POLICY FRAMEWORK FOR IMPLEMENTING CLOTHES TAKE-BACK PROGRAM

➢ The current state of textile waste and its environmental impact

The EU is working to reduce textile waste and increase the life cycle and recycling of textiles
as part of its plan to achieve a circular economy by 2050. Fast fashion, which provides new
styles at very low prices, has led to overconsumption of natural resources, water pollution, and
greenhouse gas emissions. The textile sector was the third largest source of water degradation
and land use in 2020, taking on average nine cubic meters of water, 400 square meters of land,
and 391 kilogrammes (kg) of raw materials to provide clothes and shoes for each EU citizen.

The fashion industry is estimated to be responsible for 10% of global carbon emissions, more
than international flights and maritime shipping combined. According to the European
Environment Agency, textile purchases in the EU in 2020 generated about 270 kg of CO2
emissions per person, resulting in textile products consumed in the EU generating 121 million
tonnes of greenhouse gas emissions.
Textile waste in landfills and low recycling rates are another issue. The rise of fast fashion has
driven an increase in consumption, driven partly by social media and the industry bringing
fashion trends to more consumers at a faster pace than in the past. New strategies to tackle this
issue include developing new business models for clothing rental, designing products in a way
that would make re-use and recycling easier (circular fashion), convincing consumers to buy
clothes of better quality that last longer (slow fashion), and generally steering consumer
behavior towards more sustainable options.

The European Commission presented a new strategy to make textiles more durable, repairable,
reusable, and recyclable, tackle fast fashion, and stimulate innovation within the sector. The
new strategy includes new ecodesign requirements for textiles, clearer information, a Digital
Product Passport, and calls companies to take responsibility and act to minimize their carbon
and environmental footprints.

In June 2023, MEPs set out proposals for tougher EU measures to halt the excessive production
and consumption of textiles. The Parliament put forward ideas for changes to textile waste rules
in March 2024, which will introduce extended producer responsibility schemes. This means
that producers of textiles, such as clothing, footwear hats, accessories, and other companies
that put such products on the European single market, will have to cover the costs for the
separate collection, sorting, and recycling. The next steps will be done by the next Parliament,
which will be elected during the European elections on 6-9 June 2024. The EU strategy to
reduce plastic pollution, how to reduce packaging waste in the EU, and food waste reduction
are all part of the EU's efforts to address these issues.

➢ Consumer attitudes and behaviors towards

clothing disposal and recycling

Fast fashion waste statistics reveal a significant

environmental impact, with the industry responsible for
nearly 10% of global carbon emissions and producing 92
million tonnes of textile waste annually. The apparel
industry's global emissions are expected to increase by
50% by 2030, with the industry's global emissions likely to double by the end of the decade.

The average US consumer throws away 81.5lbs of clothes every year, with an estimated 11.3
million tons of textile waste in landfills in America alone. The number of times a garment is
worn has declined by around 36% in 15 years, with many items being worn only seven to ten
times before being tossed. The fashion industry is also responsible for 20% of global waste
water, with dyeing and finishing contributing to 3% of global CO2 emissions and over 20% of
global water pollution.

One kilogram of cotton requires 20,000 liters of water to produce, and fast fashion contributes
to massive quantities of water being wasted daily. $500 billion is lost each year due to under-
wearing and failure to recycle clothes, with just 12% of the material used for clothing ending
up being recycled globally. Nearly 10% of microplastics dispersed in the ocean each year come
from textiles, with half a million tons reaching the ocean each year. 1.6 million tonnes of
returned clothes ended up in landfills in 2020 in the US alone, with everse logistics company
Optoro estimating that 16 million tonnes of CO2 emissions were created by online returns in
the same year. Fast fashion brands are producing twice the amount of clothes today than in
2000, leading to increased pre- and post-production textile waste.

What Are Clothing Take-Back Programs?

