June 2026 Sustainable Fashion Update

Welcome to our June 2026 edition of the sustainable fashion update. It has certainly been a month of extremes, with record-breaking heatwaves and intense downpours across the UK serving as a stark reminder of the urgent need for climate resilience and decisive industry action.

The industry continues to move at a relentless pace, and this month’s update is packed with significant shifts, major regulatory deadlines, and grassroots breakthroughs. Highlights include an intensifying greenwashing clampdown - ASA banning major brand ads and EU testing exposing widespread clothing label inaccuracies, alongside looming compliance deadlines for California's SB707 and the EU Packaging Regulation (PPWR), as well as circularity milestones, from the launch of the practical Circular Design Playbook to three incredible teenagers winning the Earthshot Prize for a low-cost microplastic solution.

Circularity & Materials Innovation

• Next-Gen Fibre Milestones: A breakthrough report from Canopy reveals that wheat straw can be successfully processed into high-quality viscose and lyocell, highlighting agricultural waste as a scalable alternative for future textile production. Project Latvus: Agricultural Waste in Next Gen Fabrics | Canopy

• Seaweed Innovator Hits Major Hurdles: In a stark reminder of the financial pressures facing next-gen material start-ups, US seaweed fibre pioneer Keel Labs has filed for Chapter 11 bankruptcy protection. Despite high-profile collaborations with brands like Stella McCartney, the company must now restructure to survive (Brett Matthews, Apparel Insider).

• Recycled Cotton Scaling: Recover has introduced Recover Yarns, a portfolio of ready-to-use yarn solutions specifically designed to accelerate and simplify the mainstream retail adoption of recycled cotton (Recover Yarns).

• Tommy Hilfiger scales circularity with Circulose partnership: Tommy Hilfiger (part of PVH Corp.) has partnered with Circulose to expand the use of its recycled raw material made from discarded cotton textiles. In an exciting milestone for the technology, the material is being used in a cotton blend for the first time, debuting in a polo shirt made with 30% CIRCULOSE® exclusively on Zalando. This partnership demonstrates that the material can support cotton-blend applications alongside traditional viscose and lyocell, accelerating broader adoption across fiber types. Read more about the partnership on the Circulose website.

• Teenagers Win The Earthshot Prize 2026 for Microplastic Solution: 3 Indian teenagers have been named Global Winners of The Earthshot Prize 2026. The 16-year-olds developed a pioneering, plant-based solution called "Plas-Stick" that uses discarded tamarind seed powder to bind microplastics in water into visible clumps, allowing them to be easily removed with a handheld magnet. This low-cost breakthrough offers a highly scalable method to tackle synthetic fibre pollution at the water source without requiring electricity. The Economic Times.

Policy & Regulation

• ASA Bans Adidas, Uniqlo, and Calvin Klein Ads: The UK Advertising Standards Authority (ASA) has banned online ads from these major brands over misleading environmental marketing. The regulator ruled that using absolute terms like "recycled" falsely implied entire garments were wholly recycled, when they actually contained material blends or only specific recycled components. This high-profile enforcement highlights the tightening greenwashing clampdown and underscores the absolute necessity for retailers to use precise, substantiated qualification in their sustainability messaging. Read the full story in The Independent.

• Government Brings Forward Shein Tax Loophole Crackdown: The UK government has accelerated plans to scrap customs duty relief on low-value imports under £135, moving the implementation date forward to October 2028. The reform is aimed at eliminating the unfair pricing advantage enjoyed by overseas e-commerce giants like Shein and Temu, who ship directly from factories to consumers to bypass bulk import tariffs. However, British retail bosses and the BRC have criticised the updated timeline as still being far too slow, warning that a two-year delay leaves the high street exposed on an unlevel playing field. Retail Gazette.

• Shein Faces Legal Action in Germany Over "Toxic Chemical Cocktail" The German environmental nonprofit Deutsche Umwelthilfe (DUH) is taking legal action against ultra-fast fashion giant Shein. Independent tests commissioned by the group found hazardous chemicals in 15 out of 18 items tested. Shockingly, a jacket marketed to teenagers contained PFAS (forever chemicals) at 12,000 times the EU legal limit, while a women's boot exceeded plasticizer limits by 179 times. While Shein has delisted the specific products, advocates argue that pulling single items doesn’t fix a fundamentally broken, high-speed business model. DUH is submitting these findings to the European Commission to aid its ongoing Digital Services Act investigation. Read the full breakdown at Europe Says.

