La Impact Weekly | June 23: Suppliers standup for themselves, Circulose's comeback, and regulatory rollercoaster
Suppliers are done playing defense. Lots of textile innovators announcing partnerships and fundraising rounds. More EU disappointments.
Hello sustainable fashion enthusiasts,
Welcome to this week’s edition of La Impact Weekly, your sustainable fashion download.
Here’s a quick recap (full details below):
Brand & Industry Moves
🫒 Freitag launches Freitag Rent, a travel bag rental program featuring a reusable inner lining and a travel diary.
Stella McCartney supports The Nat, a new platform aiming to raise $20M for nature restoration through cultural partnerships.
Shein reportedly files confidentially for a Hong Kong IPO, possibly the city’s largest this year.
🫒 Patrick McDowell unveils fashion pieces using Sparxell’s fully plant-based, biodegradable pigments.
H&M Foundation launches Oporajita Phase 2 to strengthen climate resilience for women garment workers in Bangladesh.
Fashion Tech & Sustainability Innovation
Circulose signs H&M as a Scaling Partner and launches Circulose Forward to help brands adopt its recycled fiber.
Syre secures deals with Gap, Houdini, and Target to scale textile-to-textile polyester recycling.
Circ partners with Selenis to polymerize Circ Polyester in Europe for large-scale production.
Colorifix raises $18M to expand bio-based dyeing using engineered microorganisms.
Novoloop raises $21M to commercialize chemical recycling of polyethylene into performance TPU.
Circula-TEX launches to unify textile EPR rules, eco-design guidance, and waste systems across Europe.
Teijin Frontier develops a recycled, plant-based stretch fabric for outdoor and sportswear use.
Regulatory & Policy Shifts
The EU Council proposes major cuts to CSDDD coverage, raising thresholds to 5,000 employees and €1.5B revenue.
Seoul asks Temu and AliExpress to suspend sales of children’s items found to violate safety limits.
The UK releases draft sustainability reporting standards based on ISSB, extending “climate-first” reporting relief.
GRI introduces a machine-readable taxonomy to streamline and digitize sustainability disclosures.
Investigations & Reports
A survey by Rebound Returns shows nearly 1 in 5 US shoppers would pay for sustainable returns, with strong Gen Z support.
Earthsight links luxury leather supply chains to illegal deforestation in Brazil, implicating brands like Coach and Fendi.
Resources
The Circular Economy Show explores how behavioral science and payment design can make circular habits stick, featuring Selfridges and Visa.
Deloitte and Global Fashion Agenda release the Fashion Impact Toolkit, an open-source resource to help brands map and measure sustainability across the value chain.
Suppliers Finally Are Standing Up for Themselves
La Backdrop
Hold up. Did I just witness something actually refreshing in fashion sustainability?
And no one seems to be talking about it. But I am obsessed.
Let me set the scene: For years, we've watched this senseless theater where brands in air-conditioned conference rooms make grandiose sustainability commitments, then essentially throw the “hot potato” over to suppliers.
As Felicity Tapsell, head of responsible sourcing at Bestseller said:
We cannot sit in Copenhagen, London, San Francisco, wherever, making transition plans for manufacturing countries and then think that this will be an efficient, effective implementation. It’s not that feasible.
She is right. The numbers don’t make sense:
Over 70% of fashion’s total emissions come from upstream supply chain activities - meaning suppliers are responsible for doing most of the decarb work.
$1Tn estimated cost to fully decarbonize fashion’s supply chain by 2050 - meaning it costs. A lot.
Meanwhile, the global fashion industry generated over $1.7+Tn in revenue, but that revenue is largely concentrated among brands and retailers - meaning suppliers cannot afford it.
As Miran Ali from Bangladesh's Bitopi Group, and ATTI’s Global Council Representative for Bangladesh, put it at ATTI's launch:
You cannot turn up in a country which is the second-largest exporter of apparel in the world, and then demand radical changes without ever expecting to spend even one penny on it.
Oof. I wonder how some brands will react to this.
