Comparative analysis of the circular economy in the textile sector. The case of Trentino-Alto Adige and Auvergne-Rhône-Alpes

In the textile and fashion industry, producing, marketing and using clothing causes significant environmental impacts. To reduce the environmental and climate change impacts of textiles, shifting towards circular business models is crucial. This paper presents a comparative analysis of the circular economy dynamics in the textile sector in two specific regions: Trentino-Alto Adige and Auvergne-Rhône-Alpes during the global crises of COVID-19 and the Russian-Ukraine war. A total of 115 questionnaires were sent to companies that already implement some form of circularity in their business model, 51 located in Trentino-Alto Adige and 64 in Auvergne-Rhône-Alpes. The response rate was 42.62% overall, with a rate of 52.94% in the Italian region (27 out of 51) and 34.38% in the French region (22 out of 64). Overall, the analysis of circular economy practices in the textile sector shows no significant differences between the two regions. The main drivers for adopting a circular approach in both research areas were ethics and corporate social responsibility, with 92.59% of companies in Trentino-Alto Adige and 90.91% in Auvergne-Rhône- Alpes. The identified benefits were the same in both countries, particularly the reduction of environmental impact (85.19% for Italy and 86.36% for France), improvement of corporate reputation, and differentiation from other brands. Regarding the impact of Covid-19 on business operations in both regions, many companies acknowledged facing high costs, although a significant proportion reported few substantial changes. Surprisingly, about 37% of Italian companies perceived this period as an opportunity to adopt a new business model. The healthcare emergency has accelerated the need for digitization.