H&M Group is now launching the alliance Apparel Recovery Coalition, abbreviated ARC, together with industry colleagues Inditex, Bestseller and Adidas. The initiative is being carried out in collaboration with the non-profit organization The Or Foundation and Circle Economy, reports Habit.
Critical gap in legislation
The background to the collaboration is the upcoming producer responsibility for textiles within the EU. The legislation means that fashion companies must pay fees for recycling and management of textile waste. A problem with the current design of the system is that the capital remains in the countries within the EU where the garments are sold.
At the same time, around 1.4 million tons of used textiles are exported out of the EU annually. The exports largely go to countries in Africa and Asia. These recipient countries risk being left without the necessary funding and resources to manage the large volumes of textile waste.
Testing global model
To meet this challenge, the companies behind ARC will carry out a two-year initiative between 2026 and 2027. During this period, they will contribute voluntary financial contributions to test a global model for producer responsibility. The basic idea is that the fees should follow the clothing flows across borders.
A first pilot project starts in Ghana, specifically at the Kantamanto market in Accra. It is one of the world's largest markets for used clothes, where around 25 million garments arrive every month.
The financial resources will go there to infrastructure, remediation, upcycling and recycling. The alliance also plans to launch another pilot project in another major recipient country in the future.