Los Details
ATTI is the brainchild of the International Apparel Federation (IAF) and International Textile Manufacturers Federation (ITMF). Their vision?
Our vision is an apparel and textile industry defined by low impact practices, where manufacturer leadership - rooted in local contexts and aligned with global ambition - positions the industry as a force for regeneration, shared prosperity, and enduring planetary health.
ATTI flips the script entirely. Instead of brands dictating sustainability requirements from their headquarters, ATTI puts manufacturers at the center of the conversation. It's organized around country chapters led by national industry associations, with Bangladesh and Turkey as the first pilots.
Here's how it works:
Step 1 involves a comprehensive needs assessment where manufacturers identify what they're already doing, what they need, and what's blocking them.
Step 2 brings together all stakeholders (brands, governments, financial institutions) to collaboratively design solutions.
Step 3 is about actually implementing those solutions with targeted investments.
The global council provides strategic guidance and facilitates peer-to-peer learning, but the real decision-making happens at the country level.
The timing couldn't be more perfect. Felicity Tapsell from BESTSELLER described the moment ATTI was pitched to her in early 2024 as a time of "peak frustration" when everyone in sustainability was "running around a bit like headless chickens." Despite senior management buy-in, ambitious targets, and legislative momentum, something fundamental was missing.
That something? The manufacturers themselves.
At a Cascale forum in Vietnam, 600 attendees (mostly manufacturers) were asked about the biggest barriers to decarbonization: 42% said brand alignment, and shared their challenges dealing with duplicative, inconsistent requirements from multiple buyers.
Mi Take
You know I have a soft spot for suppliers. And now that they're finally standing up for themselves. I'm here for it.
The frustration has been palpable.
Every conference, when suppliers get the chance to say something, it is always: "We're asked to do X, but no one pays for it," or "Brands never consider our perspective," or "Treat us like partners, not vendors."
So, it is about time that they came together and demand to be heard.
For some time, I've worried smaller suppliers will get pushed out as brands demand bigger changes. Only suppliers with serious capital could keep up. Sustainability risked becoming an exclusive club with rising entry fees.
ATTI gives me hope that won't happen.
The best part? Country chapters. Proposals, challenges, and funding go to what makes sense locally. No more one-size-fits-all solutions without any context of on-the-ground realities.
My main question:
Will this be used as a way to push back and set “realistic” but not ambitious targets, or will this help actually make progress?
Maybe I am jaded, but I have seen too much greenwashing to always temper my excitement.
Early signs are encouraging. ATTI launch included supporters like Inditex, BESTSELLER, The Fashion Pact, Cascale, and Apparel Impact Institute.
What I hope to see? Supplier traceability tools that connect to other systems (for fewer duplicate requests), standardized due diligence assessments so suppliers stop drowning in identical questionnaires, and decarbonization funds like community solar benefiting entire manufacturing districts.
ATTI is fundamentally different: recognizing that transforming an industry means asking the people doing the work what they think. In a world of top-down mandates and forgotten Global South realities, that's different.
As Andrew Martin, EVP at Cascale, said, this feels like a "dream come true."
What do you think? Real collaboration, at last, or coalition to push back on brands and resist change?
Brand & Industry Initiatives
🫒 Freitag launches travel bag rental. Swiss bag brand Freitag launched its rental service Freitag Rent, starting with the F512 Voyager travel rucksack to encourage sharing instead of owning. The service includes a social element with an inner travel diary where renters can record memories and destinations, with orange RENT labels and removable hygienic inner linings prepared between each rental. The brand joins other companies like Decathlon, H&M, and Nike in rental services. Read more.
Stella McCartney backs nature finance platform. Stella McCartney is backing The Nat, a new cultural platform created to mobilize private investment capital to address the substantial $710Bn shortfall in nature-based funding requirements. The initiative brings together individuals and organizations from art, fashion, film, food, and music to capture global attention for nature funding, with the inaugural NAT Gala set for September 21 in New York City aiming to raise $20Mn for critical nature restoration projects in partnership with Conservation International. Read more.
