From the Sector

Global Fashion Agenda (GFA), with support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the H&M Foundation, has launched the Upstream Circularity Playbook, now available in six languages. This comprehensive resource draws on extensive case studies across multiple countries to provide a globally accessible, step-by-step guide specifically tailored for garment manufacturing regions. Designed to help stakeholders scale circular business models by valorising post-industrial textile waste, the Playbook equips manufacturing hubs with tools needed to drive sustainable change.

With over 520 global regulations now encouraging circularity and regionalisation in sourcing and design, the Playbook serves as a critical tool for establishing and scaling upstream circular ecosystems. It equips manufacturers, brands, policymakers, and investors with actionable strategies to implement circular fashion solutions in core manufacturing regions. With significant volumes of post-industrial textile waste yet to be properly harnessed, its consistency and high quality present a pivotal opportunity for scaling textile-to-textile recycling technologies in manufacturing regions. This can pave the way for recycling of post-use textiles and clothing. In Bangladesh alone, embracing textile recycling could unlock USD 4 to 5 billion annually through the export of recycled products, however, limited recycling capacity underscores a critical gap in industrial waste management.

Empowering Circularity in Manufacturing Countries
The Upstream Circularity Playbook draws on over 20 case studies from diverse regions such as Bangladesh, Cambodia, Indonesia, and Vietnam, providing an international and regional perspective that fosters knowledge sharing across the fashion industry. The examples showcase successful collaborations between brands, manufacturers, recyclers, and textile waste collectors, offering a replicable model for scaling circular solutions in various global contexts. Collaboration across the entire value chain is critical for unlocking the full potential of circularity. The Upstream Circularity Playbook provides a roadmap for stakeholders to work together in building a just and scalable circular fashion system.

A Constructive Framework for Action
The Playbook offers a pragmatic, step-by-step framework for building the necessary infrastructure to scale circularity in garment manufacturing countries. It provides essential tools for:

• Segregating textile waste at the factory level to prevent contamination and enhance recycling quality.
• Leveraging digital traceability platforms to track waste flows and align with recycler requirements.
• Collecting, aggregating, and sorting textile waste to ensure it is properly prepared and delivered to recyclers.
• Matching textile waste to the best use case by selecting the most suitable recycling technologies to ensure high-quality material recovery.
• Designing for circularity by incorporating recycled materials into new products, contributing to the creation of a closed-loop system.

Harnessing the Opportunity
This emphasis on upstream circularity presents an immediate opportunity to valorise post-industrial waste, laying the groundwork for scaling textile-to-textile recycling and ultimately reducing dependency on virgin resources as they are gradually replaced by recycled materials. GFA previously noted in the Scaling Circularity Report that existing recycling technologies have the potential to drive up to 80% circularity in the fashion industry if fully scaled. Additionally, the Pre-Feasibility Report highlights that, in the case of Bangladesh, recycling textile waste could reduce cotton imports by 20%, saving nearly $750 million USD annually.  The Upstream Circularity Playbook therefore builds on this research by providing an actionable framework for the industry to harness such opportunities.

With contributions from over 20 experts and organisations, the Playbook is designed to spur action on a global scale. It provides a blueprint for fostering economic, environmental, and social benefits in garment manufacturing regions and emphasises the need for collaboration across the value chain to achieve a scalable solution for textile-to-textile recycling.

The Upstream Circularity Playbook is openly accessible and available in six languages, inviting stakeholders worldwide to provide feedback and join the conversation.

The European LIFE ANHIDRA project marks a milestone in sustainability with the unveiling of its innovative closed-loop system for treating and reusing textile wastewater. During the event held at the Pizarro facility in Guimarães (Portugal), ANHIDRA was introduced as a revolutionary solution transforming water management in the textile industry. The event brought together the project’s key partners: Jeanologia, the Spanish company responsible for designing and building ANHIDRA and a global leader in sustainable technologies for the textile sector; AITEX, the Textile Industry Research Association; and Portuguese textile company Pizarro, accompanied by representatives from the European Commission.

