H&M calls for textile sector to embrace circular economy
H&M Foundation has backed a new report that calls for the textile sector to embrace circular economy principles such as reuse, recycling, and slow fashion.
The Circularity Gap Report Textiles, authored by Circle Economy and funded by the H&M Foundation, urges “immediate action” to reduce the textile industry’s environmental impact.
The report found only 0.3% of the 3.25 billion tonnes of materials consumed annually by the textile sector come from recycled sources, and fossil-fuel-based synthetic fibres make up 70% of its raw materials.
The report highlights four recommendations:
- Transform the industry by cutting production volumes – address overproduction, reshape production cycles, and reduce resource use.
- Set environmental priorities beyond carbon reduction – consider broader environmental impacts, especially on water ecosystems.
- Ensure a socially just circular transition – focus on decent work, fair wages, and better working conditions.
- Coordinate action across science, technology, policy, and finance – collective action across these areas is needed for a circular textile economy, the report says.
Commenting on the report, Christiane Dolva, Head of Innovation, Research & Demonstration at the H&M Foundation, said: “We supported this report to provide the textile industry with actionable insights.
“The report highlights the most impactful circularity efforts. While not a complete solution, circularity is a powerful tool for driving meaningful change.
“We hope these insights will support industry-wide transformation, benefiting both people and the planet.”
H&M Foundation said it will use the report’s findings to guide its efforts in decarbonising the textile industry.
Drawing on the Planetary Boundaries Framework, the report measures impact across eight categories, including climate change, water scarcity, and biodiversity loss.
This report highlights the urgent need for solutions that transform the entire textile value chain toward a circular model.
The report found textiles contribute over 5% to marine eutrophication (excessive plant and algal growth) and 3.5% to global water scarcity impacts.
China and the United States are the largest textile producers and consumers, respectively, with the U.S. exhibiting per capita environmental impacts five to eight times above the global average, according to the report.
Hilde van Duijn, Managing Director of Circle Economy Foundation, commented: “The CGR Textiles is groundbreaking as the first in-depth analysis to measure circularity within the textiles sector.
“This report highlights the urgent need for solutions that transform the entire textile value chain toward a circular model. Only through concrete, scalable actions can the industry contribute meaningfully to a sustainable future.”
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