Status Quo Analysis - Textile Sector

The ECHT (Enable Digital Product Passports with Chemicals Traceability for a Circular Economy) project emerges at a critical moment in the European Union's transition toward a circular economy, specifically addressing the challenges in textile and carpet sectors. With approximately 6 million tonnes of textiles discarded annually in the EU - roughly 11 kg per person, according to the report (European Environmental Agency, 2023), particularly concentrated in the wealthy North-West Europe (NWE) region, there is an urgent need for systemic change in how these industries manage their chemical content and material flows.

The status quo analysis aims to establish a solid foundation for an efficient and transformative learning process in chemical traceability within the textile and carpet sectors. This analysis seeks to understand the complex interplay between technical capabilities, organisational readiness, and systemic barriers that industry actors face when implementing chemical traceability systems.

Drawing on the expertise of ECHT project partners, associated organisations and on desk research, the analysis examines how different actors currently approach traceability challenges. What makes this analysis particularly valuable is its focus on the practical realities faced by the textile system including small and medium-sized enterprises, which represent the vast majority (89%) of textile companies in the NWE region (Di Bella et al., 2023). These SMEs often face unique challenges in implementing new systems, from limited resources to complex supply chain relationships.

By understanding these nuances, we can ensure that the resulting training schemes address the technical aspects of traceability and also the organisational and cultural changes needed for successful implementation. The research methodology for this report followed a stepwise analytical process to examine chemical traceability in the textile and carpet industries. The investigation began with a review of the current state of chemical use and management systems, establishing a foundational understanding of existing practices and frameworks.

Our analytical approach progressed through three main phases:

1. The first phase involved a systematic examination of chemical management systems, release mechanisms, and regulatory frameworks, documented in Section 2. This was accomplished through literature review, industry documentation analysis, and examination of current chemical management practices.
2. The second phase, detailed in Section 3, employed analytical frameworks to assess market dynamics, implementing a structured evaluation of both drivers and barriers affecting chemical traceability implementation.
3. The third phase, presented in Section 4, utilised system mapping frameworks to analyse the complex interrelationships between regulatory requirements, market forces, and industry practices in both textile and carpet sectors.

The methodology incorporated comparative analysis techniques and several frameworks to examine the distinctions between textile and carpet industry practices, particularly evident in the system map analysis. Data collection methods included document analysis, regulatory framework review, and assessment of industry practices. This methodological approach enabled the identification of key patterns and systemic relationships.