A solution to reduce the textile industry’s water footprint
The textile industry consumes an estimated 93 billion m³ of water annually, accounting for 4% of global water use. ANHIDRA addresses this critical challenge by regenerating up to 95% of the water used in textile washing and finishing processes, returning it in optimal conditions for reuse.
With zero discharges, zero contamination, and no complex treatments, ANHIDRA stands out with exceptional results:

• 92% reduction in water consumption
• 98% reduction in wastewater generation
• Up to 15% reduction in energy consumption

ANHIDRA not only minimizes environmental impact but also reduces the operational costs associated with traditional water management, making it a competitive and eco-friendly solution.

Innovation and circular economy
Beyond water regeneration, ANHIDRA focuses on reusing textile waste. In collaboration with AITEX, the project is exploring how to transform fibrous fragments collected during water treatment into new textile products, reinforcing the project’s commitment to the circular economy.

"ANHIDRA not only transforms water management in the textile industry but also proves that sustainability and competitiveness can go hand in hand. This system sets a new global benchmark," said Vicent Albert, Jeanologia’s Product and Technology Director.

During the event, attendees observed the various stages of the system in action at the Pizarro pilot plant. The project plans to implement ANHIDRA in at least 36 industrial facilities over the next three years, aiming to expand to 100 systems internationally within five years. This is expected to save up to 12.34 million m³ of water annually.

Funded by the European Union's LIFE program, LIFE ANHIDRA demonstrates how business cooperation and technological innovation can provide effective solutions to major environmental challenges. "Our goal is to make this technology accessible to the entire textile industry, contributing to a more sustainable future for fashion and the planet," concluded Vicent Albert, project coordinator.

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This project has received funding from the European Union's LIFE program (grant agreement no. 101074372). The content of this document is the sole responsibility of the authors and does not necessarily reflect the position of the European Union, CINEA, or the corresponding funding program.

INDA, the Association of the Nonwoven Fabrics Industry, and EDANA, the Voice of Nonwovens released the Global Nonwoven Markets Report, A Comprehensive Survey and Outlook, 2023–2028, it is now available for purchase through both INDA’s and EDANA’s websites.

This latest edition offers a comprehensive analysis of global nonwoven macro drivers, supply and demand trends, and an expanded regional trade section. The report forecasts a steady growth in demand for nonwovens across key sectors over the next five years.

Key Insights from the Report Include:

• Production Growth
  From 2013 to 2023, nonwoven production increased at an annual rate of 5.4%, with significant growth driven by the spunlaid and needlepunch processes.
• Regional Production
  China led global production growth, contributing an additional 4.5 million tonnes from 2013 to 2023—a remarkable 9.4% annual growth rate.
• End-Use Expansion
  Wipes, medical, and transportation segments experienced the fastest expansion among nonwoven end-use applications.

“The global nonwovens industry is changing in a positive way with moves toward innovation and sustainable products,” said the report’s co-authors Jacques Prigneaux, Market Analysis & Economic Affairs Director at EDANA and Mark Snider, Chief Market and Industry Analyst at INDA.

This report offers a detailed breakdown of regional demographics, production forecasts, technological advancements, and investment outlooks for North America, Greater Europe, Asia, and South America. Additionally, it includes an economic trade analysis, end-use segmentation, and insights into future industry trends.

“As strategic partners, INDA and EDANA are committed to sustained growth and innovation within the entire nonwovens supply chain. This report presents our collective best estimate on future demand, predicated on sound macro-economic analysis,” said INDA President Tony Fragnito. “This Global Nonwoven Markets Report is an essential planning resource for all those involved in strategic planning within the nonwovens supply chain.”

“The demand for reliable market information and forward-looking data is a vital ingredient for thriving a successful business. This new report, developed by our two leading nonwovens industry associations, draws on decades of experience, close observation, and direct data collection from hundreds of companies," stated EDANA General Manager Murat Dogru. "Created by the industry for the industry, it stands as a unique, authoritative, and reliable resource on nonwovens data than any other report.”

Global Standard, the non-profit that manages the Global Organic Textile Standard (GOTS), in partnership with The Hague-based UpRights Foundation, announced the launch of the GOTS Due Diligence Handbook for Auditors. This landmark resource is a critical step in promoting sustainable practices, human rights and ethical business conduct across the textile sector and in line with evolving regulatory requirements around the world.  
 
