The Circular Fashion Innovation Network (CFIN) celebrated its one-year anniversary on Thursday 17 October 2024 with the launch of the ‘CFIN Interim Report 2024: One Year of Convening, Listening and Testing’.

Launched in September 2023 to support and guide the creation of a circular fashion ecosystem in the UK by 2032, CFIN is co-chaired by the UK Fashion & Textile Association (UKFT) and the British Fashion Council (BFC), in partnership with UK Research & Innovation (UKRI).

A collective effort and the involvement of all stakeholders is essential to achieve the transition to a circular fashion ecosystem in the UK. Over this past year, CFIN has brought together industry, innovators, academia and the broader sector as well as an Advisory Board featuring leading industry stakeholders including 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.

Circularity is at the top of the fashion and textile industry’s agenda, with 71% of organisations including Circular Business Models (CBMs) in their five-year strategy according to CFIN’s research. However, several primary barriers to the implementation of CBMs have been identified, such as financial viability and challenges in demand and customer communication.

In its interim report, CFIN has gathered key insights and next steps across three key areas: Circular Business Models, Recycling Infrastructure and Sustainable Manufacturing. It highlights that significant strides have been made in the programme’s first year, driving innovation in the UK fashion industry.

Adam Mansell, CEO of UKFT, commented:

“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.”

Through a year of pilots, research and key discussions, the report recommends key actions to accelerate the sector’s journey towards circularity.

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Circular Business Models (CBMs)

CFIN’s work around its Circular Business Models (CBMs) theme is led by Kathleen Mitchell, Commercial Director at John Lewis. Aiming to reduce fashion waste and overproduction, CBMs keep products and materials in use longer, regenerating them at the end of their life. CMBs align with environmental goals, the UK net zero strategy and regulatory changes. They also focus on generating new business opportunities and revenue streams.

CFIN’s research showed that despite a strong intention towards circularity, the fashion industry is facing primary barriers to implementing and scaling CBMs such as customer communication. It also highlights that 63% of existing customer-facing CBMs remain in a low-maturity pilot phase. Next steps include:

• The development of an accelerator program to support scaling circular business models
• Identifying a harmonised approach to how brands and retailers communicate with their customers on sustainable fashion

Sustainable Manufacturing

Nigel Lugg OBE, Chairman of UKFT and Director of Shotley Consulting, led CFIN’s work around Sustainable Manufacturing, which aims to reduce environmental impacts and waste across textile and clothing production while up-skilling the UK manufacturing workforce.

Leveraging advanced technologies such as AI, automation and robotics could put the UK in a position to lead sustainable change across apparel and textile manufacturing. In addition, the CFIN interim report identifies the opportunity to align UK manufacturing capacity with volume demand, which could reduce reliance on imports and enhance the ability of the sector to respond to market trends. Next steps include:

• Continuing to explore the integration of technological innovations in UK manufacturing supply chains
• Focusing on scaling capacity and fostering collaborations between manufacturers, innovators and industry stakeholders

Recycling Infrastructure

Gavin Graveson, Senior Executive VP at Veolia (Northern Europe) leads the Recycling Infrastructure theme. The UK generates 1.45 million tonnes of post-consumer textiles which must be managed sustainably. To increase textile-to-textile recycling and address the need for sustainable management of non-rewearable textiles, CFIN is developing a National Textile Recycling Infrastructure Plan.

Automated sorting technologies, innovative textile recycling processes and other technical advancements could help change the sector’s capabilities. Next steps include:

• Continuing to develop a National Textile Recycling Infrastructure Plan
• Advocate for Extended Producer Responsibility (EPR) schemes to finance the infrastructure
• Foster cross-sector collaboration to drive recycling innovation

What next?

CFIN’s interim report shows that there is still some work needed to achieve the transition to a circular fashion ecosystem by 2032. But with continued support, funding and collective action, reaching this goal could become a reality.

“Now is the time for all stakeholders across industry, — academia, NGOs, and policymakers — to come together and leverage these findings to drive meaningful change. We invite you to incorporate these insights into your work, as CFIN continues to facilitate and support this crucial transformation. Together, we can create a more sustainable, innovative and economically vibrant future for the UK fashion and textile sector.” – CFIN Interim Report 2024.

The interim report is available for download via the link below and will be followed by the release of the full report in May 2025. The final report will detail recommendations for industry and government to accelerate the UK’s transition toward a circular fashion economy.

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