Shaping the Future and the Principles of a New Economy

The current economic system has delivered immense progress, but its flaws are becoming increasingly apparent. The EY report, "A New Economy: Exploring the Root Causes of the Polycrisis and the Principles to Unlock a Sustainable Future" sheds light on the pressing need for change. The report identifies systemic drivers of our interconnected crises: unsustainable growth, overconsumption, short-termism, and siloed thinking. These forces have not only worsened climate change but also widened inequality and deepened geopolitical divides. The challenges highlight the urgency of shifting from our extractive economic models to ones that prioritize resilience and regeneration.

Five Principles for a Regenerative Future

EY proposes five guiding principles to accelerate the transition toward a sustainable economy:

1. Sufficiency: Using only what we need to live well, sufficiency reduces overconsumption and prioritizes fairness. This principle aligns with trends like sustainable consumption and shared ownership, which also create new business opportunities.
2. Circularity: Designing systems to eliminate waste and maximize resource use ensures durability and regeneration. Businesses can lead by innovating models that preserve materials and energy while reducing environmental impact.
3. Systems Thinking: Focusing on the connections and dynamics within complex systems enables collaborative solutions that can drive widespread change. Businesses can play a critical role by working with policymakers, suppliers, and consumers.
4. Value Redefined: Expanding success metrics beyond financial profits to include human and planetary well-being helps create a thriving, balanced economy. Businesses can lead by adopting holistic frameworks that inform decision-making.
5. Equity and Justice: Fairness and inclusivity are key to a sustainable future, requiring equitable distribution of resources, respect for diverse perspectives, and shared accountability across generations.

Key Drivers of Change

Policy, technology, citizens, finance, and business are pivotal forces shaping the transition to a new economy. Strong regional leadership is pushing sustainability forward, and responsibly governed technology offers the potential for transformation. Citizens are increasingly adopting lower-impact lifestyles, while finance is gradually directing resources toward sustainability. Meanwhile, businesses are moving beyond incremental changes to embrace innovative, impact-driven models. This interplay between these forces will determine whether we perpetuate the current system or accelerate the shift to a fairer, more sustainable future.

"Digital technology can help unpack systems complexity; facilitate value chain visibility and traceability; change how we collect, share and use data; and transform how we connect and interact."

Repasdo's Contribution to the Principles

Circularity: By integrating circular services into Digital Product Passports (DPPs), Repasdo enables brands to rethink product lifecycles, minimize waste, and unlock new revenue streams while simplifying processes for consumers.

Value Generation: Using transparency as a tool will give the textile industry new metrics to improve social and environmental sustainability as they gain better understanding of their supply chain, water usage and emissions. This openness with customers will also lead to greater trust and connection, which creates community and brand loyalty.

Fairness and equality: Repasdo believes in democratizing technology, helping small and medium-sized enterprises (SMEs) prepare for regulatory shifts. By enabling collaboration between brands and manufacturers, Repasdo ensures that SMEs can thrive under new regulations rather than being left behind.

Driving the Transition Together

At Oslo Runway, Sara, Repasdo's founder and CEO, joined a panel discussion moderated by Marthe Kjøpstad from EY to explore how technology is changing the textile industry. The conversation, which also featured Einar Michaelsen of Cirkulær, delved into how technology can empower businesses, manufacturers, and secondhand retailers to create more sustainable models. The panel emphasized the critical role of innovation, collaboration, and transparency in shaping a just and regenerative future.

The shift to a sustainable economy is already underway, but it requires collective, intentional effort. As businesses, policymakers, and citizens, the choices we make today will shape the future we pass on to the next generation. The question remains: What role will we play in creating a livable, equitable world for all?

The report was presented during the NF&TA Conference 2024 and can be found here: Regenerative principles to unlock a sustainable future