A sobering reality The impact of the fashion and textiles industry on the environment has, by now, been well documented: it accounts for 5% of global emissionsa and consumes 93 billion cubic metres of water annuallyb, as well as other non-renewable resources. It is also a source of pollution, releasing 500,000 tonnes of microfibres into the ocean from washing processes each yearc. However, the part which fashion returns play in the environmental footprint of the industry has not been fully understood until now. E-commerce, for all the opportunities it brings to the fashion industry, has also resulted in a growing wave of fashion returns, which is an issue that affects the online channel far more than bricks-and-mortar retail. COVID-19 had a part to play in this, as consumers turned to online channels when stores were shut, and retailers extended their returns windows to stay compelling and competitive, e.g., John Lewis (35 days from store reopening), Marks & Spencer (90 days) and TK Maxx (30 days from store reopening)d. As such, clothes were no longer tried on in stores prior to purchase, and instead at home, automatically increasing the likelihood of returns. While there are many other reasons for consumers buying online and returning at a higher frequency than before, one thing is for certain: the economic and environmental costs of returns can no longer be ignored. Although offering free returns has been a way for many retailers and brands to drive sales in the past, the cost of encouraging and processing returns is turning out to be very high. The UK fashion industry is estimated to lose at least £7 billion in 2022 due to returnse. However, what is most concerning about returns in the long run is their environmental impact. UK returns are estimated to generate about 750,000 tonnes of CO2 emissions in 2022, out of which 350,000 tonnes come from reverse logistics processesf . There is also a significant amount of waste generated, as fashion returns that cannot be resold, reused or recycled may be sent to landfill or incinerated. To ensure the sustainability and long-term value of the fashion industry, it is therefore critical that all fashion industry stakeholders come together to set new standards and processes for a less wasteful future. Industry stakeholders need to rethink pre-consumer and postconsumer engagement and address operational topics such as sizing issues, reverse logistics emissions, to accelerate the journey towards a more responsible industry. This could be done through the use of new technologies (e.g., electric vehicles to reduce transport emissions, process automation to make returns handling more efficient), and advanced analytics solutions to truly understand the causes for returns and how to reduce them in the most effective way possible. Retailers and brands can either choose to in-house the implementation of these technology solutions or to work with strategic partners and technology providers to address this agenda. Data solutions are also needed to create transparency across the industry, so that all stakeholders can have a clear view of their emissions at each step of the product journey, including the returns process.
Savithri Bartlett (Wed,) studied this question.