Keeping textile waste in the loop, and proving it.

Every quality failure on a garment factory floor is textile waste. Pacod’s circular suite turns that record into material that is weighed, sold, traced and kept in use.

  • loop
  • renew
  • trace
  • collect
  • gauge

loop, renew, trace and collect are MVPs in development. gauge is in research.

The problem

Clothing still moves in a straight line, from make to use to waste.

Our focus is the waste made before a garment is ever sold, inside the South Asian factories that make so much of the world’s clothing.

<1%of the material used to make clothing is recycled into new clothing.
1 truckof textiles is sent to landfill or burned every second.

Source: Ellen MacArthur Foundation, A New Textiles Economy, 2017

Our core finding

Every quality failure on the factory floor is textile waste.

We started with product passports and followed the data to the factory floor. A passport asks what a garment is made of and where its material goes next, and that question took us into circularity.

Why this waste matters

It is clean, it comes in large batches, and the factory knows the exact fibre. A pile of pure cotton scraps can become new yarn. A mixed bag of worn clothes usually cannot.

Where the record breaks

Most factories do not weigh it, sort it by fibre or note where it goes. It leaves by the sack, often with informal dealers, and the data is lost.

Much of the data a circular economy needs is already captured. It just is not counted as material.

Already in the quality record

  • Rejected garments
  • Reworked and damaged pieces
  • Faulty fabric rolls
  • Discarded samples
  • Surplus and cancelled stock

Where waste is made

Seven points where a factory makes waste.

What is on the record at each one today, and what the circular suite adds.

Seven points where a garment factory makes textile waste, what is on the record today and what the Pacod circular suite adds
Factory stageWaste made hereOn the record todayWhat the suite adds
SamplingDiscarded sample garmentsYes, in SatraGarments and kg per round
Fabric arrivalFaulty fabric rollsPartly, at inspectionRoll weight, fibre, mill and origin
CuttingCutting scrapsStarts with loopScrap kg, sorted by fibre
SewingRework and damaged piecesYes, in inline checksPieces scrapped and their weight
Final inspectionRejected garmentsYes, in AQL resultsWhere each reject goes
ShipmentSurplus and cancelled stockYes, at the shipment decisionSurplus quantity and destination
Leaving the gateSacks sold to dealersStarts with loop and collectBuyer, kg, fibre and a photo of the slip

Five of the seven stages need only new fields on records already kept. Cutting and the factory gate are new, and small.

What we are building

The Pacod circular suite.

Four tools that keep textile waste in the loop, built on the quality data Pacod already captures. Each one is an MVP in development, under a working name.

  • loop

    Waste exchange

    Sorted scraps and deadstock sold to verified recyclers, with proof of every kilo.

    MVP in development
  • renew

    Grade and route

    Returned and unsold garments graded and sent to resale, repair or recycling, so they stay in use.

    MVP in development
  • trace

    Recycled content

    Proves a recycled-content claim by joining each supplier’s confirmation, from scrap to garment.

    MVP in development
  • collect

    Collector app

    An offline phone app for scrap collectors, so their trips, weights and pay are on record.

    MVP in development

loop and collect

How a bag of scrap reaches the recycler.

loop

Waste exchange
  1. The factory sorts scraps by fibre, bags and weighs them, and prints a QR label.
  2. It lists the bags, and verified recyclers send offers.
  3. A collector scans every bag at the gate.
  4. The recycler weighs in. When the weights match, a delivery certificate is issued and the factory is paid.

collect

Collector app
  1. The aggregator signs up in their own language and adds crew, safety gear and training.
  2. They are booked for loop pickups at a fixed rate per kg.
  3. At the gate they scan, weigh and photograph the slip. It works offline.
  4. Delivery closes the trip, and pay and history are recorded.

