Welcome to our August edition of the Sustainable Fashion Update.

As summer draws to a close and we reluctantly return to our desks, we're coming back renewed, replenished and reinvigorated that we're on the right path. This summer, our work and home lives felt more entwined than ever, and it felt personal: from phone alerts warning of high wildfire risk, to Vogue's widely-discussed piece "Has Sustainability Fallen Out of Fashion?", to Jo I's own adventure across Europe, dodging wildfires along the way. Closer to home, Jo W has been inundated with second-hand uniform requests in her role as her local school's pre-loved uniform coordinator a small but brilliant sign that families are choosing circular fashion as term begins, and a genuinely positive start to the new school year. It felt like the season everyone quietly agreed: now is the time to get a plan together. So we're heading into autumn feeling genuinely optimistic about the scale of change on the horizon, building on some major milestones in chemical safety, EPR and supply chain transparency from August in our update below.

Policy & Regulation

The National Emergency briefing petition passed 100,000 signatures which means it will go to full parliamentary debate National Emergency Briefing on climate & nature

EU Packaging and Packaging Waste Rules. New rules governing packaging and packaging waste officially entered into application on 12th August across the European Union, introducing stricter waste reduction and recyclability targets. New packaging rules for less waste and easier recycling - European Commission
The EU’s Empowering Consumers for the Green Transition (ECGT) Directive takes effect on September 27, 2026, brands face a strict ban on unsubstantiated environmental c laims, generic buzzwords, and unverified sustai nability labels across all marketing and digital channels. For fashion brands and retailers, vague terms like "eco-friendly" or offsets-based "climate neutral" claims are out; clear, transparent data on material composition, durability, and true supply-chain impact is now the non-negotiable baseline for consumer trust. ECGT Directive explained: What organisations who sell in Europe should know and do | The Carbon Trust
EU Circular Economy Law Blind Spot: Critics warn that the EU’s upcoming Circular Economy Act risks missing the mark on sustainability by focusing too heavily on recycl ing targets while ignoring absolute material co nsumption and reduction.

Sweden Prepares to Ban PFAS. Sweden announced comprehensive plans to ban forever chemicals from a wide range of everyday consumer products by 2028, aligning with broader Nordic efforts to eliminate hazardous fluorinated substances. Learn more via Chem Trust.
Reuters Highlights New Jersey PFAS Settlement. Reuters reported on the milestone legal developments surrounding legacy chemical pollution, including multi-million-dollar settlements with key industrial players. Review the background on Circle of Blue
US States Ban PFAS in Textiles.Three US states - California, New York, and Maine - implemented formal legislative bans on PFAS in textiles, stepping up pressure on global brands supplying the North American market. Forever Chemicals Levels Drop After State Laws Phase Out PFAS in Textiles
I reland Opens Industry Consultation on Textile EPR. Ireland initiated its formal industry consultation process to shape the delivery plan and operational framework for national textile extended producer responsibility. Consultation runs till 9th September 20 26, the functioning manda tory EPR scheme will be in place by April 2028 Read the details on Global Textile Times.
UK Call for Evidence on Digital Product Records. The UK government launched a formal call for evidence regarding digital product recor ds policy to explore harmonised data fr ameworks for apparel and consumer goods. Call for evidence: digital product records policy -GOV.UK
Italy Moves a Step Closer to EPR Italy advances textile circularity with draft EPR rules
US Blacklists Chinese Cotton Giants. The United States has blacklisted major Chinese cotton entities over forced labour concerns, while China has retaliated by sancti oning US organisations pr oviding supply chain traceability and compliance technologies. US blacklists major Chinese cotton groups - Apparel Insider
US launches $480m textile nearshoring push US launches $480m textile programme - Apparel Insider

