The apparel value chain is essential for the livelihood of millions of workers around the globe, but working conditions in this sector are far from satisfactory. The circular economy has been used by businesses as a framework for achieving sustainability but there is a lack of knowledge about its social impact.

This paper explores the social impact of the different circular strategies implemented in the Netherlands, Spain and India. It assesses social impacts related to the quality of jobs, workers’ sustainable livelihood and gender equality and inclusion. 

It finds that the social ambition of the circular economy is low, and that current circular strategies follow the same feminisation and precariousness of working conditions found in the linear apparel value chain.

This paper examines the socio-environmental justice aspects of 11 key EU policies guiding the textile industry's journey towards circularity.

It found that action is needed to tackle overproduction and overconsumption in the EU Strategy for Sustainable and Circular Textiles. Steps must be taken to address the impacts of EU circular economy textile policies on the Global South so as to ensure positive social and environmental outcomes. 

The paper also concluded that efforts are needed to make just transition policies globally accountable and alleviation mechanisms integral to the Textile Strategy rather than supplementary corrective measures. Meaningful participatory mechanisms are needed that ensure the democratic inclusion of different views and actors.
 

Circular economy practices are gaining importance in the global textile and apparel value chain. However, the circular economy's social dimension is often overlooked.

To address this problem, this study develops transformative circular futures (TCFs), co-created circular economy scenarios that are diverse and systemic and embed social impact considerations. The aim is to inform policy and business decision making in the textile and apparel value chains of India, the Netherlands and Spain.

The study recommends normalising living wages for direct, indirect and informal workers, implementing regulations challenging the patriarchy, eliminating gender pay and establishing permanent global committees of social actors.

Companies in the textile and apparel value chain have been increasingly implementing circular economy practices. However, implementation has focused on the techno-environmental (hard) dimension, and partly overlooked the (soft) social dimension. There is a lack of empirical knowledge about how businesses in this value chain simultaneously manage soft and hard aspects of circularity and what kind of socio-environmental impact they generate.

This research analysed the soft and hard aspects of ten circular business cases from three countries. It demonstrates that both aspects are integral components of a comprehensive transformative circular transition framework that facilitates the adoption of more inclusive and circular practices while improving sustainability performance.