Circular economy in the fashion industry

: the case of Patagonia and its challenges

Abstract

The fashion industry, a global powerhouse, is also one of the most polluting sectors. In recent years, numerous strategies have been proposed to steer the industry towards a more sustainable path. Central to these efforts is the concept of the circular economy, which offers a transformative alternative to the prevailing linear 'take-make-dispose' model. As one of the world's most sustainable and circular companies, the journey of American fashion company Patagonia is explored as a best practice example of circular fashion. Through sustainable manufacturing initiatives, sophisticated reverse supply chain capabilities and advocacy, Patagonia has redefined the life cycle of apparel, providing valuable insights into the feasibility of a circular textile economy. This case analyses Patagonia's efforts and reveals that the transition to a circular economy is a complex task, hampered by systemic barriers such as technological limitations, economic constraints and consumer behaviour patterns, and provides an outlook on the structural changes required for meaningful industry transformation. The theoretical framework discusses the concept of the circular economy as understood by the Ellen MacArthur Foundation and provides an overview of the dynamics and inherent challenges of the circular fashion industry. Students will gain an understanding of the intricacies of circularity, including the interplay between environmental responsibility and financial profitability. In addition, by examining the critical barriers to circularity, this case enables students to evaluate real-world strategies and solutions for achieving sustainable and scalable change in the fashion industry.

Date of Award	30 Jan 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Moreira da Cruz (Supervisor)