Shein reportedly plans confidential Hong Kong IPO filing. China-founded fast-fashion retailer Shein plans to file a draft prospectus confidentially for its Hong Kong listing, marking a rare departure from the usual practice of companies making public filings of IPO documents, with the filing expected as soon as this week. The confidential filing represents a waiver of main listing rules by the Hong Kong exchange for one of the world's most closely-watched IPO candidates and possibly the largest listing in the city this year. Read more.
🫒 Patrick McDowell debuts plant-based color tech. British designer Patrick McDowell announced a collaboration with Sparxell to create a couture gown and commercial shirt dress using 100% plant-based, biodegradable pigments made from natural cellulose, marking the first time Sparxell's technology has been applied to fashion. Founded by University of Cambridge scientists, Sparxell re-engineers cellulose to reflect light like butterfly wings, creating sparkle without plastic and enabling unlimited color variations from wood pulp and agricultural waste. Sparxell's textile ink available from late June through Portuguese company Positive Materials. Read more.
H&M Foundation launches Oporajita Phase 2 for climate transition. H&M Foundation launched Phase 2 (2025-2027) of its Oporajita initiative in Bangladesh, embedding climate adaptation and rights-based approaches to strengthen collective capacity supporting women garment workers as agents of change. Phase 1 reached over 80,000 garment workers, empowered 1,416 women into circular economy roles with 60% job placement rates and 13% income increases, while training 16,000+ women in leadership and 1,628 in entrepreneurship. Phase 2 will focus on climate adaptation tools, heat stress management, policy advocacy for fair climate transition, and building innovation ecosystems. Read more.
Fashion Tech & Sustainability Innovation
H&M Group joins Circulose as scaling partner. H&M Group signed a multi-year agreement to become one of the first official Scaling Partners for Circulose, targeting to transition a substantial share of its man-made cellulosic fiber to fiber made with the textile recycler's pulp. H&M has been a longtime supporter dating back to Circulose's days as Renewcell, when it entered into a five-year agreement in 2020 to use up to 10,000 tonnes annually of the recycled pulp. The partnership reflects Circulose's renewed commercial strategy following its rescue from bankruptcy by Swedish private equity firm Altor in June 2024, and represents the third partnership unveiled this week alongside agreements with Mango and other brands. The new licensing-based pricing model was developed with Fashion for Good and Canopy to reduce pain points of scaling next-gen materials and help restart Circulose's factory operations. Read more.
Circulose launches Forward platform for brand integration. Swedish sustain-tech company Circulose launched Circulose Forward, a platform of tools to help brands integrate the regenerated cotton material into their supply chains, evolving from pulp producer to solution provider. The platform includes a digital materials library, price benchmarking and an optimized supplier network intended to enable smooth adoption of low-impact fibers at scale without compromising quality, design or commercial viability. The launch follows recent partnerships with Mango and H&M Group as Circulose scales adoption after rising from its Renewcell bankruptcy. Read more.
Syre announces Gap, Houdini, and Target partnerships. Textile recycling company Syre secured strategic partnerships with Gap Inc., Houdini Sportswear, and Target to accelerate textile-to-textile polyester recycling. Gap Inc. committed to utilizing 10,000 metric tons per year of Syre's recycled polyester chip across its brands, while Houdini pledged to source 50% of its polyester from Syre for three years. Target will incorporate the recycled polyester into its owned brand products as part of its 2040 circular future goals. Syre's North Carolina plant, operational by 2026, will produce up to 10,000 metric tons annually with 85% lower CO2e emissions than virgin polyester. Read more.
Circ partners with Selenis for European polyester scaling. Textile-to-textile recycling company Circ signed a strategic partnership with Portuguese polyester manufacturer Selenis to toll and polymerize thousands of metric tons of Circ Polyester at industrial scale in Europe. The collaboration will convert recycled monomers from end-of-life textiles into premium-grade Circ Polyester suitable for activewear, essentials, and high fashion. The partnership represents a major milestone in Circ's dual-product strategy following its $25Mn funding round in March. Read more.
