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Closing the Loop 2015 | 1 Closing the Loop Published by By Brett Mathews The leading publisher of B2B magazines and reports for the global textile industry CLOSING THE LOOP

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Closing the Loop 2015 | 1

Closing the Loop

Published by

By Brett Mathews

The leading publisher of B2B magazines and reports for the global textile industry

CLOSINGTHE LOOP

P1 CL-Title_JM_Layout 1 29-Oct-15 9:32 AM Page 1

(2) - Scanning Electron Microscope ofpolyester/cotton blend and of recovered polyester. -Institute for Frontier Materials.

Image: ©

kievith | Depositp

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Closing the Loop: Circle economy workHolland has established itself asa global leader in circulareconomy developments andthinking. As part of the Closingthe Loop report, we asked GwenCunningham and Hélene Smits of Dutch-basedcircular economy co-operative, Circle Economy, tocontribute an opinion piece tackling somecommon misconceptions around circular textiles,looking at what is needed to close the loop, andask what ‘going circular’ will ultimately mean forapparel brands and retailers.

The moment of now is as turbulent as it has everbeen. Nobody wants to be left behind, but themission to ‘close the loop’ for textiles reachesbeyond the technology and cannot be tackled byone organisation alone.

The mission to close the loop is, however, by nomeans a ‘mission impossible’. Can you imaginethe ‘ifs’ and ‘buts’ that were raised when the goalto land a man on the moon was first set? Thisuncertainty did not hold mankind back.

Just like the space race, we believe it is not aquestion of whether it will happen, but when it will happen and who will make the revolu-tionary breakthrough.

Getting there will require strong commitment andserious investments in the journey. It will take

visionary brands and retailers,forward thinking textilecollection companies andsupply chain partners tosupport innovative material

recovery technologies in transforming the market.

However, having recycling technologies in placewill not magically close the loop. Newtechnologies need to be part of wider marketdevelopments that includes circular businessmodels, other enabling innovations in materialsand technology, and regulations and policyframeworks that incentivise the transition towardthis new way of doing business. Without thissupporting ecosystem, material recoverytechnologies will not reach scale.

Circular economy definedSo what exactly does ‘circular’ mean for thefashion and textiles industry? The essence of theconcept of ‘closed loop’ or ‘circular economy’ isquite simple and elegant: ‘an industrial systemthat is restorative by design and in whichmaterials are kept to circulate infinitely and in highquality’. We have translated this into a morespecific definition for a circular textiles industry.

“A circular textiles industry is based on a systemwhere textiles products, fabrics and fibres areinfinitely and effectively cycled through connectedloops within and across industries in a transparentand economical way, where producers applybusiness practises that enable circular use of textileresources and promote social justice, andconsumers have a healthy relationship with textiles,based on sustainable consumer practises.”

However, this definition is not specific enough toprovide the needed guidance to take properaction, and it is in the application of the conceptthat misinterpretations arise of what is and isn’t

‘Similar to the excitement of the space raceover 60 years ago, fashion & textile brandsare now anxiously looking left and right atthe competition to see ‘who’s doing what’in the recycling technology rat race.’Prof. Rebecca Earley, University of the Arts London

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circular. Therefore, a crucial part of the missionas we move forward is to create and maintain acommon understanding of what these concepts,models and processes actually mean. We needto learn to speak the same language and quiteoften, the best way to clearly define something,is to precisely outline what it is not.

So let us start with the following, very importantstatement: Circular is not the same as recycling, itis much more.

Circular or closed loop?Circular is a new approach that encompasses thewhole value chain of the industry – changing theway textile products are designed, produced,shipped, bought, used and recycled. For individualbusinesses, these approaches come in the shapeof circular business models.

Circular business models include products andbusiness processes designed to enable theretention of material quality and value at end ofuse to ensure ‘endless’ cycling of resourcesthrough a circular system. In order to ensure fullyclosed loops, the business model needs to

address the inherent recyclability of materials,design of the product (enabling disassembly ofcomponents to separate into ‘pure’ materialstreams), the infrastructure for product take-backand collection and process infrastructure forrecovery of materials and product manufacturing.

It is important to bear in mind that the businessmodel for closed loop may still be a ‘traditional’product sales model, so long as the above-mentioned aspects are addressed and longeruse, return, re-use and recycling is ensured or stimulated.

