logo
Smartwool And icebreaker's Circular Fashion Initiatives

Smartwool And icebreaker's Circular Fashion Initiatives

Forbes01-04-2025

Americans alone toss out up to 11.3 million tons of textile waste annually. That's around 2,150 pieces of clothing per second—which clogs waterways, leaches toxins, and harms marine life at breakneck speed.
Trendy, cheap clothes cycle in and out of closets, and many only last a few wears before being discarded.
Consumers, however, are beginning to take notice. Growing awareness of the environmental cost of fashion prompts them to demand change. In fact, 71% of modern shoppers today say they would pay a premium for sustainable fashion.
Despite this rising demand, progress remains slow. According to Kearney's 2024 Circular Fashion Index, only 25 out of 235 brands have begun responding to these consumer calls for sustainability.
Merino wool outdoor apparel brands like Smartwool and icebreaker are pooling their resources to take on this challenge. Once competitors, the sister companies now under the VF Corporation umbrella now create a circular ecosystem for merino wool that extends its life cycle and reduces waste.
Smartwool's Second Cut™ Project, for example, collected over one million old socks for recycling, while icebreaker is working toward a 100% plastic-free supply chain by 2028. In an industry built on fast turnover, can these circular brands finally break the cycle?
The textile industry runs on a linear model—produce, sell, discard. Smartwool flips that script with its Second Cut™ Project in 2021 by tackling waste on two fronts: resale and recycling.
In partnership with online consignment and thrift store thredUP, the Second Cut™ Resale Program incentivizes customers to buy and sell pre-owned Smartwool gear. Smartwool also offers free mail-in recycling kits and retailer drop-offs to collect, sort, shred, and repurpose used items into Second Cut™ wool blends for future apparel.
This taps into the 29% of Gen Z and millennials purchasing at least half of their clothes secondhand. As thredUP CEO James Reinhart pointed out, 'Smartwool apparel is quality-made and built to last, and it comes as no surprise that the brand performs incredibly well in the secondhand market.'
Another recognition further validates that Smartwool's efforts are on the right track. The Second Cut™ Hike Sock—the first product made from repurposed yarn through the program—won the ISPO Award 2023.
The ISPO Award Jury recognized it as 'an ambitious, innovative project' and a crucial step toward bridging the sustainability gap in outdoor apparel.
Since 2021, Smartwool has diverted over 1.07 million socks—roughly 86,500 pounds of textile waste—from landfills. Looking ahead, the brand is setting more ambitious goals. They plan to achieve 100% climate-positive wool, 100% regenerative materials, and 100% circular products by 2023.
The take-back loop is only the beginning. True sustainability requires continuous transparency, accountability, and measurable progress—principles that icebreaker embraces in its pursuit of a 100% plastic-free product line.
The company set an ambitious target to go 100% plastic-free by 2023 but only hit 96.14% as of 2024. Rather than sugarcoating the shortfall, they proudly celebrated their near-victory as a sign of progress, not failure.
73% of global consumers expect brands to be transparent about their environmental impact. While they don't expect perfection, they do want to see real, measurable progress.
In icebreaker's 2023 Transparency Report, they highlight their ongoing efforts to phase out the remaining synthetics with natural fibers and bio-based alternatives. And icebreaker's commitment to circularity doesn't stop at the product level. It's ingrained throughout their supply chain. They know where every piece of wool comes from—down to the individual farms and growers—with 100% traceability.
Icebreaker has forged long-term partnerships with its growers through 10-year supply contracts. Many of these growers are part of the ZQRX program, a certification that upholds strict environmental care, animal welfare, and social responsibility standards.
For 37% of Gen Z and 36% of millennials, sustainability certifications are the key touchpoint in evaluating a brand's environmental efforts. The clearer the traceability, the more confident they feel in their choices.
Sustainability efforts often carry an altruistic narrative—something brands tout as their commitment to the planet. Smartwool and icebreaker set the example for what's possible.
They reinvent their entire lifecycle with take-back programs, responsible sourcing, and investment in natural, bio-based materials. For these outdoor apparel brands, sustainability doesn't have to be at odds with performance.
Yet sustainable initiatives are a long-term investment that doesn't happen overnight. They require a hefty investment in technology and infrastructure. They may also involve convincing the boardroom to jump on board and finding partners who are as committed.
The road ahead is lined with tough conversations, long-term strategies, and significant financial backing. But as the shift to circularity continues, the question is no longer whether the fashion industry can afford to embrace sustainability—it's whether it can afford not to.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Elon Musk Has Benefited From DOGE Cuts but Have the Rest of Americans? Experts Weigh In
Elon Musk Has Benefited From DOGE Cuts but Have the Rest of Americans? Experts Weigh In

