NATIONAL TEXTILE AND APPAREL RECOVERY INITIATIVE

NATIONAL TEXTILE AND APPAREL RECOVERY INITIATIVE

KEY FACTS Globally, we produce 2.1 BT of waste per year, more than 1.6 times earth s long-term production capacity. At this rate, we will generate 62% more textile and apparel waste in 2030 than in 2015, equal to 57 MT more per year. Most of this waste is landfilled or incinerated; only 20% is collected for reuse or recycling globally. PROJECTED GLOBAL FASHION WASTE (MILLION TONS) PLANETARY BOUNDARIES 148 62% 92 2015 2030 Source: GFA s Pulse of the Fashion Industry

Millions KEY FACTS In the U.S., we generated 16.2 MT of textile waste in 2014, up from 9.5 MT in 2000, an increase of 71%. Meanwhile, overall MSW grew only 6%. Over that same time period, per capita generation rose from 67 lbs/pp/yr to 102 lbs/pp/yr, while per capita generation of MSW fell -6%. Textiles in the MSW grew from 3.9% in 2000 to 6.2% in 2014. TONS US MSW GENERATED PERCENT CHANGE IN TONS GENERATION 2000-2014 PERCENT CHANGE IN PER CAPITA GENERATION 2000-2014 18 16 14 12 10 8 6 4 2 0 9.5 16.2 2000 2014 Overall Waste Stream Food & Yard Other Wood Textiles 71% Rubber and Leather Plastics Metals Glass Paper and Paperboard -50% 0% 50% 100% Overall Waste Stream Food & Yard Other Wood Textiles 51% Rubber and Leather Plastics Metals Glass Paper and Paperboard -50% 0% 50% 100% Source: USEPA Source: USEPA Source: USEPA

US U.S. CONSUMPTION 500 450 400 350 300 250 200 150 100 Energy Apparel Medical care Commodities Selected Consumer Price Index series, 1983 2013 All items less food and energy Food Services 50 Jan-83 Jan-85 Jan-87 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Source: BLS

Millions of Tons KEY FACTS Diversion through reuse and recycling has remained relatively flat at 16% between 2000 and 2014. Incineration and landfilling have accounted for about 84% of textile disposal for more than a decade. In 2014, about 19% of textiles went to waste to energy. The cumulative carbon impact and lost resources due to landfilled and incinerated textiles and apparel is growing each year. Source: EPA 18 16 14 12 10 8 6 4 2 TEXTILE WASTE DISPOSITION 2000-2014 REUSE, RECYCLING, DISPOSAL Charities Drop Boxes Branded Takeback Curbside Reuse & Recycling Landfilling & Incineration 0 2000 2003 2004 2005 2010 2011 2012 2013 2014

TEXTILES AND APPAREL FLOWS IN U.S. Post-Consumer FIBER SOURCING AND PROCESSING TEXTILE PRODUCTION REMANUFACTURING GARMENT PRODUCTION DISTRIBUTION & RETAIL CONSUMER USE DONATIONS EXPORTED RECYCLING RAGS/WIPING CLOTHS NEW YARN SHODDY, MUNGO, STUFFING NON-CLOTHING PRODUCTS INCINERATION Pre-Consumer LANDFILL Source: 2014 USEPA SMM Facts & Figures, US Dept. of Commerce Export Data, industry waste generation facts

Billions of dollars A WASTE TREND WITH NATIONAL & LOCAL COSTS $5.0 $4.0 $3.0 $2.0 $1.0 ANNUAL COST TO COLLECT & DISPOSE OF TEXTILES $0.0 2000 2005 2010 2015 2020 Source: USEPA tip fees and RRS collection costs used to estimate avg. per ton costs; 2015 costs were used for forecast National Trend with Significant and Growing Local Costs MANAGED LOCALLY Landfilled materials are collected and managed locally. Both the volume and the cost to manage on a per ton basis is growing exponentially in many communities. On average only 16% of textiles are diverted for reuse and recycling depending on locality.

