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Sustainability: The Ethical Circular Economy. What is it?

The current linear economy of the fashion industry promotes the continual pollution of the Earth’s natural resources along with economic inefficiency, unproductive use of space, inefficient use of energy, and dangerous work conditions that remain in use despite their repeated exposure in the media. In the linear economy in 2015, the “greenhouse gas (GHG) emissions from textiles production totalled 1.2 billion tonnes of CO2 equivalent, more than those of all international flights and maritime shipping combined” (A New Textiles Economy: Redesigning Fashion’s Future, 2017, p.20). Along with the harmful work conditions for those directly involved in the production of fast fashion, the pollution of textile production has the potential to harm more people around the globe through fast fashion’s contribution to climate change. Perhaps the most discouraging fact is that “more than half of fast fashion produced is disposed of in under a year” (A New Textiles Economy: Redesigning Fashion’s Future, 2017, p.19). Therefore, it is not only the production of fast fashion that is contributing to the inefficiency and lack of sustainability but also the rapid disposal of these products.


The rate of disposal of fast fashion items combined with the fact that a majority of the clothing and footwear are not recycled results in more untapped and wasted resources that contribute to the increasing instability of our climate. According to the Environmental Protection Agency (EPA), “the recycling rate for all textiles was 14.7 percent in 2018, with 2.5 million tons recycled. Within this figure, EPA estimated that the recycling rate for textiles in clothing and footwear was 13 percent based on information from the American Textile Recycling Service” (“Textiles: Material-Specific Data”, 2020). However, it is not only the disposal of finished products that should be taken into account but also the cost of the resources used in the production of fast fashion. The Ellen MacArthur Foundation notes that “of the total fibre input used for clothing, 87% is landfilled or incinerated, representing a lost opportunity of more than USD 100 billion annually” (A New Textiles Economy: Redesigning Fashion’s Future, 2017, p.36). Aside from the human and environmental costs, the economic costs of wasted resources of the fast fashion industry model begin to accumulate and exacerbate the flaws of the current fashion industry.

In contrast, the ethical circular economy attempts to minimize these issues by focusing on the usage of “waste” as a resource. Essentially, the ethical circular economy is the concept of designing out waste and pollution, extending the lifespan of products and materials, and rejuvenating the environment to create a more sustainable world. According to the Ellen MacArthur Foundation, “80% of environmental impacts are determined during the design stage” (“What is the Circular Economy?”, 2017). Therefore, through the conscious design and use of waste as a resource in the lifecycle of products, companies can minimize the harmful impacts they may have on the environment in the production process. Along with saving the environment, “the recent Pulse of the fashion industry report estimated that the overall benefit to the world economy could be about EUR 160 billion (USD 192 billion) in 2030 if the fashion industry were to address the environmental and societal fallout of the current status quo” (A New Textiles Economy: Redesigning Fashion’s Future, 2017, p.19). Not only would the ethical circular economy save resources, but also reduce the amount of capital necessary for maintaining a business, which is better for everyone in the long run. By using “waste” as a resource, companies can reduce the number of resources and capital needed for their inputs.


Although it was difficult to find the negative effects of the ethical circular economy, there are a few important flaws to consider. The first is that in using the circular economy, it “only works if the consumption of [consumable] goods is not faster than the regeneration of materials” (Horbach, Rennings, & Sommerfeld, 2015, p.2). One point that should be addressed in speaking about types of products is the difference between durable and consumable goods. Durable goods are products that can withstand multiple uses without resulting in “any negative externalities or leakages in its use” while consumable products are goods that “satisfy basic needs, such as food, water, and energy” (Horbach et al, 2015, p.2). In referencing ‘products,’ we are mainly referring to durable goods. However, the consumption of resources and the rate at which those resources are generated are still important to consider in the production of goods in both linear and circular economies.


The second point to consider is that “eco-innovation is highly dependent on regulation activities and different (environmental) policy instruments” (Horbach et al, 2015, p.5). Innovation requires a certain amount of freedom that is not always conducive to government policies that are intended for the greater good. However, restrictions can also allow for the generation of more creative and innovative solutions to the problems facing humanity. Throughout it all, human innovation has a way of enduring.


Although nothing that humans do may ever be 100% sustainable, we can all make the effort to ensure that things become more sustainable and better for our environment and our futures. Since we designed our products and business model to fit these ideas, we were able to create a company that promotes sustainability and growth for our community. At RAY, we aim to continue working towards a safer and more economically efficient future by creating a sustainable world that can support everyone’s success.




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References

Ellen MacArthur Foundation. (2017). A new textiles economy: Redesigning fashion’s future. http://www.ellenmacarthurfoundation.org/publications

Horbach, J., Rennings, K., & Sommerfeld, K. (2015, May). Circular Economy and Employment. https://www.sun-institute.org/wc/files/ce_employment_13052015.pdf

Textiles: Material-Specific Data. (2020, November 12). US Environmental Protection Agency. https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/textiles-material-specific-data

 
 
 

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