Rethinking Profit Without Producing More

Rethinking Profit Without Producing More

The Fashion ReModel is a pioneering initiative redefining revenue generation in the fashion industry by prioritising circular business models such as rental, repair, resale, and remake. Led by the Ellen MacArthur Foundation and supported by the H&M Foundation, the project empowers major brands to explore sustainable solutions, break down barriers to scalability, and shift towards a business model that decouples revenue from new garment production.

By implementing and scaling circular strategies, participating brands commit to increasing the percentage of revenue derived from these models over the next three years. Progress is reported annually to the Ellen MacArthur Foundation, reinforcing accountability and driving measurable change. If widely adopted, this shift could significantly contribute to the decarbonisation of the textile industry, reducing greenhouse gas emissions, moving away from low-utilisation consumption trends, and fostering sustainable growth.

"Revenue must be decoupled from the production of new garments and the depletion of natural resources. Embracing circular business models is essential—there is no credible path to meeting global climate and biodiversity targets without transforming the way business operates," said Christiane Dolva, Head of Research & Demonstration at H&M Foundation.

The project is not just about changing business practices for a select few—it aims to inspire industry-wide transformation. Demonstration projects like The Fashion ReModel serve as catalysts for change, proving that a more sustainable and profitable approach is possible. By offering a replicable roadmap, the initiative lays the groundwork for the widespread adoption of circular business models across the fashion sector.

“For a circular economy in fashion to become the norm, we must accelerate efforts to redesign not only the products of the future but also the services and business models that keep them in use. We welcome business-led action towards a world where clothes are no longer worn once and discarded but passed through many hands and lives," said Jules Lennon, Fashion Lead at the Ellen MacArthur Foundation.

The H&M Foundation’s philanthropic support for The Fashion ReModel underscores its commitment to driving meaningful change. Through collaboration and innovation, the initiative aims to create a just transition for the industry—where sustainability and profitability go hand in hand.

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