In this op-ed, Rosanna Iacono shares a final word on governance as she prepares to step down as acting independent chair of Seamless.
The conclusion of my term as acting independent chair of Seamless, Australia’s clothing stewardship scheme, coincides with a time when reflection on the role of governance is more critical than ever for the fashion industry, as it seeks to balance unprecedented current realities with the creation of a proud future legacy.
The fashion industry is no stranger to disruption, but the current confluence of economic headwinds, evolving consumer values, and the urgent need for sustainable practices presents a unique challenge. Retailers are juggling rising costs, trade wars and consumers trading down in a cost-of-living crisis, all whilst navigating complex supply chains, and responding to a growing demand for transparency and circularity. In this environment, agility alone isn't enough. What's crucial is a strong governance framework that provides both a strategic compass and a moral anchor.
Alongside the challenges there is also significant positive momentum. The resale, rental, and repair markets are experiencing substantial growth, indicating a shift in consumer behaviour towards more sustainable consumption patterns. Global regulatory shifts, including mandatory climate reporting in Australia, are driving greater accountability and transparency. Forward-thinking retailers are recognising the opportunities in this evolving landscape and are already seeing returns such as stronger employee engagement, new channels for customer acquisition, enhanced customer loyalty, improved access to capital, and more resilient brands.
At Seamless, we've seen first-hand how good governance translates into tangible progress. By working with nearly 60 brands and over 110 supporter organisations, we’re building a circular future for Australian clothing by 2030, aiming to significantly reduce the staggering 222,000 tonnes of textiles going to Australian landfill annually. Our governance structures ensure that this ambitious goal is pursued with accountability, transparency, and a clear focus on delivering tangible environmental and social impact.
To thrive in this evolving landscape, fashion retailers must build resilient, future-ready businesses. This means not only being commercially sound but also primed to operate in a world where regulation and societal expectations will increasingly demand sustainable practices as table stakes. Strong governance is key to achieving this, ensuring that businesses are equipped to navigate the challenges and capitalise on the opportunities presented by the shift towards a more sustainable and circular economy.
For fashion retailers, a focus on strong governance translates into several key practical benefits:
- Strategic alignment: Ensuring sustainability initiatives aren't just add-ons but are deeply integrated into core business strategy, guiding day-to-day decisions from sourcing to end-of-life solutions.
- Risk mitigation: Identifying and addressing potential risks, from supply chain vulnerabilities to reputational damage associated with unsustainable practices.
- Operational efficiency: Establishing clear processes and responsibilities for implementing sustainable practices, leading to better resource management and cost savings in the long run.
- Capability uplift: Operationalising sustainability by embedding it across all functional areas, enhancing skills, building capabilities, and aiding market competitiveness.
- Stakeholder trust: Building stronger relationships with increasingly conscious consumers, investors, and employees who are drawn to businesses with clear ethical and environmental commitments.
- Innovation and collaboration: Fostering a culture of innovation and facilitating effective collaboration across the value chain – a necessity for tackling complex circularity challenges.
Good governance is no longer a back-office tick-box. It’s a front-line business fundamental that positions retailers to lead in sustainability whilst thriving commercially. For retailers, the message is clear: sustainability is not a cost - it’s an investment. And governance is a critical tool in unlocking its full value.
To guide our sector forward, I offer the following recommendations to decision-makers committed to purposeful transformation, recognising the critical need to harmonise immediate commercial imperatives with the pursuit of a sustainable and equitable future:
- Integrate for resilience and return: Integrate sustainability into your core business strategy. This balances ethical duties with long-term risk management and new opportunities for innovation, efficiency, and profit, ensuring both short-term and long-term success.
- Elevate governance: Make governance the key framework for effective ESG. Strong governance ensures accountability, transparency, and ethical choices, aligning sustainability with business goals and building stakeholder trust.
- Collaborate for accelerated impact: Connect and collaborate with the broader value chain by joining and engaging with schemes like Seamless, to accelerate your pathway to solutions. Systemic change is needed – change that no single organisation can achieve alone.
I’m proud to continue serving on the Seamless Board as an Independent Director and look forward to supporting our new independent chair, Kylie Hargreaves. I have every confidence that under Kylie’s leadership, Seamless will continue to thrive by working together with retailers and key stakeholders to help Australians choose, enjoy and recycle clothing more responsibly.