The Role of Technology in Advancing Sustainable Fashion

Introduction: From Compliance to Capability

Sustainability has transitioned from a peripheral concern to a central operational imperative within the fashion industry. As regulatory pressures intensify and stakeholder expectations escalate, the capacity to monitor and manage environmental and social performance has become a critical differentiator.​

Despite ambitious goals, execution remains a significant hurdle. Many fashion brands contend with fragmented data, outdated systems, and manual processes. Bridging the gap between aspirations and outcomes necessitates embracing technology as a catalyst for sustainability.​

This article delves into how technologies—such as product lifecycle management (PLM), enterprise resource planning (ERP), environmental, social, and governance (ESG) platforms, digital product passports (DPPs), shop floor control, assortment planning, and warehouse management—drive tangible progress. Building upon the ESG imperatives outlined in our previous article, the focus shifts from the rationale to the methodologies of achieving sustainable transformation.​

Technology as the Bridge to ESG Execution

The fashion industry's environmental and social footprint is substantial: production and transportation contribute 8–10% of global greenhouse gas emissions; over 92 million tons of textile waste are generated annually; and issues like excessive water usage, chemical runoff, and labor violations persist across global supply chains.​

To address these challenges, regulations such as the Corporate Sustainability Reporting Directive (CSRD), Product Environmental Footprint Category Rules (PEFCR), and Digital Product Passports (DPPs) are redefining the reporting and tracking obligations for fashion brands. In this context, technology is not merely optional—it forms the backbone that enables compliance, agility, and long-term value creation.​

Key Technologies Powering Sustainable Fashion

1. Merchandise planning: balancing profitability and sustainability

Merchandise planning is pivotal in delivering the optimal mix of products across various channels, regions, and timeframes. Modern tools now incorporate sustainability into decision-making processes, allowing brands to optimize not only cost, margin, and timelines but also environmental impact.

Leveraging artificial intelligence (AI) and advanced analytics, brands can assess the environmental footprint of each assortment across collections, categories, and seasons, aiding in waste reduction and aligning product strategies with ESG targets. Integration with warehouse management systems and demand planning enhances inventory positioning, reduces markdowns, and lowers emissions associated with redistribution.

2. Product lifecycle management (PLM): sustainability by design

PLM software integrates sustainability considerations into the initial stages of product development. It facilitates the selection of certified materials, modelling the impacts of design choices, and planning for recyclability, durability, and repairability.

Brands utilizing PLM report decreased material waste, streamlined sampling processes, and enhanced traceability—all contributing to reduced environmental impact and improved product stewardship.

The significance of sustainable product design is escalating. The European Union's Ecodesign for Sustainable Product Regulation (ESPR) mandates that, via the Digital Product Passport, brands must declare their sustainability design strategies for all textile products sold in the EU from 2027 onward.

3. Enterprise resource planning (ERP): operationalizing ESG

ERP systems connect sustainability objectives with sourcing, manufacturing, and financial operations. Through integrated data flows, teams can monitor resource usage, emissions, and compliance in real time.

AI-driven ERP systems assist in managing overproduction, minimizing waste, and streamlining sustainability audits while embedding ESG reporting into daily decision-making processes.

4. ESG platforms: from reporting to real-time insight

Modern ESG platforms transcend static reporting by automating data capture across suppliers and facilities, providing dashboards for real-time tracking, and employing AI to identify risks or inconsistencies in ESG data.

Capturing data from all tiers in the complex and fragmented fashion supply chain is a formidable challenge. Pursuing data from suppliers without direct relationships is inherently difficult, compounded by the need to validate information from newly onboarded suppliers and continuously verifying data across diverse sources.

With the impending wave of new regulatory compliance and reporting requirements, fashion companies need flexible and robust ESG platforms that offer a low-code/no-code configuration of integrations, forms, and reports to accommodate the rapidly evolving landscape. These tools enable teams to detect non-compliance early, engage suppliers proactively, and deliver credible sustainability performance to stakeholders and regulators.

5. Shop floor control: manufacturing efficiency with impact visibility

Shop Floor Control systems utilize sensors to provide real-time visibility into production performance. This is the Internet of Things (IoT) and the Industrial Internet of Things (IIoT) at work. Smart devices allow brands to monitor energy consumption, equipment efficiency, and waste at the factory floor.

Predictive maintenance and automated quality checks contribute to reduced downtime, lower energy costs, and support responsible manufacturing practices. Data captured can also inform broader ESG analytics for factory-level performance tracking.

6. Warehouse management: optimizing distribution with sustainability in mind

Sustainability considerations extend beyond manufacturing. Warehouse Management Systems (WMS) are instrumental in ensuring efficient and environmentally friendly distribution. From optimizing warehouse layouts to reducing transportation emissions through improved route planning, WMS tools support greener logistics.

When integrated with Merchandise Planning and demand forecasts, WMS enhances order fulfilment precision, reduces returns, and helps brands intelligently balance stock across multiple sales channels—all while minimizing waste and emissions.

7. Digital product passports: enabling transparency and compliance

Digital Product Passports (DPPs), set to become mandatory in the EU by 2027, provide a scalable solution to trace a product's journey from material sourcing to end-of-life. By connecting material, production, and usage data, DPPs assist brands in meeting Extended Producer Responsibility (EPR) obligations and demonstrating accountability within circular economy initiatives.

Digital Transformation in Practice

A global luxury brand implemented Digital Product Passports (DPPs) to provide consumers with full transparency across material sourcing, labor practices, and sustainability credentials. The initiative not only built deeper consumer trust but also positioned the brand as a leader in regulatory readiness, fully aligned with EU traceability standards set for 2027.

A leading sportswear company deployed AI-powered PLM and ERP systems to improve material selection and lifecycle sustainability performance. By embedding real-time impact data into the product development process, the company achieved a 20% reduction in the carbon footprint of its flagship collections—while also accelerating time-to-market and reducing sourcing risks.

Meanwhile, a major fast-fashion retailer targeted overproduction and textile waste by integrating Shop Floor Control systems with recycling initiatives and demand planning tools. This digital-first approach enabled a 50% increase in textile recycling volumes and a measurable decrease in unsold inventory, demonstrating how operational efficiency and sustainability can be achieved simultaneously.

The Path toward Sustainable Fashion: Powering ESG with Technology

The path to a more sustainable fashion industry runs through data, integration, and intelligent systems. For brands, the transition from ESG ambition to execution depends on the strategic use of technology across every phase of the value chain—from product design and sourcing to manufacturing, logistics, and reporting.

As regulations such as CSRD, ESPR, EPR, and the DPP framework rapidly approach enforcement, fashion companies must prioritize infrastructure that supports transparency, circularity, and compliance. Technology is no longer a "nice to have"—it is a competitive necessity.

The future will favor brands that adopt digital tools capable of adapting to regulatory change, surfacing impact insights, and empowering supply chain collaboration. Investing now in scalable, flexible, and interoperable platforms is the key to leading the next generation of sustainable fashion.

Book a demo with us today to see how our integrated ESG platform connects your PLM, ERP, and supply chain systems — simplifying compliance, enhancing transparency, and supporting measurable progress across your sustainability goals.

Visit us at BlueCherry.com to learn more.