WP5, led by VTT, has focused on analysing, assessing and developing new business models for the European fashion sector, with particular attention to supporting the green transition.
The work carried out so far has been structured between 2024 and 2026 around three main areas: mapping current business models in the pilot sites, assessing their climate impacts, and developing new business models to support a sustainable climate transition.
Mapping current business models in pilot sites
The mapping and analysis focused on current business models in four CRAFT-IT4SD pilot sites: Denmark, Finland, Romania and Spain, with particular attention to SMEs and micro-companies.
This work also included the identification of future aspirations, opportunities and barriers related to sustainable and sufficiency-oriented business models.
Assessing climate impacts
WP5 also assessed the climate impacts of existing business models and sufficiency-oriented business models.
This work produced climate impact insights related to existing and sufficiency-oriented fashion business models.
Developing new business models for sustainable climate transition
WP5 has also developed new business models to support a sustainable climate transition.
These new business model concepts support reduced material use, circularity and sufficiency, including reuse-, rental- and repair-based approaches.
Throughout the process, WP5 has engaged with pilot sites through interviews, workshops and collaborative validation processes.
Outcomes produced so far
The work carried out so far has produced several outcomes, including:
- A mapping of current fashion business models and their potential alternatives.
- The identification of key barriers and enabling factors for sustainable and sufficiency-oriented business models.
- Climate impact insights related to existing and sufficiency-oriented fashion business models.
- New business model concepts supporting reduced material use, circularity and sufficiency.
The results are presented in the CRAFT-IT4SD deliverables D5.1, D5.2 and D5.3, together with five short LinkedIn articles and other publications and conference presentations developed by VTT.
Key messages from WP5
The work developed so far highlights that incremental efficiency improvements alone are unlikely to deliver the required emission reductions in the fashion sector and beyond.
It also points to the importance of sufficiency approaches focused on durability, longevity, reuse, repair and services, as they address one of the root causes of impact: excess production and consumption.
WP5 also reflects on the role of digitalisation. Digital tools can enable traceability and circular solutions, but they can also accelerate overproduction and consumption if they are not carefully applied.
Towards sustainable fashion pathways
Overall, WP5 shows that the climate transition in fashion is not only technological, but also economic, organisational and cultural.
A key message emerging from the work carried out so far is that extending product lifetimes through repair, reuse and longer use delivers the greatest environmental benefits. However, without reducing overproduction, the system risks eroding cultural, heritage and environmental value.