H&M Foundation Commits SEK 53 Million To Build Net-Zero Factories

The H&M Foundation has pledged SEK 53 million (approx. EUR 5 million) to Future Forward Factories, a five-year initiative led by Fashion for Good to transform the fashion industry’s most polluting stage, tier 2 textile processing.

Launched earlier this year with anchor support from Laudes Foundation, Apparel Impact Institute and IDH, the initiative now gains momentum with H&M Foundation stepping in as main funder. Its investment will support the creation of open-source, regionally tailored blueprints for near net-zero manufacturing at scale. These will combine physical demonstration sites with digital toolkits, giving brands, suppliers and investors practical roadmaps for environmentally responsible, socially just and commercially viable transformation.

“Too many good solutions end up in the pilot trap. By co-developing solutions with manufacturers and taking on the early risk, philanthropy can help break that cycle,” said Christiane Dolva, Head of Innovation, Research and Demonstration at H&M Foundation. “This initiative gives suppliers real tools, real examples and a real business case for change, making transformation both possible and replicable.”

Tier 2 textile processes contribute some of fashion’s highest emissions, yet suppliers often face prohibitive costs, fragmented standards and uncertain technology pathways. Future Forward Factories addresses these barriers by co-developing and validating solutions directly with manufacturers, while ensuring that outcomes also improve worker conditions and community well-being.

The first demonstrator facility, developed with anchor partner Arvind Ltd in Gujarat, India, will focus on cotton fabrics and is projected to reduce greenhouse gas emissions by up to 93% and cut water use by 60 litres per kilo of fabric.

“As manufacturers, we are often told what needs to change, but rarely engaged as true partners,” said Punit Lalbhai, Vice Chairman of Arvind Ltd. “At our Gujarat facility, we are proving that near net-zero processes are achievable while remaining commercially viable, a blueprint for others to follow.”

Deliverables and Impact
Future Forward Factories aims to scale real-world results across the global fashion supply chain, with expected outcomes including:

• 7 open-source blueprints for near net-zero factories
• 7 demonstrator facilities with major emission and water savings
• 60+ supplier transformations adopting the blueprints
• 100+ low-impact technology installations in tier 2 facilities

The initiative also embeds a just transition framework, ensuring climate action goes hand-in-hand with improved working conditions and local community benefits.

The H&M Foundation’s commitment underlines the catalytic role philanthropy can play in bridging the gap between early-stage innovation and wide-scale adoption. The foundation is urging other philanthropies and financial actors to join in accelerating systemic transformation.

“Future Forward Factories goes beyond pilots to deliver replicable blueprints for the entire industry,” said Katrin Ley, Managing Director of Fashion for Good. “With H&M Foundation’s support, we are laying the foundation for a more resilient, regenerative and socially just future for fashion.”

Over the course of the project, seven regional blueprints will be released as open resources, enabling manufacturers worldwide to adopt sustainable solutions at scale.