System Design for the Sustainable Enhancement of Italian Wool Production Chain: The integrated approach of FiLA National Observatory project

The Italian wool industry is facing considerable challenges, largely due to mounting environmental concerns that are undermining its economic viability and sustainable production management. This paper presents the strategy of the FiLA National Observatory project, launched in 2024. The project objective is to reconfigure the value creation processes through a circular economy approach for the indigenous wool supply chain, establishing an energy-neutral, human-centred, and inclusive model. Italian wool (20-30 μm) is facing significant challenges in the international market, particularly from finer New Zealand wool (15 μm). Additionally, approximately 10,000 tonnes of annual greasy wool production is often treated as special waste, highlighting the urgent need for a systematic intervention to understand the strategic positioning of Italian wool within the broader context of the textile supply chain. This should extend beyond fashion and knitwear design to encompass a wider macroeconomic landscape. By 2025, the FiLA Observatory will develop a digital platform to support networking and system competitiveness, promoting innovation in processes, products, and services. Through mapping actors, identifying research opportunities, and defining macro-economic trends, the project proposes a comprehensive model that integrates economic, productive, environmental, and social aspects, ultimately contributing to a new paradigm of prosperity in the fashion industry.