Diesel and UNIDO jointly to launch a pilot initiative to develop a circular business system from waste fabric in Tunisia

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In partnership with the United Nations Industrial Development Organization (UNIDO), the parent company of Diesel, OTB Group, is launching a pilot initiative to develop a circular business system with lower emissions.

Diesel and its Tunisian manufacturing partners will develop the project in the second half of the year and continue it until 2023 by constructing a “virtuous loop” for leftover fabric from fabric-cutting operations. Participation of suppliers is crucial. The project’s central thesis is that production waste can and should be used as a resource, and that by extending circular business models throughout the entire supply chain, it is possible to use raw materials more responsibly.

According to OTB, Tunisia generates 31,000 tons of garbage, of which 55% is categorized as scrap. Recycled textile fibers might thereby lessen the impact of the sector on the environment, protecting water resources, reducing carbon emissions, and preventing the spread of dangerous chemicals into agriculture, according to the statement.

The business model, according to the company, “not only ensures that raw material value is maintained at a high level throughout the local supply chain, it also contributes to the adoption of a circular approach by the entire system, reducing dependence on virgin resources and optimizing scrap, turning it once more into a raw material that provides value.”

OTB unveiled a revamped sustainability strategy in 2021 with a focus on three key areas: environmental protection, product awareness, and social responsibility. The Italian business’ operations will be carbon neutral by 2030. Through Diesel, it has introduced a number of circularity initiatives, including Diesel Second Hand, a secondhand shop operating across Europe and fueled by a buyback scheme, to meet this objective.

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