The Challenge: Tackling Deep-rooted Barriers in Fashion’s Circular Journey

In September, myself & Nipuna Gunaratne from the MAS Sustainable Business team had the privilege of joining Forum for the Future in Singapore, immersing ourselves in conversations about how we can drive systemic circularity within the fashion industry. The challenge we face is both pressing and complex: while the industry is under immense pressure to reduce its massive ecological and social footprint, the solutions we’ve tried so far only scratch the surface. The need for systemic innovations to overcome systemic barriers is now imperative.

The forum took place after a series of virtual sessions with cross-industry stakeholders, where we explored the systemic factors that impact the scaling and democratisation of circular innovations, moving away from our current linear value chains. It brought together a diverse group of leaders from all stages of the value chain, including brands, manufacturers, suppliers, and sustainability groups. This enabled a wide range of real-world perspectives to converge, fostering collaborative and holistic solutions to the industry's challenges.

Why Surface Solutions Aren’t Enough: Forum Insights

It was clear from the start that quick fixes and shallow solutions, that are usually skewed towards one end of the value chain won’t drive true and long-lasting change. This approach risks reinforcing some of the very issues we’re trying to address—issues like resource extraction and socially unjust practices—rather than dismantling them.

Some insights revealed something unexpected yet so familiar in practice: the relationships between brands, retailers, and manufacturers can inadvertently act as roadblocks. Manufacturers, for instance, are often asked to shoulder the lion’s share of the responsibility for sustainability solutions, including the financial risk. However, they aren’t always equipped for these demands, and the cost can be prohibitive. This uneven distribution of responsibility coupled with higher value created further down the value chain is more than a logistical issue; it’s a structural barrier that can halt meaningful progress.

For circularity to work, we need deeper change. We need an industry-wide understanding that this transformation involves rethinking our value chains, rebalancing responsibilities, and tearing down the systemic barriers that currently limit us.

The Program’s Vision: Shifting from Ideas to Action

The Rethinking Value Chains: Enabling Systemic Circularity in Fashion program was built to answer these challenges. Through our sessions online and in Singapore, we focused on factors that can truly scale circular solutions. We didn’t just aim to develop new innovations but to understand and strengthen the conditions that make them succeed. Imagine the potential if every idea had the ideal conditions to grow and evolve into a widely adopted solution.

The program’s structured approach includes two main phases:

1. Researching Existing Innovations: Diving deep into the roadblocks preventing current circular initiatives from scaling. It’s about identifying not just what’s possible, but what’s sustainable and scalable.

2. Prototyping New Collaboration & Innovation Models: Breaking into groups, we each developed an idea or enabler that would address our challenge — creating prototypes of new models to support a just transition into circular economies. The exercise was rooted in the Iceberg model to analyze our complex industry by looking beyond the surface level. The model encourages us to dive deeper into underlying structures, mental models, and systemic issues that drive visible outcomes. By focusing on one specific aspect of the model—whether it was addressing deep-rooted mindsets, uncovering systemic barriers, or identifying hidden enablers—we were able to craft solutions that went beyond quick fixes.

By addressing ‘barriers’ or ‘enablers’, the following prototypes were identified:

- The need for a “Cross – Functional regulatory alliance”, bringing together industry stakeholders including brands & raw material suppliers together with policymakers to create a transparent and open communication channel to design and develop policy.

- “Value Material royalties”; a concept that aims to shift consumer mindsets from disposable fashion to high quality fashion, materials, craftsmanship, and longevity in garments. This model challenges the current trend-driven mindset, promoting a circular fashion system where quality, durability, and recyclability are key drivers of value.

- A “Circular fashion hub” brings together an ecosystem where stakeholders work together to keep materials in circulation and minimise waste, rapidly piloting sustainable innovations. By integrating waste collectors, sorters, and other key players, the hub fosters a dynamic environment that challenges the linear fashion model.

Personal Takeaways: Moments of Inspiration and Insight

As I reflect on my time in Singapore, some moments stand out vividly. One was during a workshop focused on systems thinking. There, we broke down the fashion value chain, looking at it not just as a linear process but as a complex, interdependent system. This shift in perspective was eye-opening; it brought home the importance of tackling these challenges with a mindset geared toward long-term just transformation rather than quick solutions.

Another key takeaway, though familiar, was the reinforced value and importance of collaboration—not just with familiar players but with unexpected allies. Working alongside brands, suppliers, and thought leaders from various backgrounds highlighted the power of diverse perspectives. It reiterated that systemic change requires everyone at the table, working with a unified purpose.

It is clear that fashion’s path to true circularity is both a challenge and a profound opportunity. The industry is at a pivotal moment, where small, incremental changes won’t suffice. To reach the full potential of circularity, we need a holistic, systemic approach that shifts the foundations of our industry.