How Capital Markets Are Helping Scale Circular Fashion

Investors are helping clothing and footwear designers scale innovations for circular fashion. How companies are leveraging the capital markets to make the fashion industry more sustainable.

Some companies, like footwear and apparel company Allbirds, are redesigning wardrobe staples to be sustainable from the onset, choosing to make their sneakers from wool, sugarcane and other natural materials rather than plastic.

Other companies are finding ways to help consumers buy fewer new products to minimize unnecessary waste. Rent the Runway offers apparel and accessories from more than 750 brands that consumers can keep for a short time and return, extending the useful life of clothes.

“These examples of circular fashion business models are not exhaustive, and it will be important for companies to explore and share a wider range of innovations that deliver both economic and environmental opportunities over time,” says Courtney Thompson, Executive Director in the Global Sustainable Finance group at Morgan Stanley.



Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Education and Culture Executive Agency (EACEA). Neither the European Union nor EACEA can be held responsible for them. 2021-1-RO01-KA220-VET-000033001

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