How we work
At H&M Foundation, we believe that philanthropy can ignite bold change. As an independent, non-commercial entity, we take risks, move fast, and focus on long-term impact – funding initiatives that have the potential to transform the textile industry.
Our mission is clear: to support the industry in halving its greenhouse gas emissions every decade while ensuring a just transition for both people and the planet. But achieving this requires more than isolated solutions – it demands systems change across the entire textile value chain.
Transforming the textile value chain
To tackle the industry’s biggest environmental and social challenges, we must focus where impact is greatest. The textile value chain – from raw materials to post-consumer use – is responsible for vast emissions, resource use, and social inequalities.
- Almost 70% of total emissions stem from raw material production, fibre processing, and textile manufacturing. This means the biggest gains come from rethinking how materials are sourced, produced, and processed.
- Wet processing alone – which includes dyeing and finishing – accounts for almost half of emissions in manufacturing, highlighting the urgent need for cleaner alternatives.
- End-of-life waste remains a critical challenge, with 92 million tonnes of textiles discarded annually, yet only a fraction is recycled into new fibres.
We work across the entire value chain – targeting high-emission areas while ensuring that decarbonisation efforts don’t come at the expense of workers, communities, or ecosystems.
Beyond carbon tunnel vision
Reducing emissions is critical, but focusing only on CO2 reduction can create blind spots. A net-zero textile industry will not be sustainable if it exploits workers, accelerates biodiversity loss, or shifts problems elsewhere.
That’s why we take a holistic approach, ensuring that environmental solutions also strengthen social equity, economic security, and planetary health. This perspective is guided by frameworks like the Earth4All initiative, which recognises that decarbonisation and social progress must go hand in hand.
A systems-change approach
Social and environmental challenges are interconnected, and tackling them requires collaboration across sectors. That’s why we use a structured approach to systems change, ensuring that solutions are scalable, cross-disciplinary, and address root causes.
We have pioneered the Collective Impact Method, a proven framework that brings together industry leaders, researchers, civil society, and policymakers to co-create solutions. This model has been successfully implemented in large-scale programmes like Saamuhika Shakti in India and Oporajita in Bangladesh, where multiple stakeholders work together toward shared goals.
The power of philanthropy in driving change
As a philanthropic organisation, we have the opportunity to fund early-stage ideas, challenge traditional structures, and take risks where others cannot. Unlike commercial players, we don’t seek financial returns – our only goal is impact.
We are guided by our DNA, which defines our unique role in driving transformation:
- Putting impact first – Prioritising solutions with the potential for large-scale change.
- Promoting systems change – Addressing challenges at their root, rather than treating symptoms.
- Pioneering solutions – Supporting the bold ideas that can reshape the industry.
To ensure our initiatives drive meaningful change, we apply a set of guiding principles. Every project we support is assessed for high-impact potential, scalability, and systems-change alignment, while also considering social and environmental wellbeing. Our engagement is designed to unlock potential for other actors, amplify impact, and inspire wider industry adoption.
This ability to act independently, move fast, and think long-term is what allows us to make a meaningful difference. Because the solutions exist – it’s about scaling them fast enough to make real impact.
About Collective Impact Method
Collective Impact is a structured approach to systems change that brings together diverse stakeholders to solve complex challenges. This method is built on five key conditions, with equity practices embedded throughout to ensure fair and inclusive transformation.
- Define a common agenda – Align on the problem and create a shared vision for change.
- Establish shared measurement – Track progress consistently to drive continuous improvement.
- Foster mutually reinforcing activities – Coordinate efforts so each stakeholder contributes to a larger, aligned outcome.
- Encourage continuous communication – Maintain transparency and engagement across all partners.
- Have a strong backbone – A dedicated team to drive coordination and sustain momentum.
By applying this systems change approach, we help reshape how the textile industry operates – ensuring solutions address both environmental and social challenges at their core.
Join us – be part of the change
At the H&M Foundation, we are committed to accelerating the textile industry’s journey toward halving emissions and achieving net-zero by 2050, while ensuring a just transition for all. Together, we can make a lasting impact on both people and the planet. Do you want to be part of this journey? Become our partner!