Funded project - Producing the Unlocking Clothing Circularity report

Last updated: 30 August 2023
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Project lead: Kmart
Status: Complete
Funding source: Circular Economy Business Support Fund
Funding amount: $80,000
Co-contribution: $40,000

The Unlocking Clothing Circularity report articulates the current status of clothing consumption and disposal in Australia, and draws on international precedent to build a suite of possible policy actions that might drive the transition toward a circular economy for clothing.

Victoria BSF Fashion Textiles Clothing Design

Background

Kmart Australia is a major retailer of clothing and other household items. The business recognises the need for better practices and more transparent reporting throughout its supply chain, and the need to support circular clothing recovery systems in Australia.

Kmart Australia understands that this problem is an industry-wide challenge. Through this project, by producing the Unlocking Clothing Circularity in Australia report, Kmart has contributed to the systemic policy approaches and worked with Sustainable Resource Use (SRU), a specialist environmental consultancy.

The report was presented to the Australian Fashion Council (AFC) to help develop the National Clothing Product Stewardship Scheme and its advocacy position.

By promoting more supportive local policies this report aims to increase the reuse, repair and recycling of clothing across the country. Having this report in place, Kmart recognises its capacity to design garments to be more readily recovered by these means.

Date Description
August 2021 Project commencement
July 2022 Research and industry consultation to inform project deliverables
March 2023 Publication of final report and gifting to the Australian Fashion Council

Challenges

At the beginning of this project there was a clear lack of aligned policy direction nationally on how to create a supportive policy environment for clothing circularity, which this project set out to address.

The Australian Fashion Council was best placed to lead in this space thanks to its leadership in creating a National Clothing Product Stewardship Scheme.

In December 2022, the expectations of what this project could deliver changed. It became clear that a full cost-benefit analysis for policy recommendations was not going to be possible considering the budget for this report and the intensive approach required for regulatory impact statements and policy papers.

From the time of scoping to delivery, there were major contextual changes in the clothing market. This included the delivery of preliminary scheme design for the AFC National Clothing Product Stewardship Scheme. SRU, the consultancy that led the research for the report in this piece of work, is also a primary delivery member of the AFC consortium delivering the National Clothing Product Stewardship Scheme.

Outcomes – what worked?

The Unlocking Clothing Circularity in Australia report produced by this project outlines a suite of policy initiatives for the state and national governments. Each would create a more supportive policy environment for a clothing circular economy.

There is clear overlap between this report and work completed for the AFC, notably in the following reports:

The Unlocking Clothing Circularity in Australia report goes beyond the published background data and primary research used in the above AFC publications. The report includes a list of policy recommendations to enable and support textile design and recovery in Australia.

The AFC relies on this work, funded by Sustainability Victoria, to promote clothing in the political agenda and propose supportive interventions assisting circular economy initiatives at each level of government.

Insights to share with other businesses

Circular economy, while in its infancy, presents so much opportunity for new and incumbent industry. Constant improvement is inevitable and maintaining relevance through research and design improvement is critical to future-proof businesses.

Stakeholder consultation was a key element of this project’s success, which included key players in the clothing industry and the re-use sector, along with clothing circularity experts, and Victorian Government representatives. These stakeholder groups communicated frequently and shared insights. The report is a valuable building block informing the bigger stewardship scheme that is being developed.

What’s next?

The final research report was given to the Australian Fashion Council in early 2023 as a basis for advocacy at all levels of government.

The ongoing work designing a National Clothing Product Stewardship Scheme will require supportive policy environments to deliver its objectives of clothing recovery, repair and reuse. The suggestions made in this work will assist industry and government to work in alignment to realise their shared outcomes.

3 mannequins in store displaying winter wear.

Get in touch

Contact:

Corporate Affairs & Sustainability - Kmart Group sustainability@kmart.com.au