H&M and Adidas Join Coalition to Address Secondhand Textile Export Impacts
H&M Group, Adidas, Inditex and BESTSELLER have partnered with The Or Foundation to establish the Apparel Recovery Coalition (ARC), an initiative addressing the environmental and social impacts of exported secondhand clothing. Announced on September 29, 2026, the coalition will develop and test a model for producer responsibility that accounts for textiles moving across international borders after their initial use. Circle Economy will serve as its secretariat.
The initiative addresses a mismatch between where clothing is originally sold and where it eventually requires waste management. Producer responsibility systems generally focus on the first market, while countries receiving used apparel can face the costs of handling garments that cannot be resold, repaired, or recycled. ARC will explore how funding and practical support could better reflect these international flows.
Ghana Provides the First Demonstration Project
The coalition was launched at Kantamanto Market in Accra, a major center for secondhand clothing trading, repair and upcycling. The Or Foundation estimates that the market recirculates approximately 25 million garments each month. That figure describes the scale of existing reuse activity, rather than a recovery target established by the new coalition.
Ghana will host ARC’s first demonstration project. Planned activities include improvements to market infrastructure, environmental remediation and training programs, building on The Or Foundation’s existing work. The coalition also intends to establish at least one further demonstration project in another country receiving used clothing exports.
The practical challenge is to support a functioning commercial ecosystem while improving how its residual waste is handled. Traders, repair specialists and upcyclers already extend garment lifetimes. Investment therefore needs to consider both the infrastructure required for these businesses and the treatment options available for clothing that has no viable resale outlet.
This distinction matters for measuring progress. More clothing entering a secondhand market does not automatically mean more successful reuse. Useful indicators would include the proportion resold, the volume repaired or transformed into other products, and the quantity requiring final waste treatment.
Voluntary Funding Will Support the Initial Phase
From 2026 to 2027, the four participating apparel companies will make voluntary contributions to circular economy activities in secondhand markets. ARC operates through an independent foundation registered in the Netherlands. Its initial work will bring together brands, producer responsibility organizations, sorting businesses, recyclers, policymakers and affected communities.
These contributions represent an exploratory funding arrangement. They should not be interpreted as evidence that statutory producer responsibility fees already follow exported garments to their final destination.
For brands, the projects could provide practical evidence about the costs and operational requirements of managing clothing after export. For receiving communities, the value will depend on whether funding reaches locally identified priorities and supports services that remain viable beyond the demonstration period.
The coalition’s stated objectives include testing more inclusive governance, with affected communities helping shape priorities, implementation and learning. This creates an opportunity to assess who participates in decisions as well as what the projects deliver.
European Producer Responsibility Rules Provide Context
The initiative comes as the European Union develops a more extensive framework for textile waste management. In September 2025, the EU adopted a revision of the Waste Framework Directive introducing harmonized extended producer responsibility rules for textile producers and fashion brands. These rules require producer funding to help cover textile waste collection and treatment.
Extended producer responsibility, or EPR, assigns producers financial or organizational responsibility for products after consumers discard them. For textiles, the approach can help finance collection, sorting, and treatment infrastructure.
ARC focuses on a related question: how responsibility should operate when clothing leaves the market covered by the original collection system. Its findings could inform policy discussions, but the coalition itself does not change legal obligations or establish an international EPR regime.
For policymakers and producer responsibility organizations, a useful demonstration would show how cross-border support can be administered, how expenditure is verified and how local operators participate. Clear reporting would also help distinguish expenditure on reuse from expenditure on recycling or disposal.
Circularity Benefits Require Evidence
For sustainability and net-zero strategies, the potential benefit lies in keeping usable products and materials in circulation. However, ARC’s launch does not establish a quantified reduction in greenhouse gas emissions. Its published objectives concern funding, governance and practical learning, rather than a verified carbon savings target.
Any future climate assessment would need to examine whether supported activities displace new production, the energy required for processing and transport, and the treatment routes used for remaining waste. Collection volumes alone would provide an incomplete picture.
The coalition’s broader significance is its attempt to connect producer funding with the places where exported clothing is actually managed. Its effectiveness will depend on transparent financial reporting, meaningful community involvement, and demonstrable improvements in garment reuse and waste treatment. The demonstration projects will provide the evidence needed to assess whether that approach can be extended to other receiving countries.
Sources:
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.