Yahoo

time29 minutes ago

  • Yahoo

Elon Musk Has Benefited From DOGE Cuts but Have the Rest of Americans? Experts Weigh In

Elon Musk's Department of Government Efficiency (DOGE) has claimed massive savings while facing criticism for potentially benefiting the billionaire personally. Congressional reports estimate Musk's companies avoided $2.37 billion in potential liability through DOGE's regulatory changes this year. For You: Read Next: Meanwhile, everyday Americans face increased delays and diminished access to essential services, according to finance expert Andrew Lokenauth, founder of A Senate subcommittee investigation revealed how DOGE cuts have disproportionately benefited Musk and his business empire. According to the minority staff report, Musk's companies faced 25 federal investigations before Trump took office. The report estimated Tesla alone faced $1.19 billion in potential liability for allegedly misleading autopilot statements. Check Out: The Congressional analysis further revealed that Musk put pressure on the head of the Federal Aviation Administration (FAA) to resign before Trump's inauguration. This could be because in September 2024 the FAA suggested several fines totaling $633,009 against SpaceX for license infractions. The FAA also tried to dismiss regulators overseeing Musk's economic interests. However, Musk can't be held accountable for this action because his status as senior advisor shields him from scrutiny that cabinet members receive. DOGE's website claims $175 billion in total savings since Trump took office, representing over $1,000 per taxpayer. However, analysis by multiple news outlets reveals significant accounting errors and questionable methodology in these calculations. According to The New York Times, earlier DOGE claims included an $8 billion typo for an $8 million contract. The Atlantic reported that verified budget savings stood at just $2 billion after correcting various accounting mistakes. Per a BBC analysis, less than 40% of DOGE's claimed savings include links to supporting documentation. According to CBS News, DOGE's actions may have actually cost taxpayers $135 billion through productivity losses and rehiring. 'There have been sectors where waste was reduced, mainly in outdated bureaucratic processes. Streamlining digital operations or cutting legacy contracts helped modernize tech and defense procurement. A few urban centers even saw faster permit approvals,' said Daniel Ray, national insurance expert and CEO of 'Rural communities and working-class families often get hit hardest. When funding is cut without a backup plan, essential services like mail or healthcare access vanish overnight,' Ray added. Reports from USA Today and the Center for American Progress also confirmed that Americans in some regions are experiencing longer wait times for Social Security and other federal services after staff reductions. Public trust in federal agencies has continued to decline as DOGE's cost-cutting measures reshape government operations. According to a KFF Health Tracking Poll, 61% of Americans opposed major cuts to staff and spending at federal health agencies. Moreover, 54% said the Trump administration and DOGE have gone too far with recent reductions. The same survey found that most Democrats and independents see the cuts as reckless, while a majority of Republicans support the changes as necessary for efficiency. 'Some see the cuts as needed tough love, while others see neglect. The mixed signals make it harder for people to believe the system works for them, especially when services feel slower or out of reach,' Ray explained. An analysis from the Council on Criminal Justice also warned that funding cuts risk eroding public trust in government, especially when services are reduced or discontinued. Lokenauth said indiscriminate reductions can lead to disruptions, backlogs and a decline in service quality, which further undermines confidence in federal institutions 'Policymakers need to understand fiscal responsibility should never mean sacrificing service. The lesson from DOGE is clear: Cutting costs isn't leadership unless paired with clear improvements and a strategy that protects the vulnerable while fixing what's broken,' Ray said. While DOGE's $175 billion in claimed savings includes contract cancellations and fraud crackdowns, experts argue that the human cost risks overshadowing short-term gains. The true long-term impact of DOGE's cuts on American communities and finances remains under debate, with both positive and negative effects still emerging. The subcommittee report said it does not accuse Musk of illegal activity in his DOGE role. However, according to multiple experts, the concentration of regulatory relief benefiting Musk's companies raises ethical questions. Per ongoing analysis, the true long-term impact of DOGE's cuts on American communities remains under scrutiny. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on Elon Musk Has Benefited From DOGE Cuts but Have the Rest of Americans? Experts Weigh In Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Rents remain far above pre-COVID levels. Use this tool to check prices in your area
Rents remain far above pre-COVID levels. Use this tool to check prices in your area

