The Fashion Industry Strategically Stays Silent on Unsold Goods, a New Study Reveals

Overproduction in the fashion industry remains an unresolved issue. Public concern has grown after revelations that a power plant in Sweden burns H&M clothing and that massive amounts of textile waste end up in Africa or Chile’s Atacama Desert. Now, a new study by a research team from the Institute of Communication Studies and Journalism at the Faculty of Social Sciences, Charles University has uncovered another alarming trend—fashion brands strategically remain silent about key environmental issues. The analysis reveals that more than three-quarters of even the most "responsible" brands fail to disclose what happens to their unsold products.

The research, published in Corporate Communications: An International Journal, was conducted by Denisa Hejlová, Angga Ariestya, Petra Koudelková, and Soňa Schneiderová. The study examined publicly available sustainability reports from 95 companies that have signed the Fashion Industry Charter for Climate Action under the UN Global Compact initiative. It focused on how these companies address issues like overproduction—manufacturing more clothing than necessary—and the fate of unsold garments, known as "deadstock."

So, what are the findings? Only one-fifth of these brands even partially acknowledge these issues. The majority either divert attention to related topics or remain entirely silent. This means that brands are avoiding the core problem: they produce more clothing than the market needs. The study confirms that even companies committed to sustainability goals and publishing extensive environmental reports can still withhold critical information.

"Handling unsold stock is such a major issue in the fashion industry that companies prefer not to talk about it at all. Their reports focus on smaller goals, such as reducing energy consumption in production or recycling old garments—initiatives that represent only a fraction of overall textile waste," explains Hejlová.

From 2026, the European Ecodesign for Sustainable Products Regulation (ESPR) will prohibit the destruction of unsold clothing. Companies will be required to transparently disclose how many products they discard and why, while also finding ways to repurpose them. The regulation aims to reduce textile waste, promote a circular economy, and increase transparency in the fashion industry. However, it will only apply within Europe, raising concerns that brands might circumvent these rules by transferring unsold stock to non-EU countries where similar regulations do not exist.

Consumers also play a role in tackling this issue. When shopping for clothes—especially online—they should be aware that not every returned item gets resold. Similarly, donation bins are not a perfect solution: at most, only ten percent of discarded clothing is reused as apparel, some gets repurposed for industrial insulation, but the rest ends up in landfills.

Hejlová advises consumers to opt for single-fiber natural materials such as wool, cotton, viscose, or linen, which decompose more quickly in landfills compared to fabrics containing polyamide or polyester blends. "These issues also affect younger generations, who often purchase ultra-fast fashion from countries with weak environmental and labor regulations. It is crucial for the fashion industry to address overproduction and unsold stock openly. Only a transparent approach and a willingness to tackle these challenges can lead to a more responsible fashion sector," Hejlová concludes.