The fashion outlet platform Otrium, in cooperation with the carbon tracking software Vaayu, has published an analysis of the savings in CO2 emissions and textile waste through off-price business models.
The calculations pulled data from over 45 fashion brands (Otrium and external) and nearly five million fashion products using Vaayu’s proprietary artificial intelligence, machine learning and life cycle assessment. In total, Otrium works with more than 400 fashion brands, including Belstaf, Diane van Furstenberg, Puma and Wolford.
“This report represents a new contribution to understanding the end-of-life phase of fashion products based on one of the largest datasets,” Otrium said in a statement.
The Amsterdam-based platform avoided 6,496 tonnes of CO2 and 104 tonnes of waste last year by offering fashion brands a viable solution to clearing unsold inventory, compared to an alternative scenario with no off-price model. According to the platform, that’s the equivalent of 2,219 return flights between Amsterdam and New York, or throwing away 130,524 pairs of jeans.
“In 2015 we founded Otrium to change the way fashion is produced and sold. Our business model is a first step in solving the growing problem of overstocking. As a next step, we will use the results of our Otrium Impact Report 2022 to strengthen our sustainability strategy and climate targets. We will also use them to communicate transparently with our customers, brand partners and the fashion industry. We’re constantly working to improve our impact step by step,” said Otrium co-founder Milan Daniels in a statement.
“When we started Otrium, we didn’t just want to start a company. We wanted to start a movement. We wanted every garment we make to be worn,” adds Daniels.
How were CO2 and waste savings calculated?
Vaayu arrived at this finding by comparing the carbon emissions and waste generated by selling a fashion item on the Otrium platform to alternative ways for brands to dispose of their excess inventory. Based on responses from more than 45 fashion brands, these are donations or disposal.
Using a Life Cycle Analysis (LCA), Vaayu then calculated the carbon emissions and waste generated by selling fashion items on Otrium, minus the carbon and waste impacts generated by using alternative channels for inventory clearance, plus any additional impacts generated by Rebound effects of the market arise, such as changes in consumer buying behavior.
This was done using Vaayu’s own carbon modeling engine, taking into account the latest EU guidelines for calculating the ecological footprint of apparel and footwear, as well as Otrium’s input in relation to product type, size and weight, material composition, fabric construction, country of origin and country of sale.
Extension of the product cycle through repair
This provides a baseline footprint for the typical life cycle of an item (manufacture, distribution, sale and disposal) which was used to compare potential carbon and waste savings. It also includes the impact of Otrium repairing slightly damaged items.
“To achieve this, we try to go the extra mile. If an item is damaged, we first try to fix it and give it a second chance on our member-based platform. We also match brand partners with selected buyers and local charities. This way we are able to get the maximum value for each item, regardless of its condition,” Otrium explains his approach.
On average, this resulted in 2.13 kilograms of CO2e and 30 grams of waste per product. This was then expanded to quantify the impact of Otrium’s brand partners and its overall business.
Vaayu deliberately took a conservative approach to avoid overstating Otrium’s carbon and waste savings. The methodology has also been independently audited on a regular basis by Stephen Allen, Professor of Life Cycle Assessment at the University of Bath.
Low excess purchase rate through resale
Carbon emissions and waste generation from alternative sales channels were then calculated and compared to the baseline footprint of sales through Otrium. This helped assess the potential savings from extending the lifespan of fashion items and avoiding direct disposal through landfill, recycling or incineration.
The calculations took into account two main scenarios of alternative disposal options: routes leading to resale, and the assessment of “dead stock” leading to downcycling or waste disposal.
“Results show a relatively low excess purchase rate of 18 percent – meaning that for every six items sold on Otrium, a customer buys one additional item. So, on average, 82 percent of purchases on Otrium help avoid the need for a new item,” the report concludes.