Circular Economy as an Enabler for Responsible Banking: Circular Solutions to Achieve Climate Targets in the Textile Sector

The global textile sector is one of the most polluting industries in the world and significantly contributes to climate change, with around 70 per cent of environmental impacts originating from upstream activities like raw materials extraction and production, and 30 per cent from downstream retail operations and use-phase activities.[1] Moving to circular textile business models not only offers significant potential to decarbonise the sector, it could also generate USD 700 billion in economic value by 2030.