The fashion industry has a detrimental environmental impact throughout its supply chain operations that needs immediate attention. Limited work focuses on measuring the environmental sustainability of clothing products made from post-consumer waste in the circular economy. This research aims to evaluate the environmental sustainability of fashion products made from post-consumer waste using the Higg Index tool developed by the Sustainable Apparel Coalition. Three t-shirt manufacturers—namely factory A (LEED certified), factory B (non-LEED certified), and factory C (Sub-contract) were considered as case studies. Data were collected through practice-based qualitative questions to manufacturing practitioners, which were supplemented by triangulations, and scores were obtained using the Higg Index product environmental sustainability tool. The findings highlight significant variations in most subsection analyses for product environment sustainability dimensions, scoring 369.5 (73.9%), 277.6 (55.5%), and 153.5 (30.7%) out of 500 by factories A, B, and C, respectively. Findings reveal significant differences in scores (from low to high) for the three t-shirt manufacturers. Various subsections revealed deficiencies in actual policies including product design, materials selection, manufacturing operations, and priorities regarding subcategories. Products made in a green factory and embracing the circular economy achieved the highest score, while the sub-contractor factory product obtained the lowest score. Findings highlight poor and emerging sustainable practices, identify challenges, and suggest improvement in the above-mentioned categories. The research urges stakeholders to embrace sustainable practices for fashion products to reduce environmental impact through life cycle stages and benefit the industry.

The textile and fashion industry produce a significant amount of solid waste annually. Most of this waste is either disposed of or burned; very little is reused. This research investigates the potential of reusing and recycling remnant fabric to create sustainable luxury fashion products in a circular economy. Focusing on three factories namely Factory A, Factory B, and Factory C, this study analyzes product diversification, capacity, capital investment, supply chain dynamics, and manufacturing operations. A qualitative approach with semi-structured interviews with industry practitioners from the case factories was employed. Data from purchasing orders, production reports, inventory reports, and monthly invoices were analyzed. The factories manufactured a range of sustainable products, emphasizing floor mats, ladies’ handbags, and bedding items (pillow covers). The analysis revealed that each factory achieved a 30–40% profit margin on their monthly sales. Notably, approximately 95% of the remnant fabric was recycled in the production process, with merely 5% being discarded and resold for further use. These findings indicate local employment opportunities and substantial contributions to socio-economic advancement. This study recommends adopting a circular economy model to generate new business opportunities and income streams from remnant fabric. It encourages new financial investment and technical innovations to promote growth in this sector and benefit wider stakeholders.