Feb 2026 Sustainable Fashion Update

Written By OurFashionFix

Welcome to your February update on the world of sustainable fashion. This month’s update reveals a fashion industry at a critical crossroads. While we are seeing groundbreaking shifts in digital innovation and circular retail models, global reports warn that the sector is still falling short of vital climate and water targets.

From the "world’s first" AI-driven shoppable catwalk to major high-street players embracing post-consumer recycling, the transition to a more responsible industry is accelerating - but the scale of the challenge remains immense.

Circularity & Materials Innovation

  • Banana Waste Denim: B Corp leader Deploy partnered with 29 Acacia to launch denim made from revolutionary banana waste fibre.

  • UK-Finished Jeans: River Island launched its first collection finished in the UK via LaundRE technology.

  • Circulose Restarts Production: Following a two-year restructuring period, textile recycler Circulose is resuming operations at its Ortviken plant in Sweden. The restart is backed by firm, long-term commitments from a powerhouse coalition of brands including H&M, Mango, M&S, and Reformation ensuring that production is directly aligned with guaranteed market demand for recycled circular materials. https://www.circulose.com/en/circulose-restarts-commercial-scale-production-at-ortviken-plant-in-sundsvall-sweden/

  • Circ® Expands 'Fiber Club' Initiative: Textile-to-textile innovator Circ® has bolstered its 'Fiber Club' with new partners Madewell, Reformation, and C&A, alongside industry giants Lenzing Group and Linz Textil. In collaboration with Fashion for Good and Canopy, the initiative focuses on scaling recycled inputs as Circ® prepares for the 2028 launch of its first industrial-scale facility in France. https://circ.earth/circ-announces-new-fiber-club-partners-to-accelerate-commercial-adoption-of-recycled-textiles/

·        Post-Consumer Denim: Primark launched a 'Pre-Loved' capsule where every piece contains at least 20% recycled denim and cotton, but faced criticism for the misleading use of the term “preloved “.

  • Regenerated Polyester: Ambercycle and BHF expanded their partnership to integrate cycora® regenerated polyester into global production networks.

Ambercycle and BHF: From Strategic Partnership to Core Circular Specialty Polyester for Global Apparel Brands

  • Plant-Based Pigments: LVMH-backed Sparxell raised $5 million to move their plant-based pigment production to a commercial scale.  Sparxell raises $5M Pre-Series A to scale revolutionary plant-based colour technology – Cambridge Enterprise

  • Spinnova Scales Wood-Based Fiber: Spinnova’s sustainable wood fiber continues to gain traction, with BESTSELLER expanding its partnership through a new JJXX womenswear collection. This follows successful previous launches by JACK & JONES and VERO MODA. Simultaneously, Brazilian brand Insider Store has signed a letter of intent to secure future fibre supply, marking Spinnova's growing influence in the global techwear market.

Retail Highs & Lows

  • Vinted Outpaces the High Street: New data shows Vinted now has more UK customers than almost every fashion brand, second only to Next and Primark. Chart: Vinted now has more customers in the UK than all but two fashion brands | Retail Week

  • Topshop’s AI Runway: In Manchester, Topshop launched an AI-driven, instantly shoppable catwalk, raising questions about whether AI will facilitate efficiency or just faster consumption.

  • Longchamp Achieves B Corp Status: The 78-year-old French luxury brand has officially earned B Corp certification with an impressive score of 91.0, joining a select group of luxury houses including Chloé and ba&sh to meet B Lab’s rigorous new 2026 standards.   Longchamp Becomes a B Corp™

  • The "Efficiency" Pivot: Oh Polly nearly doubled profits despite a dip in turnover, showing a shift from "growth-at-all-costs" to operational leanness.

  • Digital Growth: Freemans reported a 9% sales surge by pivoting to a digital-first model targeting the "overlooked" 40+ demographic.

  • SHEIN Invests $42M in Supplier Empowerment: SHEIN has channelled more than $42 million into its manufacturing network since 2023 via its SCEP initiative. The funding is reportedly being used to upgrade physical facilities and provide vocational certification for workers at over 200 supplier sites. This investment runs alongside the expansion of SHEIN’s "micro-batch" strategy—an agile model that launches items in batches of 100–200 to eliminate excess inventory before committing to bulk production.     Shein Expands Supplier Programme With $42m Investment

  • ASOS Launches Hybrid Virtual Try-On: On February 17, 2026, ASOS rolled out a "hybrid" virtual try-on tool for 10,000 products on its iOS app. Developed with AIUTA, it allows users to either upload their own photo or select an AI model mirroring their proportions. The tool loads in 4–7 seconds and is a key part of ASOS’s strategy to reduce returns, which currently see high rates due to "fit uncertainty.  ASOS launches hybrid approach to virtual try-on, giving customers a unique way to shop with confidence | ASOS plc

  • Adidas reported 53.8% rise in full year operating profit  to £1.77bn, according to preliminary unaudited figures for 2025 financial year.