• EU Packaging Deadline Approaching: A major regulatory deadline is hitting on 12 August 2026 as the EU Packaging and Packaging Waste Regulation (PPWR) goes live across all 27 member states. Many fashion brands are less prepared than they think. Simply signing up with an EPR provider isn't enough; brands are directly liable for packaging data, substance restrictions, and compliance forms. In fact, platforms like Amazon and Zalando are already checking these details. To help map out your packaging data gaps and track upcoming laws like the Digital Product Passport (DPP), you can download a helpful compliance guide and self-assessment tool via TrusTrace.

• California SB707 Registration Deadline Looming: Brands selling into California must urgently prepare for the newly enacted Responsible Textile Recovery Act (SB707), with mandatory registration for all covered producers closing on 1 July 2026. Environmental Law and Policy Monitor.

• EU Plastic Export Ban: The EU is tightening waste regulations this November under the EU Waste Shipments regulations, enforcing a strict ban on exporting hazardous, hard-to-recycle plastic waste to non-OECD countries.

• Call for a revised EU Textile Labelling Regulation: The Policy Hub, together with the European Branded Clothing Association (EBCA), EuroCommerce, the Federation of the European Sporting Goods Industry (FESI), and Recycling Europe, has issued a joint statement urging a swift update to the EU Textile Labelling Regulation. The coalition argues that the current rules, which haven't been substantially updated since 2011, are outdated and must change to support a circular economy. The group is calling for uniform rules on physical and digital labels (supporting upcoming Digital Product Passports), clearer fibre names for innovative recycled materials, and mandatory country-of-origin labelling. Read the full joint position on the Policy Hub website.

• Systemic Label Fraud Exposed by EU Testing: An EU market surveillance campaign has revealed that inaccurate fabric labelling is a widespread issue, with 37% of tested garments carrying incorrect composition labels. Blended fabrics performed the worst, with failure rates hitting 80% for scarves and 54% for tops. Regulators warned that these inaccuracies mislead consumers and create a major roadblock for automated fibre-to-fibre recycling. Read the full investigation on the EU Reporter website.

• EU Intercepts Illegal Textile Shipments to Türkiye: The European Anti-Fraud Office (OLAF) has blocked a major smuggling operation, intercepting over 2,000 tonnes of illegal textile waste being shipped from Italy to Türkiye. Falsely labelled as second-hand clothing, the waste was destined for illicit dumping or burning. The operation highlights a sharp increase in cross-border enforcement as European authorities crack down on fraudulent waste exports and tighten shipment regulations. Read the full operational report on the European Anti-Fraud Office website.

• France Passes "Ultra-Fast Fashion" Law: The French Parliament has definitively approved a landmark bill targeting online giants like Shein and Temu. The new law introduces a progressive environmental fee per item (reaching up to €10 or 50% of the price by 2030) alongside a strict ban on advertising and influencer promotions. However, the final text has faced criticism from environmental groups for narrowing its focus to online-first platforms while leaving traditional high-street fast-fashion brands exempt. Read the full details on MSN.

• Advocating for Casual Resellers: Depop and Etsy have published a joint whitepaper, Building Policy Pathways for a Circular Economy, calling for strategic legislative changes. The report argues for sales tax relief on secondhand items and proportionate tax thresholds to support micro-businesses and casual sellers in the US (Depop News).   The research found that by participating in these circular initiatives helped 92% of people save money, 80% earn extra income and 86% feel more connected to their community.

Retail Highs & Lows

• Market Scale vs. Material Reality: Euromonitor International forecasts indicate the global fashion market is on track to hit $1.93 trillion in 2026, driven heavily by a 4.9% surge in sportswear. While commercially lucrative, this activewear boom presents a massive circularity bottleneck given its heavy reliance on synthetic materials (Modaes).

• Westfield Partners with Central Saint Martins: Shopping centre operator Westfield has collaborated with postgraduate students from Central Saint Martins to rethink the future of its major UK retail destinations. Using Westfield London and Westfield Stratford City as live case studies, the project focuses on transforming large-scale commercial assets through sustainable, community-led, and circular approaches. The initiative underscores a broader market shift, where major retail hubs are under pressure to evolve beyond pure consumerism into socially engaged, environmentally responsible urban platforms. You can read the full partnership details on TheIndustry.fashion.

