Can brands reduce their carbon emissions through resale? They can, says a study, affirming that resale programmes by outdoor and premium apparel brands have the potential to reduce annual carbon emissions by 15–16% by 2040.
THE STUDY: The comprehensive study, titled ‘Where Are Circular Models Effective Sustainability Strategies for Fashion Brands?’ elaborates on the impact of resale in addition to supply chain interventions, and sheds light on areas where circular strategies can combine with supply chain interventions to accelerate brand and industry decarbonization.
- By understanding the carbon implications of circular models across different types of products, brands can focus their efforts on generating the best possible outcomes.
- Circular models such as resale are necessary investments for brands to reduce carbon emissions as they grow. Understanding where and how circular models effectively reduce carbon is an essential first step for brands.
KEY INSIGHTS: Among the insights offered are:
- Resale is a Significant Decarbonisation Strategy: Particularly for premium apparel and outdoor brands, resale can result in a 15–16% reduction in annual carbon emissions in 2040. These brands can achieve annual revenue growth and simultaneously reduce the need for new production by 23–35% annually.
- Maximise Resale Efficiency for Emissions Benefit: Brands achieve the most substantial emissions reductions by amplifying the value of their products in the resale market. Product durability, design, and craftsmanship play pivotal roles.
- Operational Control is Key for Greenhouse Gas (GHG) Accounting in Resale: Brands that control their resale operations and maximize revenue from used products are able to capture the greatest share of Scope 3 emissions benefit.
There are two ways that resale lowers the carbon emissions of a brand: By controlling operations, brands can include lower carbon resale products alongside new products as part of Scope 3, which reduces the average carbon per item and overall emissions.
- Maximising resale revenue increases the role of resale in achieving brand growth targets, which reduces emissions from production. The displacement effect, where used products replace new ones, creates incremental carbon emission benefits globally. However, these benefits cannot be included in corporate carbon footprints.
- It is worth exploring how carbon emissions accounting could be evolved to capture a percentage of emissions reductions from peer-to-peer resale programmes as part of corporate carbon footprints.
THE RESEARCH AGENCIES: Trove is a leader in branded resale while Worldly is an impact intelligence platform for the apparel industry.
WHAT THEY SAID:
As the fashion industry adopts resale for carbon reduction, our study offers a vital guide to measure the impact of circular programs. In partnership with Worldly, we're committed to catalyzing industry change and assisting brands on their sustainable journey. With emerging regulations, reporting ESG data is essential for competitiveness and brand integrity. Our paper helps businesses to evaluate their initiatives.
— Gayle Tait
Chief Executive Officer
Trove
As climate change becomes more severe worldwide, consumers are demanding action and governments are implementing regulation. Both business model and policy decisions must be informed by credible data. We’re proud to partner with organizations like Trove to provide insights that help measure and validate the effectiveness of their innovative programmes.
— Del Hudson
Executive VP, Market Impact
Worldly
