[pageLogInLogOut]

#Sustainability

H&M Foundation funds pioneering initiative to build the factories of the future

The H&M Foundation is committing SEK 53 million (approx. EUR 5 million) towards Future Forward Factories, a five-year initiative led by Fashion for Good, to address fashion’s most polluting stage: tier 2 textile processing.
© 2025 H&M
© 2025 H&M


Building on the initiative’s launch by anchor funders Laudes Foundation, Apparel Impact Institute and IDH earlier in June this year, H&M Foundation has now stepped in as main funder. Its contribution will enable open-source, regionally tailored blueprints for near net-zero manufacturing at scale. This work combines physical demonstration sites with digital toolkits, giving suppliers, brands and investors a proven roadmap for transformation that is environmentally responsible, socially just and economically viable.

“Future Forward Factories is not about running yet another headline pilot, it is about tackling the reasons adoption so often stalls. Too many good solutions end up in the pilot trap. By co-developing solutions directly with manufacturers and taking on the early risk, philanthropy can help break that cycle and unlock approaches that actually work at scale. What excites me is that this gives suppliers real tools, real examples and a real business case for change, that’s how transformation becomes possible, and replicable,” says Christiane Dolva, Head of Innovation, Research and Demonstration, H&M Foundation.

Manufacturers at the heart of systemic transformation

Tier 2 processes account for some of the industry’s highest emissions, yet suppliers face major barriers: high upfront costs, fragmented standards and uncertain technology pathways. Future Forward Factories removes these obstacles by co-developing solutions directly with manufacturers, validating them in live production and sharing all findings openly. The initiative also embeds equity, ensuring workers, communities and suppliers benefit from improved conditions and environmental outcomes.

The first demonstrator facility, to be built with anchor partner Arvind Limited in Gujarat, India, will show how near net-zero can look in practice. Designed for cotton fabrics, it is expected to cut greenhouse gas emissions by up to 93% and save around 60 litres of water per kilo of fabric.

“As manufacturers, we are often told what needs to change, but rarely engaged as true partners in shaping the solutions. Future Forward Factories change that dynamic. By working directly with us to co-develop and demonstrate near net-zero processes, this initiative proves that transformation is not only possible but practical. At our Gujarat facility, we are showing that significant reductions in emissions and water use can be achieved while maintaining commercial viability; setting a blueprint that other suppliers can follow,” says Punit Lalbhai, Vice Chairman, Arvind Ltd

Measurable results and systemic potential

By combining real-world testing with open access to knowledge, Future Forward Factories aims to catalyse adoption across the industry. Expected outcomes include:

+++ 7 open-source blueprints for near net-zero factories

+++ 7 demonstrator facilities operating with significant emission reductions and water savings

+++ 60+ supplier transformations, adopting full or partial blueprints

+++ 100+ low-impact technology installations in tier 2 facilities

Crucially, the approach is supplier-led and rooted in real-world constraints, increasing relevance and adoption. The project also embeds a just transition framework, ensuring that climate solutions also improve working conditions, protect local communities, and unlock new economic opportunities.

Catalytic role of philanthropy

The H&M Foundation’s donation demonstrates how philanthropic capital can act as a catalyst for scaled industry action. By bridging the critical gap between early validation and wide adoption, philanthropy gives brands, suppliers, and investors the confidence to step in at scale.

“Future Forward Factories is a critical step in driving system-level change across fashion. We are thrilled to have the support of H&M Foundation demonstrating how additional philanthropic capital can unlock scalable solutions. This initiative goes beyond pilots to deliver open-source, replicable blueprints that ensure transformation is both economically viable and socially just, laying the foundation for a more resilient and regenerative future for fashion,” says Katrin Ley, Managing Director, Fashion for Good.

Future Forward Factories will release seven regional blueprints throughout the duration of the project, designed for open adoption by manufacturers worldwide.

The H&M Foundation is calling on other philanthropies and financial actors to join in accelerating this systemic transformation.


More News from H&M Group

#Sustainability

Practical toolkit to drive coordinated climate action launched

An open-access workshop toolkit enables brands, suppliers, policymakers and investors across the textile industry to apply the System Map in their own work, identifying leverage points to halve emissions and enable a just transition.

#Sustainability

Pioneering open-source framework shows how early innovation drives a just and net-zero fashion future

The non-profit H&M Foundation, in collaboration with Accenture, has unveiled From Signals to Systems Change, an insight report calling on the fashion industry to rethink its role in transformation. At its core is the Reimagined System Map, a pioneering open-source framework that visualises how early-stage innovation could drive a just and net-zero textile future.

#Textiles & Apparel / Garment

Global Change Award 2026: Nominations now open

On 1 September, the H&M Foundation launched the nomination round for the Global Change Award 2026. The international innovation challenge is looking for early-stage ideas that can drive the textile and fashion industry towards circularity and climate neutrality.

