Adidas, Bestseller, H&M Group and Inditex have joined forces with The Or Foundation to launch the Apparel Recovery Coalition (ARC), aimed at exploring how producer responsibility systems can address the environmental and social impacts of second-hand clothing exports. Supported by Circle Economy, the coalition plans to develop a financing blueprint for a circular textile system that takes into account the global flows of post-consumer clothing and their impact on recipient countries. According to the European Environment Agency, the EU exports approximately 1.4 million metric tons of used textiles each year, mainly to African and Asian countries.

Key points

  • Adidas, Bestseller, H&M Group, Inditex and The Or Foundation jointly launch ARC, with Circle Economy providing support and serving as secretariat.
  • The EU exports approximately 1.4 million metric tons of used textiles annually, mainly to Africa and Asia.
  • The first demonstration project will be located at the Kantamanto Market in Accra, Ghana, which handles about 25 million garments per month.

ARC chose the Kantamanto Market in Accra, Ghana—one of the world's largest hubs for second-hand clothing reuse, repair and upcycling—as its launch site. According to estimates by The Or Foundation, the market circulates about 25 million garments per month, supporting the livelihoods of tens of thousands of workers and entrepreneurs. But the scale of the textile trade also brings environmental challenges, including soil and water pollution, highlighting the need to invest in waste management and circular infrastructure.

Current producer responsibility systems mostly focus on the markets where products are initially sold, while large volumes of used textiles flow across borders. ARC plans to develop and test a producer responsibility blueprint over the next two years, working with fashion brands, producer responsibility organizations (PROs), sorters, recyclers, policymakers and affected communities to find viable solutions.

ARC's first demonstration project will examine how producer responsibility payments can strengthen Ghana's existing circular textile ecosystem. The project will build on The Or Foundation's 15 years of work in this field, with planned activities including infrastructure improvements at the Kantamanto Market, environmental remediation and training programs. The coalition also plans to establish a second demonstration project in another country that receives large volumes of second-hand clothing. The results of both projects are expected to inform the development of an international post-consumer textile management system.

ARC will operate through an independent foundation registered in the Netherlands, with Circle Economy serving as its secretariat. Between 2026 and 2027, Adidas, Bestseller, H&M Group and Inditex will make voluntary contributions to fund circular economy activities in the second-hand market.

The coalition says it will gradually expand its membership in the future, bringing in more producer responsibility organizations and stakeholders to jointly explore how to share responsibility for textile waste more effectively across global supply chains. The initiative is also open to participation by other organizations. As the fashion industry faces growing pressure to address the environmental consequences of textile production, consumption and disposal, the coalition's progress is worth watching.

Source: Apparel Recovery Coalition: Adidas, H&M and Inditex in new drive to support responsible second-hand fashion · Originally published on 2026-10-12