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Three shifts shaping sustainable fashion in 2026

We asked Anna Gedda, CEO of the H&M Foundation, to reflect on what she predicts for the textile industry in 2026. Based on close collaboration across the value chain, Anna shares three shifts that stand out, and why embedding sustainability into everyday decision-making matters more than ever.


WEBWIRE
Anna Gedda, CEO at the H&M Foundation
Anna Gedda, CEO at the H&M Foundation

From working closely with partners across the textile ecosystem, I see both momentum and tension in the system. Progress is happening, but not evenly, and often under pressure. Looking ahead to 2026, I think that three shifts stand out as particularly defining.

Regulation is raising the bar

First, there is a gradual levelling of the playing field on production and consumption standards. New and upcoming regulations in the EU, from both due-diligence requirements to product-level transparency, alongside legislative developments in parts of the US and other regions, pushes sustainability from being a voluntary commitment into a core business responsibility. This is starting to show up in how brands, manufacturers and suppliers integrate sustainability into their business plans and signals a growing willingness to increase accountability for both large and small actors. That said, ambition is now outpacing action, and at the current speed, the industry is struggling to translate regulatory requirements into operational reality, which may slower the pace of impact. Looking ahead, the key to success will be readiness rather than awareness. As requirements tighten and enforcement increases, companies that have invested in traceability, supplier engagement and internal governance will be better equipped to adapt.

Decarbonisation by following
the tons

Second, attention is shifting even more towards where the majority of industry’s climate impact actually sits: in the supply chains. While consumer-facing initiatives remain important, there is growing recognition that climate progress will depend on reducing emissions in energy-intensive production processes such as material manufacturing, dyeing and finishing.

With this part of the supply chain being responsible for approx. 2/3 of emissions decarbonising these stages is no longer something for “later” if the industry is to meet its climate targets. The solutions are not easy, but they start to exist on a scale with increasing access to renewable energy, investment in new technologies, and a willingness to share responsibility across different parts of the value chain.

Inclusion is moving from the margins to the centre

Third, I’m particularly encouraged by signs of greater inclusion across the industry, especially in relation to the green transition. This shows up not only in representation, but also in questions of who has a voice, agency and decision-making power, especially when it comes to global supply chains. Voices from local communities and indigenous people, for example, are slowly gaining more space in global conversations, which is an essential perspective if the transition is to be both credible and fair.

A volatile global context is testing long-term commitments

At the same time, the challenges are very real. We started this new year with increased geopolitical tensions, tariff wars and a high level of uncertainty, which makes long-term planning and decisiveness harder for everyone. Although most of us are longing for peace and stability and firm commitments to climate action and a just transition we are currently finding ourselves in a world with much of opposite.

My hope is therefore that we continue to take decisions with principles and a long-term view in mind. Sustainability can’t be something we return to when conditions improve, it needs to be embedded into everyday decision-making, in both the short and the long term. That’s where I continue to focus my own efforts: supporting a textile industry that moves decisively towards decarbonisation, while deepening its commitment to inclusion and social equity at the same time.


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