• River Island Restructuring Pays Off: Proving that a tightly managed retail estate can drive financial recovery, River Island delivered a pre-tax profit of £11.6 million for 2025, rebounding sharply from a heavy loss the previous year following its strategic CVA and store closures.

• Debenhams Group Builds Turnaround Momentum: Following two recent trading upgrades, the group's adjusted EBITDA surged 35% year-on-year to £53.3m. Driven by a strategic shift to its digital marketplace model, management confirmed that every individual brand under the group's umbrella has now achieved profitability on an adjusted EBITDA basis.

• Matalan Margins Boost Recovery Plan: Matalan continues to successfully narrow its financial gap, reducing pre-tax losses to £54.7m while pushing adjusted EBITDA up 24% to £69.4m. The turnaround is being heavily supported by stronger gross margins, a drop in global sourcing and freight costs, and smart foreign exchange hedging.

• Frasers Launches Massive €2bn Hugo Boss Takeover: Shares in luxury fashion house HUGO BOSS jumped nearly 10% following an unsolicited €2.0bn (£1.7bn) buyout proposal from Mike Ashley’s Frasers Group. Frasers, which already controls a 26% stake in the German label, has offered €38 per share and recently confirmed this bid is its final offer.

• ASOS Plans First Permanent London Store: After 26 years as a purely digital retailer, ASOS is officially scouting high-footfall brick-and-mortar locations in the capital. The e-commerce giant is reportedly searching for a unit between 4,000 and 8,000 square feet, with prime shopping hubs like Oxford Street, Regent Street, Long Acre, and King’s Road currently under consideration following a series of successful physical pop-ups.

• Inditex Posts Robust Growth: Fashion giant Inditex reported a 5.8% rise in Q1 revenue to €8.7bn, with net income growing 5.4% to €1.4bn. The Zara parent group maintained an impressive gross margin of 61.2% and saw early Q2 combined store and online sales surge by 11.5%, all while preserving a massive €10.8bn net cash cushion.

• Lululemon shifts strategy amid stalling growth: Following disappointing product rollouts and a drop in North American sales, Lululemon has lowered its full-year forecast as consumers push back against recent material changes and repetitive designs. However, following industry pressure to decarbonise manufacturing, (Mumumelon).   Lululemon has announced a new renewable energy investment fund. The fund is designed to match 100% of the electricity used by its suppliers in China, marking a major step forward for supply chain accountability. Read the full analysis of this move on Action Speaks Louder.

• Marks & Spencer has launched ‘Not Just Any Career,’ a major new initiative providing 1,000 graduate-style management training places for 18-to-24-year-olds - specifically removing degree requirements to build an inclusive, hands-on talent pipeline directly on the shop floor. Read the full announcement on Marks & Spencer.

• Brand Values vs. Corporate Practice: The public response from activist Pattie Gonia regarding Patagonia's recent lawsuit has sparked a vital industry debate over trademark protection, climate activism, and whether purpose-led brands can truly escape conventional corporate mindsets. Patagonia, Pattie Gonia And The Cost Of Losing Perspective

• Slowing Down Discovery: Naia has launched an AI-driven fashion discovery platform dedicated entirely to independent labels, testing whether algorithms can successfully steer consumer habits toward slower, smaller-scale fashion houses. Taste-Led AI Platform Naia Launches to Uncover Independent Fashion | United States

• Digital Product Passport Testing: In a bid to track lifecycle data and future circular options, Lindex has partnered with platform Blippa.com to pilot QR-code-enabled Digital Product Passports on selected garments (Lindex Press).

Supply Chain and Ethics

• Forensic Cotton Verification Launches: In response to escalating global transparency regulations, the U.S. Cotton Trust Protocol has launched a Physical Assurance Program with Oritain. By using forensic isotopic analysis on random fabric samples, the program provides scientific proof of origin to complement existing digital tracking (AgInfo Network).

• Bangladesh Moves Out of Top 10 Worst Nations: For the first time in nearly a decade, Bangladesh has exited the ITUC's list of the world's ten worst countries for worker rights following legal reforms by the interim government, including lowering the threshold required to form trade unions (Reform Tracker Bangladesh).