Circularity & Materials Innovation

Imperial College and Ponda Showcase Regenerative Materials. Researchers at Imperial College London partnered with material innovators Ponda to highlight the future scaling potential of bio-based, regenerative insulation alternatives derived from Typha (bulrush). Read the full feature on the Imperial College News Portal.
Arc'teryx introduces its most circular jacket yet: Technical outerwear leader Arc’teryx has just launched System 0, a ground-up design framework that engineers materials, trims, and construction together from the start. By ensuring products can be completely recovered at end-of-life rather than relying on recycling as an afterthought, the brand's newly debuted jacket sets a fresh benchmark for scalable technical circularity.
Sortile Launches Material Intelligence Platform. Apparel Insider highlighted the launch of Sortile's new material intelligence platform, designed to give textile recyclers much deeper automated data regarding garment construction, fiber blends, and quality. Read the report on Apparel Insider.
JRC Chemical Recycling Report. A new European Joint Research Centre study on chemical recycling warned that advanced recycling remains too costly to compete effectively with virgin materials under current market conditions, presenting direct hurdles for polyester circularity. JRC Publications - Economic viability of chemical recycling
Strategic Pivot: Metsä Group is investing €25 million in a commercial Muoto fiber-packaging line in Finland while officially dropping its planned Kuura textile fiber mill. The shift highlights how severe global overcapacity and a lack of price premiums for responsibly sourced materials are forcing sustainable innovators to redirect capital away from the challenging textile sector.
Polymateria Biodegradability Breakthrough. Researc h by bio tech firm Polymateria demonstrated that polyethylene and polypropylene packaging incorporating their proprietary technology can fully biodegrade in natural environments within two years. Read more on Polymateria.
Global Sourcing Partnerships: Bangladesh and th e Netherlands have signed a bilateral memorandum of understanding (MoU) to accelerate circular ity, waste reduction, and resource efficiency across the ready-made garment (RMG) and textile sector.
Inditex Turns Beer Waste into Textile Fibres. Inditex announced a collabora tive initiative with brewery Damm to transform brewing waste products into innovative, lower-im pact textile fibers. Read the coverage on Yarn and Fibers.

Fendi Launhes Denim Collection Made with Bananatex

Fendi Launches Denim Collection Made with Bananatex. Luxury house Fendi introduced a new capsule collection featuring denim crafted with Bananatex, the durable, plastic-free fabric made from naturally cultivated abacá banana plants. Explore the collection details via The Impression.
Fashion For Good Benchmarks PFAS Alternatives. Fashion For Good launched a dedicated project to benchmark and scale safer chemical alternatives to PFAS across technical and apparel supply chains. Moving Beyond PFAS: Fashion for Good Launches a New Project to Navigate the Emerging Landscape of PFAS-free Finishes - Fashion for Good
UAE Circular Economy Push: The UAE is teaming up with the Ellen MacArthur Foundation to develop a national strategic roadma p focused on fashion and textile circularity.
Closing the Skills Gap: De Montfort University has partnered with CircKit to embed industry-grade circular desi gn and compliance software directly into its fash ion curriculum, giving students hands-on experience with Life Cycle Assessment s and eco-design

Rental Resale & Repair

Oxfam launches Rental and Prepares for Secondhand September 2026

Oxfam Launches Rental and Preps Second-Hand September. Oxfam expanded its circular footprint by launching a dedicated fashion rental initiative just ahead of its annual Second-Hand September campaign. Read more on Retail Gazetteand TheIndustry.Fashion.Second Hand Sep tember 2026 | Oxfam GBWomen's Rental Hire | Women's Rental UK | – Oxfam Rental
New industry analysis from The London Datastore estimates that the capital's circular fashion economy has surged to a £2.5 billion valuation. Highlighting the rapid scaling of resale, rental, and repair models, the data confirms that cir cul ar retail is n o longer a niche sustainability alternative, but a measurable, high-growth economic contributor to one of the world's leading fashion hubs.
Lululemon Launches Resale in Canada. Technical apparel giant Lululemon expanded its circular operations by rolling out its trade-in and resale platform across the Canadian market. Lululemon Launches Like New Resale Program

