Today, the Circular Fashion Innovation Network (CFIN), which is part of the British Fashion Council’s Institute of Positive Fashion, launches a report outlining critical insights and urgent next steps for the UK fashion and textiles industry to achieve a circular future. Over the past two years, CFIN has mobilised over 250 organisations across the fashion value chain - from raw material providers to post-consumer recyclers - to align efforts behind scalable and practical pathways to circularity. The report presents the key findings and learnings gathered over the past two years.
Supported by businesses representing 42% of UK clothing sales by volume, CFIN has driven an industry-first approach that places market realities at the heart of sustainable innovation. The results to date demonstrate the power of collective leadership, delivering sector-wide progress on circular systems, policy, infrastructure and innovation.
CFIN represents a fundamentally different approach to driving industry change. Unlike previous initiatives that have approached sustainability leading with social or environmental goals, CFIN brings industry together to develop market-driven solutions. Brands on the CFIN Advisory Board include John Lewis, Marks and Spencer, Sainsbury’s and Veolia.
KEY OUTPUTS OF THE REPORT
Creation of a National Textile Recycling Infrastructure Plan - This strategic roadmap aims to address the 1.3 million tonnes of post-consumer textiles generated annually in the UK, with a focus on:
- Advanced, automated sorting and fibre-to-fibre recycling infrastructure.
- Investment in recycling and automation technologies.
- Workforce development and job creation across new recycling supply chains.
- Expanded market capacity for recycled textile products.
Creation of an Industry Endorsed Extended Producer Responsibility (EPR) Framework built around three principles for an effective transition:
- Mandatory, participation across the sector.
- Variable eco-modulated fees to incentivise sustainable practice.
- Funds raised ring fenced for reinvestment in circularity.
Caroline Rush, Former Chief Executive of the British Fashion Council: "CFIN has a framework now to accelerate the industry to Circularity, embracing innovation, design principles and new business models to deliver a lower carbon impact. Our research demonstrates that a well-designed EPR system with the right recycling infrastructure is the most effective policy intervention to accelerate the UK's transition to circular fashion. With 1.45 million tonnes of post-consumer textiles generated annually in the UK and 711 kilotonnes ending up as residual waste, we need systemic change. This isn't just about environmental responsibility - it's about building a more resilient, innovative and competitive UK fashion industry."
KEY INSIGHTS INTO INDUSTRY CHALLENGES AND OPPORTUNITIES
Insights into Circular Business Models - The research revealed that while 81% of brands have circularity in their five-year strategies, 63% of consumer initiatives remain in pilot stages. Opportunities include:
- Resale, particularly for mass and premium markets.
- Repair, this is led by premium players that have the highest consumer uptake.
- Takeback, which offers strong potential for mid-market brands.
Insights into Reshoring and Sustainable Manufacturing - Through feasibility studies with seven major retailers (with a combined turnover £26.1bn), CFIN identified viable reshoring pathways in knitwear, jersey, printing and Cut-Make-Trim operations - supported by automation and AI that reduce waste and shorten lead times.
CALLS TO ACTION
The report calls on all stakeholders to work together towards this shared vision. The specific requirements for each stakeholder are laid out below.
Government and Policymakers:
- Implement the industry-led EPR framework to create industry incentives and enable long-term infrastructure development.
- Provide additional funding for CFIN so it can continue its convening role within the UK circular fashion industry.
Brands and Retailers:
- Scale circular business models from pilots to core operations and embed circular design across collections.
Manufacturers and Recyclers:
- Implement the National Textile Recycling Infrastructure Plan to strengthen domestic capacity for sustainable production and textile-to-textile material recovery.
Investors and Financial Institutions:
- Support circular innovation through targeted investment, informed by CFIN’s insights.
THE NEED FOR CONTINUED SUPPORT
CFIN is pivotal in positioning the UK as a leader in circular fashion. The organisation’s work demonstrates the commercial, social and environmental gains that a coordinated, market-driven approach to circularity can deliver. With continued collaboration and investment, the UK has a unique opportunity to:
- Create thousands of skilled jobs in recycling and circular services.
- Revitalise UK manufacturing through onshore innovation.
- Establish domestic infrastructure for closed-loop textile systems.
- Build competitive advantage for UK fashion brands through sustainability leadership.
We remain committed to enabling the transformation of UK fashion through practical innovation and industry collaboration. Download the full report here.