Today, the Circular Fashion Innovation Network (CFIN) released its Interim Report, a comprehensive report highlighting the progress and key insights from its first year of advancing the UK's transition to a circular fashion ecosystem. In 2020, the British Fashion Council (BFC) launched the Institute of Positive Fashion (IPF) as a think tank to address the fashion industry’s environmental impact and the ongoing climate crisis. In support of the IPF’s mission to reach a circular economy and net-zero by 2030, the BFC established CFIN in September 2023 to accelerate the industry-wide shift towards circularity. This network is led by the BFC and UK Fashion and Textile Association (UKFT), in partnership with UK Research and Innovation (UKRI).
Caroline Rush, Chief Executive, British Fashion Council: “The UK fashion and textile industry is at a turning point, faced with both significant opportunities and challenges. Global markets are evolving rapidly, driven by sustainability demands, technology transformation and supply chain volatility. The UK sector must adapt swiftly to remain competitive and sustainable. The Interim Report marks a tangible milestone in CFIN's mission to drive systemic change in the UK fashion industry. It offers vital insights into the current state of circular practices, highlighting both progress made and critical areas where further action is needed to achieve long-term success.”
Over the past year, CFIN has engaged a diverse range of stakeholders across the fashion industry and created an Advisory Board which includes leading industry players such as Chanel, the British Retail Consortium, Ellen MacArthur Foundation, Innovate UK, John Lewis, M&S, Mayer Brown, New Look, Sainsbury's, Shotley Consulting, the University of Leeds, Veolia and WRAP
The report gathers critical insights and defines the next steps in three key areas: Circular Business Models (CBMs), Sustainable Manufacturing and Recycling Infrastructure. These areas form the foundation of CFIN’s strategy to drive the UK fashion and textile sector to a more innovative, sustainable and economically vibrant future. Key insights and next steps outlined in the Interim Report include:
- Circular Business Models (CBMs)
CBMs aim to reduce waste and overproduction in the fashion industry by keeping products and materials in use longer and regenerating them at the end of their life. Unlike linear models that focus on disposal, CBMs align with environmental goals, UK net zero strategy and regulatory changes while creating new revenue streams and business opportunities. Kathleen Mitchell, Commercial Director, John Lewis leads the work for the CBMs theme.
Key insights:
- The fashion industry demonstrates a strong intention towards circularity, with 71% of organisations including circular business models in their five-year strategy.
- Despite this, a significant gap exists between ambition and implementation, with 63% of existing customer-facing circular business models in a low-maturity pilot phase.
- The primary barrier to scaling CBMs is financial viability, alongside challenges in customer communication and demand.
Next steps:
- CFIN proposes developing an accelerator programme to support scaling circular business models.
- Recommendations include identifying a harmonised approach to how brands and retailers communicate with their customer base on sustainable fashion.
- Sustainable Manufacturing
Sustainable Manufacturing focuses on reducing environmental impacts and waste in textile and clothing production while enhancing and upskilling the UK manufacturing workforce and sector. Nigel Lugg OBE, Director, Shotley Consulting and UKFT Chairman leads the work for the Sustainable Manufacturing theme.
Key insights:
- The UK has a unique opportunity to lead the sustainable transformation of apparel and textile manufacturing by leveraging advanced technologies like AI, automation and robotics.
- The report identifies a key opportunity to align UK manufacturing capacity with volume retail demand, reducing reliance on imports and enhancing the sector’s ability to respond to market trends.
- Emerging technologies such as AI-enabled factory technology, local denim finishing and reprocessing and integrated repair labs offer promising pathways to more agile and circular production methods.
Next steps:
- CFIN will continue exploring the integration of technological innovations in UK manufacturing supply chains, with a focus on scaling capacity and fostering collaborations between manufacturers, innovators and key industry stakeholders.
- Recycling Infrastructure:
CFIN is developing a National Textile Recycling Infrastructure Plan to address the UK's need for sustainable management of non-rewearable textiles and to increase textile-to-textile recycling. Gavin Graveson, Senior Executive VP, Northern Europe, Veolia leads the work for the Recycling Infrastructure theme.
Key insights:
- With 45 million tonnes of post-consumer textiles generated annually in the UK, the report highlights the substantial potential to develop a robust textile recycling infrastructure.
- Technological advancements, particularly in automated sorting technologies and innovative textile recycling processes, could transform the sector's capabilities and the potential of capturing value of non-reusable textiles.
Next steps:
- CFIN will continue developing a National Textile Recycling Infrastructure Plan and advocate for Extended Producer Responsibility (EPR) schemes to finance recycling infrastructure and foster cross-sector collaboration to drive textile recycling innovation.
Looking Ahead
The transition to a circular fashion ecosystem in the UK requires a collective effort and commitment from all stakeholders. We call upon everyone in the industry – from designers and manufacturers to retailers, consumers, policymakers, and innovators - to play their part in this crucial transformation. By embracing circular principles, investing in sustainable technologies, developing skills and fostering a culture of collaboration and innovation, we can create an ecosystem that is both environmentally responsible and economically vibrant. The time to act is now.
Adam Mansell, Chief Executive, UK Fashion & Textile Association: “This report highlights how we’ve been working to bring the entire industry together to start building a circular fashion ecosystem here in the UK. After a year, we’ve made some real progress and taken practical steps forward, but more importantly, we’ve brought together all parts of the supply chain. This isn’t just about solving the challenges in our sector – it’s also about creating new opportunities for growth, efficiency and sustainability across the whole industry.”
With the release of this Interim Report, CFIN will continue its work on key initiatives across these three main themes and develop work across a further three themes - Novel Technology, Diverse & Future Proof Workforce and Green Growth. This work will culminate in the release of the full report in May 2025, which will set out detailed recommendations for both the industry and government to further accelerate the UK's transition to a circular fashion economy. The Interim Report is available to download here.