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Monitor for Circular Fashion

Monitor for Circular Fashion

An overview of the circular maturity level of the Italian fashion industry

The Case for a Circular Fashion Industry

One of the missions of Enel X is to facilitate the transition toward a circular economy. The fashion industry is one of Italy’s most strategic economic sectors and among those with the most significant negative impact on the environment. Therefore it needs to become a key driver of the circular economy if we want a more sustainable future. To contribute to creating a more sustainable economy, Enel X and SDA Bocconi have teamed up to produce the Monitor on Circular Fashion, an overview that provides clear visibility into the circular maturity level of the Italian fashion industry. The Monitor on Circular Fashion uses an Enel X methodology that is cross-sectoral, measuring how a company applies circular economy principles all along its value chain; it is also specific, because it looks at how a company applies those principles in terms of energy management and consumption at a specific site — for example, a textile factory. The Monitor promotes a sustainable value chain for zero-impact fashion products that meet the demands of increasingly environmentally conscious consumers.

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Objectives

The project involves a representative cross-section of Italy’s fashion industry along its entire value chain, reporting on best practices and gaps, and proposing models and methods for integrating circular practices into the business cycle. Its first report in 2021 provided a “snapshot” overview of circularity in Italy’s fashion industry. The second Monitor report will be released in Fall 2022, and will focus on eco-design and sustainability claims to prevent greenwashing. The long-term objective is to strengthen Italy’s role in the world in terms of best practices in circular fashion, and to export the project to other countries.

Macro-activities

During its first year, the Monitor for Circular Fashion held training  brainstorming and methodological sessions on circular fashion business models at Milan’s SDA Bocconi, which  conducted a survey to identify industry-specific KPIs and carried out in-depth one-on-one interviews.

 

Enel X compiled a Circular Economy Report with corporate and site energy circular energy assessments; conducted one-to-one sessions to pinpoint the main gaps; and created a tailored roadmap of solutions to increase circularity levels.

2nd year of Monitor for Circular Fashion

2nd year of Monitor for Circular Fashion

Enel X and SDA Bocconi renew their partnership

The second year of activity builds on these foundations by working with 16 brands, retailers and service providers throughout the upstream and downstream supply chain, as well as a KPIs Committee made up of consultants who are experts in measuring circularity. During 2022, the KPIs identified in last year’s research were implemented through a series of ongoing meetings and pilot projects. At these meetings, the companies in the Monitor community explained their traceability, transparency sustainability and circularity projects already under way or in a start up phase. The pilot projects will focus on supply chain partnerships in which Monitor companies will mentor and support young designers and Italian landmark entities to share values through circularity. The pilot projects will also test the principles of the UNECE (United Nations Economic Commission for Europe) sustainability claims. 
Monitor for Circular Fashion

Monitor for Circular Fashion Report

Click here to find out the results of the research on the Italian fashion industry supply chain.

Methodology

The Monitor for Circular Fashion employs a robust methodology developed by the project partners: inter-sectorial KPIs furnished by Enel X and fashion sector-specific KPIs compiled by SDA Bocconi. The KPIs measure how the company applies circular economy principles along its value chain in terms of specific circular business models; and how the company applies circular economy principles in energy management and consumption at a specific site. Companies  provide information and data by completing ad hoc questionnaires and in-depth interviews. The collected data is then  aggregated in the final report that identifies sector macro-trends, and also analyzed to spot any circularity gaps and pinpoint key areas for improvement.

Actions

Based on the results and the identified gaps, the Monitor for Circular Fashion provides suggestions for actions and ideas to improve the circularity performance of the sector by identifying innovative solutions that are applicable along the value chain. It also identifies best practices for circular business models and value chain activities. 
Circular Economy Report

Circular Economy Report

A cutting-edge tool to help you rethink your business in a sustainable way

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Advantages

Companies that l take part in brainstorming sessions receive an SDA Bocconi research report as well as an individual Enel X Circular Economy Report, with both corporate and site-specific energy analyses. The Circular Economy Report is an important tool that pinpoints areas for improvement, provides a roadmap to circularity and decarbonization, and enhances corporate communication strategies.
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