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.
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.
| Factory stage | Waste made here | On the record today | What the suite adds |
|---|---|---|---|
| Sampling | Discarded sample garments | Yes, in Satra | Garments and kg per round |
| Fabric arrival | Faulty fabric rolls | Partly, at inspection | Roll weight, fibre, mill and origin |
| Cutting | Cutting scraps | Starts with loop | Scrap kg, sorted by fibre |
| Sewing | Rework and damaged pieces | Yes, in inline checks | Pieces scrapped and their weight |
| Final inspection | Rejected garments | Yes, in AQL results | Where each reject goes |
| Shipment | Surplus and cancelled stock | Yes, at the shipment decision | Surplus quantity and destination |
| Leaving the gate | Sacks sold to dealers | Starts with loop and collect | Buyer, 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 developmentrenew
Grade and route
Returned and unsold garments graded and sent to resale, repair or recycling, so they stay in use.
MVP in developmenttrace
Recycled content
Proves a recycled-content claim by joining each supplier’s confirmation, from scrap to garment.
MVP in developmentcollect
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- The factory sorts scraps by fibre, bags and weighs them, and prints a QR label.
- It lists the bags, and verified recyclers send offers.
- A collector scans every bag at the gate.
- The recycler weighs in. When the weights match, a delivery certificate is issued and the factory is paid.
collect
Collector app- The aggregator signs up in their own language and adds crew, safety gear and training.
- They are booked for loop pickups at a fixed rate per kg.
- At the gate they scan, weigh and photograph the slip. It works offline.
- 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- The brand sets its rules once. A to resell, B to outlet, C to repair, D to recycle.
- A grader scans each garment and ticks what is wrong, and a grade is suggested.
- A route tag is printed, and the garment goes to resale, repair, donation or loop.
- The partner confirms receipt, and the EU disclosure report builds itself.
trace
Recycled content- The brand picks a style and a claim, such as 30% recycled cotton.
- Each supplier gets a link to confirm what came in, what went out, and its certificate.
- trace checks that the kilos add up and that none is counted twice.
- 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.
- loop
The factory bags and lists cotton scraps
- collect
A collector picks up, scans and weighs
- loop
The recycler confirms, and a delivery certificate is issued
- trace
Yarn, fabric and garment linked, 30% recycled proven
- 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.
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.
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.
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.
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.
- Carbon in wasteEvery rejected garment and scrapped kilo carries the energy it took to make. Fewer rejects means less carbon wasted.
- Energy on the floorPower and fuel per line and per order, turned into CO₂ with recognised emission factors.
- Built to feed what existsFactories reuse the same data in the Higg FEM, so one record feeds the reporting they already do.
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.