Digitally-connected garments: a sustainability innovation the fashion industry urgently needs

Of the 100 billion garments produced globally each year, 92 million tonnes end up in landfills, according to Earth.org.

No wonder the sector is facing pressure to address its significant environmental impact, with industry conferences and global climate events regularly highlighting the urgent need for change. Despite high-profile commitments and ambitious goals, such as achieving net-zero emissions by 2050, practical progress has been slow.

These gatherings, whether through forums like the UN Climate Change Conferences or specialised industry summits, serve as critical platforms for evaluating and advancing sustainable practices. Yet, fashion’s complex and globalised supply chains continue to pose major obstacles, leaving the sector far from aligned with the sustainability targets outlined in frameworks like the UN Fashion Charter. The sector’s emissions remain shockingly high, impacted by  many brands failing to make meaningful science based commitments.

Brands that adopt this technology early can position themselves as sustainability leaders.

Our view at Avery Dennison is that innovation is urgently required, alongside accountability. Politicians are actively seeking solutions that mandate sustainable behaviour rather than waiting for companies to do the right thing. For instance, California looks set to become the first US state to hold apparel companies responsible for the fate of textiles after consumers no longer want them. Governor Gavin Newsom signed the Responsible Textile Recovery Act of 2024 on September 30 this year, having won support from textile industry businesses and recyclers. In Europe technology is being heralded as the best way to support the switch to a more sustainable fashion industry. The Digital Product Passport (DPP) is being introduced as a key part of the European Commission’s Ecodesign for Sustainable Products Regulation (ESPR). The potential benefits of DPPs are far-reaching across many different product sectors. Attaching digital labels like RFID tags, NFC tags (near field communication), scannable QR codes, connected to a product data platform, will solve a major challenge that fashion faces: How to easily share product information, care advice, and sustainability credentials to multiple stakeholders throughout a garment’s lifecycle.

What’s more, DPPs will help textile companies not just comply with regulations but leverage them as tools to enhance sustainability, streamline supply chains, and gain a competitive edge.

The role of DPPs

Here’s a speedy explainer. DPPs are an environmental policy instrument that aims to improve product circularity. This includes empowering the consumer to make more sustainable purchasing choices and giving them the information needed to keep their products in circulation for longer. DPPs also help exploit the power of digital to collect, organise and store information in a secure way. By securely collating essential data across a product’s lifecycle — from raw material sourcing to end-of-life recycling — DPPs provide comprehensive information about a product’s environmental impact, material composition, and supply chain. Expected to be legally required by large apparel brands selling into the EU no later than 2030, DPPs are set to transform the way the industry designs and makes clothes, and manages resources and waste.

From regulatory hurdle to opportunity

While some in the textile sector may view mandatory DPP implementation as a compliance burden, forward-thinking companies welcome this opportunity. The transparency offered by DPPs can go beyond meeting regulatory requirements to drive new business models based on circularity. Brands that adopt this technology early can position themselves as sustainability leaders, setting new standards in reducing waste, using resources, and fostering trust with consumers.

Avery Dennison, for instance, is actively exploring the potential of DPPs through its involvement in the CIRPASS-2 consortium. This EU-funded partnership aims to pilot DPP technology, showing how digital product identification can unlock sustainable innovation and create business value. By integrating DPPs, textile companies can simultaneously achieve sustainability goals and increase profitability. Within CIRPASS-2, the Textile Loop pilot, led by Avery Dennison’s atma.io, aims to create a holistic circular textile system powered by DPP data and services. The pilot will create and assign unique digital IDs through DPPs and track them through the downstream circular services where sorting partners will facilitate repairing, reselling, upcycling, and recycling use cases.

Combatting overproduction of clothing

Textile waste is a pressing issue across the industry, with over 15 kilograms of textile waste generated per person annually in Europe alone, according to McKinsey. Overproduction, a major contributor to waste, leads to significant losses even before garments reach retail stores. According to the Missing Billions report, commissioned by Avery Dennison, an average of 3.4% of inventory is wasted annually due to overproduction, amounting to vast sums of last revenue, not to mention mountains of waste.

One of the standout features of DPPs is the visibility they bring to complex textile supply chains. Each product is likely to be assigned a unique digital identity—a digital twin—which stores critical information about its materials, origins, and lifecycle. Not only is this one of the new legal requirements, it also helps substantiate sustainability claims, a growing expectation from eco-conscious consumers and stakeholders.

With real-time product data management tools like Avery Dennison’s atma.io, a platform designed to connect products to the digital world and track their journeys, businesses can avoid inefficiencies such as over-production and excess inventory. DPPs could also enable  manufacturers to monitor their supply chains closely, adjusting production to better meet demand and reducing the risks of wasteful stockpiling. 

Extending the life of textiles

The integration of DPPs also plays a pivotal role in extending the life of textile products. Through scannable labels linked to digital twins, important information about a textile and garment’s composition can be easily accessed by consumers, recyclers, and other end of life stakeholders and operators. This supports large-scale recycling initiatives by enabling easier sorting and repurposing of materials.

Avery Dennison, in partnership with companies like Circ, is investing in scalable recycling technologies, ensuring that textiles can be efficiently recycled and reintroduced into the production cycle. These efforts are a critical part of closing the loop on textile waste, turning discarded materials into valuable resources.

Empowering consumers for sustainability

DPPs will also engage consumers directly by offering them access to detailed product information. By scanning a product’s QR code, the owner of a pair of jeans can learn about proper care, repair, recycling, and even reuse and resale options, empowering them to make more sustainable choices. This level of transparency not only fosters trust but also strengthens the relationship between brands and their customers.

Swiss performance-wear company Swijin is an example of how digitally-connected garments can change consumer interaction. By embedding QR-linked care labels into their garments, the brand offers consumers a convenient way to access recycling information and prolong the lifecycle of their products, thus promoting circularity.

Competitive edge through sustainability

At a pivotal moment for the textile sector, DPPs offer an opportunity for bold innovation, making them far from a regulatory box-ticking exercise. For brands ready to embrace this digital leap, DPPs provide an edge—helping them to enhance efficiencies, reduce waste, and engage customers on a deeper level. Ultimately, they equip the industry to become a leader in environmental change, proving that sustainable choices and competitive advantage can go hand in hand.

Imagine a future where scanning a label on our shirts and dresses reveals exactly how and where to recycle or return them. Picture a time when fashion retailers have robust systems and infrastructure to recycle fabrics, supporting a vibrant circular economy. This is the vision we should all strive for—one where initiatives like COP29 and those that follow bring us closer to a sustainable and responsible fashion industry.

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