To close the loop, a variety of recyclingtechnologies will have a part to play, but the ‘lead’will be taken by technologies that can recover orregenerate fibres to virgin quality (full circularchemical recycling technologies). Today,mechanical methods are already playing a crucialrole in paving the road to circular, offering ‘textileto textile’ solutions that proximate virgin qualityand that are ready for further scaling. However,the race towards full circular continues while newchemical solutions continue to develop andprepare for commercialisation.

CLOSING THE LOOP; JOURNEY TO A ZERO WASTE SUPPLY CHAIN

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Now we are clear on definitions and technologicalfactors, we may well ask: well why isn’t ithappening already? The real revolution for makingfuture textiles from existing textiles, thus reducingthe need for virgin resource use in production, willbe the material recovery technologies which arecurrently under development. A truly circulartextiles industry will not happen until thesetechnologies are fully developed, industrialised,and replicated globally. The ‘winning’technologies will not only have to be ‘robust’ andprovide high quality fibres as output, they will alsoneed to work in a sustainable way and be able toproduce recovered fibres in a cost effective wayto compete with virgin resources. Also key is thatrecycling systems effectively deal with blendedfibre compositions, given the high proportion ofblends currently produced and found in the textilerecycling supply chain.

Right now, our ability to truly ‘go circular’ islimited by a technological bottleneck. However,promising new technologies are on the cusp ofcommercialisation and promise to revolutionisethe industry in the near future. That doesn’t meanwe should just sit back and wait for thetechnology. If we do that, we will ultimately befaced with a completely different bottleneck: acircular technology in a linear system. We need topush to accelerate the necessary industry,consumer and governmental action and allow fora swift tipping point to circular once new(chemical) technologies are ready and existing(mechanical) technologies are up-scaled.

So what does this new circular system look like?What market factors are essential to enabletechnologies to be a success and enable us to ‘gocircular’? It means that the approximately 80 percent of end of use textiles that currently end up inhousehold waste and ‘leak’ out of the system vialandfill or incineration, are actually collected forre-use and material recovery.

It means textile collectors and sorters need toadopt new processes and material sortingtechnologies (e.g. Fibersort technology) to beable to supply existing (mechanical) andupcoming (chemical) material recoverytechnologies with high volumes of high qualityfeedstock for their process. For governments itmeans a coordinated approach to introducepositive legislative drivers such as wasteprevention targets and incentives for circularmaterial recovery routes (e.g. introducingExtended Producer Responsibility schemessimilar to EcoTLC in France, improving conditions for textile collection and sorting atmunicipal level, and developing consumerawareness programmes).

It means brands and retailers need to revisit theirbusiness models to include circular strategies,engage in ‘closed loop’ partnerships withcollectors, sorters and recyclers, and integrateapproaches like true costing or natural capitalvaluation, like Kering’s Environmental P&L, toallow for a more holistic assessment of value.More importantly, it means an overall mindset

Myth: Chemical recycling is dirty‘Chemical recycling uses toxic chemicals and is therefore environmentally damaging!’

Chemical recycling technologies differ greatly depending on the fibre that is recycled. However the main principle is that fibres are broken down into their basicchemical components (monomers, cellulose), impurities are removed, and components are subsequently built up to form virgin quality, regenerated fibres. While the exact footprint of the varying emergent technologies remains largely unknown by the general public due to their stage in development, this is not causefor alarm and should not deter investment or support. There is widespread assurance and confidence that the second generation chemical processes have a lowenvironmental impact and are non-toxic, with chemicals often cycled in a closed-loop. Additionally, the use of bio-chemical and ionic processes holds greatpromise for further control of environmental impacts.

Myth: Mechanical recycling is ugly‘Mechanical recycling causes significant fibre degradation, resulting in poor quality textiles that will never meet virgin quality’

While it is true that mechanical processes cause some degradation to the staple fibre, this degradation can be controlled and minimised with the correct openingand spinning technologies. Additionally, recycled fibres can be strengthened with other recycled or virgin fibres to create an output yarn or fabric that iscomparable with 100 per cent virgin in both quality and cost. Successful examples can be seen all around us (Recover, H&M, Pure Waste) and great strides arebeing made in pushing recycled percentage in new materials.

