Adidas, Bestseller, H&M Group and Inditex have joined forces with The Or Foundation to launch the Apparel Recovery Coalition (ARC), an initiative exploring how producer responsibility systems can help tackle the environmental and social impacts of second-hand clothing exports.
Supported by Circle Economy, the coalition aims to develop a blueprint for financing circular textile systems that reflects the global movement of post-consumer clothing, including the impacts felt in countries receiving large volumes of used apparel.
Currently, producer responsibility systems are largely focused on the markets where products are first sold, despite significant quantities of used textiles crossing international borders. According to the European Environment Agency, around 1.4 million metric tonnes of used textiles are exported from the EU annually, mainly to countries in Africa and Asia.
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Over the next two years, ARC will develop and test a producer responsibility blueprint, working with fashion brands, producer responsibility organisations (PROs), sorters, recyclers, policymakers and affected communities to identify practical solutions.
The coalition was launched at Kantamanto Market in Accra, Ghana, one of the world’s largest hubs for second-hand fashion reuse, repair and upcycling. The Or Foundation estimates the market recirculates 25 million garments each month, supporting the livelihoods of tens of thousands of workers and entrepreneurs.
However, the scale of textile trading also brings environmental challenges, including water and soil pollution, highlighting the need for investment in waste management and circular infrastructure.
ARC’s first demonstration project will examine how producer responsibility contributions could strengthen Ghana’s existing circular textile ecosystem. The initiative will build on The Or Foundation’s 15 years of work in the sector, with planned activities including infrastructure improvements at Kantamanto Market, environmental remediation and training programmes.
The coalition also intends to establish a second demonstration project in another country receiving significant volumes of second-hand fashion. Findings from both projects are expected to inform the development of post-consumer textile management systems internationally.
ARC will operate through an independent foundation registered in the Netherlands, with Circle Economy acting as its secretariat. From 2026 to 2027, Adidas, Bestseller, H&M Group and Inditex will make voluntary contributions to fund circular economy activities in second-hand markets.
The coalition said it intends to expand its membership over time, bringing together additional PROs and stakeholders to explore how responsibility for textile waste can be shared more effectively across global supply chains.
The initiative is also inviting other organisations to participate, as the fashion industry faces growing pressure to address the environmental consequences of textile production, consumption and disposal.
[image credit: Green Retail World]
