The future of sustainable fashion: Transforming supply Chains for a greener industry

Sustainability is no longer an aspirational goal in fashion—it’s a business necessity. With increasing consumer demand for ethical sourcing, new supply chain regulations, and rising expectations around transparency and circularity, brands must adapt or risk being left behind.

From Digital Product Passports (DPPs) and Extended Producer Responsibility (EPR) laws to the fight against greenwashing and textile waste, the industry is facing a fundamental shift. But while challenges exist, innovative brands are leading the way with scalable sustainability solutions.

The Fashion Industry’s Carbon Footprint: A Call for Urgent Action

Fashion environmental challenges are immense, with 70% of emissions occurring upstream in the supply chain, particularly in textile production and processing.

Despite ambitious climate commitments, 63% of brands are behind on their 2030 sustainability targets, and many have delayed or weakened their net-zero goals. Yet, the pressure to decarbonise is mounting:

• The industry requires $1 trillion in supply chain investment to meet sustainability targets.
• Upcoming EU regulations will ban the destruction of unsold stock by 2026, forcing brands to adopt more responsible inventory management.
• The UK and EU are implementing Extended Producer Responsibility (EPR) legislation, shifting the financial burden of waste management from taxpayers to brands.

However, while carbon reduction efforts are increasing, fashion production has risen by 10%, effectively offsetting sustainability progress.

Supply Chain Transparency & the Rise of Digital Product Passports

As sustainability claims come under scrutiny, regulators and consumers alike are demanding greater supply chain transparency.

The EU’s Digital Product Passport (DPP) initiative will require fashion brands to provide key traceability data, including: Durability score for garments, carbon footprint breakdown, and QR codes linked to supply chain data.

Brands such as Nobody’s Child are already piloting DPPs, allowing customers to scan clothing labels and access detailed information on sourcing, production, and sustainability metrics.

At the same time, the UK’s Competition and Markets Authority (CMA) is cracking down on greenwashing, with new transparency laws taking effect in April 2025. Retailers will need reliable supply chain data to prove sustainability claims—or face financial penalties of up to 10% of their global turnover.

Circular Supply Chains & Extended Producer Responsibility (EPR)

The linear “take, make, waste” model is being replaced with a circular approach that prioritises reuse, recycling, and resource efficiency.

• France and Belgium have already implemented EPR fees for textiles, and the EU is working towards a standardised system.
• Marks & Spencer (M&S) uses the Higg Facility Environmental Module (Higg FEM) to track supplier emissions, water usage, and waste, allowing the brand to adjust inventory strategies based on sustainability metrics

76% of M&S’s products now use responsibly sourced fibres, up from 68% in 2023..

• Primark is setting new durability standards for its garments, aiming for 45+ washes before significant wear, which could reduce carbon, waste, and water footprints by up to 30%.

The UK is set to introduce EPR for packaging by Summer 2025, shifting waste management costs from taxpayers to producers. Meanwhile, fashion leaders are urging the UK government to extend this to textiles, aligning with the EU.

Tackling Fashion’s Waste Crisis

Overproduction is one of the industry’s biggest sustainability challenges, with brands producing between 2.5 billion and 5 billion excess garments in 2023, leading to $70 billion to $140 billion in surplus stock.

In response, new regulations will require brands to report on unsold textiles by 2025 and eliminate stock destruction by 2026.

The UK's leading voluntary initiative WRAP’s Textiles 2030 Initiative has engaged 140 brands covering 60% of the UK clothing market, with a goal to halve clothing waste and cut emissions by 50% by 2030

But waste reduction isn’t just about regulation—brands are proactively investing in circular economy models:

- WRAP’s Textiles 2030 initiative is working with retailers to reduce textile waste and improve circularity.

- H&M and Syre’s $100 million venture aims to scale textile-to-textile polyester recycling, with plans for 12 plants worldwide by 2032.

- Inditex partnered with Ambercycle to scale recycled polyester, committing to buying 70% of its output.

Without investment in sustainable infrastructure, however, the UK risks falling behind. Unlike the EU and U.S., the UK lacks a national textile recycling system, prompting industry leaders to call for government-backed recycling initiatives.

Key Takeaways

1. Regulations are tightening, with upcoming bans on product destruction and stricter sustainability reporting requirements.
2. Consumer demand for sustainability is growing, but price remains a key barrier to adoption.
3. Overproduction and excess inventory remain critical issues, contributing to financial losses and environmental harm.
4. Collaboration with suppliers is crucial, as the majority of emissions occur in the early stages of the supply chain.
5. Investments in renewable energy and circular fashion initiatives will be essential to meeting 2030 sustainability goals.

Helping Brands Achieve Sustainable Supply Chains

Harnessing cutting-edge technology, state-of-the-art fulfilment hubs, and the global strength of a Top 50 freight forwarder, Noatum Logistics transforms fashion and beauty supply chains—helping brands reduce their carbon footprint, enhance supply chain transparency, and embrace circular logistics.

With real-time traceability, and reverse supply chain expertise, we empower brands to comply with evolving sustainability regulations, optimise resource efficiency, and create a greener future for fashion.

Through our N-CAP Carbon Control Programme, we offer emission forecasting, global monitoring, and offsetting solutions to help businesses meet ISO14067 standards and work towards carbon neutrality.

Integrated into our PowerView platform, our CEMRO emission modelling toolkit systematically tracks and reports CO₂ impact across all transport modes, supporting brands in making data-driven sustainability decisions.

Discover how Noatum Logistics can help you create a sustainable supply chain. Visit our solutions page to learn more.

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