavery in the country.

The speakers acknowledged how some of these conditions have improved over the years. For example, the Modern Slavery Act (MSA) implemented in Australia in 2019 requires larger companies and other entities to report how they prevent and address modern slavery risks in their operations and supply chains. This notion is supported by 54% of Australians who say they exclusively support brands that are transparent about their supply chains based on a study commissioned by QIC Real Estate.

In addition, more companies have begun to allow maternity leave for their workers, and the International Labor Organization (ILO) adopted a code of practice on safety and health in textiles, clothing, leather, and footwear industries in 2021 to provide guidelines on risk management. Despite this progress, there is still a lot of work to be done, and transparency in the supply chain is one of the most significant barriers to change, significantly since the needs of fashion industry workers have evolved. With over 70% of victims of modern slavery, including forced marriage situations, nearly 30 million are estimated to be women and girls, with a majority of these women working in garment factories that create fast fashion. This equates to 1 in every 130 females (girls and women) around the world falling victim to modern slavery. 

The Fashion Transparency Index (2023) indicates that 99% of major brands and retailers do not publish the number of workers in their supply chains who are paid liveable wages. Many of them still choose not to disclose how they operate. Transparency is the only way for workers to have a voice, not only nationally but also internationally. Harriette Richards in her 2022 paper, Risk, Reporting and Responsibility: Modern Slavery, Colonial Power and Fashion’s Transparency Industry, analysed through the lens of the Modern Slavery Act to discover which fashion brands in Australia had modern slavery in their supply chain with annual revenue from A$0-99 million to A$1 billion and over. She discovered nine brands on the list which had labels such as The Cotton On Group, Country Road Group, Zara, Uniqlo, and THE ICONIC.

Addressing the issues

The panel speakers unanimously underscored the pressing need for more stringent regulations and the enforcement of existing policies. They stressed that local governments should mandate companies to report on every manufacturing activity, monitor the whereabouts of their workers in the production chains, and document their tasks. Additionally, they should focus on minimising existing risks in the workspace and effectively implementing risk management plans.

Governments can also play an essential role in helping sustainable and ethical businesses scale. As Kitto highlighted, the issue with ethical businesses is that they tend to operate at a smaller scale due to more limited resources and high competence from other fast fashion brands. That sometimes prevents them from being able to take on larger projects or clients. Governments can provide the resources to help ethical businesses reach the scale they need to produce at a higher demand.  They can also protect local industries from international concurrence on regional markets. Indeed, one of the principal issues for small ethical brands is that they cannot compete with giant international fast fashion companies that have mastered their cost/benefit ratio by using underpaid labour across the globe to achieve their mass production and artificially low product prices.

Krushel emphasised unions' critical role in providing a collective for workers to defend their rights. They are crucial to re-balance the status inequalities. Without them, workers are isolated and prone to exploitation, especially groups that are already at a high vulnerability status, such as women and refugees.

As consumers and citizens, we hold significant power in promoting responsible consumption by choosing ethical brands. However, despite the general public's concern for these issues, it can be difficult to discern which brands truly adhere to ethical standards. Opting for brands accredited by Ethical Clothing Australia is a reliable way to ensure the brand meets the necessary ethical criteria. Other reputable certifications include B Corp and Bluesign.

Furthermore, one of the most potent actions for the citizens to force the fashion industry to change is boycotting unethical brands such as Zara, H&M, Shein, Temu, Gap, etc. If enough citizens and consumers demand transparency and these brands see their profit margins decrease, there will likely be some form of change. There is a shared responsibility between the citizens and governments to take action for an ethical fashion industry. Individuals can start by making informed personal choices, advocating for change, educating others and demanding ethical clothing regulations from local and federal policymakers.

*Article by Martina Novajas and Maëlys Dunand.

Martina Novajas is passionate about social psychology and marketing, and their role in delivering creative and effective environmental communication strategies.

Maëlys Dunand is interested in combining law and politics for a broader approach to sustainability, as a viable pathway to making the world better for nature, humans and other living things.


