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Fashion and Textile

The fashion and textile industry plays a significant role in building a sustainable future. Clothing shapes identity, culture, and lifestyle, giving the industry a unique power to drive the sustainability transition. At the same time, the sector’s major environmental challenges demand ambitious solutions.

Halti

The environmental footprint of the clothing and textile industry is substantial. Estimates suggest the sector is responsible for 4–10 percent of global climate emissions—more than the combined emissions of international aviation and maritime shipping. Water use and aquatic pollution are also major concerns: producing a single cotton T-shirt can require thousands of litres of fresh water, and dyeing processes in some regions can severely pollute waterways.

The use of synthetic fibres has grown rapidly. Polyester and other oil-based materials now make up the majority of global textile fibres. These materials shed microplastics during washing, which end up in aquatic environments. It is estimated that one-third of the microplastics found in the oceans originate from textile fibres.

One of the most visible problems in the industry is overproduction. Estimates suggest that up to 30 percent of garments produced never make it to market. Another major challenge is the handling of discarded textiles. Globally, around 73 percent of used textiles end up in landfills or incinerated, and only about one percent are recycled into fibres that can be used to make new textiles.

The sector’s environmental impacts stem from a linear model in which raw materials are used only once: make, use, discard. Building a sustainable fashion and textile industry requires breaking this model, improving product quality and durability, recycling materials, and rethinking the entire value chain. The transformation calls for consistent effort—from the design table to the retail floor, and all the way to the end of a product’s life cycle.

Regulation Improves the Sustainability of the Sector

The EU’s new textile legislation is rapidly and fundamentally changing the rules of the game in the industry. The Ecodesign for Sustainable Products Regulation, which entered into force in 2024, extends ecodesign requirements to cover textile products. The aim is to increase product lifespan, improve repairability and recyclability, and ensure that textiles are primarily made from recycled fibres.

A key tool in this transformation is the Digital Product Passport, expected to become mandatory in phases from 2027 onwards. It brings together essential product information—such as material composition, country of origin, environmental impact, and recycling instructions—and enables transparency across the entire value chain. The passport is accessed through a digital identifier, such as a QR code. Its goal is to support responsible consumer choices and improve regulatory oversight.

In 2025, changes to the Waste Framework Directive will introduce Extended Producer Responsibility (EPR) for textiles and footwear. The directive extends the producer’s responsibility to the entire life cycle of their products. Producers—both manufacturers and importers—will be responsible for the collection, transport, sorting, recycling, and waste management of their products. Member States have 20 months to transpose the directive into national law, so in Finland the new EPR system is expected to take effect in 2027–2028. The national implementation is being coordinated by the Ministry of the Environment in cooperation with authorities and stakeholders.

Also in 2025, an EU-wide requirement for separate collection of textile waste will come into force. Member States will be obligated to organise the collection of discarded textiles and direct them to reuse or recycling—landfilling and incineration will no longer be the primary options. In Finland, collection has been in place since 2023, with municipalities responsible for the process.

A forthcoming Green Claims Directive will prohibit misleading environmental claims in marketing. For example, statements about climate-friendliness or carbon neutrality must be scientifically substantiated and verified by a third party. In addition, the Corporate Sustainability Reporting Directive (CSRD) will gradually extend sustainability reporting obligations to the textile and fashion sectors. Companies will be required to assess both their environmental impact and the environmental risks to their business. With the EU’s spring 2025 Omnibus legislation, the application of these obligations has been delayed by one or two years for certain categories of companies.

EU regulatory reforms are steering the fashion and textile sector toward greater sustainability—but implementation raises questions about fairness and impact. European companies must adapt quickly to new compliance demands, invest in systems, and report more comprehensively. At the same time, global players like Temu and Shein flood the market with ultra-cheap products. In principle, they are subject to the same rules, but enforcement is currently lacking.