A retail take-back program is a consumer-

oriented initiative where people return their
used items to the store at the end of their life
cycle instead of discarding them. Once
collected, these items are rejuvenated through
recycling, refurbishing, or reselling. Take-
back programs play a pivotal role in helping
companies achieve their environmental,
social, and governance (ESG) goals.
Retail take-back programs involve one of three main processes:

1.Recycling – The recycling process involves extracting raw materials from returned items to
create new products. Recycled fabrics not only divert waste from landfills but also reduce the
demand for the resources needed in the original manufacturing process.

2.Refurbishing or Repurposing – Some items might still have plenty of life left in them with
a few repairs. From fixing zippers on a pair of jeans to patching up tears in winter sweaters,
refurbishing allows these unwanted clothes to receive a quick makeover, before they’re offered
for sale again.

3.Reselling – Numerous fashion brands have introduced reselling platforms, enabling

consumers to purchase pre-owned items at a fraction of the original cost. This approach not
only provides budget-friendly options for shoppers but also expands the average life of these
items and keeps them out of landfills.
 ➢ How Will The Company Benefit From Implementing A Take-Back Program?

Here are a few common advantages:

●Environmental – Take-back programs directly contribute to waste reduction and resource

conservation, allowing retailers to reduce their carbon foot carbon footprint and improve their
ESG scores.

●Social – These programs often create local jobs in sorting and refurbishing, contributing to
the community. Take-back programs also raise awareness about responsible consumption,
positioning your brand as a leader in sustainable practices.

●Economic – Sustainability is good for business. Offering a take-back program can cultivate
customer loyalty and attract environmentally-conscious consumers to your brand.

In a recent study from the Ellen Macarthur Foundation, researchers found that the rental, resale,
and repair sector of the fashion and appeal industry represents a $73 billion market. If that
wasn’t impressive enough, the study also found the circular economy has the potential to claim
23% of the global fashion market by 2030 and grasp a $700 billion opportunity

➢ Retail Take-Back Program Case Studies

But how does all this theory translate into practice? Let’s look at two examples of take-back
programs and textile recycling to understand the impact they’re making.

CASE STUDY 1: UPCYCLED DENIM PROJECT

The Denim Project involved a partnership between a denim brand and CheckSammy to divert
denim waste away from landfills by repurposing old jeans. These discarded denim pieces were
collected by the retailer and then transformed into reusable items like tote bags, insulation
materials, and even new clothing with the help of our partners InJEANious Designs in Red
Ridge, North Carolina.

The project was a resounding success, diverting over 15,000 pounds of denim from landfills.
This repurposing not only conserved valuable resources but also significantly reduced the
environmental footprint associated with the production of new materials.
CASE STUDY 2: THE NORTH FACE

Outdoor clothing brand, The North Face, offers a Clothes the Loop program in partnership with
various organizations. The retailer collects used apparel and footwear from any brand in their
stores. The collected items are then either resold, recycled, or donated in coordination with
their partners, contributing to a circular economy model.

The Clothes the Loop program has been wildly successful, collecting over 95,000 pounds of
clothing and footwear and helping significantly reduce the amount of waste headed for
landfills. The program has also proven to be an excellent way to engage customers in
sustainability, fostering brand loyalty and contributing to The North Face’s reputation as an
industry leader in eco-conscious practices. H&M has implemented comprehensive guidelines,
criteria, and procedures for their clothing take-back program, aimed at promoting garment
recycling and reuse while ensuring efficiency and effectiveness. Here's an overview of each
aspect.
 GUIDELINES FOR IMPLEMENTATION

1. Clear Communication: Eon Luxe to provide clear and accessible information to

customers about the clothing take-back program, including its purpose, benefits, and
participation instructions.

2. Consistency: Guidelines to ensure consistency in the acceptance of garments for

recycling or reuse across all Eon Luxe stores and partner locations, regardless of geographic
location.