ESG Investing (the basics) by Nina Gbor

ESG Investing Eco Styles ISS 1

ESG investing

ESG investing stands for Environmental Social Governance investing and is also commonly referred to as impact or socially responsible investing. According to Forbes “investing via an ESG fund is an easy way to gain exposure to a number of businesses with ethical practices”. Companies are analyzed based on three main parameters which, as you may be able to guess, are: Environmental, Social, and Governance metrics. Environmental parameters take into account how companies are combating and preparing for climate change through business practices. Environmental efforts could look like emissions reductions, participation in the circular  economy, or regeneration and restoration of nature and sustainability practices. The social aspect explores how companies are integrating diversity, equity, and inclusion efforts into the organization on all levels.  Finally, governance refers to fair and transparent promotion and hiring decisions and accounting practices. Ways that social and governance could manifest is through ethical supply chain practice, human rights compliance, diverse staff and leaders, and accessibility.  

According to Bloomberg Intelligence, ESG assets surpassed $30 trillion in 2022 and are projected to surpass $40 trillion by 2035 making up over 25% of projected assets under management. As ESG’s market share grows, prospective investors need to understand what ESG investments entail.

The quandary of ESG investing

From a bird’s eye perspective, ESG looks ideal because it is a way of growing capital through investment while also not having to sacrifice your moral values in the process. However, one main issue with ESG investing is that there are not universal guidelines as to how a company can be considered compliant with ESG standards. Instead, indexes, NGOs, consulting forms, and even government groups have individual ways of determining the standards for an ESG investment. This in turn causes rating systems to have “incompatible structures” which can disincentivize companies from working to improve practices because it may not have a significant impact on their ratings across the board. The main divergences are the difference in ranking of relative importance of attributes, the difference in measuring indicators of an attribute, and what attributes are considered when determining a ranking. The difference in how indicators were measured created the largest divergence between rating systems. This is problematic because a measurement should be an objective way of understanding a company’s commitment to ESG initiatives.

In order to combat this, the International Sustainability Standards Board, led by the European Union, has produced standardized recommendations to increase the rigor of ESG obligations. After review,  these standards went into effect for annual reporting on January 1, 2024. This is an indicator that despite the current divergence of ranking systems, hopefully in the future ESG rankings and measurements will become more standardized and allow for greater trust in ESG compliant portfolios and companies.

Profitability

Beyond the rating system and impacts, the bottom line for investing will always be profitability. So, the question for prospective investors is: Is ESG investing worth it? In an aggregate study of over 1,000 papers analyzing the relationship between ESG and financial performance, researchers found  57% of corporate studies on climate change documented a positive correlation between ESG and financial performance, 29% found a neutral impact, 9% mixed, and 6% negative. Researchers concluded that sustainability practices are correlated with corporate financial performance because of improved risk management, increased innovation, downside protection in the event of a crisis, and enhancing potential growth over the long-term.  

Due to politicization of the climate crisis, ESG investing has acquired a fair few opponents that see impact investing as a money sink. In reality, ESG investing can provide the opportunity for investors to experience more long-term returns. Companies that integrate ESG principles into their organization have revenues 19% higher than those who do not and experience a 5.79% increase in stock price impact. Additionally, in a study conducted by Bloomberg Intelligence stated that 85% of investors found ESG led to better returns and resilient profiles, consistent with the conclusion of the previous study discussed.

 Investing wisely

For ethical investing, it’s important to use an index that is thorough with their assessment of potential ESG investments. When looking at different ranking systems, it’s essential to look for ones that utilize both positive and negative screening methods meaning they ensure that the company does not partake in ethically and environmentally destructive behavior and that the company has a net positive impact on the world.

World GDP is forecasted to decrease by 18% by 2050 if no climate mitigating measures are taken. With this in mind, even if ESG regulations are not uniform across the board, I believe investing in ESG compliant companies rather than non-compliant companies is wise due to their profitability, positive impact on the world, and resilience.

           

Article by Ava Albracht. Ava is passionate about sustainable development, fashion, traveling, and media.

How to reduce your fashion waste and environmental impact by Nina Gbor

Eco Styles Talisa Sharma Circular Fashion 1

Photo by Tamara Bellis

Over recent years the fashion industry has changed drastically; fast-fashion is now leading the growth in clothing consumption with clothing production doubling between 2000 and 2015 whilst the lifetime of the garments is decreasing. Mass produced clothing focusing on fast inventory turnarounds to capture everchanging trends. Let’s talk about figuring out the carbon footprint of your clothing consumption and a few tips for lowering it.  