Factories earn more for sorted waste. Recyclers get clean, proven feedstock. Brands get proof of where their factories’ waste goes. Collectors get steady trips and a work record of their own.

renew and trace

How garments stay in use and claims get proven.

renew

Grade and route
  1. The brand sets its rules once. A to resell, B to outlet, C to repair, D to recycle.
  2. A grader scans each garment and ticks what is wrong, and a grade is suggested.
  3. A route tag is printed, and the garment goes to resale, repair, donation or loop.
  4. The partner confirms receipt, and the EU disclosure report builds itself.

trace

Recycled content
  1. The brand picks a style and a claim, such as 30% recycled cotton.
  2. Each supplier gets a link to confirm what came in, what went out, and its certificate.
  3. trace checks that the kilos add up and that none is counted twice.
  4. When every link is confirmed, the claim goes on the label and the passport.

trace is a chain of confirmations. It checks the certificates that certification bodies issue, such as GRS, and joins them from scrap to garment.

The suite together

One kilogram of cotton scrap, followed from the factory to the shopper.

  1. loop

    The factory bags and lists cotton scraps

  2. collect

    A collector picks up, scans and weighs

  3. loop

    The recycler confirms, and a delivery certificate is issued

  4. trace

    Yarn, fabric and garment linked, 30% recycled proven

  5. Passport

    The shopper scans the recycled claim

renew runs alongside

Returned and unsold garments are graded and kept in use. Anything beyond repair goes back into loop as feedstock.

One record underneath

Every step ties back to the same style in the Pacod quality record, so data is checked once and reused.

Why now

Europe is turning circularity into data requests for the factory.

Each rule ends as a request for data from the factory that made the garment.

2026

The ban on destroying unsold clothes and shoes

19 July 2026

Large companies can no longer destroy unsold apparel, clothing accessories and footwear in the EU, apart from set exceptions. Medium-sized companies follow on 19 July 2030.

Regulation (EU) 2024/1781, EUR-Lex

The rules on environmental claims apply

27 September 2026

The EmpCo Directive (EU) 2024/825 applies. A generic environmental claim needs evidence of the performance behind it.

Directive (EU) 2024/825, EUR-Lex

2027

Textile design rules

2027, expected

The textile delegated act under ESPR is expected, leading to a Digital Product Passport for each garment, expected around 2028 to 2029.

The sourced passport timeline

2028

Textile EPR in every member state

17 April 2028

Every EU member state must run extended producer responsibility for textiles and footwear, with fees linked to durability and recyclability.

Directive (EU) 2025/1892, EUR-Lex

gaugeIn research

Next, carbon and methane per garment.

gauge is our research into carbon and methane per garment, worked out from a factory’s monthly bills. It is at MVP stage in R&D.

Next step

The pilot we are setting up.

We are looking for the factories, recyclers, collectors and brands to run the suite with us, on real waste, in India and Sri Lanka.

Short answers.

What is the Pacod circular suite?

Five tools that keep textile waste in use and prove where it went. loop is a waste exchange, renew grades and routes returned and unsold garments, trace proves recycled-content claims, collect is an offline app for scrap collectors, and gauge works out carbon and methane per garment. They build on the quality data Pacod already captures on the factory floor.

Where are the circular tools today?

loop, renew, trace and collect are MVPs in development, and gauge is in research at MVP stage. Factories, recyclers, collectors and brands can join the pilot now by writing to compliance@pacod.net.

How does loop prove that scrap reached a recycler?

The factory weighs each bag and prints a QR label. A collector scans every bag at the gate, and the recycler weighs it in. When the weights match, a delivery certificate is issued and the factory is paid.

Who certifies recycled content in trace?

Certification bodies do, under standards such as GRS. trace checks their certificates and joins each supplier’s confirmation into one chain, from scrap to garment, so the kilos add up and none is counted twice.

Who sees a factory’s waste data?

The factory. Its data stays private until it chooses to share it with a recycler, a collector or a brand.

Which EU rules is the suite built around?

The ESPR ban on destroying unsold apparel and footwear, the evidence the EmpCo Directive (EU) 2024/825 asks for behind environmental claims, extended producer responsibility for textiles under Directive (EU) 2025/1892, and the textile Digital Product Passport, expected around 2028 to 2029.

More in Answers.

Join the circular pilot.

Factories, recyclers, collectors and brands can join. Book 20 minutes and we will show you where your waste fits.

  • One style is enoughSend one style. We walk it through Pacod and show you what it produces.
  • A person answersSomeone from the team that builds Pacod.
  • Close to the floorFrom Sri Lanka and India, on UTC+5:30.