3. Transparency: Eon Luxe to maintain transparency in the clothing take-back process,

from collection to recycling or reuse, by providing information on how garments are
processed and the environmental impact of the program.

4. Compliance: Guidelines to ensure compliance with relevant regulations and industry

standards related to garment recycling, waste management, and environmental
sustainability.

5. Continuous Improvement: Eon Luxe to regularly evaluate and update the guidelines
for the clothing take-back program based on feedback, performance metrics, and emerging
best practices.

➢ Criteria for Accepting

Garments

1. Condition: Garments accepted

for recycling or reuse must be
clean, dry, and in a wearable or
recyclable condition. This includes
items free from stains, tears, or
excessive wear and tear.

2. Material Composition: Eon

Luxe to accept garments made
from a wide range of materials,
including natural fibers (e.g., cotton, wool) and synthetic fibers (e.g., polyester, nylon), for
recycling or reuse.

3. Recyclability: Garments must be recyclable or reusable, with consideration given to the

feasibility of recycling materials and the potential for repurposing or resale.

4. Brand Acceptance: Eon Luxe to accept garments from any brand, not just items
purchased from Eon Luxe to stores, demonstrating a commitment to industry-wide
sustainability and circularity.

➢ Procedures for Collecting, Sorting, and Processing Returned Clothing Items

1. Collection: Eon Luxe to provides designated collection points within their retail stores
for customers to drop off used clothing. These collection points may include dedicated bins
or containers.

2. Sorting: Collected garments are sorted based on their condition, material composition,
and suitability for recycling or reuse. Items that meet the acceptance criteria are separated
from those that do not.

3. Processing: Accepted garments are to be processed according to their intended end use.
This may involve various recycling techniques, such as mechanical or chemical recycling,
or preparation for resale through Eon Luxe's second-hand sales platforms.

4. Partnerships: Eon Luxe to collaborate with textile recycling companies, charities, and
other organizations to facilitate the processing of collected garments. This may include
partnerships with local recycling facilities or social enterprises.
➢ Logistics and Infrastructure

1. Identification of Suitable Collection Points:

- Within Retail Stores: Eon Luxe to designate specific areas within their retail stores for
customers to drop off their used clothing. These collection points are to be strategically
placed to ensure convenience and
visibility for shoppers.

- Partner Locations: In addition

to collection points within Eon Luxe
stores, the company will establish
partnerships with various
organizations, such as local
charities or community centres, to
expand the reach of their take-back
program. These partner locations
will serve as additional collection points, further increasing accessibility for customers.

2. Determine Logistics for Transporting Collected Garments:

- Efficient Transport Networks: Eon Luxe will develop efficient logistics networks to
transport collected garments from their retail stores and partner locations to central
processing facilities or recycling centers. This involves coordination with logistics
providers to optimize routes and schedules for collection and transportation.

- Integration with Existing Supply Chain: The logistics for transporting collected
garments are integrated with Eon Luxe's existing supply chain operations, leveraging the
company's expertise in managing large-scale distribution networks. This ensures seamless
coordination and minimizes disruptions to other business activities.

3. Assess the Need for Additional Infrastructure or Equipment:

- Processing Facilities: Eon Luxe to assess the need for additional infrastructure or
equipment at processing facilities to handle the increased volume of collected garments.
This may include investments in sorting machinery, recycling equipment, or storage
facilities to accommodate the influx of clothing items.

- Technology and Automation: Eon Luxe to embrace technology and automation to

streamline the processing of collected garments, increasing efficiency and reducing manual
labour requirements. This may involve the implementation of automated sorting systems
or advanced recycling technologies to optimize resource utilization and minimize waste.

CUSTOMER ENGAGEMENT AND EDUCATION

➢ Developing a Marketing Strategy:

1. In-Store Promotion: Eon Luxe to promote

the take-back program prominently in their
stores through signage, posters, and displays
near collection points. This ensures that
customers are aware of the program while
shopping.