Myth: Recyclable/recycled = circular“If my clothes are recyclable or made from recycled fibre, then they are circular”

‘Made from recycled materials’ doesn’t mean that a) it is actually recyclable itself OR b) it will ever be recycled. Similarly, ‘recyclable does not mean that itwill be recycled. No matter how much care is put into the design, after a garment ‘made from recycled fibres’ or ‘made for recycling’ has reached end of use, to expect it to getback to a producer with the recycling capabilities needed to actually turn it back into usable fibres is unrealistic. Approximately 80 per cent of post-consumertextiles are never even collected and from the 20 per cent that is collected most is sold on for re-use or downcycling.

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shift for all stakeholders involved to view ‘used’ orexcess textiles not as waste but as valuableresources for the future.

EconomicsClosing the loop is increasingly seen as the ‘newsustainability’; it has surpassed trend status andoffers huge potential for multiple value creation.What we must understand is that circular modelsare not only about environmental efficiency, buteconomic efficiency.

Not investing in a circular resource industry nowwill mean making your company particularlyvulnerable to a sourcing crisis in the not toodistant future, when virgin prices flare due toinevitable resource scarcity. Consistent and scaledsupply is more feasible to maintain with closedloop systems, as this kind of resource efficiencywill keep raw material costs relatively low andstable, with the additional benefit of cuttingenergy and transportation costs significantly.

More immediately, sustainability overhauls canpromise increased profitability. A recent report bythe University of Oxford & Arabesque partners(How Sustainability Can Drive Financial Outper-formance, 2014) confirms the positive linkbetween sustainability and financial performance,and recommends that sustainability should be onthe agenda of senior executives and investmentprofessionals alike. Leading companies includingUnilever, Body Shop, Patagonia, Ecover andInterface are living examples of how companies in

practise have successfully captured value andcreated competitive advantage through newmodels based on resource efficiency, sustainableinputs and (re)cycling resources.

Interface, the world’s largest manufacturer ofcarpet tiles, is a great example of the compellingbusiness case behind circularity. Since theadoption of its zero-impact goals in 1995, basedon the bold vision of founder Ray Anderson, thefirm’s use of fossil fuels and water, itsgreenhouse emissions and waste generation hasfallen dramatically. In 2012, a switch to 43 percent bio-based/recycled yarn allowed it to partiallydecouple its supply chain from virgin fossil fuels,which resulted in reduced GHG emissions of10,300 tCO2e and annual cost savings of Euro1.1m. In the meantime, sales have increased bytwo thirds and profits doubled. The US$400million the company saved in costs avoidedthrough the pursuit of ‘zero waste’ has paid thecosts of transforming its practices and facilities.

Next steps?Assuming these truths are inevitable and there isno other way than to ‘go circular’, what are thenext steps? How does the industry get behindcircular recycling technology? Here we haveoutlined a number of ways in which we believethe apparel industry could transition towardsmore circular ways of working.

Short-termBe demanding (Strategy 1) Already there are mechanically recycled cotton,wool and polyester fabrics on the market that canbe more price competitive when scaled and whichmeet a high quality. Hilaturas Ferre, maker of

“Material sorting technologies that are ableto provide high volumes of suitablefeedstock for our process are absolutelyessential to enable rapid industrialisation ofour technology on a global level. We needto secure our ‘supply’ for the future and forthis reason we are already involved indevelopment of a promising new materialsorting technology, the Fibersort.”Cyndi Rhoades, CEO, Worn Again

“Resources are becoming more scarce andwe’re running out of land for growing food.Agricultural land can’t be used for fibreswhen it’s needed for food. Keeping textilesand fibres endlessly circulating makes goodbusiness sense.”Dr Kate Goldsworthy, University of the Arts London

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Recover recycled cotton yarns, is a 100 year oldfamily owned business that has been recyclingcotton textile waste for almost 70 years. Fourgenerations of R&D has led to some impressivetechnical advantages that make Recover yarnsquality comparable to virgin, at a competitiveprice and with a fraction of the environmentalimpact. In the short term, brands need torepresent the demand for these fabrics andactively encourage a sourcing culture and buyingstandard that supports recycled content – slowlyweaning off virgin while the industry shifts from alinear to a circular model. The more we demandfor recycled material, the more widely availableand affordable these fabrics will become.

