Inside H&M's Game-Changing Strategic Sourcing Deal
In the world of fashion, sustainability has increasingly become a focal point for procurement executives concerned with finding alternative materials to conventional virgin fibres.
The recent strategic sourcing collaboration between H&M Group and Swedish sustain-tech company Circulose aims to increase the presence of textile-to-textile recycled fibres in clothing, transforming supply chain strategies.
“We believe in the power of great fashion and design, affordability and sustainability,” says Tina Felixon, Chief Product Officer at H&M.
“Our goal is to inspire people around the world to express their personal style through our collections. Great design and craftsmanship, quick decision making, a flexible supply chain and a very tight teamwork all the way out to our suppliers are key to deliver on our business idea and purpose.”
Evolving the procurement landscape
Since the inception of their partnership in 2020, H&M Group has positioned itself as an early facilitator in the adoption of CIRCULOSE, a cutting-edge recycled textile product.
In advancing their commitment, H&M has become one of Circulose's first official Scaling Partners, a move that promises to substitute a substantial portion of man-made cellulosic fibres (MMCF) in their collections with CIRCULOSE's recycled materials.
The integration of sustainable materials like CIRCULOSE into the supply chain is perennially beneficial for executive procurement strategies.
“H&M Group has been a driving force in advancing sustainable and circular solutions in fashion, and a long-time supporter and early adopter of CIRCULOSE – dating back to the Renewcell days," remarks Jonatan Janmark, CEO of Circulose.
“We’re proud and grateful to now formalise this new partnership to accelerate CIRCULOSE adoption at scale. Their commitment plays a critical role in helping us reaching the volumes needed to restart our factory.”
Cecilia Strömblad Brännsten, Head of Resource Use & Circularity at H&M Group, adds, “We were pioneers back in 2020 when we first brought fashion made from CIRCULOSE to our customers. We’re excited to deepen this partnership.
"Investing in next-generation materials is essential to achieving our goal: ensuring that 100% of our materials are recycled or sustainably sourced by 2030. Scaling access to these solutions is key to accelerating the shift towards a circular economy for fashion.”
Understanding CIRCULOSE's role
CIRCULOSE offers a patented process that recycles cellulosic textile waste into a new, sustainable fibre. By leveraging 100% textile waste instead of virgin resources, it provides procurement teams with dissolving pulp transformed into man-made fibres such as viscose and lyocell.
This capability facilitates the comprehensive production chain from yarn to fabric to garment, ensuring high-quality outcomes without compromising environmental integrity.
Highlighted by its inclusion in TIME Magazine’s list of 100 Best Inventions of 2020, Circulose has been recognised for its innovation since 2012, a testament to its founders from Stockholm’s KTH Royal Institute of Technology. The company has also earned acclaim from Fast Company as one of the World’s Most Innovative Companies in 2021 and cinched the 2023 World Changing Ideas Awards.
Looking ahead in sustainable sourcing
The collaboration between H&M Group and Circulose underscores a broader shift in procurement towards sustainable and circular models, emphasising the need for agile adaptation in sourcing practices.
As more fashion companies look to integrate recycled materials into their supply chains, procurement officers must evaluate the potential of such collaborations to meet sustainability targets.
The partnership not only highlights a commitment to sustainable material sourcing but also signifies the transformational journey of procurement in the fashion industry.
As innovations in recycling processes like CIRCULOSE gain traction, C-Level executives must prepare to drive the next generation of sustainable procurement strategies.
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