Subject: Promoting circularity and traceability in the fashion and textile sector: a proposal for a Digital Product Passport to achieve product transparency
Three years of R&D summarized in 42 minutes!
Our doctoral candidate, Pantxika Ospital ,
earned her PhD after three years of research at belharra /e-SCM on the Digital Product Passport . On October 17th , she presented her findings defense at ESTIA. "The fashion and textile industry faces significant environmental, social, and economic challenges. This thesis is central to the fashion sector's transition, which aims to drive and accelerate circularity and transparency to address the challenges of sustainability, evolving regulations, and growing consumer expectations." – Pantxika Ospital
The fashion and textile industry faces significant environmental, social, and economic challenges. This thesis is central to the fashion sector's transition, which aims to drive and accelerate circularity and transparency in order to address the challenges of resource efficiency, evolving regulations, and growing consumer expectations.
The textile and clothing industry is facing a triple crisis, similar to many other sectors:
* An ecological crisis : The textile industry is notoriously known for its waste and pollution, with the use of non-renewable resources, harmful chemicals for the production and processing of fibers, intensive use of water and soil, as well as the discharge of microplastics and hazardous substances into the water, leading to the degradation of the natural environment (Ellen MacArthur Foundation, 2017).
* An economic crisis : According to the 2017 Pulse of the Fashion Industry report, the textile industry was facing a potential decline due to the scarcity of raw materials, rising energy, water and labor costs, as well as supply and retail disruptions caused by the Covid-19 pandemic (Global Fashion Agenda and Boston Consulting Group, 2017; Anner, 2020).
* A social crisis : Working conditions throughout the textile production chain have been exposed by numerous scandals. The UN Guiding Principles on Business and Human Rights, which require respect for human rights, including the payment of a living wage to workers in the supply chain, are still not being respected by many companies (Labour Behind the Label).
Increased public awareness of these risks and the economic crisis have led to changes in consumer behavior. Consumers now seek to make informed purchases and demand greater transparency from fashion companies. In response, regulations are evolving in Europe, both nationally and at the European level, to obtain more information about fashion products (European Commission, 2022).
In this context, regulations are being developed in Europe to strengthen information disclosure at both national and European levels. Key initiatives include the implementation of a digital product passport (PNP) for textile articles. This PNP aims to inform consumers and improve communication between stakeholders in the textile industry throughout the value chain, including after purchase, to promote circularity (Adisorn et al., 2021).
The objective of this document is to examine the current state of the textile industry and new regulations in order to develop a data model for the PNP. Our methodology is divided into three stages:
1- Assess the current state of the industry by collecting information on textile products online and in stores, including details at time of purchase, labelling, displays and digital product passports, where applicable, for a representative sample of the industry.
2- Establish a baseline of requirements for future transparency by exploring draft and current legislation at national and European levels concerning transparency and traceability in the textile industry.
3- Formulate recommendations for a DPP data model that would encompass all future legislation and support a circular economy for fashion.
Fashion consumer behavior is evolving towards a desire for informed decision-making based on adequate information. They seek radical transparency, including information on product origin, environmental impact, employee working conditions, production costs, customs duties, and profit margins (The Business of Fashion and McKinsey & Company, 2019).
Data from four consecutive fashion transparency indices (2017–2020) show that brands are becoming increasingly transparent (Jestratijevic et al., 2021). These indices compare sustainability reports across five areas, including policies, governance, traceability, audits, and issues. They highlight an improvement in transparency within the fashion industry.
Based on the definitions of corporate and product transparency, a study was conducted to assess the current practices of brands. The study focused on a representative sample of 54 brands, divided into luxury, premium, sport, and mass market categories, available in France online and in stores, and involved in the Fashion Pact.
To assess the company's transparency, criteria such as the disclosure of supplier names, their sustainability conditions, the purchasing practices of purchasing companies, the CSR report, the publication of the supplier list and environmental and social commitments were taken into account.
To assess product transparency, information on the traceability of specific products was sought, including the origin of raw materials, the country of manufacture, the name of the supplier or factory, material certification, and other aspects related to environmental and social impact.
This data model allows us to aggregate information about products, processes, and stakeholders, enabling all actors in the circular economy to collect and use it. Our data model for the National Productivity Plan (NPP) in the fashion industry allows us to evaluate three existing programs. This evaluation leads to recommendations for improving the content of the sector's NPPs.