Bring it right back (Strategy 2)What you add in demand you can match insupply. A circular textiles industry is dependenton used resources being fed back into thesystem. Closing the loop therefore means thatbrands take the responsibility to act in massbalance, collecting and recycling as much as theyproduce, therefore keeping textile resources incirculation. While the growing movement towardorganic cotton and other sustainable materials isexciting and warranted, we should not only beconcerned with where fabric comes from andhow it is made, but also where it goes and howwe can get it back. This model is a type ofvoluntary Extended Producer’s Responsibility,whereby the transaction between brand andconsumer doesn’t end at the point of sale. Whatthis looks like is yet to be revealed – whether it’s acommunications campaign (H&M), relationshipwith a recognised collection partner (Oxfam &M&S) or via an inbuilt business model (MUDJeans). It will be interesting to see how thisactivity moves from a marketing initiative or CSRproject towards an essential business strategy

once resource scarcity is truly felt at the core.Once this reality hits, collected textiles ‘waste’streams (post-industrial, pre-consumer and post-consumer) will represent a source of rawmaterials to fuel production and bring acompetitive sourcing advantage.

Collaboration is key (Strategy 3)Resource security for the future is already a crucialchallenge for all brands, retailers and producers. Itis the assumption of most brands, many tiers awayfrom raw fibre and material production, that ‘thesupply chain is responsible for and should invest insustainable innovation’ and that ‘brands have nopart to play in this risky business and can come on-board later.’ This is simply not the case. We cannotexpect the supply chain to be the only investors –closing the loop is about industry systems changeand resource security for all, not a new technicalfabric. Given the benefits that potential innovationin recycling technologies could bring for brands, itseems reasonable that these stakeholders wouldbe the leading supporters of the process optimi-sation, and scaling required to commercialisethese technologies.

So which technologies should brands andproducers invest in? As mentioned previously, asmany of the emerging technologies are at acrucial and sensitive stage of development, theyare understandably careful when disclosinginformation. Speculating the ins and outs from theoutside is a futile exercise at this stage; whileemerging recyclers may not be sharing muchdetail, there is ample opportunity for would-be-investors to sign NDAs, conduct due diligence,invest and potentially secure commercial benefitsas an advantage over the rest.

Long-termIn the long term, companies will need to getbehind a circular resource model, whentechnologies have enabled it, by providingcontinued market demand and commitment tobuy circular raw materials. This is key. But whatdoes this actually mean? How will it be possibleto ensure companies commit to increase circularsourcing year in and year out when externalfactors like rapidly falling oil prices make virginpolyester cheaper than recycled polyester? Going

“Transitioning towards a circular textileindustry requires innovation, risk-taking andcollaboration in a highly traditional industry.Not impossible but challenging!”Dr Kate Goldsworthy, University of the Arts London

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back to sourcing more virgin produced rawmaterials, simply because the market price hasdropped over a quarter, shouldn’t be an option.The point of circular supply is stability, notcompeting with virgin resources as they rise andfall due to market factors. The point is forrecycled resources to significantly reduce theneed for virgin resources, if not replace thementirely, for reasons much more important thanshort term profit motives.

Will it require a focused circular sourcing initiative,similar to what BCI is for cotton? Or an annualreporting model, built into a company’s P&L, withnatural capital reporting incorporated? Whateverstrategies and measures are used, at some stage,industry leaders will be forced to make a very clearcommitment. Unless there is industry wide buy-into support this transition to a global and scaledtextile recycling system, the metaphorical moonlanding we all need will be an aborted mission.

Price points for circular resources will not onlydepend on the cost effectiveness of thetechnology but also on the cost of feedstock (endof use textiles). Of course, as demand for lowvalue textiles increases, this will have an effect onmarket value. However, recycling technologycompanies like Worn Again indicate that currentlythere are enough end of use textiles already incirculation to satisfy the annual consumption ofpolyester and cellulosic fibres. This indicates that,when industrialised circular recyclingtechnologies are able to secure long term, stablesupply contracts with textile collectors and keepproduction costs stable, the goal of long-termprice stability and competitiveness whencompared with virgin resources is likely to beachieved over time.

