High-End Fashion Explores the Realm of Sustainable Technology Start-Ups

As the luxury fashion sector confronts increasing demands to mitigate its environmental impact, sustainable technology start-ups are experiencing heightened interest from fashion conglomerates and brands.

Luxury is not conventionally linked to sustainability; indeed, the two notions are often regarded as contradictory. Ten years ago, luxury and sustainability seemed to be opposing concepts due to their inherent contradictions. Luxury pertains to an extravagant, exclusive, and esteemed lifestyle, whereas sustainability is associated with a modest lifestyle focused on conserving, safeguarding, and honoring the planet's limited resources. Consequently, sustainability concerns were frequently disregarded in the luxury sector. Sustainability is inherently integrated into the essence of luxury. Rarity in the luxury market is associated with the utilization of scarce resources, like skins, leathers, and pearls, which rely on environmental sustainability for the conservation of natural resources. Consequently, luxury is contingent upon sustainability, while sustainability identifies luxury as a potential ally.

The Exploration of Sustainable Start-Ups

Image: Stella McCartney

“The focus is on sustainable solutions,” stated designer Stella McCartney in a video shared on her Instagram last weekend. The brand aims to replace traditional, larger industries with innovative, problem-solving sustainable enterprises. Following a US$200 million venture capital fund dedicated to climate solutions, it appears that fashion firms and executives continue to perceive potential in start-ups seeking sustainable solutions. The designer is presently collaborating with investment firm Collaborative Fund to support early-stage start-ups innovating in materials, ingredients, energy, and supply chain, alongside leather-alternative makers Bolt Threads and kelp-yarn manufacturer AlgiKnit.

Image: Evolved by Nature

She is not the sole individual to capitalize on the opportunity. Despite a bleak economic environment, firms like Chanel and Adidas have ventured into the sustainable technology sector. In June 2019, Chanel acquired a minority share in a green chemistry company investigating the potential of silk as a substitute for chemicals in apparel production. Located in Bolton Evolved by Nature has created a natural, silk-derived substitute for the harsh and hazardous chemicals commonly employed in the production of high-performance textiles. The company's method enables the manipulation of liquid silk protein to attain comparable effects. The revolutionary activated silk can diminish pilling in cashmere and improve the performance attributes of nylon and polyester.

Image: VitroLabs

The French luxury conglomerate Kering invested US$46 million in VitroLabs, a San Francisco-based firm specializing in lab-grown leather. Kering's investment in VitroLabs represents the latest in a succession of recent initiatives by the business aimed at advancing its environmental objectives. “A partner of this nature serves as a validation, and we are observing an increasing number of brands seeking solutions regarding leather and alternative materials,” stated VitroLabs co-founder and CEO Ingvar Helgason. While other firms have concentrated on plant-based leather replacements derived from mushrooms or grapes, VitroLabs employs stem cells to cultivate leather that is indistinguishable from authentic leather without the necessity of raising and slaughtering animals. This indicates that the material can integrate into current supply chains of fashion manufacturers and craftspeople, simultaneously mitigating the significant environmental effect and animal welfare concerns linked to cattle ranching.

In August 2022, Ralph Lauren acquired a minority position in Natural Fiber Welding, a materials science startup dedicated to enhancing the quality of recycled cotton. Adidas obtained exclusive rights to Mylo, a mushroom-derived leather substitute created by biomaterials manufacturer BoltThreads.

The Prospects of Sustainability in Luxury Fashion

Image: Mylo

For numerous brands, the prevailing tendency signifies a transition from years of trial programs that, although very marketable, necessitated minimal financial investments and failed to effect significant change. However, substantial obstacles remain in the transformation of the industry.

The cash influx into sustainable fashion start-ups remains minimal relative to the magnitude of the challenge. According to publicly accessible data from investment tracker Crunchbase, funding rounds in which luxury fashion brands engage seldom exceed US$10 million in sustainability initiatives. Transforming the industry to meet ambitious climate objectives will necessitate yearly expenditures ranging from US$20 billion to US$30 billion, as stated in a January 2020 analysis by Boston Consulting Group. There is considerable interest from venture capital firms, impact investors, and notably, major fashion brands. Increasing tailwinds are fostering greater interest in the sector, driven by the maturation and commercialization of recycling technology and leather substitutes, as well as recent political developments, including legislative support for climate action in the US.

The fashion industry's efforts in sustainable innovation remain nascent, yet there are encouraging indications of a wider movement. Although exclusive access to emerging technology or scarce novel materials can confer a competitive advantage to brands, there is an increasing recognition that no single company can achieve this independently. Brands are collaborating more intimately with manufacturers to integrate new technology throughout the supply chain, indicating the possibility of enhanced relationships.

For instance, when Fashion for Good—a platform dedicated to promoting ecologically sustainable solutions—was established four years ago, it commenced with a limited number of brands and shops as its corporate partners. It now includes manufacturers as collaborators. Brittany Burns, director of strategy and development at Fashion for Good, stated, "We recognized the significance of convening those upstream suppliers." “We deemed it essential to establish opportunities for the exchange of ideas and collaborative development throughout the fashion industry.”