Vestiaire Collective, the resale platform known for pre-owned luxury fashion, is launching a carbon credit scheme.
The second-hand retailer will begin selling carbon credits this October, the company said Thursday, in what it claims is the first initiative of its kind in the fashion industry. The credits, certified by French partner Inuk, are based on the emissions avoided when consumers purchase second-hand clothing instead of new items.
The credits are calculated using a methodology developed by Inuk and certified by global certification service provider AmSpec, with each representing one tonne of avoided emissions. The company is aiming to avoid controversies that have dogged similar schemes in the past by offering up fully traceable credits based on already-avoided emissions, rather than projected future carbon benefits.
Vestiaire Collective reported that in 2024 its sales of pre-loved clothing avoided more than 63,000 tonnes of carbon emissions, exceeding its own carbon footprint and achieving what it describes as a net climate-positive impact.
It said from October, 55,000 certified credits will be available for sale, representing avoided emissions from sales in 2023 and 2024.
The proceeds will be reinvested in initiatives to strengthen and expand the company’s emissions avoidance. These include additional research and data gathering to back up the company’s climate claims, as well as more impact marketing intended to encourage shoppers to “buy less, buy better” and demonstrate the environmental impact of choosing second-hand in the future, the company said.
Against the current backdrop of climate regulation rollbacks and muted engagement on sustainability from major brands, Vestaire said its aim with the scheme is to prove that the environmental benefits of circular initiatives can be monetised, establishing a stronger business case to attract industry players and support innovation.
“The circular economic model will not win until we have a true financial incentive,” said Dounia Wone, Vestiaire’s chief impact officer. “That’s why we’re monetising the circular economy with these carbon credits… It’s about shifting the mindset of people who finance the world to look at circularity differently and take it seriously.“
Vestiaire regularly uses headline-grabbing eco-initiatives to bolster its marketing and drive conversation. In 2022, the platform, which is focused on higher-end products, banned the resale of certain fast-fashion brands — starting with Boohoo and Shein, and later expanding to include brands such as Gap, H&M, and Zara — in an effort to discourage high-volume, low-quality production, it said.
Vestiaire’s carbon credits will be going out on the market at €34 per tonne ($40), Wone said, The first year of the scheme will be a “learning phase,” allowing the company to test the market’s reaction and gather more precise emissions and consumer insights data from buying second-hand to use in the future.
Wone hopes that the money the company makes from the credits can eventually be used to create incentives for Vestiaire users, though how that might work in practice is still vague.
“What makes people choose second-hand before sustainability, is affordability,” said Wone. “Even though in the world of Shein and Temu we might never be on the same ground, we will maybe convince more people that it works to choose second-hand over first-hand.”
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