We should also not avoid a more fundamentalassessment of the meaning of ‘price’ or ‘cost’. Incircular economics, sustainability and social costand value should ideally be an integral part of themetrics. When we start incorporating true costsinto the price of a fibre (putting a monetary valueon the impacts of CO2 emissions, naturalresource depletion, deteriorating human health,etc.), the metrics will most likely tip the balance infavour of circular resources.

The closed loop race can also be acceleratedthrough the introduction of new business modelsthat are circular, make business sense and areattractive from a consumer perspective. Conven-tional approaches driven by compliance and riskmitigation have shown limited results and it isexpected that the sustainability agenda ofindustry will be shaped by innovative approachesdriven by increased competitive advantage andmarket share growth within the coming 5 years.This offers a great window of opportunity forcompanies to make the shift from optimisationstrategies (eco-efficiency) to future-proof circularbusiness models (eco-innovation). New circularbusiness models and consumer practices offerhuge potential to not only be more sustainable,but to also explore more connected, creative andempowering ways of designing, producing,marketing and selling. Many of the innovativenew circular concepts out there today come fromstart-ups that do not have a status quo to

“There is commonly held misconceptionthat a closed-loop textile industry is adistant dream. A goal to be planned forperpetually, inched ever closer to, butnearly impossible to reach in our lifetimes.The fact is that existing mechanical andnew chemical recycling technologies areready to be put to work immediately. Withthe support of global brands and retailerswho have the most to gain, thesetechnologies will rapidly become super-efficient profit generators creating a newfoundation of long term stability for theentire textile and fashion sector. And let usnot forget the most important part, ourhabitat and natural resources will bepreserved for future generations in theprocess for a true win-win situation.”Isaac Nichelson, chief sustainability andmarketing officer, RECOVER

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overcome and can leverage the marketpositioning as a new sustainable brand towardsconsumers. However, we also need establishedbrands to join the movement to shift theseinnovative concepts from niche market segmentsto the mainstream.

ConclusionThere is still a long road ahead but we believe weare farther along than some people might think.The concept and vision are there, thetechnologies are ready for optimisation andscaling, and a growing sense of urgency amongstconsumers, industry, entrepreneurs andgovernment is fuelling the movement towards acircular textiles Industry.

However, ultimately, going circular will be morethan a technology solution and sourcing issue.‘Going circular’ will be a state of mind; a newunderstanding of production and consumptionfrom an economic perspective, where design forcyclability means to not only think about thetheoretical recyclability of a material and productat end of life, but also to play an active role inmaking sure it happens in practise. Therefore, wealso encourage brands and retailers to lookbeyond the technologies to the bigger systemand participate in pilot projects and industrycollaborations. Closing the loop requires‘coopetition’; not only pioneering or risky effortsthat pay off in increased competitiveness for the‘winning team’ but also collaborative efforts tocreate the ecosystem that enables the circulartextile revolution that will benefit us all.

Helene and Gwen would like to thank thefollowing contributors to this editorial:• Cyndi Rhoades - CEO, Worn Again• Isaac Nichelson - chief sustainability and marketing officer, RECOVER®

• Kate Goldsworthy - senior research fellow, University of the Arts London

About Circle Economy and theCircular Textiles ProgramCircle Economy is looking for brands andretailers who want to be at the forefront ofchange by joining its Circular Textiles Program.Circle Economy’s strategic partners in the

Textiles Program benefit from a broad network oforganisations working towards sharedobjectives, circular business opportunities andalliances to jointly accelerate the transitiontowards a circular economy.

Contact Circle Economy’s membership managerVera Moll [email protected] to learn moreabout how your organisation can become apartner of the Circular Textiles Program.

Started in 2011 as a cooperative, CircleEconomy’s goal is to create a planet whereglobal prosperity is achieved in a sustainablemanner, creating more jobs and strengtheningecological systems in a way that is financiallyand socially responsible.

Circle Economy accelerates the practicalimplementation of the circular economy. It doesso by working on projects that are both practicaland scalable, by sharing insights, connectingparties involved in circular economy around theglobe, raising awareness and hosting events toshare experiences and solutions.

The Circular Textiles Program (CTP) is a sectorspecific initiative within Circle Economy. Since itslaunch in 2014, the focus of the programme hasbeen to accelerate the system innovation (e.g.circular business modelling, regulatory incentives,design and marketing strategies, consumerengagement, market development) needed toallow technological innovation in textile materialrecovery reach its full impact.