Yahoo

time39 minutes ago

  • Yahoo

Rents remain far above pre-COVID levels. Use this tool to check prices in your area

After seven years of work and more than $18 million invested, Harbor Village, a new affordable housing development in Carlisle, Pennsylvania, officially opened its doors in January. The 40-unit rental development came together thanks to Safe Harbour, a housing nonprofit based in Carlisle. By the time Safe Harbour started screening prospective tenants, there were over 400 applications, said Scott Shewell, the group's long-time president and CEO. 'And I still get calls every day,' he told USA TODAY. The median apartment rent in Carlisle was $1,259 in May. It was one of the fastest-growing areas for rent prices that month, up 6% from a year ago, according to a USA TODAY analysis of Apartment List data. Shewell wasn't surprised. The area, he said, has seen blockbuster growth over the past several years and even well-meaning local governments committed to affordable housing haven't been able to keep up with the demand. Population in Carlisle borough has gone up nearly 12% since 2020, according to the U.S. Census Bureau. In May, Manhattan, Kansas, led other metros as the fastest-growing market in rental prices. The metro saw a 14% increase in rent prices from the same month last year. It was followed by Abilene, Texas; Grand Forks, North Dakota-Minnesota and Shreveport-Bossier City, Louisiana. Recent data shows that the rental prices in most metro areas have leveled off, but for millions of renters, the typical rent still remains dramatically higher than it was before the COVID-19 pandemic began. The USA TODAY analysis of Apartment List data for 202 metro areas found that average monthly rent between January and May was significantly higher in 94% of the metros, compared with the same period in 2019. Excluding the handful that stayed about the same as pre-pandemic levels, the data showed that prices were up by an average of 31%. The pandemic supercharged the rental market, breaking old patterns of steady growth as the population shuffled, cities closed, and people started working from home. After a short drop in rental prices, prices rebounded aggressively, hitting record highs before flattening in the latter half of 2022. The impact has been felt across the board, from Manhattan in New York City to Manhattan in Kansas. The Apartment List data shows that the new level remained steady in May 2025, which, although a relief, does not do away with the rent burden the already high prices have put on families. According to census data, about 25% of renters in America are so rent-burdened that they spent more than half of their income on rent in 2023. That figure was 22% in 2019. A three-percentage point difference means millions more Americans are spending a substantial chunk of their paycheck in rent. When these high prices were accompanied by broader inflation in groceries, gas and energy, the strain was felt by families – charting up as a top issue in the 2024 presidential election, in which Americans elected President Donald Trump who centered his campaign on bringing down prices. Housing market experts say that the rental market might have settled on a new baseline, which means prices might not go back down to what they were in 2019. Read more: Work from home is reshaping the housing market 5 years after COVID Rob Warnock, a senior research associate at Apartment List, said a reversal to pre-pandemic prices is unlikely, as we're now at a level for how much housing costs. 