2. Online Promotion: Eon Luxe to utilize their

website and social media channels to spread awareness about the take-back program. They
may share educational content, success stories, and updates to encourage participation.

3. Email Campaigns: Eon Luxe may send targeted email campaigns to their customer
base, highlighting the benefits of the take-back program and providing information on how
to participate. This direct communication helps reach customers who may not be aware of
the program otherwise.

4. Collaborations and Events: Eon Luxe may collaborate with influencers, environmental
organizations, or local communities to organize events or campaigns promoting the take-
back program. This allows them to reach a wider audience and generate buzz around
sustainability initiatives.
➢ Offering Incentives or Rewards:

1. Discount Vouchers: Eon Luxe may offer discount vouchers or coupons to customers
who participate in the take-back program. These incentives can motivate customers to
recycle their clothing while also driving foot traffic to Eon Luxe stores.

2. Loyalty Programs: Eon Luxe to may integrate the take-back program with their loyalty
program, offering rewards points or exclusive perks for participating. This encourages
repeat participation and fosters customer loyalty.

3. Special Promotions: Eon Luxe may run special promotions or events tied to the take-
back program, such as "recycling days" where customers receive bonus rewards for
recycling their clothing. These promotions create excitement and urgency around
sustainability initiatives.

➢ Practical Steps To Be Taken Taken:

- Eon Luxe to ensure that staff members are trained to communicate effectively with
customers about the take-back program, answering questions and providing assistance as
needed.

- They regularly update their marketing materials and educational resources to keep the
messaging fresh and relevant.

- To track the effectiveness of their customer engagement and education efforts through
metrics such as participation rates, feedback from customers, and social media engagement,
allowing them to adjust their strategies as needed.

➢ Collaboration and Partnerships

1. Exploring Partnerships with Textile Recycling Companies or Charities:

- Identification: Eon Luxe to identify and reaches out to reputable textile recycling
companies or charities with expertise in garment recycling and reuse.
 - Assessment: Eon Luxe to evaluate potential partners based on their capabilities, track
record, and alignment with the company's sustainability goals.

- Negotiation: Eon Luxe to negotiate partnership agreements outlining roles,

responsibilities, and mutual benefits for both parties.

- Integration: Eon Luxe to integrate partner organizations into the clothing take-back
program, collaborating on collection, sorting, and processing of returned garments.

- Example: Eon Luxe to partner with organizations like I:CO (I:Collect) to facilitate the
collection and recycling of used textiles. I:CO operates recycling facilities and providesEon
Luxe with recycled materials for new garment production.

2. Engaging with Local Communities and Organizations:

- Community Outreach: Eon Luxe to engage with local communities through outreach
programs, events, and educational initiatives to raise awareness about the clothing take-
back program and encourage participation.

- Collaborative Events: Eon Luxe to organize collaborative events with local

organizations, such as clothing drives or recycling workshops, to promote community
involvement and support program implementation.

- Partnership with NGOs: Eon Luxe to collaborate with non-governmental

organizations (NGOs) and grassroots initiatives focused on sustainability and social impact
to leverage their networks and resources.

- Example: Eon Luxe to partner with local schools, community centers, and
environmental organizations to host clothing collection drives and educational workshops
on textile recycling and sustainability.

3. Seeking Collaboration Opportunities with Other Retailers

- Industry Alliances: Eon Luxe to seek collaboration opportunities with other retailers,
both within and outside the fashion industry, to amplify the impact of the clothing take-
back program and promote industry-wide sustainability.
 - Joint Initiatives: Eon Luxe to collaborate with other retailers on joint initiatives, such
as cross-promotional campaigns, shared collection infrastructure, or co-branded
sustainability initiatives.

- Platform Partnerships: Eon Luxe to explore partnerships with online platforms or

marketplaces to facilitate the resale of second-hand clothing collected through the take-
back program.

