H&M Foundation supports Ellen MacArthur’s circular Fashion ReModel with$15 million

The H&M Foundation, the non-profit organization from the Swedish fashion giant, has given 15.4 million dollars to the Fashion ReModel, a demonstration project that seeks to offer viable commercial alternatives to producing new garments by showcasing how revenue can be generated through rental, repair, resale, and remake models.

A philanthropic partner, the H&M Foundation is set to support the Fashion ReModel over the next three years. First revealed at the 2024 Global Fashion Summit in Copenhagen, the project brings leading brands together to find solutions, overcome challenges, and scale circular business models to start to decouple revenue from production.

“For a circular economy for fashion to become the norm, we must accelerate efforts that not only redesign the products of the future but also the services and business models that deliver them and keep them in use,” said Jules Lennon, fashion lead at the Ellen MacArthur Foundation, in a statement.

“We’re excited to have philanthropic support from H&M Foundation as we work to make circular business models the norm. We welcome business-led action towards a world where, instead of being worn once and discarded, clothes can be used many times – threaded through the lives of many people.”

Aiming to scale circular business model solutions, the project could significantly reduce greenhouse gas emissions, help shift the industry away from low garment usage, and drive a new, more sustainable form of growth, contributing to the decarbonization of the textile sectors if widely adopted.

Brands and retailers that are participating in the project commit to growing the share of their revenue from circular business models over the next three years and report their progress to the Ellen MacArthur Foundation each year.

“We must decouple revenue from the production of new garments and the use of natural resources,” said Christiane Dolva, head of innovation, research, and demonstration at H&M Foundation, in a statement. “Embracing circular business models is essential—there’s simply no credible path to meeting global climate and biodiversity targets without transforming the way we do business.”