Technology business Security Matters (ASX:SMX) has officially opened its first Fashion Sustainability Competence Centre, which will use blockchain technology to enable fashion brands to recycle their own merchandise into new materials.
The goal of the venture is to reduce the volume of virgin materials required and the amount of waste generated each year by the fashion industry.
Global textile waste is expected to reach 148 million tons annually by 2030.
SMX’s Fashion Sustainability Competence Centre aims to allow brands to recycle their own clothes, shoes and accessories, giving them the ability to meet carbon neutrality targets.
SMX’s technology reportedly tracks, traces, authenticates and verifies using both physical and digital markers.
It follows every stage of the supply chain, from the raw material extraction phase, through manufacturing to distribution, retail and end of life.
Commencing in early 2021, the Centre was made possible following significant investment from major fashion brands around the world.
Founder and CEO of Security Matters, Haggai Alon, said the company wants to future proof the fashion industry.
“It is uneconomical and inefficient to use 100% virgin raw materials in every new product being manufactured.
"By using SMX’s marking technology and digital blockchain platform, fashion brands can efficiently sort, reclaim and reuse the raw materials in the unwanted product.
"Hence reducing the amount of virgin materials required; amount of waste sent to landfills; level of carbon emissions; and meeting the sustainability and ESG expectations of their consumers and stakeholders.
“The SMX’s Sustainable Competence Centre will enable fashion brands and their value chain partners to future proof their business models.
"Those ready to adapt and rethink their current business models will be the ones who will survive the best and thrive in the new circular closed-loop economy,” said Mr Alon.
The Centre will provide brands and supply chain partners with plastic credits and carbon credits, which will increase in value as the raw materials (e.g. plastics, textiles, rubber) go through additional lifecycle loop count.
These credits can then be used to incentivise fashion brands and manufacturers to design for recyclability and consume less virgin materials, enhancing circular economy.
The number of garments produced annually has doubled since 2000 and exceeded 100 billion for the first time in 2014.
From this, an estimated 92 million tons of textile waste is created annually from the fashion industry.
This waste is also estimated to increase by approximately 60% between 2015 and 2030, meaning an additional 57 million tons of waste being generated annually, reaching an annual total of 148 million tons.
Several Sustainability and ESG regulatory frameworks and initiatives have been introduced such as the EU Green Deal to encourage the fashion and textile industry to reduce its waste and, where it cannot be avoided, recycled.
The EU Commission wants to extend the responsibility of the fashion and textile companies and push them to offer reusable, durable and repairable products, according to the Green Deal plan. With the EU Commission’s new plan, voluntary green initiatives by the fashion and textile industry could become legally binding in the future.
SMX’s technology is applicable across a wide range of materials including wool, EVA, TPU, ABS, PET, vegan leather, polyesters and cottons and its applications encompasses shoes, trainers, clothes and accessories. Commencing in early 2021, the Sustainabiliy Competence Centre will be focusing its application on sunglasses, sports shoes (trainers) and t-shirts.