It’s an open secret in the fashion world. Unsold inventory is sent to incinerators; excess totes are chopped off so they can’t be resold; fully usable products are sent to landfills to avoid discounts and flash sales. The EU wants to end these unsustainable practices. On Monday, it banned the destruction of unsold textiles and footwear.
Alessandra, Member of the European Parliament
“It’s time to end this ‘take, make, dispose’ model that is so harmful to our planet, our health and our economy,” Moretti said in a statement. “A ban on the destruction of unsold textiles and footwear will help transform the way fast fashion manufacturers produce their products.”
This is part of a wider effort to strengthen sustainable fashion legislation, with new policies around eco-design, green washing and textile waste set to be phased in over the coming years. The ban on the destruction of unsold goods will be a long lead time: large businesses have two years to comply, while small and medium-sized enterprises are given up to six years. It is unclear whether the ban applies to EU-based companies, or any company operating in the EU, and what impact it might have outside Europe.
Clarification coming soon
Scott, CEO of the German Fashion Council and European Fashion Alliance (EFA)
Lipinski said there are still some issues that need to be resolved. EFA calls on the EU to clarify the meaning of “unsold goods” and “destroy”. For EFA, unsold goods mean that they are suitable for consumption or sale (excluding knockoffs, samples or prototypes). “Our industry is also firmly committed to developing new practices such as remanufacturing and upcycling, which give unsold products a second life while allowing creative freedom to flourish, and we strongly oppose any attempt to end these prohibitions on the practice.”
The question of what would have happened if these unsold goods had not been destroyed remains unanswered. “Will they be shipped around the world? Will they be reused as deadstock or shredded and recycled down the road? Will the outlet stores have adequate inventory to sell them?” Grogan asked.
Large businesses will also have to disclose how much unsold consumer goods they throw away each year and why, a rule the EU hopes will curb overproduction and destruction. The EFA, which lobbies the EU on behalf of the fashion industry and its various European fashion councils, has some concerns about the knock-on effects on brand reputation. “Considering the risks of such a disclosure from a commercial and competition perspective, we request that this information be provided only to the Commission or national competent authorities,” Lipinski said.
Will this change the supply chain?
For Dio, founder of sustainable fashion consultancy The Bear Scouts
For Kurazawa, this is an opportunity for brands to increase supply chain flexibility and move away from the wholesale model that many rely on. “Now is the time to support innovations like pre-orders and on-demand manufacturing,” he said. “This is an opportunity for brands to play with artificial intelligence to understand the predicted future. Technology can help brands produce products more intentionally, So they’ll have less unsold merchandise in the first place.”
Grogan is equally optimistic about what this means for sustainable fashion in general. “It’s good to see that this is more ambitious than the EU’s original proposal and that textiles were specifically mentioned. It shows policymakers are willing to create a stronger system,” she said. “Banning the destruction of unsold merchandise may allow brands to rethink their production models and potentially better predict their product ranges.” ”
One unresolved issue is enforcement. Time and again, brands have used the lack of transparency in the fashion industry’s supply chains as an excuse for bad behavior. Part of the challenge of the new EU ban will be proving that brands are destroying unsold goods, not to mention how and to what extent they are doing so, Kurazawa said. “Obviously someone knows what is happening and where it is happening, but will the EU know?”
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