Digital Edition: Primark and H&M Group among retailers pressing governments on circular economy policies

Fashion industry giants, including Primark, H&M, and Zalando, have coalesced behind a critical statement from the Ellen MacArthur Foundation, urging governments globally to implement robust policies that foster comprehensive resale and repair infrastructures. This unified call, issued on May 21, 2026, arrives amidst new research from the prominent non-profit organization, which starkly illustrates that prevailing economic frameworks continue to incentivise the consumption of new resources over the adoption of circular practices within the retail sector. The move signifies a growing consensus among major retailers that systemic governmental intervention is indispensable to accelerate the transition towards a sustainable, circular economy in fashion, moving beyond individual corporate initiatives to address deeply entrenched structural challenges.

The Imperative of a Circular Economy in Fashion

The global fashion industry, valued at over $2.5 trillion, operates predominantly on a linear ‘take-make-dispose’ model, a system that extracts virgin resources, manufactures products, and disposes of them, often after a single-use cycle. This model has profound environmental and social consequences, making the industry one of the most polluting globally. Estimates suggest that the fashion sector is responsible for up to 10% of global carbon emissions, more than international flights and maritime shipping combined. Furthermore, it consumes vast quantities of water, with approximately 79 billion cubic meters used annually, enough to fill 32 million Olympic-sized swimming pools. The production of a single cotton t-shirt, for instance, can require up to 2,700 litres of water, equivalent to what an average person drinks in 2.5 years.

Beyond resource depletion, the industry contributes significantly to pollution through chemical dyeing processes, microplastic shedding from synthetic fabrics, and the accumulation of textile waste in landfills. A staggering 87% of all textile waste, equating to a truckload of textiles every second, is either landfilled or incinerated. This unsustainable trajectory necessitates a fundamental shift towards a circular economy, where products, components, and materials are kept at their highest utility and value at all times. In a circular model, waste is designed out, materials are reused and recycled, and natural systems are regenerated. For fashion, this translates to designing durable, repairable, and recyclable garments, establishing efficient collection and sorting systems, and fostering robust markets for resale, rental, and repair.

Ellen MacArthur Foundation’s Research and Policy Recommendations

The Ellen MacArthur Foundation (EMF) has been a leading global voice in advocating for a circular economy across various industries, with a particular focus on textiles. Their latest research underscores a critical disconnect: while many fashion brands have made significant strides in adopting circular principles within their operations – from using recycled materials to launching take-back schemes – the broader economic and regulatory landscape continues to inadvertently favour linear models. The report highlights that the cost of producing new garments, often driven by cheap labour and raw materials, remains lower than the costs associated with collecting, sorting, repairing, and reintroducing used items into the market at scale. This economic reality creates a powerful disincentive for businesses to fully commit to circularity without external policy support.

The statement signed by retailers, echoing EMF’s findings, specifically calls upon governments to implement a suite of policy interventions. These include:

1. Support for Resale and Repair Infrastructures: This involves financial incentives, grants, and investment in the physical and digital infrastructure needed to scale up collection points, repair workshops, and resale platforms. It also encompasses vocational training for repair technicians and standardization of repair processes.
2. Extended Producer Responsibility (EPR) Schemes: Mandating that producers bear a significant degree of responsibility for the post-consumer phase of their products, including their collection, sorting, and recycling. This shifts the financial burden from municipalities to manufacturers, incentivising eco-design and circular business models.
3. Green Public Procurement: Governments leveraging their purchasing power to favour products and services that adhere to circular economy principles, thereby creating market demand for sustainable goods.
4. Tax Incentives and Disincentives: Implementing tax breaks for businesses investing in circular practices, such as repair services or the use of recycled content, and potentially imposing higher taxes on virgin material extraction or waste generation.
5. Standardization and Labelling: Developing common standards for material composition, durability, and recyclability, coupled with clear labelling requirements, to facilitate efficient recycling and informed consumer choices.
6. Investment in Innovation: Funding research and development into novel recycling technologies, sustainable materials, and circular business models.

The EMF posits that these policy levers are crucial to level the playing field, making circular solutions economically viable and scalable, thus enabling the fashion industry to transition from a niche sustainable segment to a mainstream operational paradigm.

Retailers’ Commitment and Current Circularity Initiatives

The decision by major retailers like Primark, H&M, and Zalando to co-sign the EMF statement is highly significant. These companies represent diverse segments of the fashion market, from value-oriented fast fashion to online retail platforms, and their collective voice carries substantial weight.