·        H&M posted better-than-expected rise in operating profit in its final quarter but cautioned that a slower start to the new financial year could see group sales fall 2%, following strong Black Friday trading and softer demand in December.

·        Levi’s reported solid European growth, with net revenues up 8% (10% organically), with the direct-to-consumer business contributing to a 4% increase in full-year revenues to $6.3bn (£4.6bn).

·        Debenhams Group Upgrades Outlook: Following strong performance across its flagship platform and a "material improvement" at PrettyLittleThing, Debenhams Group has raised its FY26 adjusted EBITDA forecast to £50m - surpassing its previous guidance of £45m. The group confirmed that all brands are now trading profitably, leading to the decision to retain PLT as a core part of its fashion-led marketplace strategy. 

  • Under Armour posted a £110m ($150m) operating loss in the 12 weeks to 31 December, with sales down 5% to £980m ($1.3bn) and a net loss of £316m ($431m).

  • Quiz enters administration: Fashion retailer Quiz has collapsed into administration for the third time in six years, citing a poor festive period and rising operational costs. The move has resulted in over 100 immediate redundancies at its Glasgow headquarters and the closure of its e-commerce platform while administrators seek a buyer for the remaining assets.

  • Freemans reports strong Christmas trading – against the backdrop of slowdown in UK retail sales.  They saw growth across home, fashion and customer acquisition. 

Policy & Regulation

·        EU Bans Destruction of Unsold Goods:  On February 9th, the European Commission officially adopted the Ecodesign for Sustainable Products Regulation (ESPR) measures. Large brands are now legally prohibited from destroying unsold clothes, accessories, and shoes. This is a massive shift from "voluntary recycling" to "mandatory inventory management."  Brands must now publicly disclose exactly how much they discard and why. This applies to large firms starting July 2026. 

https://environment.ec.europa.eu/news/new-eu-rules-stop-destruction-unsold-clothes-and-shoes-2026-02-09_en

·        Mandatory LFW Standards: The BFC now requires London Fashion Week brands to have approved sustainability strategies and a 60% minimum of preferred fabrics.  How new sustainability guidelines impacted London Fashion Week - Glossy

Supply Chain & Ethics

·        New report by Uzbek Forum for Human Rights and Human Rights Watch based on 75 interviews with farmers in 6 regions of Uzbekistan and the Republic of Karakalpakstan, exposes extreme exploitation of cotton and wheat farmers. https://lnkd.in/euR9Me7H

 

Resale, Rental & Repair

Essential Reports & Research

·        Nobody's Child released their Digital Product Playbook.  It includes lessons learnt along their journey from pilots to business-as-usual (BAU) implementation.  It also features contributions from its DPP partner tech business Fabacus as well as trade bodies including The British Fashion Council and sustainability champions Fairly Made, WRAP, Reskinned and WEFT

The_DPP_Playbook_Accelerating_Fashion_Readiness_1_1.pdf

  • Fairly Made launched their e-book  🇬🇧 2026 Fashion Landscape: Shaping the Industry through Innovation  Featuring an introduction by Global Fashion Agenda CEO Federica Marchionni, the guide provides a strategic roadmap for 2026, where regulatory pressure and transparency have become industry imperatives.

  • AAFA Updates Global Chemical Standards: The American Apparel & Footwear Association (AAFA) has released the 26th edition of its Restricted Substances List (RSL). This open-source tool covers over 300 chemicals across 16 categories, consolidating global bans and labelling obligations to help brands navigate increasingly complex international chemical regulations.  AAFA Release Version 26 Restricted Substance List

·        Unpacking Pay Equity in Fashion: Türkiye, a new paper published by Global Fashion Agenda explores the structural drivers behind gender pay disparities in one of Europe’s most significant fashion sourcing hubs. The Insights paper outlines actionable recommendations to support equal pay for equal work. https://lnkd.in/eDG4qSwC

Are you ready for the 2026 landscape?

OurFashionFix
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Jan 2026 Sustainable Fashion Update