Closing the Loop: Can Swedish Fashion Companies Embrace Circular & Sustainable Return Policies in a CSRD Era? An Analysis of Drivers and Barriers for Swedish E-commerce Companies in light of CSRD

Abstract

This thesis examines the extent of implementing circular and sustainable return policies in the Swedish e-commerce fashion industry, influenced by the Corporate Sustainability Reporting Directive (CSRD). Through qualitative research, including semi-structured interviews with four Swedish fashion e-commerce companies, the study identifies key drivers and barriers to adopting a circular and sustainable return policy. The empirical findings indicate three drivers: consumer insights, laws and regulations (CSRD), and strategies. Further, the empirical findings indicate three barriers: consumer behavior, transitioning approaches, and product development. The study indicates that while CSRD provides a regulatory push towards sustainable practices, effective implementation is contingent on overcoming substantial financial and operational difficulties. Recommendations for further research include a broader analysis across more companies and an assessment of the impacts of fully implemented CSRD regulations. This thesis contributes insights into aligning business practices with Sustainability Development Goal 12: Responsible Consumption and Production.