H&M Group, a long-standing proponent of sustainability, has been at the forefront of circular economy discussions for over a decade. The Swedish retail giant has set ambitious targets, aiming for all its products to be designed for circularity by 2030 and to become climate positive by 2040. H&M’s initiatives include a global garment collection program, launched in 2013, which has collected hundreds of thousands of tons of unwanted textiles for reuse and recycling. They have invested heavily in innovative recycling technologies, notably through their collaboration with Renewcell, which converts textile waste into new fibres. H&M has also experimented with rental services and repair offerings in select markets, signalling a strategic shift towards extending product lifecycles and exploring new revenue models beyond linear sales. Their participation in the EMF statement underscores their belief that even with extensive internal efforts, systemic change requires robust policy support to truly unlock the potential of a circular economy.

Primark, traditionally associated with high-volume, low-cost fast fashion, has increasingly invested in sustainability initiatives to mitigate its environmental impact and enhance brand reputation. Under its "Primark Cares" strategy, the company has pledged to make all its clothing from recycled or more sustainably sourced materials by 2030, and to make clothing more durable and recyclable. Primark has launched repair workshops in various stores, offering free lessons to customers on mending clothes, and has been piloting a take-back scheme for unwanted textiles. Their endorsement of the EMF statement reflects an acknowledgement that while individual corporate responsibility is vital, the scale of the challenge demands a concerted effort involving legislative backing to create the necessary infrastructure for circularity at a mass-market level. For Primark, embracing circularity is not just about environmental stewardship but also about future-proofing its business model against evolving consumer expectations and impending regulations.

Zalando, Europe’s leading online fashion platform, plays a crucial role in shaping consumer behaviour and logistics within the digital retail space. Recognizing its influence, Zalando has actively pursued circular economy strategies, particularly through its "pre-owned" category, which allows customers to buy and sell second-hand clothing directly on its platform. The company has also been working on integrating circular design principles into its private labels and improving the sustainability of its packaging and logistics operations. By supporting the EMF statement, Zalando signals its readiness to leverage its digital infrastructure and customer reach to scale circular solutions, provided there is a supportive regulatory framework that facilitates the efficient flow of materials and products through repair, reuse, and recycling channels. Their perspective emphasizes the need for digital solutions and standardized data to enable seamless circular operations.

The Fragmented Policy Landscape and the Call for Harmonization

Globally, the policy landscape for a circular economy in textiles remains fragmented and inconsistent. While some regions and nations have begun to implement measures, a comprehensive and harmonized approach is largely absent.

In the European Union, the European Green Deal and its Circular Economy Action Plan have laid the groundwork for significant policy shifts. The EU Strategy for Sustainable and Circular Textiles, launched in 2022, aims to make textiles more durable, repairable, reusable, and recyclable, tackling fast fashion and promoting new business models. Key proposals include Ecodesign requirements for textiles, digital product passports, and stricter rules on textile waste management, including mandatory separate collection by 2025. However, the implementation and enforcement of these ambitious goals require robust national-level legislation and significant investment.

Individual member states have also taken steps. France, for example, has been a pioneer with its Anti-Waste Law for a Circular Economy (AGEC Law), which includes provisions for EPR schemes for textiles and mandates that producers contribute to the cost of collecting and treating textile waste. It also promotes repairability through a repair index. Other countries, such as the Netherlands and the UK, have conducted consultations on textile waste and circularity, exploring options like EPR and encouraging industry initiatives.

Despite these efforts, the pace of change is often slow, and the lack of a globally coordinated approach creates complexities for multinational retailers. Different regulations across jurisdictions can hinder the development of scalable circular systems. Retailers and the EMF argue that governments have been hesitant due to concerns about economic implications, the complexity of global supply chains, and potential lobbying from traditional industries. However, the potential economic benefits of a circular economy, including job creation in new sectors like repair, sorting, and advanced recycling, as well as enhanced resource security and innovation, are compelling arguments for accelerated action.

