RLG Parent Company, Reconomy, launches ReDress to help textile producers meet expanding EPR regulations

Reconomy, the international circular economy specialist, has launched a tech-enabled, international service to help businesses comply with textile Extended Producer Responsibility (EPR) regulations.

The service – called ReDress – will help businesses understand and manage their global obligations under textile EPR laws, including timelines, financial impacts, and reporting requirements. With support from ReDress, businesses will also be better placed to redress the environmental impact of fashion.

As a global provider of circularity solutions, Reconomy is comprised of over a dozen integrated brands, each with its own specialization. In the United States, Reconomy is predominantly represented by Reverse Logistics Group (RLG), which has been a leading provider of EPR compliance services since 2005. RLG has 23 offices worldwide.

As the first important step of ReDress, a Producer Responsibility Organization (PRO) was formed in Italy on April 5, 2024 by RLG in Italy.

The ReDress solution combines horizon scanning, data management, environmental compliance, omni-channel take-back, and repair services. ReDress leans on Reconomy’s specialist international capabilities throughout the resource cycle to provide a one-stop-shop service for the complex questions posed by textiles EPR.

EPR is an environmental policy determining the responsibilities producers (including manufacturers, importers, brand owners, and retailers) have at the post-consumer stage of a product’s lifecycle. EPR therefore supports positive environmental change via incentives and fees.

In March 2024, the European Parliament passed the first stage of amendments to the Waste Framework Directive – meaning EPR for textiles will soon be mandatory across EU member states.

Global implementation of these laws is accelerating as textile production is highly resource-intensive with low recycling rates. The industry uses 93 billion cubic meters of water a year, is the third highest user of water and land, and the fourth most carbon intensive. Less than 1% of textiles worldwide are recycled into new products.

Reconomy’s ‘Re-use’ loop is already trusted to manage over 96 million product returns a year for major fashion and homewares brands, and has demonstrated a 20% reduction in its customers’ carbon intensity since 2020.

In its ‘Comply’ loop, Reconomy submits over 10,000 data declarations every year from 23 regional hubs servicing over 80 countries. Reconomy has seen significant recent growth, with more than 4,000 colleagues and over 10,000 customers.

Sara Faccioli, Managing Director of RLG Italy, concluded: “In the face of rapidly advancing textile legislations, our priority is to empower clients to seamlessly meet their environmental responsibilities. Through the establishment of our PRO in Italy and the innovative services offered through ReDress, we proudly stand as frontrunners, providing a solution that supports obligated producers.”

Claire Webb, Executive Chair of Reconomy’s Re-use division, said: “As the international compliance landscape becomes increasingly complex, businesses can derive significant strategic benefits from single-provider, end-to-end solutions to manage this process. Textiles EPR is coming around the corner and as the responsibility shifts, there are serious cost implications as well as risks for businesses that do not have visibility of what will shortly be required of them. Working with a provider like Reconomy gives businesses an efficient and compliant international operation with a holistic view of their sustainability objectives and obligations.”

Reconomy Head of Voluntary Compliance and EPR expert James Beard, commented: “EPR is an increasingly prevalent consideration for textile producers as international implementation of these schemes accelerates. ReDress was developed, leveraging Reconomy’s specialist capabilities through the resource cycle and its international reach, to provide a one-stop-shop service that will help stakeholders prepare for textiles EPR. We are excited to bring this product to market, empowering businesses to fulfill their environmental responsibilities seamlessly – giving them more strategic control by using a single provider. With textiles EPR soon to be mandatory within the EU, and with the direction of travel towards greater compliance requirements gathering pace, our comprehensive package of services has never been more pivotal.”

Patrick Wiedemann, CEO of Reconomy’s Comply Loop, concluded: “We’re proud to have launched our international PRO project in Italy and look forward to helping members take new textiles regulation in their stride. What truly sets us apart is our extensive data management and EPR expertise, alongside our capabilities in post-selling and unsold stock management, and long-time collaboration with top brands within the textile sector. Reconomy’s international pedigree will enable producers to be compliant with environmental regulations and improve the circularity of their operations as we look to create a more sustainable world.”