'More realistic than rent prices coming down is rent prices stabilizing at a place where incomes can catch up,' Warnock said. For now, two trends in the market have emerged to keep the rental prices at a stable level: slowed rental demand and a recent construction frenzy. 'The past year has been really defined by a lot of new housing construction that was built over the previous three years, coupled with fairly low demand in the rental market,' Warnock said. 'As a result, what we see is that prices are largely flat, if not down.' There are only a handful of metros where rent prices have decreased over the past year. Notable among them is Bozeman, Montana, where people flocked during the pandemic for lower costs and outdoor spaces while working remotely. '(It) expedited everyone's decision-making to move to a town like Bozeman. There's a lot of fantasy around it,' said Casey Rose, an adviser at Sterling Commercial Real Estate Advisors. Amid the increased demand in the Montana mountain metro, developers started to build apartments. Many of the projects were delivered at the same time, which resulted in very low vacancy rates, Rose said. Compared with last year, rents in Bozeman are down roughly 10%, the second largest decline, according to the Apartment List data. But the actual prices, Rose said, can be masked by incentives like offering two months of free rent, or even a free iPad, TV, or ski pass. A similar pattern has played out in Austin, where rental prices are down 6.4% compared with a year ago. Stacey Auzanne, a property manager and a third-generation Austin resident, watched pandemic digital nomads flood into the city, while builders kept erecting new developments, creating a supply glut that kept rental prices suppressed. Auzanne, who manages dozens of properties, said the landlords she works with are holding rents steady, with one even dropping the price $50 a month. It's worth it to keep good tenants in place, she said – particularly in a market where there's more supply than demand. 'The market just kept accelerating and the bubble burst,' Auzanne said. 'This year, we're really feeling it.' Experts raised concerns that prices could go up because of the changing political landscape that has seen a stringent tariff policy and crackdown on immigrants who form a large part of the construction workforce. While housing inflation has dropped from its peak of over 8% in early 2023, costs have not fallen as quickly as overall inflation. According to consumer price index data released by the Labor Department on Wednesday, rent inflation was at 3.8% in May, the smallest annual increase since January 2022. This slowdown reflects lower rents for new leases finally filtering into rates for existing tenants. While the overall rise in consumer prices was modest in May, housing costs remained the largest contributor to inflation, accounting for 35% of all price increases. More: CPI report reveals inflation crept higher in May as tariff impact was tamer than expected This article originally appeared on USA TODAY: Rents remain far above pre-COVID levels. Check prices in your area

