H&M Group has teamed up with partners such as TPG Rise Climate to launch an initiative aimed at transforming textile recycling and promoting a more sustainable future. The joint venture, called Syre, aims to accelerate the recycling of polyester in textiles, helping to create a more eco-friendly textile industry in India and around the world.
The company has recently signed a substantial agreement with H&M Group for seven years, with a total amount of USD 600 million. This agreement covers a significant portion of H&M Group’s demand for recycled polyester, which is currently sourced mainly from recycled PET (rPET) bottles.
H&M Group is launching Syre, a closed-loop alternative to traditional methods of recycling polyester, to bring about a significant change in the industry. The shift is in line with H&M Group’s broader ambition to have all materials sustainably sourced or recycled by 2030. They have set a target of using 30 percent recycled materials by 2025 and 50 percent by 2030.
Recognizing the significance of collaboration and innovation, H&M Group is committed to working with other industry players and investing in advanced technologies like Syre. The venture aims to produce recycled polyester yarn that matches the quality of virgin polyester but with a significantly lower environmental impact. Syre has plans to set up a production plant in North Carolina, USA, which is expected to be operational by 2024, and has plans for global expansion in the coming years.
Vargas Holding, a partner of H&M Group recognized for constructing influential companies that promote a sustainable future, brings valuable expertise to the venture. Moreover, TPG Rise Climate, as a founding investor, provides extensive experience in scaling climate solutions globally, particularly in the circular economy sector.
These collaborations and investments represent a significant step towards a more sustainable and circular textile industry, aligning with India’s vision for environmental conservation and economic growth.
