Data-driven impact investment opportunities in circular textiles
Invest-NL, the National Promotional Institution of the Netherlands, is using Metabolic’s textile material flow analysis to identify investment opportunities that will support the development of the circular textile industry in the Netherlands.
Mapping the intricate flows of materials in the Dutch textiles industry, our research identifies leverage points to help Invest-NL and its stakeholders make strategic decisions on the topics of financing, collaboration, and policy to support the Netherlands’ ambitious plans to transition towards a circular textile industry. Additionally, we also estimated the monetary value that could be recovered by redirecting waste textile flows away from incineration and towards circular solutions.
- Client: Invest-NL
- Date: June, 2024
Investing in circular textiles: lacking data overview on the Dutch textiles industry
Dutch citizens spend more on textiles than the average European. The Netherlands is also one of the top ten exporters of used textiles in the world, giving it a critical role in the global trade of textile waste. The country has set ambitious targets for circular textiles, and the investment community needs to play an important part in the circular transition by allocating financial capital where it is needed.
However, most textiles in the Netherlands are imported through complex and opaque global supply chains, making tracking data hard to find and progress difficult to monitor. Where data is available, reports and datasets vary in scope, methodology, and reliability, complicating efforts to compile a consistent and unified picture.
This is why Invest-NL has asked us to conduct a comprehensive analysis to establish a baseline of textile flows in the Netherlands, identify impact hotspots, and highlight opportunities for significant impact returns on investment.
Mapping the textile material flows and value recovery potential
Employing a multi-faceted approach, Metabolic performed a comprehensive and in-depth Material Flow Analysis (MFA) of finished textile products in the Netherlands, including consumer clothing, home linen, workwear, and professional linen.
We also conducted a data quality assessment of 30+ publicly available datasets, and reports, and validated them with relevant experts and stakeholders.
Finally, we conducted a high-level assessment of the potential monetary value recovery of circular interventions for prioritized waste streams.
A visually compelling baseline to pioneer a circular textile transition
Providing Invest-NL with a solid foundation to champion the circular transition in the Dutch textile industry, we:
- Comprehensively mapped material flows: We visualized textile flows in the Netherlands, offering granular insights such as fiber composition, blended versus pure materials, unsold inventory, product returns, untapped potential in residual waste, and the likely fate of textiles exported abroad.
- Identified impact hotspots: The analysis highlighted the relative environmental impacts across textiles’ life stages, pointing out areas that are low-hanging fruit for interventions and those requiring longer-term solutions.
- Set investment priorities: We provided strategic recommendations for Invest-NL to focus resources on high-impact areas, such as scaling up innovative textile recycling technologies and supporting circular business models.
In our recommendations, we focus on areas where the Netherlands has direct influence, ensuring they are actionable. Our initial assessment shows promising monetary value recovery of redirecting textile waste streams through circular pathways.
