How effective are the circularity strategies of fashion companies in meeting the requirements set by new European legislative initiatives on environmental and social sustainability? This question has driven the research activities and key findings of the Monitor for Circular Fashion, a research observatory within the Sustainability Lab of SDA Bocconi School of Management. Today the Observatory presented during its annual event the 2024/2025 Report to strengthen circularity in the fashion industry in light of a constantly evolving regulatory framework.
The event at the Milan Campus of SDA Bocconi was attended by many key players in the sector: among them, the European Commission, EURATEX, OECD and the Monitor for Circular Fashion partner companies of which YKK ITALIA is part.
The results of Report 2024/2025: challenges of the coming years in the new European legislative context
YKK ITALIA together with the SDA Bocconi research team, the 27 companies that are partners of M4CF (representing a total of 123 thousand workers and generating a turnover of EUR 34 billion in 2023) have analyzed their current compliance with the latest European regulations – including Ecodesign, EUDR, Digital Passport, Green Claims, Nature Restoration Law and Due Diligence Directive – sharing experiences, challenges and solutions.
The Observatory shows that ecodesign is a priority for companies: the strategies considered most effective are those that favor the use of renewable or non-toxic materials, also considering developments on chemical compliance requirements (REACH). However, the ongoing definition of this regulation makes it difficult for companies to quantify the costs and revenues of implementing these solutions.
Ecodesign is also essential to preserve biodiversity: for most M4CF companies, climate change, responsible water use, and land preservation are the main climate challenges to focus their strategies on in the coming years.
The monitoring of the supply chain and compliance with environmental and social standards throughout the production cycle is another relevant issue on which companies will need to focus business plans on. This is also due to the entry into force of the CSDD, the Due Diligence Directive. Compliance with working hours and safety conditions are the main sources of risk perceived by Monitor’s partners.
In terms of technologies for implementing circularity, the next three years are expected to see a 31% increase in the adoption of artificial intelligence to support the circular transition, followed by online platforms for circularity (with a growth of 19%) and online platforms for traceability (+12%).
Finally, the Report summarizes the results of a survey conducted by Certilogo in collaboration with M4CF, which investigated consumers’ familiarity, perceived value, and impact of Digital Product Passports. The implementation of this technology will be mandatory in Europe starting in 2027 to provide consumers with complete information, from raw materials to the production and distribution chain, as well as product maintenance, to help them make informed purchasing decisions. The study, conducted on 1,741 respondents from different geographical areas and age groups who used Certilogo’s platform, reveals that 49% of respondents stated they are familiar with Digital Product Passports, with Generation Z showing the highest awareness (54%), despite this tool not yet being widely adopted. Additionally, 71% believe it will increase trust in brands, and 49% think it will improve brand loyalty. Among the reasons hindering the purchase of sustainable products: cost (37%), fear of buying counterfeit products (29%), and concerns about greenwashing (22%).
MFC4 partners’ circularity projects and the measurement of their impact
Since the start of its research activities, the M4CF has set itself the objective of identifying key performance indicators (KPIs) tailored to the fashion industry, which M4CF companies have tested on concrete circular projects and good practices that can make an effective contribution to the debate on measuring action.
There are 14 projects in the 2024 Manifesto and the 2024/2025 Report, 4 of which are new and 1 has been updated since the last edition of the Monitor:
• Think Leather, created by HModa with GAB Group, Seriscreen and the social cooperative Progetto QUID, transformed leather remnants into pen holders. The pilot project reached the industrial production phase at the end of 2023. Temera is the technical partner for the creation of the digital voice.
• Kintsugi, a collaboration between YKK, Save The Duck and Temera, is a repair solution that is inspired by an ancient Japanese art of restoration and makes it possible to reduce the use of resources for the production of new zips.
• Traceable Fiamma Bag, realized by Ferragamo with UNIC, ICEC, Conceria Antiba and Temera, deepens the study on leather traceability with the aim of validating a data management system for the drafting of Due Diligence in compliance with the forthcoming European Regulation on Deforestation (EUDR Reg. 2023/1115).
• One Next Step, co-created by the TOD’S Group and the Gruppo Mastrotto with the support of UNIC and ICEC and in collaboration with Temera, develops a footwear model according to ecodesign principles, where 79% of the components by weight are replaced with alternative materials, currently not used by the brand, whose environmental impact has been calculated with LCA studies.
• Digital Product Passport, an industrialized project by Save The Duck and Certilogo, introduces a digital passport for 99% of the garments in Save The Duck’s 2024 collection. Developed by Certilogo, this passport allows consumers to access detailed product information and contribute to the circular economy through two innovative features: the “click to resell” function on eBay and the Donate button via Humana People to People Italia.
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