H&M Group is embarking on a new transformative venture to revolutionise sustainability in the textile industry. In collaboration with Vargas Holding and TPG Rise Climate, the group has cofounded a venture called Syre for rapid scaling of textile-to-textile polyester recycling.
Securing a groundbreaking off take agreement worth $600 million over seven years, the partnership sets a substantial foundation for H&M Group's long-term demand for recycled polyester. This agreement underscores a pivotal shift away from the prevalent bottle-to-textile recycling method towards a closed-loop alternative, marking a significant milestone in the industry's evolution.
Syre represents a crucial step forward in H&M Group's commitment to integrate circularity into its operations. By spearheading textile-to-textile recycling on a large scale, they aim to inspire other industry players to join the movement towards a sustainable future.
In alignment with its broader sustainability goals, H&M Group has enhanced its recycled material ambition, aiming for 100 per cent recycled or sustainably sourced materials by 2030, with a subgoal of achieving 30 per cent recycled materials by 2025, and now aiming for 50 per cent by 2030.
Recognising the need for collaboration and investment in innovative solutions, H&M Group continues to invest in scalable technologies like Syre. The venture is set to produce recycled polyester yarn of equivalent quality to virgin polyester, yet with a significantly reduced environmental footprint.
Syre's inaugural production plant, slated for North Carolina, United States, aims to be operational by 2024, with plans for global expansion thereafter. With aspirations to establish twelve operational plants within a decade, Syre aims to produce over 3 million metric tons of recycled polyester, marking the onset of a significant shift in the textile industry.
Moreover, H&M Group benefits from its partnership with Vargas Holding, which specialises in building impact companies, and TPG Rise Climate, a renowned investor in climate solutions and circular economy initiatives.