• US Launches Great American Cotton Plan: The USDA has unveiled a federal initiative aimed at revitalising domestic manufacturing and cutting synthetic material reliance. Anchored by the slogan "Plant, not plastic", the campaign directly addresses the public health crisis of microplastic shedding from synthetics. USDA

• New insights into polyester's true footprint: Textile Exchange has released a major new Life Cycle Assessment (LCA) study for polyester to help the apparel and textile sectors make better-informed material choices. Taking a comprehensive "cradle-to-gate" approach, the report fills critical data gaps by introducing the first public data on virgin PET production in Southeast Asia and identifying environmental hotspots across different recycling technologies. Distinctly, the study uses an "LCA+" framework, integrating a social assessment to highlight human rights and labour dynamics throughout the global polyester value chain. You can read the full announcement on the Textile Exchange website.

• Garment Workers Protest Minimum Wage Omission: The Garment and Textile Workers' Union (GATWU) in Karnataka, India, has strongly condemned the state government for excluding the apparel sector from a new 60% minimum wage hike, leaving 400,000 predominantly female workers facing deep systemic pay discrimination Karnataka’s Garment Workers Protest Wage Exclusion

• The Material Balance Sheet: Gap Inc. has published progress updates showing 100% sustainably sourced cotton and 65% recycled polyester across its brands, even as the retailer navigates commercial performance challenges (Gap Inc. Impact Report).

• Traceable Regenerative Cotton Pilot: Nobody's Child has introduced a collection utilising regenerative cotton sourced from Materra's farming programme in India. The range connects consumers directly to soil health and farm-level transparency via Digital Product Passports (Nobody's Child Video).

Impact & Sustainability Reports

• Reselfridges Report 2025 shows circular revenue grew 27% year-on-year to £17.6 million. Clothing repair (supported by SOJO) was a major driver, contributing 12% of total circular revenue and growing 10% across ready-to-wear, handbags, and footwear. Notably, the retailer has paused its fashion rental business to focus entirely on simpler, consumer-friendly resale and repair models under its new Reselfridges 2030 strategy.

• Finisterre releases 2025 Impact Report: Outdoor brand Finisterre has published its latest Impact Report 2025, demonstrating substantial progress in textile circularity and traceable sourcing. Across its entire 2025 collection, an impressive 96% of materials by weight were recycled, organic, or natural fibres. Highlights include formalising its approach via a new Preferred Materials Framework, repairing nearly 3,000 garments through its Lived & Loved team, and diverting 1.6 tonnes of ocean fishing nets into recycled nylon yarn. Proving its dedication to true end-to-end circularity, the brand also noted that raw materials and fabric processing still represent 85% of its total carbon footprint, highlighting exactly where deep supply chain decarbonisation must focus next.

• TOAST Shifts to 99% Natural Fibres: Premium lifestyle brand TOAST has revealed in its annual sustainability report that 99% of its clothing range is now crafted from natural or certified cellulosic materials. While organic cotton accounts for 52% of their collection, the brand noted that bypassing third-party certifications to deal directly with farms remains a complex scaling challenge. On the circularity front, the brand's circular initiatives successfully gave over 7,500 garments a second life through its repair, exchange, and reworn services. You can read the full analysis on TheIndustry.fashion.

• The Global EPR Tracking Tool: The Global Fashion Agenda has released its updated Mapping of Global Extended Producer Responsibility for Textiles tracker. This vital resource helps brands map changing international compliance, from upcoming consultations to France's targeted penalties on ultra-fast fashion (Global Fashion Agenda).

• Consolidating Impact Data: In a strategic move for retail carbon accounting, Carbonfact has acquired data specialist Vaayu, bringing lifecycle assessment and emissions measurement much closer to day-to-day product management decisions. Carbonfact Acquires Vaayu, Uniting Fashion's Two Largest Environmental Sustainability Platforms

• Sustainable ROI: New data from Zero 100 reveals a compelling commercial case for green supply chains, demonstrating that sustainable operational practices can boost profitability by up to 23%. Insights | zero100.com

Resale, Rental & Repair

• Debunking East African Used Clothing Waste Claims: A landmark, independent report from the SMEP Programme has disproved online claims that 40% of secondhand imports are immediate waste. Hand-inspecting over 244,000 garments in Uganda and Tanzania revealed that 96% of imported clothing is of high quality and entirely reusable, while waste accounts for just over 1% (SMEP Programme).

• Vinted Expands to Australia: European secondhand fashion giant Vinted has quietly launched operations in Australia, taking on eBay with its popular zero-commission seller model and a new three-year Australia Post distribution deal. Internet Retailing.

• UK Crackdown on Pre-Loved Counterfeits: With research showing a quarter of secondhand online buyers unknowingly bought fakes last year, the UK Intellectual Property Office and Vinted have launched the "Second-hand, not second best" campaign to give Gen Z shoppers practical tools to spot fakes (Just Style).