Its mission is to ‘close the loop’ for textiles andcreate a system whereby products, fabrics, andfibres are infinitely and effectively cycled throughconnected loops within and across industries in atransparent and economical way. Such a systemwill enable it to capture the inherent value oftextiles, while eliminating waste downstream anddisplacing the virgin industry upstream. CircleEconomy envisions a textiles industry whereproducers apply business practises that enablecircular use of textile resources and promotesocial justice, and consumers have a healthyrelationship with textiles, based on sustainableconsumer practises. �

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Collection and SortingA transition to a circular economy in textiles will require an increase in textilecollection rates and investment in better sorting technology. Hélene Smitsand Gwen Cunningham of Circle Economy look at the key issues involved.

If the global textile industry is going to move towards more circular ways ofworking, many people believe it is vital toimprove collection rates in order to provide thefeedstock for this potential new businessmodel. Would you agree with this?Overall, textile collection rates are around 20 percent globally. In some EU countries this figure ishigher but never exceeds 40 per cent in general.General opinion is that collection rates areimportant, but currently we don’t know what to dowith all the textiles which are collected. The re-usemarket is stagnating and low grade textilerecycling provides a ‘bleeder’ for industry.

Before increasing collection rates, it is perhapsimportant to create business models andinfrastructure that support the highest value reuseand recycling of textiles.

It is also worth noting evidence from the secondhand clothing market in West Africa where re-useis not necessarily having a positive effect, withlocal textile markets being swamped by cheapsecond hand textile imports. A group of WestAfrican countries have been considering a ban on second hand clothing imports, and this could have huge ramifications for the usedtextile market.

How do different countries differ with regards to collection?As mentioned above, rates vary. If you look at thenumbers, the Netherlands and UK have high ratesof collection. The UK, in the form of WRAP, hasseen a major marketing drive urging people toplace a higher value on their used clothing itemsand this has helped to improve collection rates.Regulations in other countries are placing theemphasis on not only collecting more usedtextiles, but in finding the right end of life

solutions. For example, in Finland textile wastecannot be landfilled after 2016 (when a ban onlandfilling any waste with more than 10 per centorganic substances will be introduced).

Could the collection and sorting industry as a whole learn any lessons from individual countries?Definitely there would be something to say forgathering best practises here but it must beappreciated that every country context isdifferent and these factors affect the businesscase for textile collection and recycling. Costs oflabour, transport distances, processes, regulationand even the quality of clothing need to beconsidered and are unique to individual countries.What might make economic sense in one countryfrom a collection and sorting standpoint mightnot necessarily be economically viablesomewhere else.

What we could say is that France is leading theway in this area. Here, Extended ProducerResponsibility legislation has been introduced aspart of France’s commitment to comply with theEuropean environmental standards regardingsustainable waste management. EPR applies toclothing, household linen and footwear (TLC inFrench) producers, distributors or importers.

This means companies in these areas are nowconsidered responsible by law for providing ormanaging the recycling of their products at theend of their usage. They can either organise their own recycling programme that must beapproved by the French Public Authorities, orcontribute to an organisation accredited by law toprovide for them.

One could put quite a compelling case forextending EPR legislation beyond France.

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How can we improve collection rates generally?The short answer to this is by making it as easyas possible for consumers to hand in usedclothing by, for instance, providing morecollection point methods, whether through localauthorities or via organisations such as I:CO.

Individual apparel brands are already looking atvariations of that take-back model. Oneencouraging example is replacing ‘bins’ (whichmay still encourage the idea that old clothes are‘waste’) with a personal exchange which is overthe counter.

We would also suggest more transparency andinformation is required from organisations suchas I:CO in terms of telling the public exactly whathappens to the clothing that is collected.

Collection initiatives and take-back schemesoften use ‘closing the loop’ as part of theirmarketing material, but if the clothing collected issimply being down-cycled into a second lifebefore ultimately being incinerated, then this cansend a false message to consumers.

Closely intertwined with textile collection issorting. Sorting is a key step before textile recycling but this is an area we don’t hear much about. Why is this?Textile sorting might not sound very exciting, andusually the focus in the industry is very much onrecycling. However, we believe textile sorting isactually quite essential to enable the high valuerecycling of post-consumer textiles.

