What: Vestiaire Collective has launched a carbon credit initiative that quantifies and sells the emissions avoided through secondhand fashion.

Why it is important: This initiative demonstrates how circular business models can create new revenue streams while meeting rising regulatory and consumer demands for sustainability.

Vestiaire Collective has introduced a pioneering carbon credit initiative, positioning itself as the first pre-owned fashion business to monetise avoided emissions by quantifying and selling carbon credits based on the environmental benefits of secondhand purchases. This approach relies on a rigorous, third-party-certified methodology, ensuring transparency and credibility in measuring the emissions prevented when consumers choose pre-loved items over new ones. The initiative responds to the ongoing challenge in the fashion industry, where fewer than half of the top 250 brands have verified emissions reduction targets, and Scope 3 emissions remain a significant concern. By issuing credits on the voluntary carbon market, Vestiaire Collective not only opens a new revenue stream but also reinvests proceeds into strengthening authentication, curation, and consumer education, further supporting the circular economy. The project also delivers local economic benefits in Tourcoing, France, reinforcing the link between sustainability and regional revitalisation. This development exemplifies how circular business models can address both environmental and commercial imperatives in retail.

IADS Notes: Vestiaire Collective’s carbon credit initiative reflects the retail industry’s broader shift toward circularity and measurable sustainability, as seen in March 2025 with the mainstreaming of circular strategies (“The benefits of a circular economy strategy in retail,” The Retail Bulletin), and in July 2025 with the call for scalable, systematic transformation (“The Kearney CFX 2025 report: circular fashion growing but still not at scale,” Kearney/Fashion Network). The emphasis on transparency and third-party verification aligns with the complexity of sustainability reporting highlighted in February 2025 (“Confused by supply chain reporting rules? You’re not the only one,” Vogue Business), while the focus on Scope 3 emissions and science-based targets echoes the industry’s ongoing challenges (“Fashion is neglecting nature. Now what?” Vogue Business, February 2025). The surge in secondhand shopping and repairs reported in December 2024 (“Rising cost of living pushes secondhand shopping, repairs,” Retail Asia) further underscores the relevance of Vestiaire’s approach.

Vestiaire Collective launches carbon credits initiative