The circular economy model stems from the idea of keeping resources in a loop to optimise their use and value. The clothing industry is globally one of the most dominant industries and highest value industries due to its product value, employment and market size, and it has doubled in production size in the last two decades. Each year, 150 billion fashion items are produced globally, making the textile sector a considerable polluter with a detrimentally significant carbon footprint that many consumers are unaware of. The carbon footprint of the clothing industry is something that must not be ignored and with the increase in fashion overproduction and overconsumption, it’s necessary to stay informed on ways to curate a sustainable wardrobe that can also be very stylish. Something as simple as "extending the life of clothes by an extra nine months of active use would reduce carbon, water, and waste footprints by around 20-30% each".

What makes up the clothing carbon footprint?

Eco Styles Talisa Sharma fashion carbon footprint 1

Photo by George Evans

Extraction and manufacturing 

The most significant contributor to the clothing carbon footprint is from the production of clothing fibres, their production requires a substantial amount of water, energy, fertilisers, and land use. As well as this, there is the manufacturing process; consisting of the weaving, dyeing, cutting, and sewing which all use large amounts of energy, chemicals, and also the disposal of the fabric offcuts. With many companies having a global presence and reach, another significant contributor is transportation - the raw materials and the final clothing products often travel extensive distances all around the world. Packaging of the products also contributes to the industry's carbon emissions. 

Consumption impacts

Once the consumer has received their items there is then the energy usage of washing, drying and ironing the clothes. Lastly, when people eventually dispose of the clothing that they no longer want, around 87% globally, goes into landfills despite the clothing still having 70% of its useful life left. Clothing made from synthetics such as Polyester “accumulate in landfills because conventional PET is non biodegradable” which can release harmful additives and microfibres which pollute the land, water and air.

Calculating your carbon footprint 

This might seem daunting but there are many ways you can mitigate your impact and reduce your clothing footprint. To make a start there are many online resources that you can use to calculate your clothing carbon footprint, I would recommend Thredup. It asks you various questions about your clothing consumption and habits and then provides you with tailored suggestions on ways you can reduce your fashion footprint. 

What else can you do?  

  • Upcycle your clothes - this includes repurposing clothes such as transforming unwanted clothes into something else and clothes customisation. 

  • Support circular fashion - utilise brands that offer schemes where they accept old clothes back and buy second hand items to keep existing clothes in circulation. Ensure that brands with take back schemes are reusing or recycling the clothing in the right ways and not burning them or sending the clothes to landfill. 

  • Donate or sell your unwanted clothes - donating and selling your clothes gives them a second life and reduces the demand for brand new items.

  • Buy less clothes - when you are wanting to buy a new item question how much you need this or how often you will wear it.

  • Trade clothes - swap clothes with friends and family and host and attend clothes swaps. Clothes Swap & Style have free monthly clothes swap events in Sydney, Australia. You can get free tips from them on how to host your own clothes swap.

  • Repair your clothes - rather than replacing damaged clothes with minor problems, you can repair them, this extends the life of your garments.

  • Rent or borrow clothes - instead of buying new clothes for one off special events you can rent them, it is a fraction of the cost and helps optimise the usage of an item of clothing.

  • Educate yourself and others - share your knowledge with friends and family and stay connected with developments in circular fashion. Support sustainable brands - when you need new clothing, support the companies that prioritise sustainability and are making clothes designed for long term wear. You can know if a brand is not greenwashing when they are not transparent about how many garments they manufacture each year and refuse to disclose their information about their supply chain. 

  • Avoid fast fashion - Instead you could try shopping for preloved clothing. Fast fashion produces clothing at artificially low costs using unsustainable factors such as modern slavery, planned obsolescence and poor-quality materials. Their low quality encourages short-term wear. These clothing items have also been proven to have toxic chemicals such as pesticides and flame retardants in the manufacturing process which can seriously impact your health as prolonged contact with the skin can absorb the chemicals into your body.

  • Restyle your clothes - this is using your creativity to wear one item of clothing in a variety of different ways through layering and accessorising, for different types of occasions which is demonstrated in this article.

Eco Styles Restyling Circular fashion Talisa Sharma 1

Photo by Tamara Bellis


Article by Talisa Sharma. Talisa has a passion for business and enjoys educating and promoting sustainability and carbon friendly initiatives.