Threads of Change - Weaving the circular economy with SHC

Weaving the circular economy with second-hand clothing.

Second-hand clothing is the cornerstone of a more sustainable textile industry

The SHC sector has thrived for decades to extend the life of garments, while decreasing the environmental footprint of the textile industry and delivering significant social and economic benefits. Keep browsing to find out how the sector supports and even pioneers EU policies related to resource efficiency, waste management, transparency and responsible consumption.

The SHC industry is the first thread to a more circular economy. Find out how.

Select a topic:

Development

The profit

from selling second-hand clothing by not-for-profit organizations fund impactful development initiatives in agriculture, education, health, and humanitarian aid.

The SHC industry plays a vital role in advancing social and philanthropic efforts, creating direct benefits within the second-hand value chain and amplifying its impact through initiatives that support global development.

Economic value

99.5%

of all companies in the SHC sector are SMEs in Europe. Recognized as one of the 14 key industrial ecosystems by the European Commission, the textile sector is essential for achieving the goals of the European Industrial Strategy.

SMEs are uniquely positioned to drive innovation but are also particularly vulnerable to high bureaucratic burdens. Policymakers must prioritize supporting SMEs, ensuring their critical role in advancing a resilient, green economy.

Development

Demand

for second-hand clothes comes mainly from the Global South. By efficiently channelling used clothing to meet demand, the SHC sector bridges global supply, ensuring that clothing stays in circulation.

As a global industry operating far beyond European borders, the consultation process in the design and implementation of EU policies should be improved to include more global and holistic perspectives.

Circularity

Circular trade

is at risk as imports to the Global South of new, cheaper, lower-quality garments from China are growing.

Without policy backing from Europe, the SHC sector may struggle to compete, undermining its sustainability and the economic benefits it delivers.

Development

Over 100,000

the estimated number of jobs sustained in Mozambique, Ghana, and Kenya through the SHC trade with the EU27+.

To safeguard these jobs while ensuring that sorting practices meet environmental standards, we need policies that support the certification of sorting centres and foster effective waste management in the Global South and intermediary countries.

Sustainability

Up to 70 times lower

the environmental footprint of reused textiles compared to new clothing – even when the reuse takes place in a different place than the place of collection.

To harness this sustainability potential, consumers should be incentivized to purchase SHC by, for example, reducing VAT on SHC or discounting repairs of used clothes.

Sustainability

20-30%

The reduction of the textile industry’s water and carbon footprint that can be achieved just by prolonging the use of clothing for 9 months.

Increasing clothing quality is key to keeping textiles longer in use. New garments must be designed with durability, wearability, repairability, and recyclability in mind, for the industry to move toward a circular system.

Sustainability

10%

of global carbon emissions are produced by the fashion industry alone. The global fashion industry with its reliance on cheap production and over-consumption is a key driver of climate change, environmental degradation and global pollution.

Policies that tackle overproduction and support sustainable consumption behaviours are crucial. Encouraging producers to reduce production volumes or promote circular solutions like repair and second-hand among consumers can make a significant impact.

Circularity

90%

of separately collected textiles are reused or recycled as reported by the sorting centres in the EU27+. With separate collection of textile waste becoming mandatory in 2025, the SHC industry will play an increasingly important role in repurposing textiles that are currently still collected as municipal waste.

This new obligation may be associated with increased sorting costs, so submitting producers of new clothes to EPR fees can make collection and sorting of SHC financially sustainable.

Circularity

2.7 million tonnes

of used textiles were collecte by the SHC industry in 2023, reducing the environmental impact by significantly cutting the demand for new materials like cotton and energy.

Immediate financial and legislative support is essential. Short-term financial incentives for collection, sorting and resale operators that contribute significantly to a sustainable circular textile chain are needed to help increase Europe’s capacity to collect and process textile waste sustainably and efficiently.

The circular nature of the industry aligns with EU targets

This SHC industry, along with its success in generating new jobs, opportunities for women and development, also supports six of the UN’s Sustainable Development Goals.

SDG1 – No Poverty

The SHC industry contributes to poverty alleviation by providing affordable clothing options to low-income populations, due to their lower prices compared to new garments.

SDG5 – Gender equality

The SHC industry promotes gender equality by providing significant employment opportunities for women. In the EU27+, around 79% of all employees were women.

SDG8 – Decent Work & Economic Growth

From collection and sorting to retail and market trading, the industry drives economic growth and creates decent work opportunities that contribute to local economies.

SDG12 – Responsible Consumption & Production

The SHC industry promotes responsible consumption and production by extending the lifecycle of textiles and reducing waste. 2.7 million tonnes of used textiles were collected separately in the EU27+, of which around 90% have been sold on for repurposing.

SDG 13 – Climate Action

The SHC industry contributes to climate action by lowering the carbon footprint associated with clothing production and disposal.

SDG 17 – Partnerships for the Goals

The SHC industry exemplifies partnerships for achieving sustainable development goals through its global value chain. These collaborations facilitate the collection, sorting, distribution, and resale of SHC, ensuring efficient and effective operations.

The #ThreadsOfChange campaign showcases the contribution of SHC to the EU policy agenda and aims to push the envelope on major European Commission initiatives.

Want to share best practices and spread the word about this initiative? Join us as a campaign supporter and help us build a case for an even more efficient and ambitious textile value chain!

Second-hand clothes can shape the future

Published by Oxford Economics, our report on the Socio-Economic Impact of Second-Hand Clothes in Africa and the EU provides significant insights into the value, potential and challenges faces by the second-hand clothing industry. Read on to better understand a sector that generates high economic benefits, contributes to poverty alleviation across the world. and can play a significant role in the transition of the sector.

Download the report

Find us on X

Follow #ThreadsOfChange

The profit

99.5%

Demand

Circular trade

Over 100,000

Up to 70 times lower

20-30%

10%

90%

2.7 million tonnes

SDG1 – No Poverty

SDG5 – Gender equality

SDG8 – Decent Work & Economic Growth

SDG12 – Responsible Consumption & Production

SDG 13 – Climate Action

SDG 17 – Partnerships for the Goals

Second-hand clothes can shape the future

Support the campaign