The challenge is that EU internal market regulation alone is not enough if companies outside the EU can continue operating as before without oversight. Advancing the sustainability transition requires fair rules: if obligations do not apply to all market participants, more responsible companies bear the cost. The Finnish Textile & Fashion association has emphasised that regulation is important—but it must be effective, enforced, and apply equally to both European manufacturers and non-EU online retailers and brands.

The sustainability transition will not be accelerated by simply increasing the volume of regulations—it also requires targeting them appropriately. In parallel with regulation, incentives are needed: especially investments that support sustainable production models, scalable solutions, and smart enforcement mechanisms. These measures can ensure that sustainability regulation transforms the entire industry rather than becoming a burden carried only by early adopters.

The Finnish Textile and Fashion Industry Invests in Sustainability

Despite its relatively small size, the Finnish textile and fashion industry is a frontrunner in the circular economy on an international scale. Finnish companies are boldly developing more sustainable solutions—new materials, business models, and forms of collaboration. Many have positioned themselves as pioneers of circular practices.

Pure Waste manufactures its products entirely from recycled materials, and Globe Hope has been repurposing surplus textiles into upcycled fashion since the early 2000s. Finlayson has helped reduce textile waste and promote circularity by collecting used sheets and jeans from consumers and turning them into new products.

Fashion designer and CEO Anna Ruohonen has used a made-to-order production model, where garments are only made after a customer places an order. This approach directly addresses the issue of overproduction in the industry. Technology can also support sustainability: Halti has adopted high-end 3D design tools that reduce the need for physical samples, shorten product development times, and minimize material waste—resulting in less waste and lower emissions.

Finland’s national goal to be carbon neutral by 2035 is reflected in the sector. The Carbon Neutral Textile Industry 2035 commitment, led by Finnish Textile & Fashion (STJM), offers companies a carbon footprint calculator, training, and expert support to reduce emissions. Many companies, including Nanso and TouchPoint, have joined the commitment. A list of participating companies is available on the organisation’s website. STJM also runs a sustainability network that brings together industry actors to share experiences, best practices, and monitor sustainability progress.

STJM represents and advocates for the Finnish textile and fashion industry both nationally and at the EU level. Its European umbrella organisation, EURATEX, promotes responsible business by offering tools and advancing sustainable development across the EU. The European Commission’s Transition Pathway for the Textiles Ecosystem outlines a shared roadmap for the sector’s green and digital transition.

Examples of concrete projects include AEQUALIS4TCLF (2024–2028), which aims to strengthen skills across the European textile and footwear sectors, improve sustainability, and promote circularity. The Baltic2Hand project (2021–2027) supports the growth of second-hand fashion and the reuse of textiles in the Baltic Sea region.

The CIRPASS-2 project (2024–2027), funded by the EU’s Digital Europe Programme, aims to deepen understanding of the digital product passport and develop practical implementation paths across sectors. From Finland, STJM is participating in a pilot focused on the workwear value chain, alongside Dimex, FabPatch, Image Wear, Infinited Fiber Company, Lindström, Touchpoint, and organisations like IOXIO, Sitra, and VTT.

The pilot models and analyses the types of data needed to support reuse, repair, remanufacturing, and recycling. The aim is to identify how digital product passport data can enable circular business models in close collaboration across the value chain.

The sustainability transition is also promoted through recognition and campaigns. The annual Circular Fashion Competition highlights industry frontrunners, while Fashion Revolution Week encourages companies to be transparent about their supply chains and fosters dialogue with consumers.

Extending the Lifespan of Clothing Is a Sustainability Act

One of the most effective ways to reduce the environmental burden of the fashion industry is by extending the lifespan of clothing. The longer a garment is worn, the less need there is to produce new products. Repairing, maintaining, renting, and reusing are returning to everyday life—and an increasing number of brands are supporting this shift.

Many Finnish companies offer repair instructions and maintenance services to extend the life of their products. For example, Sasta provides customers with care and repair guidelines. Menddie offers professional clothing repair services, while SOL Laundry Services provides zipper replacements and clothing alterations at several locations throughout Finland. Many clothing retailers also collaborate with local repair providers.

