H&M, Vargas Holding Launch Joint Venture for Polyester Recycling

Source : Environment+Energy Leader｜Author : Sydney Leimbach

(Credit: H&M Group)

H&M and Vargas Holding are launching a new venture for large-scale textile-to-textile recycling of polyester, called Syre. As part of the collaboration, H&M has signed an offtake agreement to source recycled polyester through Syre, representing a $600 million investment over seven years.

At present, H&M mainly sources its recycled polyester from bottle-to-textile recycling, or from recycled rPET plastic bottles. Since this is considered the industry standard for sourcing recycled materials, the venture largely aims to establish a closed-loop system for the fashion sector by expanding textile recycling, the companies said.

Syre reportedly aims to offer a recycled polyester yarn of the same quality as virgin polyester. The first production plant for the venture is currently being built in North Carolina and is expected to be operational later this year. The venture also aims to eventually have twelve plants running across the world, producing over three million tons of recycled polyester.

TPG Rise Climate has also joined as a founding investor in Syre, reportedly bringing experience scaling global climate solutions and investing in companies working to build a circular economy.

Overall, the venture reportedly aims to decouple growth from the use of virgin materials, especially as the fashion industry is known for generating huge amounts of waste each year. According to the UN, the fashion industry is also currently responsible for 10% of global emissions and consumes more energy than the shipping and aviation industries combined.

H&M Responds to Criticism of Fast Fashion Industry

H&M, commonly known as a fast fashion brand, has received criticism for maintaining a wasteful business model. In response, the company has strengthened its targets for using recycled materials, claiming a goal of sourcing either recycled materials or those otherwise sourced in a sustainable way by 2030. In terms of recycled content specifically, the company said its goal is to use 50% recycled materials by 2030.

“The new venture Syre is an important next step on H&M Group’s journey to integrate circularity across our business,” said Daniel Ervér, CEO of H&M Group. “With this solution to rapidly scale textile-to-textile recycling, we want to continue to drive and inspire more industry players to join us in closing the loop and accelerating the shift towards a more sustainable future.”

In 2022, H&M committed to being carbon positive by 2040 and set a target to reduce its emissions by 56% by 2030 from a 2019 baseline. The company also set an internal price on carbon in 2021 and aims to cut its Scope 1 and 2 emissions by 20% by 2025. H&M also recently collaborated with Better Cotton on its new traceability tool which may be used to identify and trace their cotton supply chains.