Resortecs reposted this
Founder @ Sustainabelle Advisory Services | NED | Integrating sustainability and innovation into business strategy
What if we talked about a product's lifecycle cost instead of its procurement cost? Yes, certified and next gen materials often (not always) cost more upon procurement. But what if we think of the entire lifecycle of the product. We know that Extended Producer Responsibility (EPR) schemes will be implemented across Europe and potentially even the US. EPR results in higher costs for brands that are not doing things the "right" way, but did you know that eco-modulation can mean that brands that are doing things the right way get bonuses? Take the example of France, which has had EPR for textiles in place since 2007, eco-modulation bonuses can go up to 0.70 Euros per product in some cases! Whereas the eco-tax can be between 0.02-.12 Euros. What can qualify for a bonus in France? 1) Bonuses for product sustainability (durability), 2) Bonuses for obtaining environmental labels, 3)Bonuses for incorporating raw materials from recycling. And these may be cumulative. That's a pretty good carrot for companies to do the right thing! And a product lifecycle view could give brands a more accurate picture of total costs. See below an example from our report featuring examples from innovators Resortecs and Simplifyber, "Next Gen to this Gen: Scaling Material Innovations in the Fashion Industry" which you can read here: https://lnkd.in/eW-4ruU4. What do you think? Does this make a difference for procurement decisions? #thisisthefuture #sustainablefashion #nextgen #materialinnovation #circularity #businesscaseforsustainability Cédric Vanhoeck Maria Intscher-Owrang What do you think?
Great insight for shifting the conversation towards lifecycle costs! As sustainability is becoming a business imperative, EPR schemes and eco-modulation bonuses can truly incentivise companies to adopt more responsible practices. And the long-term savings and brand value that come from 'doing it right' are often underestimated if decisions focus only on procurement costs.
Thanks Christine Goulay ! These are exactly the calculations we should make these days - the business case for durability, circularity and certifications! C2C Certified makes sure companies are on track for sure.
If incentivized in the correct way, lifecycle impact based procurement could make a difference in all industries, not just in fashion. I really like the idea Christine! The problem seems to be bridging the gap between the economic and ecological impact of decisions. And understanding how they're related.
Great 🤩 having the cost of lifecycle approach can also help to think and develop profitable circular business models! Thanks for sharing 💡
Next Gen materials and technology have the potential to be a powerful force in the economy. Thanks for highlighting the work of Simplifyber in this case study!
I agree that companies need to think beyond the immediate cost of procuring materials and parts. Considering full cost of ownership requires examining the entire production process - can changing materials allow them to remove process steps, run equipment at a lower temperature, etc.? The calculations also vary depending on where products are made and sold. Labor costs, government incentives and penalties will all be different in different markets.
In the B2B world this concept is called total cost of ownership TCO and many business and public procurers struggle with it, preferring to pay a cheap purchase price and then paying dearly for repairs and early replacements. What I don’t understand is the Resortecs calculation. How can the procurement of (the material of a garment I suppose) cost as little as 5 cents a kilo? What do I miss? Maybe Cédric Vanhoeck can enlighten me.
Thanks, Christine, for sharing your thoughts. I fully agree with the role of regulatory authorities in driving sustainable practices, as seen in France through a mix of incentives and penalties. This approach is crucial for successfully introducing new and disruptive sustainable materials or technologies. At the same time, it's important that the cost of these sustainable practices, once made mandatory for factories, does not exceed that of traditional processes. This presents a significant challenge for R&D: to develop solutions that are cost-effective or even cheaper than current alternatives.
💯 Christine! Would love to share va with you the work we are doing at the Denim Deal to increase circularity ♻️👖 in the denim industry, This work is possible thanks to our esteemed agents of change Nicolas Prophte Laura Vicaria Max R. Gilgenmann studio MM04 COSE361 Vanessa LE BRIS Stephane POPESCU. Let’s have a call!
Founder & Chief Sustainability Officer at RethinkRebels BV. | CSRD | GRI | B Corp Leader | Driving sustainable leadership, strategic impact, and empowering fashion professionals for meaningful change.
1wThank you, Christine Goulay! This is exactly what we needed. Financial calculations that clearly demonstrate the value of circular business models are key to opening doors with C-level management, while also addressing social and environmental benefits through LCA/LSCA calculations. We're currently developing an upcycling business model, and have realized that, from an economic standpoint, circular models are far more compelling for businesses. It's all making so much sense to a lot of brands now!