Misaligned incentives and reward systems that do not factor in externalities prevent progress on the more circular and sustainable use of resources, and current incentives do not support the transition to circularity and companies lack actionable decision-making information, it notes.
A standardised framework can help redefine a company’s measure of success, develop action roadmaps for higher degrees of circular resource use and develop strong accountability systems that enable data-based reporting to regulators and transparent communication with stakeholders, it says.
WBCSD has proposed leveraging its circular transition indicators (CTI) to tailor metrics specifically for the fashion industry and substantively scale up the circular economy. CTI is a comprehensive and flexible circularity measurement framework that is publicly available to companies from all sectors and of all sizes.
Working with CTI, companies from all positions in the value chain can confidently build baselines and set targets across portfolios of products, facilities and at the corporate level, the report asserts.
Companies can rely on CTI to understand which circular strategies bring the most positive impacts on their carbon reduction and biodiversity restoration road maps.
The fashion industry’s linear ‘take-make-waste’ model is not sustainable, leading to wasteful practices and detrimental environmental impacts, the report observes.
Though several fashion companies are at the forefront of the transition to a circular economy, scaling circularity across an entire company and the full value chain is proving challenging, it notes.
From a value chain perspective, a standardised approach to measuring circularity can help rally companies in the industry around common targets and measures of success, it adds.
ALCHEMPro News Desk (DS)
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