Chronology of Circularity in Fashion

The journey towards a circular fashion industry has evolved significantly over the past two decades:

• Early 2000s: Initial focus on corporate social responsibility (CSR), ethical sourcing, and improving working conditions in supply chains. Sustainability was largely seen as a compliance issue.
• Mid-2000s: Growing awareness of environmental impacts beyond social issues, particularly regarding water usage and chemical pollution. Brands begin to explore organic cotton and eco-friendly dyes.
• 2010: The Ellen MacArthur Foundation is established, bringing the concept of the circular economy into mainstream discourse. Its influential reports begin to shape industry thinking.
• Mid-2010s: Fast fashion peaks, but so does the backlash against its environmental footprint. Brands like H&M launch initial garment collection programs. The term "circular fashion" gains traction.
• 2015: The EU adopts its first Circular Economy Action Plan, signalling political will for systemic change.
• Late 2010s: Consumer awareness of fashion’s impact grows, driven by documentaries and social media. Brands start experimenting with resale (e.g., Patagonia Worn Wear), rental, and repair services on a pilot basis. Investment in textile recycling technology increases.
• Early 2020s: The COVID-19 pandemic highlights supply chain vulnerabilities and the need for more resilient, local, and circular systems. The EU launches its ambitious Strategy for Sustainable and Circular Textiles. More brands set explicit circularity targets and integrate pre-owned categories into their offerings.
• May 2026: The current statement from leading retailers and the Ellen MacArthur Foundation marks a critical juncture, elevating the call for governmental intervention from a suggestion to an urgent, collective demand. It underscores the recognition that industry efforts alone, while commendable, are insufficient to overcome systemic barriers without supportive policy frameworks.

Challenges and Opportunities Ahead

The transition to a fully circular fashion economy is fraught with challenges, yet it also presents immense opportunities.

Challenges include:

• Technological Hurdles: Recycling blended fabrics (e.g., cotton-polyester blends) remains complex and often energy-intensive. Scaling up chemical recycling processes for synthetic fibres and developing robust fibre-to-fibre recycling technologies are critical.
• Logistical Complexity: Establishing efficient, cost-effective systems for collecting, sorting, and transporting millions of tons of used textiles globally requires significant investment in infrastructure, reverse logistics, and digital traceability solutions.
• Consumer Behaviour: Shifting consumer mindsets from a culture of disposable fashion to one that values durability, repair, and second-hand items requires education, convenience, and potentially, economic incentives.
• Business Model Transformation: Retailers must navigate the complexities of shifting from traditional volume-based sales to new revenue streams like rental, subscription, and repair services, which require different operational models and pricing strategies.
• Financial Investment: The upfront capital required to build new circular infrastructure, invest in R&D, and retool existing supply chains is substantial, necessitating both private and public funding.

Opportunities abound:

• Innovation: The drive for circularity is spurring innovation in material science (e.g., bio-based fibres, closed-loop synthetics), recycling technologies, and digital solutions for traceability and supply chain management.
• New Revenue Streams: Resale, rental, and repair markets are growing rapidly, offering brands new ways to engage with customers and generate revenue while extending product lifecycles.
• Enhanced Brand Value: Brands committed to circularity can build stronger consumer trust, enhance their reputation, and appeal to environmentally conscious demographics, leading to increased loyalty and market share.
• Resource Security: Reducing reliance on virgin raw materials through recycling and reuse enhances resource security and mitigates risks associated with volatile commodity prices and geopolitical disruptions.
• Job Creation: The circular economy is expected to create new jobs in areas such as sorting, repair, remanufacturing, and logistics, fostering a more diversified and resilient workforce.

Implications for the Future of Fashion

The unified call from Primark, H&M, Zalando, and the Ellen MacArthur Foundation marks a pivotal moment, signalling that the conversation around sustainable fashion has matured from voluntary corporate pledges to an urgent demand for legislative action. Should governments respond decisively, the implications for the future of fashion will be profound.

The industry could witness a fundamental restructuring, moving away from the relentless churn of fast fashion towards a model where product longevity, material efficiency, and resource stewardship are paramount. This would necessitate closer collaboration across the entire value chain, from designers and manufacturers to consumers and waste management companies. Transparency and traceability will become standard, with digital product passports potentially providing detailed information about a garment’s origin, materials, and end-of-life options.

Ultimately, the success of this transition hinges on the political will to implement comprehensive, harmonized, and enforceable policies. The retailers’ statement is not merely an appeal for support; it is a clear articulation that without government-led systemic change, the fashion industry’s ambitious circularity goals will remain largely aspirational, unable to overcome the powerful inertia of the linear economy. The fashion world now awaits a definitive response from policymakers, whose decisions will shape not only the future of apparel but also the broader trajectory of global sustainability efforts.