Funding What Business Can’t: Inclusive Circularity through Philanthropy with Fernanda Drumond from H&M Foundation cover art

Funding What Business Can’t: Inclusive Circularity through Philanthropy with Fernanda Drumond from H&M Foundation

Funding What Business Can’t: Inclusive Circularity through Philanthropy with Fernanda Drumond from H&M Foundation

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“Philanthropy isn’t just about giving — it’s about igniting. We step in where no one else can, absorbing risk, catalyzing innovation, and building ecosystems where businesses alone can’t go.”Fernanda Drumond, H&M Foundation


Fernanda Drummond brings a refreshing perspective to the textile industry's sustainability challenges as Head of Collective Action at the H&M Foundation. In this illuminating conversation, she dismantles common misconceptions about philanthropy's role in creating systems change and reveals how the foundation operates as an orchestrator—not just a funder—of transformative collaborations.

Diving deep into the foundation's unique approach, Fernanda explains how they identify critical gaps where philanthropic funds can spark innovation and collective action. Unlike project-based interventions that create limited impact, the H&M Foundation implements comprehensive programs that simultaneously address multiple barriers.

The shocking revelation that the textile industry is only 0.3% circular serves as a sobering backdrop to the conversation. Fernanda emphasizes that no single solution—whether circular business models, recycled materials, or sustainable fibers—will move the needle significantly when implemented alone. Only through orchestrated, multi-stakeholder approaches can we hope to transform this deeply linear system.

Perhaps most compelling is Fernanda's expanded definition of "just transition" beyond merely reskilling workers. Through programs like Operadita in Bangladesh, the foundation recognizes that garment workers facing automation need more than technical training—they need childcare, family support, safe transportation, and shifts in community perception to truly advance. This human-centered approach acknowledges workers as complete individuals with dreams, needs, and aspirations beyond their job functions.

For entrepreneurs and businesses developing circular solutions, Fernanda offers invaluable advice: recognize and include the millions already working in circular economies through informal sectors. These waste pickers, sorters, and collectors possess generations of knowledge that should be built upon rather than bypassed in our rush toward formalized circularity.

Connect with Fernanda on LinkedIn to share insights or learn more about the H&M Foundation's work in catalyzing inclusive circularity across the textile ecosystem.

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