Vestiaire Collective said it is the first pre-owned fashion business to monetize its avoided emissions into measurable and additional carbon credits.
The company’s new approach involves issuing credits that quantify the amount of emissions that were prevented from being used when consumers purchased pre-loved fashion instead of buying new. The initiative highlights the measurable environmental benefits of the company’s business model.
Fewer than half of the world’s top 250 fashion brands are publishing emissions reduction targets verified by the Science Based Targets Initiative, with Scope 3 emissions still rising for one-third of these brands, according to Fashion Revolution’s “What Fuels Fashion?” report, which analyzed and ranked brands and retailers that have a turnover of $400 million or more. The findings were based on their public disclosure of climate and energy-related actions. Scope 3 emissions are the greenhouse gases generated by delivery trucks, business travel, employee commuting, and waste generated as part of a company’s operations.
Vestiaire relied on what a company spokesperson described as “a rigorous methodology” that was independently developed by Inuk and certified by AmSpec. It is available for public consultation. Four years of measurement work and research were required for this undertaking. The parameters included an 85 percent substitution rate that measures the percentage of pre-loved purchases that replace the need for new items. There was also a 12 percent seller rebound effect, which accounts for any potential increase in consumption resulting from the sale of pre-loved items. The findings highlighted a 90 percent lifespan for secondhand items versus firsthand looks.
The credits are being issued on the voluntary carbon market, which enables companies, organizations and governments to buy and sell carbon credits to offset their emissions. The VCM is not mandated by regulation, it is targeted at corporations that would like to compensate for their residual emissions on a voluntary basis.
“They represent a completely new asset type, directly financing the circular economy transition in the fashion industry,” the spokesperson said. “More largely, the voluntary carbon market plays a pivotal role in accelerating the transition to a low-carbon economy by unlocking essential financing for climate solutions through the issuance of high-quality carbon credits. Each credit represents one ton of CO₂ that has been either avoided or removed from the atmosphere.”
Vestiaire Collective has secured 55,000 carbon credits verified by Inuk based on 30,000 carbon credits for the full year of 2024 and 25,000 for the full year of 2023, based on a price of 34 euros per ton. Revenues will be reinvested in activities that directly support the robustness and volume of emissions avoided by Vestiaire Collective. “This means strengthening curation and authentication to fight increasingly sophisticated counterfeiting, delivering a high-quality and cost-effective alternative to fast fashion, and continuing to educate our community — and beyond — to encourage choosing in long-lasting pre-loved pieces as a smart financial purchase compared to buying new,” the spokesperson said.
The project is meant to illustrate how circularity can generate measurable climate impact, while also opening up a new financing tool for the circular fashion industry. The concept of such credits is built around the company’s core business model, and is based on a transparent and measurable methodology that is validated by a third party and subjected to public consultation. Beyond carbon, the project also delivers co-benefits such as other environmental impacts and local job creation in Tourcoing, in the north of France. The area is a historic textile hub that has been heavily affected by deindustrialization.
During the Industrial Revolution in the 19th century, the town had a boom due to the textile industry, which specialized in drapery, wool carding, combing and weaving. In 1960, there were still 1704 mills combing and spinning wool. But by the late 20th century, the town’s base had diminished to 14. More recently, a large-scale urban renewal project has been put in place.
The Vestiaire Collective supports employment in Tourcoing, “not only to reinforce local economic resilience but also to reconnect circular fashion with a region that has long been central to the industry,” the spokesperson said. “This makes our credits a credible and innovative way for corporate buyers to support circularity and contribute to decarbonizing the fashion industry beyond their value chain.”
