Innovation

2ReWear is a private benefit corporation that specializes in recycling post-consumer textile waste. The company has partnerships with retailers who have agreed to serve as collection points across the globe for people looking to donate used clothing. They collect all sorts of fabrics and garments that simply no longer have a use within the family that currently owns them. From there, the collected items are separated into the following three categories for processing, based on their condition:

1. Clothing that is sorted and shipped globally to markets with greater need

2. Durable and broken-in fabric that is cut up and turned into wiping rags to clean up spills

3. Fabric of poor quality that is broken down into fiber and re-spun as automobile or carpet padding

The process came from observing that existing programs were simply not doing enough to encourage environmental sustainability in the garment industry. While other recycling programs must be supported by municipalities in order to achieve greater sustainability, 2ReWear funds its own clothing collection and processing through the sale of their end products.

Edward Stubin, the vice president of 2ReWear, mentioned that the first category of recycled clothing specifically provides the biggest benefit for the work put into the process. He said that “clothing sent overseas provides good wearable clothing for less than the cost of a postage stamp.” Their large shipping capacity enables them to achieve this low cost, which is then passed down to the people in these regions.

Inspiration

This idea for an environmentally conscious business was coined by Stubin’s father a few years ago and has taken root in his children and grandchildren. The third generation family business is now run by Eric Stubin, Edward’s son. Edward explains that it was seen more as a business opportunity at the time; the sustainability component was a mere side benefit that came with bringing used clothing into previously untapped markets. The company was formed in association with Trans-Americas Trading Co., a multinational clothing processing corporation that has been in existence since 1942. The purpose of creating 2ReWear was to expand textile recycling and to bring more clothing into the recycling process and thus reduce the amount being sent to landfills.

In speaking about how the business concept came about, Edward made an interesting clarification about the role of a benefit corporation. As a for-profit organization, 2ReWear is still expected to be profitable. This business process is much different and, in ways, more efficient than the community recycling program that relies on taxpayer funding. As he said, the company has to “do well enough to do good.” Remaining financially successful is integral in delivering a benefit to the world.

Overall impact

Compared with the family’s existing businesses in the recycling field, 2ReWear is a relatively new company. However, since its founding, 2ReWear has had great success in working with manufacturers and retailers to promote their idea of fabric recycling. Edward noted that overall “the goal is to get more textiles recycled.” Even by posting the company’s logo in a store window, they are still benefiting the public perception of sustainability and what happens to their clothing when it is thrown away.

2ReWear, as a benefit corporation, makes a profit from its recycling business. However, Edward said that they also “generate huge sums of money that go back to charitable organizations.” They saw that non-profit organizations like Goodwill could not sell or even give away certain types of clothing, and so they purchased the clothing to take the garments off of their hands. In the end, about a third of their operating budget ends up being sent to a charitable organization.

Though it is somewhat difficult to measure just how much a business impacts sustainability, the sheer amount of clothing processed is enough to have a large benefit to society. The company recycles approximately 60,000 pounds of fabric every year in their processing facilities. Even if these fabrics find their way to a landfill eventually, simply extending their useful lifespan helps to keep the production of new clothing in check.

Business benefit

The three-category process utilized by 2ReWear ensures that the company is able to get the most out of all garment contributions received. Edward remarked that “The textile recycling industry supports itself from what it does.” Being able to re-purpose and sell as much clothing as possible maximizes the revenue of the benefit corporation and thus certifies that it continues to divert used fabrics away from landfills and toward a new purpose.

Social and environmental benefit

The environmental benefit of the recycling process is that there are no by-products like bleach that are released from the cycle. It was fascinating to hear even just how much water is saved by reusing a T-shirt instead of buying a new one. In addition, Edward highlighted how the business goes beyond simple environmental sustainability. Unemployment in underdeveloped countries is much bigger of an issue than in the United States. By providing an affordable option for clothing, people in these countries can clothe themselves and still have enough money left over to help them live.

Interview

Edward Stubin, Vice President