The World Business Council for Sustainable Development (WBCSD) has introduced Circular Transition Indicators (CTI) Sector Guidance: Fashion and Textile v2.0, an exciting new resource to help fast-track the circular economy rollout within the fashion and textile industry.
CTI v2.0 was launched at the Global Fashion Summit 2025. This guidance has been developed through multiple stakeholders, including WBCSD, VF Corporation and Deloitte, with support from the VF Foundation. CTI v2.0 builds on the initial CTI guidance, which was released at Davos in 2024 and provides refinements to address the immediate need for the sector to transition to circularity from a circular economy perspective.
Currently, the fashion industry only participates in recycling 0.3 per cent of the materials used annually of 3.25 billion tons per year and there is a fast fashion perspective of wasteful overproduction. CTI v2.0 seeks to address this by providing improved methodologies for quantifying circular design, measuring social impact and disclosing information complying with new regulations like ESRS E5.
“This updated guidance strengthens both business decisions and reporting credibility,” stated Diane Holdorf, VP at WBCSD. Jeannie Renné-Malone, VP, Global Sustainability at the VF Corporation, said that CTI “helps companies connect circularity with climate, nature and waste goals with a common metric.”
These key updates include support for regulatory compliance; data strategies for each part of the value chain; strategies for regenerative inputs; and tools to evaluate circular design and social impact.
CTI v2.0 will have the scope to embed circularity in all aspects of business—thus providing a common language to articulate impact, innovation and sustainable value creation.