"The GOTS Due Diligence Handbook for Auditors is not only a milestone for GOTS, but also a transformative tool for the textile industry on its journey towards responsible production," said Ruslan Alyamkin, Responsible, Standard Development and Implementation (Social Responsibility) at Global Standard. "This Handbook provides our Certification Bodies with the knowledge and guidance they now need to ensure that the highest standards of environmental and human rights due diligence are met and verified. By aligning with international frameworks and the recent legislative developments, we are further strengthening Global Standard’s mission to promote sustainable, transparent and socially responsible practices throughout global textile supply chains.”
 
Purpose
The GOTS Due Diligence Handbook for Auditors provides a comprehensive framework to guide Certification Bodies and their auditors in assessing compliance with the GOTS 7.0 criteria. Specifically designed to be practical and ensure consistent verification of due diligence, human rights and social criteria, the Handbook outlines clear, step-by-step methodologies for auditors to conduct thorough and effective audits.
 
The Handbook is not intended to replace or override the existing audit protocols and procedures already used by Certification Bodies but instead provides additional insights and tools.
 
In addition, the new Handbook complements the GOTS Due Diligence Handbook for Certified Entities, which was released in 2023 and offers detailed guidance on integrating responsible practices throughout operations and supply chains. Together, these resources are essential elements of the Global Standard Due Diligence Framework and empower GOTS Certified Entities and Certification Bodies to play their part in maintaining the highest standards of human rights and environmental due diligence.
 
Development of the Handbook
As with other Global Standard resources, the development of the GOTS Due Diligence Handbook for Auditors was an inclusive process involving extensive consultation with a wide range of stakeholders. Global Standard's Standard Development Unit conducted in-depth interviews with GOTS auditors to gain insight into the practical challenges and best practices in verifying compliance with human rights, social and due diligence criteria in different geographical regions. In addition, Global Standard engaged business and human rights experts to address sector-specific issues and complexities. This collaborative approach ensures that the Handbook reflects the operational realities and challenges of GOTS Certified Entities around the world.
 
Regulatory Landscape
The Handbook’s release is timely given the evolving global regulatory landscape, which is increasingly demanding stronger corporate accountability in business practices. Recently, the EU Corporate Sustainability Due Diligence Directive (CSDDD) introduced mandatory due diligence requirements for companies operating within the EU. The introduction of CSDDD significantly elevates standards for corporate transparency and accountability. Other laws, including Germany’s Supply Chain Act, France’s Duty of Vigilance Law and Norway’s Transparency Act, are placing similar expectations on businesses to manage their human rights and environmental impacts responsibly.
 
GOTS 7.0 requires Certified Entities to respect universally recognised human rights criteria and follow the emerging legal obligations under the CSDDD and other due diligence laws.

The textile industry faces increased scrutiny on its substantial amounts of waste generated each year. This presents a challenge for the industry, but also a massive opportunity for circularity and transparency; with efforts underway to track, reduce, and utilise waste towards better end-of-life practices.

Waste reflects a burden on resources, inefficient processes, and unmanaged emissions, highlighting the need for action. Rising regulations are also inciting action from the industry, such as recyclers using textile waste as feedstock to displace virgin fibre production. However, information on textile waste is currently fragmented, with data scattered across a multitude of organisations and platforms. This lack of centralised knowledge and standardised data hampers the industry’s ability to address and capitalise on textile waste.

To tackle this issue, Fashion for Good, with catalytic funding from Laudes Foundation and IDH, has partnered with Reverse Resources, Global Fashion Agenda, Circle Economy, and Accelerating Circularity – who actively address many facets of textile waste and leverage each other's diverse skill sets and wealth of information to create a tool consolidating the outcomes of individual research. This tool provides an overview of data points on waste quantities, types, compositions, and other insights, as well as links to the original studies. With information on waste attributes, data collection methodologies, organisations involved, and a lens on upcoming studies for a region, the tool empowers users of textile waste, as well as stakeholders looking to further the industry’s knowledge base.

