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Fashion industry’s carbon footprint
The fashion industry is responsible for almost 8% of global carbon emissions, which is greater than international flights and global shipping combined. According to a UN report, the industry is the second biggest polluter in the world after the oil and gas sector. The industry is responsible for around 1.2 billion tonnes of carbon emissions annually. To reduce its environmental impact, the industry needs to cut waste from overproduction.
Digitally dressing
PhygitalTwin, an ecologically-minded fashion marketplace, is using Web3 innovations to cut waste from overproduction by using blockchain-based solutions to streamline workflows. Digital versions of clothing lines are produced which allows consumers to virtually wear an augmented reality (AR) overlay of an item of clothing before committing to buying it physically. This could lead to less product returns and major source of waste within the industry.
Blockchain in fashion supply chains
Blockchain technology can bring several efficiencies to supply chains, including increasing transparency, improving traceability, reducing paperwork, increasing efficiency and improving security. By digitising inventories and having orders tokenised on the blockchain, efficiencies can be made across entire fashion supply chains, from raw material producers to high street stores. This would enable real-time tracking of supply and demand across the globe and provide a constant record of the origin, location, and movement of goods to assess their ethical and environmental impact.
Blockchains and counterfeit fashion goods
Tracking and recording every transaction within a supply chain can improve an industry’s efficiency and reduce the risk of fraud. Counterfeiting is a major problem for the fashion industry. In 2023, the industry lost more than $50bn due to fake products. Providing a transparent and secure supply chain, blockchains can help to protect the intellectual property of fashion brands, improve consumer trust, and reduce the amount of counterfeit goods in circulation.
Phygital authentication
Phygital authentication is a solution to combat counterfeiting and also ensure fashion brands have a presence in both the physical and virtual worlds. Items of clothing will be sold with either a QR code attached that is linked to a non-fungible token (NFT) that is stored on a blockchain. This authenticates merchandise using end-to-end encrypted blockchain systems and allows clothing to have a second life within the metaverse.
Fashion’s colossal carbon footprint
The production activity in the fashion industry caters for high volume, quick turnaround, low-cost garments that people will wear for only a few months at a time. This level of intense production has taken a toll on the world’s environment, resulting in the industry being responsible for 1.2 billion tonnes of carbon emissions annually. Every UK household, as a result of their clothing consumption, produces the equivalent emissions of driving a modern car for 6,000 miles.
Conclusion
The fashion industry needs to adopt blockchain technology to reduce overproduction, combat counterfeit products and track every transaction. By using blockchain-based solutions, constant records of the origin, location and movement of goods are maintained, which can be used to assess their ethical and environmental impact, thereby reducing the industry’s carbon footprint.