Colorifix secures $18Mn for biological dyeing scale-up. UK-based Colorifix raised $18Mn led by Inter IKEA Group to expand its petrochemical-free textile dyeing technology. The company uses engineered microorganisms to produce and deposit color directly onto fabric through fermentation, cutting water and energy usage compared to traditional chemical dyeing. Colorifix now operates across Europe and Latin America with licenses granted for India and Sri Lanka, marking its shift from pilot to commercial scale. The round included H&M Group Ventures, Sagana, Regeneration.VC, Goldwin Play Earth Fund, and Youngone CVC. Read more.
Novoloop raises $21Mn Series B funding. Advanced chemical recycling company Novoloop closed a Series B funding round led by Taranis to accelerate commercial scale-up of its proprietary Lifecycling™ technology, which transforms post-consumer polyethylene into high-performance polyol and polyurethane. Founded in 2015, the company enables sustainable materials for applications in footwear, apparel, and automotive, with its Lifecycled™ TPU debuting in On's Cloudprime sneaker in 2022 and holding 50 granted and pending patents across 18 regions. Read more.
Consortium launches Circula-TEX waste initiative. A consortium of 19 partners from nine countries, including Global Fashion Agenda, Hugo Boss, and Texaid, launched Circula-TEX, a four-year EU-powered program coordinated by RINA consulting and supported by Horizon Europe (the EU's key funding program for research and innovation). The initiative aims to develop a cohesive Extended Producer Responsibility framework and unified labeling system while addressing fragmented textile waste management and creating eco-design guidelines for manufacturers. Read more.
Teijin Frontier develops plant-based/recycled stretch fabric. Teijin Frontier announced a next-generation stretch fabric featuring an ultra-fine three-dimensional structure with randomly sized crimps, combining elasticity with soft texture and quick-drying properties. The fabric uses plant-derived raw materials in the core yarn and recycled polyester in the sheath yarn, targeting outdoor and sportswear markets for Fall/Winter 2026 with projected sales of 100,000 meters in fiscal 2026 and 1Mn meters by fiscal 2029. Read more.
Regulatory and Policy Shifts
EU member states push deeper CSDDD cuts. The EU Council agreed on more significant cuts to sustainability regulations than the Commission's initial Omnibus proposals, particularly for the Corporate Sustainability Due Diligence Directive (CSDDD), proposing a dramatic reduction in covered companies with new thresholds of 5,000 employees and €1.5Bn revenue. The Council also maintained the Commission's 1,000 employee threshold for the Corporate Sustainability Reporting Directive but added a €450Mn revenue threshold, further reducing the scope while targeting an estimated 80% reduction in covered companies. Read more.
Seoul targets Temu, AliExpress children’s products. The Seoul city government requested online retail giants Temu and AliExpress suspend sales of certain children's products after inspecting 35 items and finding 11 failed safety standards, with some products exceeding limits by up to 443.5 times for toxic chemicals. While retailers have no legal obligation to comply, Temu said it was removing the non-compliant items. Read more.
UK releases draft sustainability reporting standards. The UK government released exposure drafts of new UK Sustainability Reporting Standards (UK SRS) based on the IFRS Foundation's International Sustainability Standards Board standards, aimed at delivering sustainability-related financial information to markets. Key amendments include extending "climate-first" relief to two years (double the IFRS standard) allowing companies extra time for sustainability-related risks while focusing on climate reporting first, and removing the IFRS relief that allows delayed publication of sustainability disclosures. Consultations remain open until September 17, 2025, as the government considers whether to mandate sustainability reporting for some companies. Read more.
GRI launches machine-readable sustainability taxonomy. The Global Reporting Initiative launched its new Sustainability Taxonomy, offering a machine-readable version of its GRI standards using XBRL technology to facilitate faster data collection and submission of sustainability disclosures. The new taxonomy covers all GRI standards across Universal, Sector and Topic areas, allowing organizations to share data in structured digital format and submit reports directly to GRI either automatically or through an online form. Read more.