In fact, many of the recyclers we talk to confirmthat for them to be able to produce high qualityrecycled yarns, they need to have optimal controlof input, meaning they need to know the fibrecomposition of the materials that they recycle.Material sorting is therefore essential to identifyappropriate feedstock from post-consumersource for high quality and yield of recycling.

In addition, material sorting is a key enabler forcapturing the value of post-consumer textileresources and for improving the business modelof collectors and sorting companies.

Post-consumer, non-rewearable textiles are a‘bleeder’ in the industry. Costs for collection andsorting are high and revenues very low or even negative due to limited and low valuerecycling possibilities.

The fast fashion trends associated with lowquality clothing and the setting of collectiontargets at a higher level is already drawing inhigher quantities of lower quality used clothingand other textiles and increasing the cost ofcollection and sorting further.

So better sorting is important in order to make the overall business model viable?That’s right. Higher value recycling optionsbecome available due to material sorting andtherefore can improve the revenue coming in forrecyclable grades.

Currently the best way to know which materialpost-consumer textiles are made from is bylooking at the label.

This is not only very time consuming, it is also notalways possible since labels are cut out, andlabels do not always tell the truth. In some casesyou can make an educated guess based on how amaterial feels, but that is not very exact and evenpeople with experience in the industry can makemistakes here.

This means that for the majority of post-consumertextiles, there is not yet a good way to identify thematerial composition.

Is there a solution to this issue?The only solution we are aware of at present isFibresort. Basically, Fibresort is a machine that isable to detect – through optimal detectiontechnology – the fibre composition of garmentsthat are fed into the system. We are aware thatthere are more groups looking into automatedsorting but most are in very early (concept)stages. We are not aware of any othertechnologies being used though.

How revolutionary is Fibresort?The basic technology is used in multiple sectorsfor different applications. In the carpet industry

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for example, it is used to scan carpet tiles and canconfirm which material it is. However, this is verybasic: the difference between Nylon 6 or Nylon6,6 for example.

If we can make this technology work for post-consumer textiles, however, we believe it couldreally be a game changing technology since itwould allow us to material sort large quantities oflow grade textiles with high accuracy so that theycan be fed into the high value recycling orupcycling industry. Instead, as is presently thecase, of being down-cycled, incinerated andlandfilled. The key requirements for commercialapplication are accuracy and speed.

What is the current situation with Fibresort?At Circle Economy we are currently looking athow to commercialise the use of the Fibersortmachine for textiles as part of a project whichinvolves textile sorter Wieland Textiles,engineering firm Valvan Baling Systems, clothingcollection company Reshare, Worn Again, Faritexand Metrohm, which is responsible for developingthe optimal detection technology.

What does the project involve?The textile sorting project exists of three maintracks. These include optimising the sortingprocess (machine sorting based on optimaldetection technology) in order to make it fit forcommercial use; creating insight into the volumesand fibre composition of post-consumer textiles inorder to assess the exact nature of availablefeedstock; and creating a market demand andimproving the business case for high-valuerecycling of postconsumer textiles.

If successfully commercialised, could Fibresortchange the textile recycling landscape?We are currently mainly seeing the down-cycling

of post-consumer textiles, because high valuerecycling requires that you know exactly what thefeedstock is – output is only as good as the input.Efficient fibre sorting technology is key tounlocking the value of post-consumer.

Especially as we move towards chemicalrecycling, technology such as Fibresort which canprocess large volumes accurately becomesincreasingly important.

However, the business case is a problem at themoment because virgin resources are very cheapwhile the collection/ recycling process is relativelyexpensive. Costs can be reduced by scaling up,however, the costs of collection and pre-processing are still relatively high.

Positive legislative drivers, such as tax incentivesfor producers using circular or recycled fabrics orgovernment subsidies for collection and sortingprocesses, could help to overcome this barrierand bridge this transitional phase.

Are there any results from the Fibresort project yet?No technological results can be shared at thisstage of development.

We can however, share some research resultsinto the composition of post-consumer textiles(PCT) from a label sort batch test that wasconducted on recyclable PCT bales from the UK,the Netherlands and Germany. From this researchwe found that:• Approximately 2/3 of recyclable post-consumertextiles are pure materials; • Of these pure materials cotton is by far thelargest fraction; • The most common blended materials are a mixof cotton and polyester fibres. �

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