OSLO (Reuters) - H&M, the world's second biggest fashion retailer, said on Wednesday it had formed a joint venture with German recycling group Remondis to collect, sort and sell used and unwanted garments and textiles.
The fast-fashion industry to which H&M belongs is looking for ways to curb its carbon footprint in response to growing demands from investors to take more responsibility for the environment.
The 50-50 owned venture, called Looper Textile, is starting its operations in Europe and aims to extend the life cycle of some 40 million garments in 2023, H&M said in a statement.
Looper hopes to become "a preferred feedstock provider to companies and innovators engaged in textile resale and recycling," it added.
The venture plans to test new collection schemes and implementing automated technologies, including "near-infrared sorting", H&M said.