Decarbonizing your fashion revenue: How to do it with FAUME

The fashion industry is at a turning point. The AGEC law has a significant impact on the textile industry by promoting sustainable consumption practices. Long known for its aesthetic innovations and trends, the industry is now under scrutiny for its environmental impact. The activities and impacts associated with the industry, including sustainability and ethical aspects, are now at the forefront of concerns. Brands must now balance two seemingly opposing imperatives: maintaining profitable growth while limiting their carbon footprint. In this context, the adoption of circular strategies becomes a priority. The importance of ethics, eco-design, and the use of sustainable raw materials is crucial for sustainable development. But how can a brand decarbonize its revenue while continuing to grow? This is where the FAUME solution comes in.

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Challenges in the fashion industry:

The fashion industry faces numerous environmental and social challenges. Fast fashion, which involves producing and consuming low-cost clothing in large quantities, is one of the main causes of pollution and environmental degradation. This rapid consumption model leads to overproduction of clothing, often of poor quality, which quickly ends up in landfills. Fashion companies must now consider the impacts of their industrial activities on the environment and society, and adopt more sustainable and ethical practices. By prioritizing ecological materials and reducing their carbon footprint, they can contribute to a more planet-friendly future.

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Environmental and social impact of fashion:

The fashion industry has a significant environmental and social impact. The production of clothing requires large amounts of natural resources, such as water, energy, and raw materials. For example, cotton cultivation, widely used in the textile industry, is extremely water-intensive. Additionally, the production and processing of clothing generate waste and greenhouse gas emissions, contributing to climate change. On the social front, working conditions in the textile industry are often precarious, with workers exposed to health and safety risks. It is crucial to rethink production methods to minimize these negative impacts.

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Regulatory and environmental context of the textile industry: The urgency of decarbonization:

The entry into force of the CSRD (Corporate Sustainability Reporting Directive) marks a real turning point for European companies, and fashion brands are no exception. This directive imposes more rigorous extra-financial reporting, requiring companies to disclose their environmental impact, including their carbon footprint. The objective is clear: to encourage companies to significantly reduce their greenhouse gas emissions while being transparent with their stakeholders.

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For the fashion industry, this represents a colossal challenge, particularly given the environmental and economic issues it faces. The sector is responsible for 4 to 10% of global CO₂ emissions, with supply chains that span the globe. Facing this growing pressure, many brands are seeking ways to combine economic growth with emission reduction. Sustainable fashion prioritizes ethical and responsible practices, aiming to reduce environmental impact while promoting the use of sustainable materials and recycling. But the question remains: how to continue growing while reducing the carbon footprint?

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Sustainable growth: A new model thanks to secondhand:

The traditional model, based on the mass production and sale of new clothing, is no longer sustainable in the long term. Each new garment put on the market has a significant carbon footprint (on average 30kg of CO2), linked to the extraction of raw materials, manufacturing, transportation, and the end of life of the product. The slow fashion movement focuses on responsible consumption practices, the use of sustainable materials, and fair working conditions.

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This is where second-hand comes into play. Instead of producing more, it involves extending the lifespan of existing clothing by giving them a second life through reconditioning. This model allows brands to decouple their growth from the production of new items while meeting the growing demand from consumers for more sustainable products. This increasing awareness among consumers about the environmental impact of fast fashion is leading some to reduce their consumption or opt for more ethical choices, such as buying durable or locally made clothing.

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Ethical Fashion: A solution for the future:

Ethical fashion represents a promising solution for the future of the fashion industry. It aims to produce and consume clothing responsibly and sustainably, taking into account environmental and social impacts. Ethical fashion companies prioritize the use of sustainable raw materials, such as organic cotton or recycled fibers, reduce waste and greenhouse gas emissions, and improve working conditions for employees. Consumers also play a key role by choosing ethical clothing and supporting brands that adopt sustainable practices. By making informed choices, they can encourage the industry to evolve towards a more environmentally and human rights-friendly model.

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The FAUME Solution: How to decarbonize your revenue?

FAUME is a comprehensive solution dedicated to fashion brands that wish to integrate reconditioning and second-hand sales into their strategy. By enabling brands to valorize their second-hand products, FAUME offers a unique opportunity to reduce their carbon footprint while increasing their revenue.

Here's how FAUME helps brands decarbonize their revenue: The sustainable fashion sector, valued at approximately 6.9 billion in2021 is expected to reach over 10 billion by 2026.

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1/ Reduction of Production-Related Emissions:

Each reconditioned garment sold with FAUME avoids the production of a new item, significantly reducing CO₂ emissions. For example, a new garment generates an average of 30 kg of CO₂, while a reconditioned garment at FAUME generates 3.5 kg of CO₂. By adopting this approach, brands can reduce their environmental footprint while generating revenue from existing products.

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2/ Optimization of Product Lifecycle:

The FAUME platform allows brands to efficiently manage the reconditioning of their clothing, from collection to resale. This extends the lifespan of products and reduces the need for constant production of new items. Result: a decrease in overall emissions associated with the manufacturing and transportation of clothing.

