This Startup Promised to Help Fashion Go Green. Brands Didn’t Want to Pay for It.

livemint.com:

When a Swedish startup launched a new material made from recycled textiles in late 2022, the fashion industry hailed it as a game changer in its efforts to lessen its environmental impact. Last month, the company, Renewcell, filed for bankruptcy. While some big retailers, including H&M and Zara, were enthusiastic backers, not enough brands committed to buying its material.

Having misjudged how quickly the fashion industry would switch to more sustainable sourcing, the company was left with a costly factory running far below capacity. The plight of Renewcell illustrates the fashion industry’s hesitancy in adopting new materials that may be better for the environment but typically cost more, at least in the short term. It is also another sign of how some companies are putting less emphasis on green initiatives amid a more challenging economic climate.

“There’s a disconnect" between some companies’ stated sustainability ambitions and what they actually do, said Tricia Carey, Renewcell’s chief commercial officer. “Fashion brands have the intention," Carey said, “but many are lacking the road map to make it happen." Making clothes uses a large and growing amount of the planet’s resources. More than 100 billion garments are produced annually and that number is set to rise by one-third by 2030, according to the Ellen MacArthur Foundation, a nonprofit.

It says the average garment is worn only 10 times before being discarded, often ending up in the trash. The fashion industry is responsible for as much as 8% of global greenhouse-gas emissions, according to the United Nations Alliance for Sustainable Fashion. Fashion brands have come under growing pressure from consumers and regulators to reduce their environmental impact, posing