- Example: Eon Luxe to collaborate with outdoor retailer The North Face on the Common
Threads Initiative, a joint effort to promote garment recycling and encourage consumers to
prolong the life of their clothing.

➢ Employee training programs

Training Sessions for Staff Members

1. Content Development: Eon

Luxe to develop training materials
and resources outlining the
procedures and protocols of the
clothing take-back program.
These materials cover topics such
as acceptance criteria, sorting
procedures, and customer
interaction guidelines.

2. Training Sessions: Practical

training sessions are to be conducted for staff members involved in the implementation and
management of the take-back program. These sessions may be held in-store or through
online platforms to accommodate the needs of different locations and schedules.

3. Hands-on Experience: Staff members may receive hands-on training to familiarize

themselves with the processes involved in collecting, sorting, and processing returned
clothing items. This may include role-playing exercises, shadowing experienced
colleagues, and on-the-job training opportunities.

4. Continuous Learning: Eon Luxe to emphasize the importance of continuous learning

and skill development by providing ongoing training opportunities for staff members. This
ensures that employees stay updated on program updates, best practices, and industry trends
related to garment recycling and sustainability.

➢ Empowering Employees to Communicate Program Benefits:

1. Education on Program Benefits: Staff members may be educated on the environmental

and social benefits of the clothing take-back program, including waste reduction, resource
conservation, and community impact. This enables them to effectively communicate these
benefits to customers.

2. Communication Skills Development: Training sessions include modules focused on

developing effective communication skills, such as active listening, empathy, and
persuasion techniques. This empowers employees to engage with customers in a friendly,
informative, and persuasive manner.

3. FAQs and Talking Points: Eon Luxe to provide staff members with frequently asked
questions (FAQs) and talking points to address common customer inquiries and objections
related to the take-back program. This equips employees with the knowledge and
confidence to handle customer interactions effectively.

4. Role-playing Exercises: Role-playing exercises may conducted during training sessions

to simulate various customer scenarios and practice communication strategies. This helps
employees build confidence in discussing the program benefits and addressing customer
concerns.

5. Feedback and Support: Eon Luxe to encourage open communication and feedback
from staff members regarding their experiences with the take-back program. This allows
for continuous improvement and provides opportunities for additional training and support
as needed.
➢ Monitoring and Evaluation

Establishment of Key Performance Indicators (KPIs):

1. Waste Diversion
Rate: Eon Luxe to
establish KPIs to
measure the percentage
of clothing collected
through the take-back
program that is diverted
from landfill waste.

2. Volume of Clothing
Collected: KPIs are set
to track the total volume
of clothing collected through the program over specific time periods, providing insights
into program participation and effectiveness.

3. Customer Participation Rate: Eon Luxe to monitor the number of customers who
participate in the take-back program relative to the total customer base, assessing program
engagement and reach.

➢ Implementation of Tracking Systems:

1. Point-of-Sale Integration: Eon Luxe to integrate tracking systems with their point-of-
sale (POS) systems to capture data on the volume of clothing collected at each retail
location.

2. Barcode Scanning: Garments collected through the program may be tagged or scanned
with barcodes to facilitate tracking and monitoring throughout the recycling or reuse
process.

3. Data Analytics Platforms: Eon Luxe to utilize data analytics platforms to aggregate and
analyze data on clothing collection and recycling, providing insights into program
performance and trends.
➢ Regular Evaluation of Program Impact:

1. Waste Reduction Analysis: Eon Luxe to conduct regular assessments to evaluate the
program's impact on waste reduction, comparing pre-program waste volumes with post-
program waste volumes to measure progress.

2. Customer Satisfaction Surveys: Eon Luxe to solicit feedback from customers through
surveys or feedback mechanisms to assess satisfaction with the take-back program,
identifying areas for improvement.

3. Environmental Impact Assessment: Eon Luxe to evaluate the environmental impact of

the program, considering factors such as carbon emissions avoided, water savings, and
resource conservation through garment recycling and reuse.