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3/ Decarbonization of Revenue:

Thanks to FAUME, each euro of revenue generated by the sale of reconditioned clothing has a much lower carbon footprint than that generated by the sale of new clothing. Traditional e-commerce, on the other hand, can lead to an increase in greenhouse gas emissions, particularly due to clothing returns and multiple deliveries, which intensifies the environmental impact of transportation in the textile industry.

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For example, in a classic model, a new garment sold for €100 generates approximately 0.30 kg of CO₂ per euro. With FAUME, by selling a new garment while reconditioning two others, the carbon footprint per euro of revenue can be reduced by 40%, dropping to 0.18 kg of CO₂.

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Let's delve deeper into the calculation of this reduction with a simple example.

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A. The Mixed Model: A Concrete Example with the Faume Solution

A user of the FAUME solution exchanges an average of two garments for a €60 voucher and buys a new garment for €100. The two garments recovered by the brand are then reconditioned and resold at €50 each, generating an additional €100 in revenue for the brand.

In this scenario, the brand generates a total of €200 in revenue:

• €100 from the sale of the new garment resulting from the use of the voucher.
• €100 from the resale of the two reconditioned garments.

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Calculation of the carbon footprint per euro of revenue in this mixed model:

• Carbon footprint of a new garment: A new garment generates approximately 30 kg of CO₂ on average.
• Carbon footprint of a reconditioned garment: A reconditioned garment at FAUME has a reduced carbon footprint, around 3.5 kg of CO₂. (Source: Aktio study)

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Here's how the total carbon footprint breaks down:

• New garment: 30 kg of CO₂ for €100.
• Two reconditioned garments: 2 x 3.5 kg of CO₂ = 7 kg of CO₂ for €100.

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Total carbon footprint for this mixed model:

• 30 kg (new garment) + 7 kg (two reconditioned garments) = 37 kg of CO₂.

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Total revenue:

• €100 (new garment) + €100 (two reconditioned garments) = €200.

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Carbon footprint per euro of revenue:

• 37 kg of CO₂ / €200 = 0.18 kg of CO₂ per euro of revenue.

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B. The Classic Model: Sale of Three New Garments:

Compare this to a classic model where a brand sells only new garments.

Imagine this brand sells three new garments at €100 each. The carbon footprint of a new garment is 30 kg of CO₂, so for three garments:

Carbon footprint for three new garments: 3 x 30 kg of CO₂ = 90 kg of CO₂.

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Total revenue:

• 3 x €100 = €300.

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Carbon footprint per euro of revenue:

• 90 kg of CO₂ / €300 = 0.30 kg of CO₂ per euro of revenue.

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Comparison and Analysis

• FAUME Model: By selling one new garment and two reconditioned garments, the carbon footprint per euro of revenue is 0.18 kg of CO₂, a 40% reduction compared to the classic model.
• Classic Model (100% New): The carbon footprint is 0.30 kg of CO₂ per euro of revenue, due to the high emissions associated with the production of each new garment.

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Why this difference?

• The production of new garments generates significant emissions related to the cultivation or manufacture of raw materials, the production processes, and transportation.
• In contrast, with FAUME, the reconditioning of garments avoids the production of new items. The collection, cleaning, and repair of reconditioned garments generate much less CO₂, which allows for a reduction in the overall carbon footprint.

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4/ Alignment with CSRD Regulation:

By integrating reconditioning and second-hand sales, brands can not only reduce their carbon footprint but also meet the CSRD requirements for extra-financial reporting. FAUME offers tools to help brands track and measure the carbon footprint of their activities, thereby facilitating the transparency required by the regulation.

Sustainable Growth: A Strategic Lever

Maximizing the Impact of Reconditioning with FAUME

With FAUME, fashion brands can transform their economic model by integrating reconditioned clothing, allowing them to decarbonize their revenue while meeting regulatory requirements like the CSRD. This strategic change not only reduces the carbon footprint per product sold but also extends the lifespan of clothing, while meeting the growing demand from consumers for more sustainable solutions.

A Measurable Solution for Sustainable and Decarbonized Growth

FAUME offers a concrete and measurable solution for brands seeking to reduce their environmental impact without compromising their growth. By adopting a hybrid model combining new and reconditioned clothing, brands can generate revenue while reducing their emissions, without the need to multiply the production of new items. This approach allows them to remain competitive in the market while meeting environmental commitments.

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In parallel, this approach promotes the improvement of the quality of products on the market. By anticipating that each item may be resold several times, brands take durability into account from the design stage, creating more resistant and valuable clothing.

This evolution towards high-durability products also opens the way to the integration of the DPP (Digital Product Passport), which could become an essential tool for tracing the lifecycle of items and ensuring their quality. This topic will be explored in a future article, where we will discuss how the DPP contributes to optimizing the sustainability and traceability of reconditioned products.

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Growth and Responsibility: A New Balance

The challenge for fashion brands is no longer just to grow, but to do so in an ecologically responsible manner. Thanks to solutions like FAUME, it is possible to build a sustainable economic model where each sale contributes to both profitability and the reduction of the carbon footprint. Integrating reconditioning into the business strategy not only meets the requirements of the CSRD but also attracts a clientele that is increasingly concerned about the environmental impact of their choices.

In partnership with FAUME, brands can make this leap towards a more circular fashion industry, where economic performance and environmental responsibility are perfectly balanced, in a sector undergoing profound transformation.

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