Repairium at Reading Festival. The Repairium makes a high-profile appearance at Reading Festival, championing garment care, upcycling, and hands-on repairs for festival-goers. Repairium at Reading Festival – All the Repair Cafes near Reading
Primark Free Repair Workshops and REUNIQLO. Retail Gazette reported that Primark has hosted over 730 free repair workshops across its store network, while Uniqlo continues to scale its restyling, customisation, and repair offering through REUNIQLO. Primark and Uniqlo turn to clothing repairs in bid to win over Gen Z - Retail Gazette
The Right to Repair: While the EU's formal Right to Repair framework which went live for 500 million Europeans this August - currently focuses on electronics and appliances rather than directly on clothing, the regulatory momentum is building on textiles. Running parallel to this anti-waste agenda, the EU's ban on destroying unsold apparel and footwear also took effect in July 2026. As Vogue Italia recently spotlighted through pioneers like the United Repair Centre, repair and circular infrastructure are rapidly transitioning from niche initiatives into core commercial necessities. For retail buyers and fashion brands, integrating repair capability and designing for longevity is no longer just about meeting policy trends - it is the new operational baseline.
eBay Resale Economy Valuation. eBay's dedicated resale ecosystem reported milestone growth, surpassing $1 billion in total secondary market value. EBay forecasts upbeat quarterly revenue as high-value categories drive momentum | Reuters
Ik ea to Launch UK Second-Hand Marketplace. Furniture and home giant Ikea announced the rollout of a dedicated second-hand marketplace in the UK to facilitate peer-to-peer pre-loved trading. Ikea to launch UK second-hand furniture marketplace for members
Crafting Renaissance:Liberty has more than doubled the size of its fabrics department to 4,630 sq ft, introducing dedicated crafting classes and expanding its haberdashery space. Following an 11% rise in fabric sales last year, the iconic de partment store is leaning heavily into the social-media-driven sewing boom an d consumer demand for making and longevity over fast-fashion consumption.
Sustainable Fashion Week is fast approaching (A Single Thread) is a grassroots, community-led movement countering fast fashion through local repair cafés, clothing swaps, and works hops. Taking place from September 26 to October 4, the event u nites communities nationwide to champion practical circular fashi on skills; you can explore local events or get involved directly at Sustainable Fashion Week / A Single Thread

Supply Chain & Ethics

Extreme Heat Threatens Worker Safety and Supply Chains. Extreme heat is fast becoming one of the most serious threats to worker safety and supply chain resilience in the global apparel industry. The International Accord is moving to add binding heat-stress protocols to its mandates after watchdogs documented severe health impacts on garment workers in Pakistan and Bangladesh. Heat stress in supply chains: the risk most programmes miss
Global Framework Agreement Signed by H&M. H&M signed a revised Global Framework Agreement with IndustriALL Global Union and Swedish trade union IF Metall, reaffirming an eight-year commitment to protect freedom of association, human rights, and workers' representatives from discrimination. H&M, IndustriALL, IF Metall renew GFA to protect garment workers
Supply Chain Accountability Gap: A Turkish garment workers' union has accused H&M and Inditex of failing to intervene against alleged union-busting at a major denim manufacturer, highlighting ongoing challenges in protecting worker rights during cross-border production shifts.
Bangladesh Gas Crisis Cuts Production. The Bangladesh Garment Manufacturers and Exporters Association reported that an ongoing national gas supply crisis has reduced the apparel manufacturing sector's production capac ity by 30 to 40 percent. Bangladesh Gas Crisis Exposes RMG's Decarbonization Catch-22
Taiwanese Workers Receive Fee Refunds. Textile manufacturing companies in Taiwan are on track to return $6 million in recruitment and placement fees previously charged to migrant workers to secure their employment. On the Mend: How Taiwan’s Textile Industry Can Achieve Ethical Employment With Support from the Global Apparel Sector - Transparente

Lenzing’s annual report flags forest fires as a risk to it’s pulp supplies

Lenzing’s annual report flags forest fire as a risk to its pulp suppliesPulp Division - Lenzing Annual and Sustainability Report 2025

Retail Highs and Lows

Boohoo Fined Over Misleading Discounts. Online retailer Boohoo was hit with a £2.3 million fine following regulatory investigations into deceptive discount pricing practices. Boohoo fined £2m by French consumer watchdog over false discounts | The Independent
Shein Valuation Slips Amid US Tariffs. Shein's valuation experienced a swing to a reported $99 billion valuation (down 70%) as incoming US tariff policies and tightening cross-border tax exemptions impacted sales volumes. The Shein IPO Is Finally On But It Has Lost 70% In Value Along The Way

