Adidas, H&M, Inditex And BESTSELLER Launch Apparel Recovery Coalition
Adidas, BESTSELLER, H&M Group, Inditex and The Or Foundation, with support from Circle Economy, have launched the Apparel Recovery Coalition (ARC) to explore solutions for the growing environmental and social impacts associated with post-consumer textile exports.
The coalition will examine how producer responsibility systems can support circular pathways, including reuse, upcycling, recycling and responsible waste management in countries receiving large volumes of exported secondhand clothing.
Currently, producer responsibility systems are largely linked to the markets where products are initially sold, while significant volumes of post-consumer textiles cross borders and their environmental and social impacts are experienced elsewhere.
According to the European Environment Agency, around 1.4 million tonnes of used textiles are exported from the European Union each year, primarily to countries in Africa and Asia.
Building a Global Producer Responsibility Model
Over the next two years, ARC plans to develop and test a producer responsibility blueprint that reflects the international movement of post-consumer textiles.
The initiative will bring together brands, producer responsibility organisations (PROs), sorters, recyclers, policymakers and communities affected by secondhand textile flows to identify practical approaches for improving textile recovery and waste management.
ARC was launched at Kantamanto Market in Accra, one of the world’s major hubs for secondhand clothing reuse, repair and upcycling. The Or Foundation estimates that approximately 25 million garments pass through the market every month, supporting the livelihoods of tens of thousands of workers and entrepreneurs.
The market also provides a case study of the challenges associated with large-scale secondhand textile flows, including environmental pressures such as water and soil pollution.
Ghana Demonstration Project
As its first demonstration project, ARC will investigate how producer responsibility contributions could support Ghana’s existing circular textile ecosystem.
The initiative will build on the work of The Or Foundation, which has worked in the ecosystem for the past 15 years. Activities in Accra will include improvements to infrastructure at Kantamanto Market, environmental remediation and training programmes.
ARC also plans to establish at least one additional demonstration project in another country that receives significant volumes of secondhand clothing.
The coalition aims to use the findings from these projects to provide practical insights for brands, policymakers, PROs and other stakeholders seeking to improve post-consumer textile management systems.
Voluntary Industry Funding
ARC operates through an independent foundation registered in the Netherlands, with Circle Economy serving as its secretariat.
From 2026 to 2027, adidas, BESTSELLER, H&M Group and Inditex will make voluntary contributions to support circular economy activities in secondhand markets.
The coalition is intended to expand over time by bringing together PROs and other stakeholders to examine challenges and develop solutions across the post-consumer textile value chain.
ARC has invited additional organisations and stakeholders to join the initiative and contribute to its knowledge base and activities.
