H&M Transitions to a More Sustainable Business Model
Overview: Fashion and design brands company H&M Group, in collaboration with impact-focused venture investor Vargas, has launched Syre, a new venture focused on mass-producing textile-to-textile recycled materials. The initiative, starting with a $600 million offtake agreement for recycled polyester over seven years, aims to create a closed-loop solution for the clothing industry. Syre, led by CEO Dennis Nobelius, is building its first production plant in North Carolina and plans to expand globally, targeting over 3 million metric tons of recycled polyester production within ten years.
Summary:
H&M Group and impact-focused venture investor Vargas have announced the establishment of Syre, a company dedicated to mass-producing textile-to-textile recycled materials, with a focus on achieving a closed-loop solution for the clothing industry. The venture is commencing with a $600 million offtake agreement for recycled polyester spanning seven years. In tandem, H&M Group has set a new goal to incorporate 50% recycled material in its products by 2030. Syre aims to address the environmental impact of the textile industry by starting with the recycling of Polyester, which contributes up to 40% of the sector's emissions. The company is constructing its initial production facility in North Carolina, set to be operational later in the year, with plans to expand to twelve plants globally over the next decade, targeting a production volume exceeding 3 million metric tons of recycled polyester. CEO Dennis Nobelius, formerly the Chief Operating Officer of electric vehicle producer Polestar, will lead Syre.
Syre's mission is to support the textile industry's decarbonization and waste reduction efforts through hyperscale textile-to-textile recycling, starting with Polyester. The company's first production plant is under construction in North Carolina and is expected to be operational later this year. Syre aims to have twelve plants globally within ten years, producing over 3 million metric tons of recycled polyester. Less than 1% of the global textile fiber market currently comes from recycled textiles, and Syre's circular polyester solution claims to reduce CO2e emissions by up to 85% compared to oil-based virgin polyester. H&M Group, in collaboration with Syre, plans to transition the industry away from virgin polyester and traditional bottle-to-textile recycling towards a closed-loop alternative. As part of its broader sustainability ambitions, H&M Group has set a target for 100% of its materials to be either recycled or sustainably sourced by 2030, with an interim goal of 30% recycled materials by 2025. The launch of Syre represents the fifth venture for Vargas, with TPG Rise Climate, the climate investing strategy of global asset manager TPG, joining as a founding investor.
Source: https://www.esgtoday.com/hm-vargas-launch-new-closed-loop-textile-recycling-venture/