Mud Jeans filed for bankruptcy Mud Jeans Bankruptcy Filing and Circular Fashion Debt
Sézane’s Strategic Shift : Sézane has sparked fierce debate with a major visual rebrand, trading its signature playful prints for a stripped-back, minimalist aesthetic, tighter collections, and higher price points. As founder Morgane Sézalory explained the pivot toward intentional curation over rapid scale, "we are going to stop the growth". While drawing mixed reactions from a loyal community mourning its whimsical roots, the move signals an intriguing commercial brakes-hit toward slower, more deliberate fashion models.
H&M cuts: 250 UK support roles face consultation as the high street giant restructures to streamline operations.
Frasers Group Acquires Harvey Nichols. In a rapid pre-pack administration deal, Frasers Group secured the acquisition of luxury department store icon Harvey Nichols. Harvey Nichols has been acquired by Frasers Group
Lefties Expands to the UK. Inditex-owned value fashion brand Lefties announced its of ficial UK market entry in late August, launching its debut store in Liverpool. Zara’s sister brand Lefties confirms late August opening for first UK store - TheIndustry.fashion
Next: Raised its full-year pre-tax profit forecast to £1.24bn followi ng a stronger-th an-expected 9.2% jump in full-price sales.
Ralph Lauren: Lifted its annual outlook after a robust Q1, posting a 14% rise in revenue and a 23% boost in operating profit.
Adidas: Upgraded its sales forecast after hitting a record €6.7bn in Q2 revenue, fuel ed by a 25% surge in direct-to-consumer sales.
Mulberry England: Narrowed its pre-tax loss to £8.9m while returni ng to positive unde rlying EBITDA and seeing a 23% revenue bump in early trading.
John Lewis Partnership: Posted a 5% rise in ann ual sale s to £13.4bn and a 6% boost in underlying profit, driven by strong growth at Waitro se ou tpacing the department store divi si on.
JD Sports Fashion: Lowered its full-year pr ofit guidance to £700m–£800m after group like-for-like sales slipped 3.1% year-on-year during the summer trading quarter.
Historic Heatwaves Impact Retail and Consumer Behaviour. Persistent heatwav es across Europe and global markets are cooling footfall and shifting consumer purchasing patterns toward lightweight, summer-specific apparel while disrupting broader retail economies. Explore the analysis on Modaes.

Ethipian Creator Goes Viral with Trash Fashion

Ethiopian Creator Goes Viral with Trash Fashion. Content creator Kalu Putik captured over a million followers in record time by transforming everyday waste and discarded materials into stunning, high-fashion editorials. Read the feature onAfrica.com.

Reports & Research

Industry Impact & Accountability:Textile Exchange has released its annual report, tracking a record-breaking 132 million tonnesin global fibre production. While participating brands increased their share of preferred, certified materials from 58% to 67%, fossil-fuel synthetics continue to drive growth, total sector emissions rose 6% year-on-year, and textile-to-textile recycling remains stubbornly stuck below 1%.

Consumers Want Less Choice: Research published by ASOS reveals that 64% of consumers feel the fashion industry offers too many options and not enough practical guidance. With 68% admitting it’s easier to know what to buy than how to wear it, and 33% abandoning purchases because they can't picture the outfit -shopper fatigue is real. Crucially, 86% prioritise personal style over fast-moving trends, proving that the sustainable sweet spot isn't producing more options, but helping people creatively love and style what they already own. Consumers want styling advice, not more choice, ASOS finds - TheIndustry.fashion
Why Consumers Are Ditching Polyester. Analysis by the Business of Fashion explored the rising consumer migration away from synthetic polyester toward natural fibres driven by microplastic awareness and comfort. Why Consumers Are Ditching Polyester for Natural Fibres | BoF
Greenhushing is hitting dangerous levels: A new Reuters commentary by Climate Group CEO Helen Clarkson highlights how corporate self-censorship is letting sustainability slip out of the public eye. With UK climate media coverage dropping 38% between 2021 and 2025, and vanishing from over 70% of news reports during Britain's record-breaking hot June, this silence only cedes ground to climate inaction amid rising political polarisation. Clarkson urges companies to break their greenhushing habits, speak up courageously, and champion the commercial resilience underpinning the UK's green economy.

What were the biggest stories for you this month?

August 2026 Sustainable Fashion Update