Nearly 1 in 5 US shoppers ready to pay for sustainable returns
A Rebound Returns survey of 5,000+ U.S. consumers reveals growing demand for sustainable returns, especially among younger shoppers. While cost is still a barrier, the appetite for circular options is clear. Some other key takeaways:
18% of all consumers (and 32% of Gen Z) are willing to pay for eco-friendly returns
50% support green returns, but won’t pay extra
60% want clothing donation options
What it means: Gen Z is ready to pay, and most shoppers want options like donation and recycling. Retailers that embed solutions (like Liquidonate) will build loyalty. Sustainable returns are part of the holistic approach to circularity.
Another report worth highlighting:
What Europe’s designer handbags are costing the Amazon rainforest, by Earthsight
An Earthsight investigation has found that luxury leather goods, including handbags sold by Coach and others, may be linked to illegal deforestation and Indigenous land violations in Brazil’s Amazon. Despite certifications, gaps in traceability allow hides from high-risk regions like Pará to enter European supply chains unchecked.
Key Takeaways:
Between 2020–2023, over 14,000 tonnes of leather from Pará went to Italy, with nearly a quarter from tanneries linked to Coach.
These tanneries hold Leather Working Group certifications but do not trace hides back to ranches, overlooking deforestation risks.
Pará has lost over 18Mn hectares of forest since 2001. In 2023–2024, 91% of Amazon deforestation was illegal.
Cattle laundering from protected Indigenous lands into slaughterhouses like Frigol is widespread. Frigol has supplied hides to tanneries that, in turn, supply Coach
Brands including Coach, Fendi, Chanel, and Hugo Boss are implicated. Most rely on certifications rather than full traceability.
What it means:
Certifications are not enough. Brands must trace leather back to the farm and verify their sourcing if they want to avoid contributing to deforestation and human rights abuse. With the EU Deforestation Regulation taking effect in 2026, proactive traceability will soon be a requirement, not a choice.
Podcasts
How Do We Make Circular Behaviours Irresistible?
This episode of The Circular Economy Show explores how to make sustainable actions (like refilling and reusing) feel easy, desirable, and mainstream. Featuring Selfridges’ Georgie Rose and Visa’s Simon Davies, the conversation dives into behavioral science, payment flows, and real-world experiments that nudge consumers toward circular choices. Key insights from this research are not finalized, but I found the approach fascinating. Listen here:
Tools
Deloitte and Global Fashion Agenda launch sustainability toolkit. Deloitte and GFA established a strategic Knowledge Collaboration to help set the global agenda on sustainability in fashion, conducting research and data analysis to develop a guiding framework launched at Global Fashion Summit: Copenhagen Edition in June 2025. The partnership resulted in the Fashion Impact Toolkit, a free open-source resource mapping the value chain with over 20 activities and 88 sub-activities to help fashion brands understand, measure and leverage data to drive positive change, particularly for small sustainability teams with limited resources. Read more.
I had the pleasure of spending Friday night at Kitt Peak Observatory, in the middle of the Arizona mountains, near Tucson. On the way there, we drove through Saguaro National Park. Not too shabby.
As we drove, I found myself thinking about sustainability challenges. I thought about food waste. I thought about topsoil erosion, monocultures and tilling. I also thought about how roadkill accounts for 33% of wild mammal deaths. Sometimes knowing the “stats” behind sustainability can make me feel cynical. Is it just me?
Anyway, the observatory was incredible. We saw distant galaxies, star clusters, and of course, the moon. It was beautiful, and it made me think about how lucky we are to be living on this little blue marble floating through space.
Here is an amazing picture we took through the telescope. Enjoy!
If you want to become friends, you can find me on LinkedIn.
What keeps you up at night? Tell me by filling out the survey, and I will cover it next.
Purpose-driven brands live here. Subscribe to La Purpose Brand. 🫒