We're saving almost enough in our 401(k) retirement plans. Here's the magic number.
We're saving almost enough in our 401(k) retirement plans. Here's the magic number.

USA Today

time40 minutes ago

  • USA Today

We're saving almost enough in our 401(k) retirement plans. Here's the magic number.

We're saving almost enough in our 401(k) retirement plans. Here's the magic number. Show Caption Hide Caption How are tariffs and your 401(k) retirement savings intertwined? Experts say a rise in tariffs can lead to several factors that impact your retirement savings. After years of fitful progress, Americans with 401(k) accounts are finally saving enough for retirement – almost. That's the takeaway from the latest retirement savings report from Fidelity, a leading plan manager. In the first three months of 2025, the total 401(k) savings rate on Fidelity plans reached 14.3%. That's an all-time high, and it approaches the 15% benchmark that many financial advisers set for optimal retirement savings. A decade ago, in the first quarter of 2015, employees contributed 8.1% of their pre-tax pay to 401(k) plans, according to Fidelity data. Employers kicked in 4.4% in matching contributions, for a total savings rate of 12.5%. In the first quarter of 2025, by contrast, employees saved 9.5% of their salaries, and employers matched 4.8%, for a total savings rate of 14.3%. How much should you contribute to a 401(k)? Retirement planners recommend a 15% contribution rate to 401(k) plans on this theory: If you save at least that much throughout your working years, you'll have enough to live comfortably in retirement. 'It's basically the rate that we recommend that will allow you to live the same lifestyle in retirement that you did before you retired,' said Mike Shamrell, vice president of thought leadership at Fidelity Investments. The gradual ramp-up in 401(k) contribution rates reflects several positive trends in the retirement savings industry, Shamrell said. The 4.8% employer match is an all-time high. Employers increasingly offer to match at least 5% of a worker's pay in 401(k) contributions, as a way to attract and retain good employees. A common formula matches the first 3% of salary dollar for dollar, and 50 cents on the dollar for the next 2%. 'That's basically free money for saving for retirement, and that is something that employees value,' said Mindy Yu, senior director of investing at Betterment, the online investment manager. Big 401(k) trends: Auto-enrollment, auto-escalation Another big trend to influence 401(k) contribution rates is auto-enrollment. Starting in 2025, most new 401(k) plans must automatically enroll employees, rather than leave the decision to workers. Many older 401(k) plans are voluntary, meaning that employees must sign up to participate. Under auto-enrollment, an employee who does nothing opts in. More than one-third of Fidelity plans now auto-enroll employees in 401(k)s at a contribution rate of 5% or higher. 'Unless a new hire takes action, they're going to be saving for the plan,' said Rob Austin, head of thought leadership at Alight Solutions, a human capital technology and services provider. 'That's much different than how 401(k)s first started, and you had to enroll on your own.' Another evolving feature allows employees to automatically increase 401(k) contributions from year to year. Nearly three-quarters of Fidelity plans now have an auto-escalation feature. Is retirement savings finally catching on? Retirement plan contributions are rising at a moment when tax-advantaged retirement savings seems to be catching on in the American workplace. Half of all private-sector workers now participate in 401(k)-type plans, up from about two-fifths of employees in 2010, federal data shows. Some retirement experts see 50% participation as a retirement-savings tipping point. More private-sector Americans are participating in 401(k) plans, at least in part, because more employers are offering them. Between 2014 and 2024, employee access to 401(k)-style plans rose from 60% to 70%, according to the Bureau of Labor Statistics. Those positive signs are important, retirement experts say, because many Americans fail to save for retirement. Wealthy workers amass more retirement savings The wealthiest Americans are the most likely to amass retirement savings. For households in the top 10% by income, the median retirement account held $559,000 in 2022, according to the federal Survey of Consumer Finances. An overwhelming 93% of those households held retirement accounts. For middle-income Americans, those in the 40th to 60th percentile by income, the median retirement plan held just $39,000, and nearly half of that group had no retirement accounts. Many smaller employers don't offer 401(k) plans. Nearly half of workers have no access to any retirement plan at work, according to an AARP analysis. Americans achieved a record rate of 401(k) savings at a time when their account balances were slipping. Average 401(k) balances fell by 3% from late 2024 through early 2025, to an average value of $127,100, Fidelity reports. The decline came during a span of market volatility as President Trump took office and launched a trade war. Gen Z has good retirement savings habits If 401(k) contribution rates continue to rise, investment experts say, one reason will be good savings habits among younger workers. The total 401(k) savings rate for Generation Z workers is 11.2%, Fidelity reports, not far behind the savings rates for Millennials (13.5%) and Generation X (15.4%). The savings rate for young adults is significant, because Gen Z is decades away from retirement. 'I think most of the newer, younger cohorts are in this environment where they learn that they need to be saving a lot,' Austin said. Younger workers know about the decline of pensions as a source of retirement income, and the possibility that Social Security will face a shortfall when they retire. 'Shortfall risk is very real,' Yu said. Younger workers are more likely than older workers to contribute to a Roth 401(k), Fidelity data shows. Those workers are effectively contributing at a higher rate, Austin said, because Roth contributions have already been taxed.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store