With a lens on global hotspots of textile waste, as well as links to established resources for each region, strategies aimed at valorising waste become more attainable. For instance, recyclers can strategise their feedstock sourcing by gaining insights into waste streams and their specific characteristics. Governments can utilise this data to develop informed policies and regulations that encourage sustainable waste management practices. Fostering connections between stakeholders, both local and international, can help address operational challenges towards the advancement of circularity.

This initiative marks a significant step towards building a more transparent, collaborative, and circular fashion industry. By uniting key players from across the ecosystem, it is not only addressing the pressing issue of textile waste but also unlocking its potential as a resource. As the platform continues to grow, incorporating more data and insights from other organisations working on assessing waste in newer regions and different waste categories, the aim is to provide deeper clarity and drive meaningful change. Together, the way can be paved for a fashion industry that values sustainability, reduces waste, and contributes to a healthier planet for future generations.

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, posted a marked improvement in quarterly performance as the chemical industry struggles to recover from a prolonged downturn and the company’s management executes their 3 year IVL 2.0 strategy to enhance competitiveness and drive efficiencies.

Indorama Ventures reported Adjusted EBITDA  of $427 million in 3Q24, a gain of 32% YoY, supported by steady volumes, improving industry spreads, and the company’s unstinting focus on optimizing assets and reducing fixed costs. The quarter marks Indorama Ventures’ first YOY improvement for the year, with all three business segments recording earnings growth, following a prolonged industry downcycle marked by customer destocking and suppressed margins. Volumes remained steady for the Combined PET and Fibers segments, while Indovinya posted a robust performance amid a peak season in the Crop Solutions market.

Fibers reported Adjusted EBITDA of $48 million, a gain of 44% YoY, driven by improved industry spreads in Lifestyle and higher volumes in Mobility and Hygiene. Management is focused on reducing fixed costs and improving profitability across the entire portfolio and taking firm action to restore market share in key verticals.

Looking ahead, the global economic outlook remains uncertain amid continued inflation, geopolitical tension, and supply chain disruptions. However, throughout the downcycle, Indorama Ventures’ experienced management team has worked hard to optimize and deleverage the business under their IVL 2.0 evolved strategy to emerge stronger and drive enhanced earnings quality in a new era of sustainable profit growth. In 3Q24, this unrelenting focus delivered fixed-cost savings of $19 million, which will sequentially increase into next year as the benefits are fully realized. Operating rates for the group increased to 82% in the quarter—from 69% previously—as the company completed its planned optimization program for CPET and Indovinya, with Fibers under implementation.

The company’s digital transformation program is accelerating according to schedule following the implementation of the SAP S/4HANA ERP platform as a digital core. North America is already benefiting from an AI-based procurement solution, while the Connected Worker Platform is driving manufacturing excellence. The first sales and supply chain solutions are expected to go-live early next year.

TradeBeyond is hosting Global Sourcing Day 2024, an exclusive, invite-only conference bringing together top executives, thought leaders, and industry experts from the retail supply chain sector. This year’s event will focus on innovative strategies, sustainability, and technological advancements that are transforming retail sourcing.

WHEN: Nov. 12, 2024, 9 AM – 4 PM HKT
WHERE: Cordis Hotel, Hong Kong

Featured speakers include:

• Britton Russell, COO, MGF Sourcing
• Jeff Alpert, CEO, Pillar AI
• Aubree Evangelista, Global Product Manager Social, amfori
• Sophie You, RESET Carbon
• Rick Horwitch, Vice President of Strategy & Innovation, Bureau Veritas

Global Sourcing Day 2024 offers a unique opportunity for senior supply chain professionals to explore the future of sourcing and sustainability. Key topics include:

• AI and Digital Transformation: How artificial intelligence is reshaping sourcing operations.
• Sustainable Sourcing and Compliance: Adapting to evolving environmental regulations and standards.
• Traceability and Transparency: Elevating supply chain visibility to build trust and accountability.

This event provides critical insights for those aiming to navigate the challenges and seize the opportunities within global supply chains in 2025 and beyond.