Brands are also participating in clothing reuse by offering take-back and resale services. Reima includes a second-hand section in its online store, and Marimekko’s Pre-loved platform enables customers to buy and sell used Marimekko items.

Professional resale platforms like Emmy and Ninyes have established themselves as intermediaries between consumers and brands—Ninyes, for example, partners with brands like Kaiko. Relove stores bring high-quality second-hand fashion to physical shops. Peer-to-peer resale is thriving on platforms like Vinted and Facebook Marketplace, keeping clothing in circulation longer and giving garments multiple users—buyers are no longer just consumers, but also resellers.

Ownership is not always necessary. New service models offer alternatives to buying—for example, Robes Rental allows customers to rent clothing from other people’s wardrobes.

Recycled Materials – When Clothes Become Raw Materials

In recent years, Finland has seen many successful pilots and experiments in textile circularity. The next step is scaling these solutions: how to bring good innovations into wider use, industrial production, and export-ready business concepts.

Textile recycling is also advancing. Southwest Finland Waste Management’s processing plant in Paimio has piloted consumer-sorted textiles into new fibres used for insulation, yarn spinning, and acoustic panels. Rester provides mechanical recycling for business textiles in the Turku area, and Nextiili sorts discarded textiles for reuse in Tampere. Untuvia operates as a marketplace for recycled down and, thanks to its innovative recycling process, produces the world’s highest-quality recycled down.

Finnish textile fibre innovation is diverse and constantly evolving. Spinnova has developed a patented technology that creates textile fibre from wood pulp or waste streams like leather and textile waste—without harmful chemicals or solvents. Infinited Fiber Company uses a cellulose carbamate method to turn textile waste into completely new fibre.

The raw material for Infinna™ fibre can also include other cellulose-based waste streams such as recycled cardboard and paper, or agricultural residues like wheat straw. Brands such as Zara, Lindex, and Reima have already used Infinna in their collections. Innovation development also includes Aalto University’s Ioncell® method, which produces high-quality textile fibres from wood, recycled paper and cardboard, and textile waste.

Upcycling, or creative remanufacturing, gives old materials new life—often of greater value. Globe Hope makes bags and clothes from hospital textiles and uniforms, while Uhana and Niini have created collections from post-consumer textiles and factory waste. Upcycling brings craft appreciation, individuality, and local employment back into fashion—and proves that high-quality design can come from existing materials.

Change Begins with Education

The sustainability transition in the fashion and textile industry requires new skills at all levels of education. Traditional competencies—such as knowledge of materials, sewing, and business skills—must now be paired with new ones: circular design, lifecycle management, sustainability reporting, awareness of new materials, and the development of service-based business models. Finland’s education system has responded to these needs in diverse ways.

At the university level, Aalto University’s Bachelor’s Programme in Design and Fashion helps students develop their creative design skills while emphasizing sustainable development. LAB University of Applied Sciences in Lahti offers a Wearable Design programme focused on designing aesthetically, ethically, and ecologically high-level products and collections. At Savonia UAS, students can specialize in fashion design, service design, or industrial design, with a strong emphasis on circular design, digital product development, and fashion technologies.

At the vocational level, sustainability topics are included in basic qualifications and specialization programmes. For example, at Tampere Vocational College, students learn to make garments and textile products in accordance with sustainable development principles, with emphasis on materials knowledge, life-cycle thinking, and skills in repair and reuse.

For professionals, further education is available to support the skills needed for the sustainability transition. The KIRI – Accelerate with Circular Economy programme supports textile and fashion actors in developing circular and responsible business practices, run in cooperation with Häme and Savonia Universities of Applied Sciences. Finnish Textile & Fashion’s Tekstiiliakatemia (Textile Academy) brings companies and educational institutions together to meet the sector’s evolving competence needs.

Finland has built a comprehensive educational foundation that combines the textile industry’s traditions with new solutions. This provides a strong starting point for training the next generation of professionals who will carry the sustainability transition forward in design, production, and business.