7COLLABORATIVE AND CIRCULAR ECONOMY Flashcards
What is the Circular Economy?
The Circular Economy is a model aimed at extending the life cycle of products, reducing waste, and promoting the reuse of resources within the sustainability paradigm.
What is the EU Taxonomy Regulation (2020)?
The EU Taxonomy Regulation is a classification system defining environmentally sustainable economic activities, supporting the European Green Deal objectives.
Name four Circular Business Models.
Resale, Rental, Repair, Remaking.
What is the Sharing Economy?
The Sharing Economy is an economic system facilitating shared access to assets and services between individuals, often leveraging digital platforms.
What is the Waste Framework Directive?
The Waste Framework Directive is a directive aimed at promoting waste prevention, recycling, and resource efficiency within the European Union.
What are the Seven Pillars of Circular Economy?
The Seven Pillars of Circular Economy include principles such as designing out waste and pollution, keeping products/materials in use, and regenerating natural systems.
What are the steps in the Rethink, Design, Co-create, Scale (RDCS) action plan?
The steps include rethinking performance indicators, designing products for longevity, co-creating supply networks, and scaling circular business models.
What was the outcome of the Earth Summit (1992)?
The outcome was the creation of three “Rio Conventions” addressing climate change, biodiversity, and desertification.
What values are associated with Ethical Fashion?
Values include fair trade, sustainability, and ethical labor practices.
What is the purpose of the EU Strategy for Sustainable and Circular Textiles?
The purpose is to shift the textile industry towards a circular economy, emphasizing durability, reusability, repairability, and recyclability.
What is the first main business model in the fashion industry that circulates products and materials and has the potential to decouple revenue streams from production and resource use?
Resale
Describe the resale business model in the fashion industry.
Resale involves peer-to-peer sale of second-hand items, third-party marketplaces, and own-brand re-commerce and take-back initiatives. It is increasingly adopted by younger generations, particularly in Europe.
Which business model in the fashion industry includes one-off peer-to-peer rentals by private owners and large-scale rental and subscription models by multi-brand platforms or individual brands?
Rental
Explain the repair business model in the fashion industry.
Repair involves returning faulty or broken products or components to a usable state. It is gaining traction, especially in the luxury segment, due to higher margins and customer interest in preserving high-value items.
What does the remaking business model entail in the fashion industry?
Remaking involves creating new products from existing products or components, such as disassembling, re-dyeing, and repurposing. It provides a solution for handling used items and overstock post-pandemic while generating additional revenue.
