The Apparel Recovery Coalition (ARC), jointly initiated by The Or Foundation alongside adidas, BESTSELLER, H&M Group, and Inditex, has officially launched, with its first demonstration project landing in Ghana's Kantamanto Market in Accra. Over two years, with support from Circle Economy, the coalition plans to build and test a "producer responsibility" blueprint that reflects the global flows of post-consumer textiles, exploring how producer responsibility systems can support circular pathways in countries that receive large volumes of second-hand clothing exports, including reuse, upcycling, recycling, and responsible waste management.

Key Points

  • ARC is initiated by The Or Foundation together with adidas, BESTSELLER, H&M Group, and Inditex, with Circle Economy as supporting organization.
  • The EU exports approximately 1.4 million tonnes of waste textiles annually, mainly to African and Asian countries (European Environment Agency data).
  • From 2026 to 2027, the four brands will provide voluntary funding for circular economy activities in second-hand markets.

According to the European Environment Agency, the EU exports about 1.4 million tonnes of waste textiles each year, primarily to African and Asian countries. However, current producer responsibility systems are mostly tied only to the primary markets where products are first sold, while large volumes of post-consumer textiles cross borders and their impacts occur elsewhere—precisely the misalignment ARC seeks to address. The coalition points out that producer responsibility systems need to cover the cross-border flows of post-consumer textiles, rather than being confined to the place of sale.

ARC chose to launch at Kantamanto Market in Accra, Ghana, because it is regarded as one of the world's largest hubs for second-hand clothing reuse, repair, and upcycling. The Or Foundation estimates that about 25 million garments circulate through the market each month. ARC's first demonstration project will examine how producer responsibility funding can strengthen Ghana's existing circular textile ecosystem, and The Or Foundation will continue to organize and implement multiple actions in Accra, including improving infrastructure at Kantamanto Market, environmental remediation, and training programs.

After the first project, ARC plans to add at least one more demonstration project in another second-hand clothing recipient country. Through the evidence and practical experience generated by these projects, the coalition hopes to provide references for brands, policymakers, producer responsibility organizations (PROs), and other stakeholders, driving improvement of global post-consumer textile management systems.

On the funding side, from 2026 to 2027, adidas, BESTSELLER, H&M Group, and Inditex will make voluntary contributions specifically to fund circular economy activities in second-hand markets. The coalition's scope of work also includes engaging with brands, producer responsibility organizations, sorters, recyclers, policymakers, and affected communities to jointly participate in blueprint development.

For the second-hand clothing trade industry, this move means major brands are beginning to shift from "sell it and forget it" to "manage it to the end"—extending the boundaries of producer responsibility to the recipient countries of post-consumer textiles. If the blueprint works, the second-hand clothing chains flowing to Africa and Asia may see new funding mechanisms and compliance requirements in the future, and operators in sorting, recycling, and export segments need to pay attention in advance."

Source: adidas and H&M part of group launching Apparel Recovery Coalition · Originally published 2026-09-30