The World Business Council for Sustainable Development (WBCSD) has unveiled version 2.0 of its Circular Transition Indicators (CTI) Sector Guidance: Fashion and Textile, providing an advanced roadmap for fashion and textile companies to transition toward a circular economy. The updated guide was launched at the Global Fashion Summit 2025, the leading international platform for sustainability in fashion.
Advancing Circularity in Fashion
Developed through a multi-stakeholder collaboration under the CTI Fashion Initiative—co-led by WBCSD, VF Corporation, and Deloitte, and supported by the VF Foundation—the updated guide incorporates insights from over 80 industry experts and organizations. It builds on the original guidance launched at the World Economic Forum in Davos in January 2024.
Version 2.0 responds to pressing challenges in the fashion and textile value chain, with a focus on regulatory readiness, measurable impact, and business value creation. The release is timely, given the industry’s staggering material consumption—3.25 billion tonnes annually—while only 0.3% is currently recirculated.
“This update provides practical tools for measuring circularity, preparing for ESRS E5 reporting, and assessing both environmental and social impacts,” said Diane Holdorf, Vice President at WBCSD. “It enables companies to make better business decisions while contributing to decarbonization and sustainability goals.”
Among the key features of the new guidance are:
- Compliance support for upcoming regulations, such as the European Sustainability Reporting Standards (ESRS);
- Tailored indicators for stakeholders across the value chain;
- A new methodology for evaluating circular design principles;
- Improved strategies for regenerative resource input;
- A social impact assessment framework for circular business models.
Jeannie Renné-Malone, VP of Global Sustainability at VF Corporation, emphasized the value of CTI as a common framework: “CTI allows us to align circularity with climate, nature, and waste reduction goals—offering a structured way to measure industry progress.”
As the fashion industry faces increased scrutiny over environmental and social performance, CTI Fashion and Textile v2.0 provides a comprehensive, action-oriented guide for companies seeking to integrate circularity into core business practices.