#Sustainability

Ten bold ideas to decarbonise fashion: Meet the winners of Global Change Award 2025

The H&M Foundation has revealed the ten winners of the Global Change Award 2025 – spotlighting groundbreaking ideas aimed at decarbonising the fashion industry in a just way. Each winner will receive a €200,000 grant and take part in the yearlong GCA Changemaker Programme – one of the few programmes of its kind focused on early-stage fashion innovation. Designed to accelerate the industry’s journey toward net-zero, the programme offers a mix of innovation support, systems thinking and personal growth.

More News on Sustainability

#Sustainability

Execs help steer Cascale’s consumer goods agenda in Athens

The 2026 Cascale Annual Meeting, taking place September 15–17 in Athens, Greece, will convene leaders from across the global consumer goods value chain to tackle one of the industry’s defining questions: how to accelerate meaningful, system-wide transformation. Guiding those conversations as this year’s co-chairs are Sean Cady, vice president, global sustainability, responsibility, trade, and government affairs at VF Corporation, and Dr. Delman Lee, vice chair at TAL Apparel Limited.

#Textiles & Apparel / Garment

SAITEX reports efficiency gains and greater transparency in 2025 Impact Report

Vietnam-based denim manufacturer SAITEX has published its 2025 Impact Report, documenting progress in resource efficiency, chemical management, digital traceability and knowledge sharing across its manufacturing operations in Vietnam and the United States. Rather than focusing on sustainability ambitions, the report presents operational data, manufacturing developments and lessons learned from the past year.

#Raw Materials

Aid by Trade Foundation presents annual report for 2025: Market position and impact of sustainably verified natural fibres strengthened

Despite global supply chain challenges, the Aid by Trade Foundation (AbTF) was able to further expand its international role in promoting sustainably verified natural fibres in 2025. In doing so, the foundation remains true to its fundamental approach of leveraging market forces. Last year, it generated total revenues of EUR 7.8 million; this included EUR 6.7 million collected through the successful marketing of four standards: Cotton made in Africa (CmiA), CmiA Organic, The Good Cashmere Standard (GCS), and the Regenerative Cotton Standard (RCS). AbTF invested the resulting income in projects aiming to protect biodiversity, support women, increase transparency in the textile supply chain, and implement its verification system.

#Sustainability

Textile Exchange reports growth in certifications and industry engagement

Textile Exchange has published its 2025 Annual Report, highlighting continued growth in certified sites, industry participation and the development of its standards and membership structure. According to the report, more than 100,000 sites worldwide are now certified to Textile Exchange standards, more than three times the number recorded in 2020. Preliminary figures also indicate 12% year-on-year growth across the organization's current standards, including the Global Recycled Standard (GRS), Recycled Claim Standard (RCS) and the Responsible Animal Fiber standards.

Latest News

#Raw Materials

Brazil sets new cotton export record and consolidates global leadership

Brazil ended the 2025/26 commercial year with a new record, consolidating its position as the world’s largest cotton exporter. Between August 2025 and July 2026, the country shipped 3,373,941 tonnes of the fiber, 19% more than in the previous cycle, and reached record revenue of US$5.3 billion. The result represents a milestone in Brazil’s expansion in the international market and reinforces the country’s role as a strategic supplier to the global textile industry.

#Raw Materials

Better Cotton Initiative partners with Avalo in AI plant breeding for climate-resilient cotton

The Better Cotton Initiative (BCI) has partnered with agriculture solutions company Avalo, whose platform accelerates the speed at which plants with key resiliency traits may be developed.

#Man-Made Fibers

The LYCRA Company expands its co-creation vision through an immersive Lifestyle District at Intertextile Shanghai.

The LYCRA Company, a global leader in fiber and technology solutions for the apparel industry, is reimagining the trade show experience at Intertextile Shanghai Apparel Fabrics Autumn Edition, which opened today in China. Building on the success of last year's ALL IN concept, the company has expanded its co-creation vision into a 356-square-meter Lifestyle District featuring partners Jingzili New Material, JYT Textile, Lianxingfa Knitting, and Trend Textile. The district is part of a larger 895-square-meter pavilion showcasing a total of 19 co-exhibitors. Together, they demonstrate how innovations in fiber, fabric, and garments can be combined to create compelling solutions for both work and play.

#Natural Fibers

Plastic-free stretch technologies drive new direction for denim innovation

As the denim industry looks for ways to reduce its reliance on synthetic fibres, plastic-free stretch technologies are gaining momentum. Developments based on mechanical fabric construction and natural rubber are demonstrating that comfort and stretch can be achieved without conventional elastane, supporting both recyclability and circular product design.

TOP