Millions of dollars COST OF TEXTILES TO NEW YORK CITY PERCENT OF TEXTILES IN NYC S WASTE STREAM COLLECTION & DISPOSAL COSTS FOR TEXTILES IN NYC 6% $120 5% 4% NON-CLOTHING TEXTILES (E.G. LINENS) $100 $80 $103 3% $60 $79 2% APPAREL $40 $46 1% 0% Source: NYC Dept. Sanitation SHOES/RUBBER/ LEATHER 2005 2013 $20 $- 2000 2005 2010 2015 2020 2025 Source: NYC Dept. Sanitation; 2014 costs/ton were used to forecast foreword

Pounds/Capita Pounds/Capita Thousands Millions Thousands Millions A WASTE TREND WITH NATIONAL & LOCAL COSTS 60 50 40 30 20 10 0 60 50 40 30 20 10 0 CALIFORNIA +37% 2008 2014 CONNECTICUT +41% 2010 2015 Sources: Published Waste Characterization Studies TOTAL TONS AND MANAGEMENT COSTS (SMALLER POPULATIONS) 30 25 20 15 10 5 0 Tons Costs to Manage Textile Waste $9 $8 $7 $6 $5 $4 $3 $2 $1 $- 900 800 700 600 500 400 300 200 100 0 TOTAL TONS AND MANAGEMENT COSTS (LARGER POPULATIONS) Tons Costs to Manage Textile Waste $250 $200 $150 $100 $50 $-

GROWING RISK TO A VARIETY OF STAKEHOLDERS Africa s green fence threatens export markets Lack of domestic end markets Lack of scaled mechanized sorting solutions Post-consumer textile waste generation High costs to manage waste Growing awareness of waste and environmental issues Lack of easy and convenient consumer access REPROCESSORS TEXTILE MRF/ NON-PROFITS FIBER & FABRIC PRODUCTION MUNICIPALITIES/ COLLECTORS CONSUMERS GARMENT PRODUCTION FASTEST GROWING CATEGORY OF WASTE REUSE RETAILERS BRANDS DESIGNERS Pre-consumer textile waste generation Increasing rate of apparel consumption is driving rapid growth in wastage Natural resource scarcity for raw materials Rising natural resource costs coupled with lower product prices Growing pressure from NGOs raising risk profile to industry Extended Producer Responsibility Legislation

LANDSCAPE OF CURRENT TEXTILE INITIATIVES Sustainable Apparel Coalition Timberland and Thread- recycled content market development C2C Fashion Positive Secondary Materials and Recycled Textiles (SMART) Council for Textile Recycling FabScrap Simple Recycling NYSAR3 ReClotheNY Valvan Baling Systems FIBERSORT Smart Innovations Sorting Machine in Tx Soex Group Sorting I-Co/San Francisco DSNY Clothing Bin Registry DSNY Collection Pilot NYC Greenmarket - Wearable Collections ReFashioNYC RECYCLE REUSE FIBER PRODUCTION SORTING FABRIC PRODUCTION How do we link efforts to create a comprehensive consumer solution? MUNICIPAL COLLECTION GARMENT PRODUCTION DISTRIBUTION & RETAIL CONSUMER USE Manufactured in New York Made in NYC Heron Preston/DSNY Collection BRAND-SPONSORED RECYCLING PROGRAMS Patagonia mailback program American Eagle I:Co clothing recycling program Marks & Spencer Schwop and I:Co Gap and Cotton Inc Denim Collection The Limited partners with I:Co Nike Reuse a Shoe H&M partners with Worn Again; recycled denim collection North Face Clothes the Loop recycling program Levi Strauss partners Aquafil, makers of ECONYL J. Crew seasonal denim recycling program Timberland partners with Thread to use upcycled plastic waste Espirit partners with charity Packmee for takeback Eileen Fisher Fisher Found

ELEMENTS OF A SUSTAINABLE RECOVERY SYSTEM

VISION PUBLIC-PRIVATE COLLABORATIVE Bring together companies, municipalities, and recyclers that share an interest in the recovery and recycling of textiles and apparel Bring convenient and effective textile and apparel recycling solutions to consumers at a scale commensurate with the growing textile and apparel waste problem

GOALS EFFECTIVE SOLUTIONS Find economically viable solutions to reduce textile and apparel waste Develop more robust end markets for recovered textiles. Research and identify current hurdles to forging more effective textile and apparel recycling systems. Adopt successful strategies and scale solutions to recover and recycling textiles and apparel.

WEBINAR SERIES SUMMER/FALL 2017 OUTREACH # Webinar Topics Date/Time 1 2 The Cost and Environmental Impact of U.S. Textile and Apparel Waste How is that shirt collected and where does it go? Overview of U.S. textile recycling and emerging innovations in sorting technologies Wednesday, August 9, 2017 1-2pm EST Wednesday, August 23, 2017 1-2:15pm EST 3 4 State and municipal views on textile waste and where they are headed in the future A rising tide of apparel and textile waste - what are brands doing and is it enough? Wednesday, September 6, 2017 1-2pm EST Wednesday September 20, 2017 1-2pm EST

Marisa Adler Senior Consultant madler@recycle.com ORGANICS MANAGEMENT WASTE RECOVERY GLOBAL CORPORATE SUSTAINABILITY Julie Huang Marketing Coordinator jhuang@recyclecoach.com