• Rokit opened the UK's very first dedicated vintage accessories shop on Brick Lane. Proof that the appetite for resale is still booming, especially when it's curated for style and rarity.

• Mainstream Retail Embraces Luxury Resale: Mainstream retail platforms continue to absorb circular models, evidenced by Zalando expanding its partnership with Vestiaire Collective to allow shoppers to purchase authenticated pre-owned luxury fashion directly (Zalando Corporate).

• Resale Platform Consolidation: The resale landscape faces growing competition and regulatory scrutiny as the CMA launches an inquiry into eBay's acquisition of Depop, whilst Etsy implements updated seller fees to navigate shifting marketplace economics. CMA launches inquiry into eBay's acquisition of Depop - TheIndustry.fashion

• Next-Gen Stylist Technology: AI-powered discovery app Faircardo is redefining sustainable shopping by transforming user Pinterest boards directly into personalised, secondhand style feeds without the need for manual keyword searching. Faircado - Second-hand made easyyy

• Currys Launches "Track the Tech" to Boost E-Waste Recycling Electronics retailer Currys plc has kicked off its new Track the Tech campaign, aimed at getting customers to clear out and recycle their unwanted gadgets. The initiative not only encourages e-waste recycling but also pulls back the curtain on Currys' refurbishment process, showing exactly how old tech gets a second lease on life rather than heading to a landfill.

• High-Street Repair Scales Up: Repair pioneer SOJO has secured a massive commercial partnership with Next to provide clothing repair services across the UK, building on their existing presence in Selfridges and partnerships with GANNI and M&S (SOJO Instagram).

• Investing in Infrastructure Gaps: Underscoring the critical need for scalable sorting technology, eBay has named automated textile-sorting platform Trosort as the global winner of its Circular Fashion Fund 2026. eBay names Trosort as Global Winner of the Circular Fashion Fund 2026

• Peer-to-Peer Resale Innovations: To go head-to-head with classic peer-to-peer marketplaces, ThredUp has launched 'Direct Listings', featuring 0% seller fees, AI-powered listings, and platform-managed returns (ThredUp Investor Relations).

Reports & Research

• AI Scenarios for Forward Planning: A collaborative report from EY and the World Retail Congress urges retail executives to stress-test their operations against technological change. Rather than betting on a single outcome, the paper charts four distinct AI futures - Constraint, Collapse, Growth, and Transform (World Retail Congress).

• A joint study by KPMG and the Fédération de la Mode Circulaire values the 2030 European circular fashion market at over €100 billion, driven heavily by an expansion in eco-designed products (€71 billion) and stricter EU-wide EPR compliance requirements. Read the official announcement on KPMG.

• New research backs UK textile EPR funding: A new ScienceDirect white paper funded by the Back to Baselines programme reveals that consumers wouldn't even notice the low level of EPR fees required to build a fair, sustainable textile infrastructure in the UK. This evidence-based study provides hugely encouraging signs that a balanced, robustly funded EPR system is entirely viable without driving consumer pushback. Read the full study on ScienceDirect.

• Launch of the Circular Design Playbook: At the Textiles Recycling Expo in Brussels, UKFT and the Circular Textiles Foundation (CTF) launched the Circular Design Playbook: A Focus on Fibre-to-Fibre Recycling. Written in accessible language for teams across design, buying, marketing, and compliance, this practical guide tackles the essentials of circular product design and preparation for upcoming textile legislation. Along with a case study showcasing Primark’s circular design initiatives in practice, the playbook introduces CTF’s "Theory of Thirds" framework to help brands kickstart their circularity journey. You can download a copy via LinkedIn/TrusTrace.

• The Footwear Challenge: Fashion for Good has released a targeted report, Closing the Footwear Loop, providing much-needed clarity on the distinct infrastructural challenges of recycling and circulating footwear Closing the Footwear Loop - Fashion for Good

• "Murray Mound" Installation Tackles White Clothing Waste: To coincide with Wimbledon, laundry brand Dr. Beckmann and circular platform Reskinned unveiled a five-metre-high "Murray Mound" on London’s South Bank made entirely from discarded white garments. The campaign highlights new data showing that white clothes are the items most vulnerable to being thrown away, with the average Brit discarding eight white items annually due to easily treatable staining or greying. Read more about the campaign on the Retail Gazette website.

What was the biggest story for you this month?