Panel event: The Economics of Circularity – Fashioning Sustainability for Business Longevity

As part of London Climate Action Week, Bates Wells, in partnership with DEPLOY – the highest scoring fashion B corp globally, convened a panel exploring one of the fashion industry’s most pressing challenges: how to turn circularity from ambition into commercially viable reality.
The panel reflected a breadth of expertise across the value chain.

• John Atcheson, Co-Founder and CEO of Circular Way, is a serial entrepreneur rethinking retail through closed-loop systems.
• Lisa O’Donnell, a leading ESG and sustainability adviser, previously built and led PwC’s ESG reporting practice and has driven innovation in AI-led reporting tools.
• Clare Carroll, representing WRAP, works with global brands and policymakers to scale circular textile systems.
• Dr Bernice Pan, Founder and Chief Creative Officer of DEPLOY, is widely recognised for pioneering building sustainability into a business model as evidenced by Deploy’s 360 sustainability model, and was our moderator. 

Together, they provided a nuanced view of both the opportunities and structural barriers shaping the circular transition.

Investment vs. impact: closing the timeline gap

One of the most compelling discussions centred on the mismatch between investment time horizons and circular business models.

Traditional venture capital operates on relatively short return cycles. Circular systems, by contrast, require sustained investment and time to scale. As John Atcheson noted, the economics of new materials illustrate this tension clearly: costs only come down at scale, yet scale is dependent on demand, which itself relies on early-stage investment.

This “chicken-and-egg” dynamic continues to slow adoption.

The panel expressed a need for a shift towards patient capital, investment strategies that recognise the long-term value of circular systems. There are signs that the transition may not be as slow as once assumed. Nicole Rycroft, Founder and Executive Director of Canopy, shared some early findings from their forthcoming research into the potential price parity of next-generation viscose materials. Some circular materials are already moving towards price competitiveness more quickly than expected.

Ultimately, the consensus was clear: if businesses can make circular choices seamless and commercially attractive for consumers, capital will follow

AI: accelerating change, raising questions

Artificial intelligence emerged as both a powerful enabler and a point of debate.

Lisa O’Donnell highlighted AI’s ability to transform decision-making by providing robust, large-scale data. For businesses, this reduces uncertainty and strengthens the case for long-term investment. Better data not only accelerates internal decision-making but also builds confidence among investors and stakeholders.

AI is also reshaping how innovation is evaluated. From modelling material performance to forecasting when novel materials will achieve price parity, it offers a clearer roadmap for scaling sustainable solutions.

Yet the discussion also highlighted important tensions. Some  audience members raised concerns about the environmental and social trade-offs associated with AI infrastructure, particularly in regions where land and resources are already under pressure. For those working closely with natural fibre systems where farmers are key to the system, the balance between digital acceleration and ecological impact remains unresolved considering the competition for land for growing data centres.

A stronger commercial case for circularity

What emerged throughout the discussion was a growing confidence in the business case for circularity.

For consumers, the appeal is increasingly tangible: more durable products, lower lifetime cost, and new ownership models that extend value beyond the initial purchase. Atcheson described a future retail model where consumers engage with fashion through the lens of their existing wardrobe – unlocking value through reuse, resale, and repair.

For businesses, this shift represents more than a sustainability play. Circular models introduce diversified revenue streams, from recommerce to services, while deepening customer relationships.

Although upfront investment remains a barrier, the long-term commercial upside is becoming harder to ignore.

Regulation, responsibility and the consumer shift

Alongside market forces, regulation is beginning to reshape the landscape.

Clare Carroll highlighted WRAP’s work to position durability as fashion’s next competitive advantage, with policymakers, particularly in the EU, introducing minimum durability requirements for textiles. These measures aim to keep products in circulation for longer and reduce systemic waste.

At the same time, there is increasing focus on consumer behaviour. Recycling systems remain fragmented and often unclear, pointing to a need for both better infrastructure and clearer communication.

From a legal and governance perspective, Oliver Scutt of Bates Wells pointed to the rise of Extended Producer Responsibility (EPR) and digital product passports. These frameworks shift accountability onto brands, requiring them to take ownership of a product’s full lifecycle.

And whilst the EU is leading the charge, the UK is expected to follow. Some brands are already moving ahead of regulation, such as Nobody’s Child, recognising both the compliance imperative and the strategic advantage.

From ambition to implementation

Delivering on moving circularity into the mainstream will require alignment, between capital, innovation, regulation, and consumer behaviour. But the direction of travel is unmistakable. Businesses that act early stand to unlock both resilience and competitive advantage.

Bates Wells is proud to be part of the European Sustainable Fashion Forum (ESFF), founded by DEPLOY, which continues to bring together cross-sector expertise to drive meaningful change.

For organisations looking to navigate this transition, the question is no longer whether to engage with circularity but how quickly and effectively it can be embedded into core strategy. Bates Wells can assist you to embed sustainability into your business model and practices. Please get in touch if you would like to learn more.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require advice.