The Fashion ReModel project, unveiled at the Global Fashion Summit in Copenhagen in May 2024, is a collaborative effort to drive brands towards sustainable practices that are not only environmentally friendly but also economically viable.  

Fashion industry circular business models enable companies to generate revenue without producing new clothing. These models, which encompass resale, rental, repairs, and remaking, offer potential for industry growth while contributing to greenhouse gas reductions.  

By 2030, the value of these models is projected to reach $700bn, accounting for 23% of the global fashion market. 

The H&M Foundation, as a philanthropic partner, has contributed around SEK16.5m ($1.5m) to support the initiative aimed at separating revenue generation from production and resource consumption. 

The goal is to mainstream circular business models within the fashion industry, thereby significantly reducing greenhouse gas emissions and aligning industrial growth with environmental sustainability. 

H&M Foundation innovation, research and demonstration head Christiane Dolva said: “We must decouple revenue from the production of new garments and the use of natural resources. Embracing circular business models is essential—there’s simply no credible path to meeting global climate and biodiversity targets without transforming the way we do business." 

Brands participating in the Fashion ReModel expect to increase their revenue from circular practices over a three-year period and report their progress annually to the Ellen MacArthur Foundation.  

This commitment reflects a broader ambition to decouple economic success from new garment production and natural resource consumption. 

The Fashion ReModel aims to demonstrate what's possible and set a new standard for others to follow, gradually raising the bar for sustainable practices across the sector. 

Ellen MacArthur Foundation fashion lead Jules Lennon said: “For a circular economy for fashion to become the norm, we must accelerate efforts that not only redesign the products of the future but also the services and business models that deliver them and keep them in use. We welcome business-led action towards a world where, instead of being worn once and discarded, clothes can be used many times – threaded through the lives of many people.” 

Last month, the H&M Foundation launched a collaborative effort with the Sustainable Environment & Ecological Development Society (SEEDS) to strengthen resilience in vulnerable and disaster-prone Indian communities.