- Industry collaboration: Adidas, H&M Group, Inditex and Bestseller have launched the Apparel Recovery Coalition to address global textile waste and strengthen circular fashion systems.
- Two-year initiative: The coalition will test producer responsibility models, fund textile recovery projects and improve waste management in countries receiving secondhand clothing exports.
- Environmental accountability: Ghana’s Kantamanto Market processes approximately 25 million garments monthly, highlighting the environmental and social costs of global textile consumption.
Fashion Giants Join Forces to Address Textile Waste
Accra, Ghana has become the launchpad for a new industry initiative aimed at addressing the environmental consequences of global textile waste.
Adidas, H&M Group, Zara-owner Inditex and Danish fashion company Bestseller have established the Apparel Recovery Coalition (ARC). The initiative brings major fashion producers together with Ghana-based nonprofit The Or Foundation and circular economy organization Circle Economy.
The coalition will examine how fashion brands can assume greater responsibility for clothing after consumers discard it. Its focus includes reuse, recycling, upcycling and improved waste management in countries receiving large volumes of secondhand textiles.
The two-year initiative will develop and test a producer responsibility business model that reflects international textile trade flows.
It also aims to bring brands, recyclers, sorting companies, policymakers and affected communities into discussions about practical waste management solutions.
The initiative arrives as fashion companies face increasing pressure to address the environmental consequences of production, consumption and textile exports.
Ghana’s Kantamanto Market Becomes Testing Ground
The coalition launched at Kantamanto Market in Accra, one of the world’s largest centers for secondhand clothing trade and textile recovery.
According to The Or Foundation, the market recirculates approximately 25 million garments every month.
Thousands of traders, repairers and other workers contribute to an extensive informal circular economy. Their activities extend the useful life of clothing that might otherwise enter waste streams.
However, the market also illustrates the environmental challenges associated with international secondhand textile exports.
Clothing that cannot be resold or recovered can contribute to waste accumulation, water contamination and soil pollution. Local communities and waste management systems bear much of the resulting burden.
ARC intends to build on The Or Foundation’s 15 years of work supporting Ghana’s circular textile ecosystem.
The coalition states that it will “test more inclusive approaches to governance, design, and implementation” by incorporating community perspectives into its activities.
Its first demonstration project will operate in Accra, supporting infrastructure improvements, environmental remediation and training initiatives.
A second demonstration project is planned for another country receiving substantial volumes of secondhand clothing.
Fashion Brands Commit Funding to Circular Recovery
Adidas, H&M Group, Inditex and Bestseller will provide voluntary financial contributions to support the coalition’s demonstration projects.
The companies have not disclosed the total funding commitment.
The initiative will examine how extended producer responsibility frameworks could support textile recovery across international supply chains.
Such frameworks require producers to assume greater financial or operational responsibility for products after their useful life ends.
For fashion companies, this could eventually influence product design, waste management costs and investment in recycling infrastructure.
The coalition expects its findings to inform future industry practices and regulatory approaches.
“The coalition hopes the evidence and practical learnings generated through these demonstration projects will help inform brands, policymakers, producer responsibility organizations (PROs) and other stakeholders working to strengthen post-consumer textile management systems worldwide,” the release said.
Rising Production Volumes Intensify Environmental Scrutiny
The initiative comes amid growing scrutiny of the fashion industry’s resource consumption and waste generation.
Inditex reported using 705,554 metric tons of raw materials in its products, compared with 678,596 metric tons in 2024.
That represents an increase of approximately 4%, illustrating the scale of material demand across its operations.
Meanwhile, H&M Group reported producing 364,093 metric tons of products in 2025, equivalent to approximately 36 Eiffel Towers.
These figures highlight the challenge facing fashion companies attempting to reconcile commercial growth with circular economy commitments.
Recovery and recycling initiatives can reduce waste impacts, but their effectiveness also depends on product durability, material choices and production volumes.
For investors, the coalition introduces another area for evaluating corporate sustainability performance: whether voluntary industry commitments produce measurable improvements in textile recovery and environmental management.
Producer Responsibility Could Reshape Global Textile Governance
The coalition plans to expand participation among additional companies and stakeholders as its work progresses.
Its findings could help policymakers assess how producer responsibility systems should account for textiles exported across national borders.
This remains a significant governance challenge. Products often reach the end of their useful lives far from the countries where brands originally sold them.
For multinational fashion companies, stronger accountability could create additional compliance obligations and financing requirements.
For importing countries, effective producer responsibility mechanisms could provide resources for infrastructure, environmental protection and local circular businesses.
The coalition’s longer-term relevance will depend on whether its demonstration projects deliver practical, scalable financing and recovery models.
As governments and investors increase scrutiny of fashion’s environmental footprint, Ghana’s textile recovery economy could help shape how global brands manage responsibility beyond the point of sale.
Source: https://esgnews.com/