H&M has pledged a substantial investment of $600 million over the next seven years to bolster Syre, an innovative textile-to-textile recycling endeavor spearheaded by Swedish retailer Vargas Holding and supported by TPG Rise Climate. With a primary objective to revolutionize the textile industry, Syre seeks to lead the charge in decarbonizing and minimizing waste, initially focusing on the large-scale recycling of polyester.
Syre's strategic blueprint involves the establishment of multiple production facilities, starting with a flagship plant in North Carolina, aimed at the production of circular polyester. This ambitious initiative aims to slash polyester emissions by an impressive 85 percent. CEO Dennis Nobelius underscores the imperative shift from a linear to a circular value chain, envisioning a future where every textile fiber is repurposed.
H&M's Strategic Partnership
H&M Group's collaboration with Syre reflects its commitment to driving substantive change within the industry. The partnership is not merely about transitioning away from virgin polyester but also veers from the conventional bottle-to-textile recycling model. The $600 million agreement secures a significant portion of H&M's long-term recycled polyester needs, predominantly sourced from rPET.
According to Textile Exchange, textile waste poses a significant challenge in the industry, contributing to 7-10 percent of global carbon emissions. Particularly, polyester, whether virgin or rPET, stands out as the primary culprit, being the largest emitter and the fastest-growing fiber.
Daniel Ervér, CEO of H&M Group, perceives Syre as a pivotal step towards integrating circularity across the business. This initiative harmonizes seamlessly with H&M's overarching sustainability agenda, which aims to achieve 100 percent recycled or sustainably sourced materials by 2030.
Syre's Expansion and Impact
Syre is poised to inaugurate its North Carolina production facility by 2024, with plans for subsequent global expansion into Europe and Asia. Within a decade, Syre envisions the operation of 12 gigascale plants worldwide, generating over 3 million metric tons of recycled polyester, representing approximately 3 percent of the market share.
Elevating Sustainability Targets
Susanna Campbell, chair of the board and co-founder of Syre, underscores the critical role the initiative will play in aiding industries such as apparel, automotive, and home interior in achieving ambitious sustainability goals. Given that textile waste, particularly polyester contributes significantly to global carbon emissions, Syre's endeavors are poised to address a pressing industry issue.
H&M's investment in Syre reflects its ongoing dedication to sustainable alternatives within the polyester domain. This commitment was evident in their prior support for Kintra Fibers, a biodegradable and plant-based polyester alternative, aligning with their objective to increase the utilization of recycled materials to 30 percent by 2025.