Delivering on Circularity

Pathways for Fashion and Consumer Electronics

An examination of circularity’s potential to help the fashion and consumer electronics industries to reduce emissions and curb waste by helping to close the supply chain loop.

Download the Delivering on Circularity White Paper

Circularity helps fashion and consumer electronics reduce emissions and waste by reusing materials and extending product lifecycles. From recycling garments and using sustainable materials in the fashion industry, to designing modular products and recovering valuable materials through take-back programs for electronics. These practices close the supply chain loop, creating a more sustainable model for both industries. Read the whitepaper to find out more.

The Status Quo: The Environmental Impact of Fashion and Consumer Electronics

Embracing a circular economy is crucial for aligning global production and consumption with sustainability targets. By focusing on the principles of a circular economy, including the 5 Rs—Reducing, Repairing, Reselling, Refurbishing, and Recycling—the circularity model enables manufacturers to extend product life, reduce waste, and optimize water usage. At the same time, it helps optimize supply chains, fostering the development of sustainable business models and contributing to long-term environmental and economic benefits.

With 80% of emissions from an average fashion or consumer electronics item occurring during production, extending product lifetimes is essential. Second-life items, for example, produce 60-75% fewer emissions than new items made from virgin materials. Circularity in these industries has a significant impact on sustainability by reducing waste, conserving resources, and lowering carbon footprints. This approach not only helps mitigate environmental damage but also contributes to a more sustainable, circular future in both fashion and electronics.

This white paper identifies 3 core enablers and 10 building blocks along the value chain that facilitate the transition from traditional supply chains to supply loops. These enablers include innovative materials, product design, on-demand production, smart product returns, reusable packaging, new use concepts, and efficient asset collection and recycling. Most importantly, circular consumer practices must be incentivized, supply chains must be redesigned, and visibility and orchestration enabled to effectively support and drive a thriving circular economy.

Brands and manufacturers play a central role in determining the level of circularity achievable, but a successful transition to a circular economy requires the concerted effort of four key stakeholders: brands, manufacturers, regulators, consumers, and logistics players. Collaboration among these groups is vital to ensure a rewarding and effective shift toward sustainability. By working together, these stakeholders can maximize the impact of circular practices, driving positive change and creating lasting benefits for industries, communities, and the environment.

The Potential for Circularity is Significant

The Baseline: The Environmental Impact of Fashion and Consumer Electronics	The combined carbon footprint of the fashion and consumer electronics industries makes up approximately 6% of global emissions. Therefore, adopting practices that support a circular economy could have a significant impact on increasing sustainability in these industries.
The Mission: Circularity Holds Large Potential for Net-zero and the Environment	Up to 80% of emissions of an average fashion or consumer electronics item accrue during production. Hence, extending the product lifetime as much as possible is critical. This can be achieved by focusing on the 5 Rs. Diagrams on circular economy show circular vs. linear product lifecycles and the role of the 5 Rs on the circular product lifecycle.
The Transformation: Building Blocks and Enablers to Go from Supply Chain to Supply Loop	Ensuring the successful transition to circularity depends on the development of materials, products, and packaging, as well as the optimization of the supply chain to allow for smart product return and recycling – among others. This chapter includes diagrams showing the transition from linear to circular supply chain model.
The Outlook: Collective Stakeholder Action Needed	A move towards a circular economy must be a combined effort between four core stakeholders. Brands and manufacturers, consumers, regulators, and logistics players must all adopt practices which support a circular economy. Only if all four groups accept their responsibility and act now can circularity become a reality.

Explore the White Paper

We are committed to strengthening the resilience of the semiconductor supply chain, driving innovation to ensure stability and sustainability in the industry. Click below to download the white paper.