Fashion must rethink its system_ says H&M Foundation report
H&M Foundation urges fashion industry to rethink transformation in new systems-change report
The non-profit H&M Foundation_ in partnership with Accenture_ has released From Signals to Systems Change_ a report urging the fashion industry to reimagine how it approaches sustainability and transformation. At its core is the Reimagined System Map_ an open-source framework showing how early-stage innovation can drive the textile sector toward a just and net-zero future.
Small ideas_ big impact
Grounded in insights from innovation_ philanthropy and systems thinking_ the report explores how small ideas can trigger large-scale impact. It maps key forces reshaping fashion_ from artificial intelligence and geopolitics to biodiversity loss and resource scarcity_ positioning the industry within a wider web of economic and environmental interdependence.
“If we don_t see the system_ we can_t change it_ and that_s exactly what this work helps us do_” says Annie Lindmark_ Programme Director_ Innovation at the H&M Foundation. “By looking at the fashion system as it is today and reimagining what it could become_ we visualised how scaling early-stage innovations might ripple across the industry. Our hope is that different stakeholders will explore the System Map and ask themselves where in the system they have the most power to influence change_ and in doing so_ ignite new sparks of transformation.”
For a sector responsible for between 2 and 8 per cent of global carbon emissions_ the message is timely. The Global Fashion Agenda estimates the industry must halve emissions by 2030 to align with the Paris Agreement. Yet while brands have made progress in recycling and transparency_ many promising ideas remain underfunded or untested.
Accenture_s analysis uses its 360-degree value model to assess the impact of four Global Change Award 2025 winners_ Loom_ PulpaTronics_ Renasens and The Revival Circularity Lab. By 2050_ their innovations could save 570_000 tonnes of CO2 a year_ conserve 160 billion litres of water and create 30_000 design-related jobs_ while reducing 3_000 tonnes of e-waste annually.
Since its founding_ the H&M Foundation has positioned philanthropy as “risk capital_” supporting ideas too early or uncertain for commercial funding. Its Global Change Award_ launched in 2015_ has provided 10 million euros to 56 teams across 23 countries_ backing solutions in circular textiles and bio-based materials.
Collective accountability
The new report calls for collective accountability and shared visibility across the system_ from raw materials to end-of-life recovery. It challenges every actor — brands_ suppliers_ investors and citizens_ to consider where they can exert the most influence and what partnerships or decisions could accelerate meaningful change.
By situating innovation within a systems framework_ From Signals to Systems Change reframes fashion_s sustainability challenge. Rather than viewing design or technology as isolated fixes_ it positions them as interconnected levers in a wider social and ecological network_ one that must evolve together if the industry is to meet both its climate and equity goals.