84 4 Case Description and Within-Case Analysis
not commercially reasonable. As a result, organization Zeta is collaborating with
its suppliers to develop better, more commercial options and to expand the use of
recycled resources.
Further, a challenge is seen in the need for a systems approach. Developing acircular economy as singular organization is not possible. This is why the organiza-
tions addresses this topic in several industry working groups such as the Sustainable
Apparel Coalition. After four years of having a Cradle-to-Cradle certified collection
the lessons learned of case Zeta is that such initiatives are helpful to learn what is
possible and to identify resulting challenges. However, to move the current economy
towards a circular economy it is necessary to work together with competitors and
also other industries to e.g. use the infrastructure of the recycling industry for the
purposes of the textile industry. The company representative stated: “We realized,
after four seasons of the Cradle-to-Cradle collection and related efforts that it is
good to set an exclamation mark and to look what is doable. But if we would really
initiate a circular economy then it would be necessary to do so on industry level and
to cooperate with competitors” (see Appendix: German Quote 40).
The final challenge identified by the organization is the lack of technical innova-tions. The interviewee states that “In my personal opinion technological innovations
are missing and these are what really make the system work” (see Appendix: German
Quote 41). The organization explains the absence of technical innovations for them
as being the lack of adequate machines supporting the recycling process. Currently,
closed-loop-production systems are still a niche business. However, the organiza-
tion is optimistic that in the future such innovations will facilitate and promote
the issue of using recycled content for the production process. For example, the
recycling of plastic packaging should be improved to enable companies to close
the loop for this material.
4.8.4 Economic Impacts
The first effect is one which is positive and results from the attraction of new
buyers. The organization states that a certain group of buyers are sensitive to the
issue of sustainability and aware of circular economy and that these play a part
in their buying decision. The interviewee explains it as follows: “For sure there are
customers in our target group who are also concerned about sustainability, who see
it as something positive” (see Appendix: German Quote 42). Zeta’s commitment to
circular economy attracts these customers which generates additional business.
The other effect is the high prices for recycled resources, for example, in thecase of cotton which has a negative impact, as the interviewee told in the following