Hennes & Mauritz AB

RATING

SECTOR

Retail

WEBSITE

CONTACT

H & M Hennes & Mauritz AB
Mäster Samuelsgatan 46A
SE -106 38 Stockholm
SWEDEN

STOCK EXCHANGE

LISTING

  • CDP A List 2019
  • Dow Jones Sustainability Index Gold Status 2019
  • Top 5 in the Fashion Revolution’s Fashion Transparency Index
  • FTSE4Good index
  • 27th Global 100 Index 2019
  • Platform Living Wage 2019

EMPLOYEES

179,000

CHIEF SUSTAINABILITY OFFICER

Anna Gedda

AWARDS

  • Corporate Responsibility Reporting Awards
  • Ethisphere Institute: world’s Most Ethical Companies
  • PETA Vegan Fashion Award

CONTENT SOURCE

FURTHER READING

Report created by Maribel Sabino

Hennes & Mauritz (H&M) AB

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

H&M is a subsidiary fashion brand of H&M Group, a Swedish multinational clothing-retail company known for its fast-fashion clothing for men, women, teenagers and children.

Hennes & Mauritz AB engages in the sale of clothing, accessories, footwear, cosmetics, and home textiles. The company products include accessories, underwear, cosmetics, sportswear, and other apparels.

H&M Group includes nine brands: H&M, COS, Weekday, Monki, H&M Home, & Other Stories, ARKET and Afound. The group’s brands offer customers a variety of fashion, design and services.

H&M always strives to offer the very best combination of fashion, quality, price and sustainability with collections for women, men, teenagers, children and babies. Customers will find everything from unique designer collaborations and motivational sportswear to affordable wardrobe essentials, beauty products and dazzling accessories.

As of November 2019, H&M operates in 74 countries with over 5,000 stores under the various company brands, with 179,000 employees.

Company Sustainability Activity

H&M Group is working to ensure a sustainable fashion industry for all. The H&M group’s vision for sustainability is to lead the change towards circular and climate positive fashion while being a fair and equal company. Their sustainability work spans the entire value chain, focusing on their operations and, together with other stakeholders, the industry in general.

H&M group aims to be climate positive throughout their value chain by 2040. The main priorities for getting there are increased energy efficiency, renewable energy and carbon sinks that can absorb unavoidable greenhouse gas emissions.

Fundamental to the H&M group’s climate work is their ambition to become fully circular. In addition to genuinely achieving sustainable development, the group aims to impact the lives of millions of people by creating fair jobs for all, and  inclusion and diversity.

**The following sections are based off of the H&M Group Sustainability Report.

Highlights

  • 10.1% reduction per square meter per opening hour compared with the 2016 baseline
  • 96% of electricity purchased for operations was renewable
  • 91.5% of waste handled in H&M Group distribution centers was recycled or reused
  • Approximately 57% of footwear, bags and belts were produced with chrome-free tanned leather (including full vegetable tanned leather and metal free leather)

Targets

 Climate Positive

  • Become climate positive by 2040 at the latest
  • Reduce scope 1 and 2 GHG emissions 40% by 2030 using the 2017 baseline
  • Reduce scope 3 GHG emissions from purchased raw materials, fabric production and garments 59% per product by 2030 per the 2017 baseline
  • Source 100% renewable electricity by 2030
  • Reduce absolute transport related emissions by 30% by 2025, compared to a 2018 baseline

Materials

  • H&M group’s goal is to source 100% recycled or other sustainably sourced materials by 2030
  • Cotton: 100% recycled, certified organic or sustainably sourced cotton by 2020
  • Wood-based materials: By the end of 2025, all wood used in the company’s products and packaging will be made of Forest Stewardship Council (FSC) certified materials, or fibres from alternative sources such as agricultural residues and postconsumer textiles
  • MMC fibres: By 2025, H&M Group will only use producers of viscose and other MMC fibres found to have good environmental practices, such as closed-loop processing of water and chemicals
  • Wool: By 2022, virgin wool from farms will be sourced from certified to the Responsible Wool Standard (RWS)
  • Leather: By 2025, all animal-based leather will be chrome-free and originate from more responsible sources

Recycled Materials 

  • Move away from all virgin polyester and only use recycled polyester by the latest 2030

Sustainably Sourced Materials

  • 100% recycled, organic or sustainably sourced cotton by 2020
  • 100% recycled or other sustainably sourced materials by 2030

Packaging 

  • Reduce packaging across the value chain by 25% by 2025 per the 2018 baseline
  • All packaging should be designed to be reusable, recyclable or compostable by 2025
  • 100% of packaging made from recycled or other sustainably sourced material by 2030, with a preference for recycled materials where possible
  • Reuse or recycle 100% of packaging waste from their own sites by 2025
  • 100% reusable, recyclable, or compostable plastic packaging
  • Reduce plastic packaging by 25%
  • 25% post recycled plastic across all packaging used
  • Take action to eliminate all unnecessary and problematic plastic
  • Take action to move from single-use towards reuse models where relevant

Progress

Energy Efficiency

  • Improved electricity efficiency: 10.1% reduction per square meter per opening hour compared with the 2016 baseline
  • H&M Group worked actively to reduce their air freight emissions, leading to a decrease of approximately 36%. This contributed to  overall decrease in transport emissions to 500kt CO2e in 2019 (587kt in 2018)

Renewable Energy

  • 96% of electricity purchased for operations was renewable
  • H&M Group implemented last-mile delivery using electric, hybrid, and natural gas vehicles in some countries in Europe and began trialling bike and biogas truck delivery options in the Netherlands. 

Materials

  • In 2019, the group achieved just over 57% recycled or other sustainably sourced materials
  • This year we increased the share of recycled content from 1.4% to 2.2%, reducing the proportion of new materials present in H&M’s products. But we know we need to stay focused on making larger gains in future years to reach H&M’s goal of — for example by continuing to develop innovative textiles and working on scalable recycling solutions. — The Textile Exchange’s Corporate Fiber & Materials Benchmark program includes the Material Change Index (MCI) which tracks the apparel, footwear and home textile sector’s progress towards more sustainable materials sourcing, as well as alignment with the global Sustainable Development Goals and the transition to a circular economy. H&M Group was one of 16 leading companies out of the 170 analyzed. — H&M Group was ranked third in the 2019 Sustainable Cotton Ranking.

Recycled materials 

  • H&M: recycled cotton in denim products, and a range of recycled materials (e.g. polyester, wool, cashmere) in the Autumn 2019 Conscious Exclusive collection

Sustainably sourced materials 

  • The group reached 97% recycled or other sustainably sourced cotton
  • 32.7 billion gallons of water saved
  • 80,000kg pesticides avoided
  • Approximately 57% of footwear, bags and belts were produced with chrome-free tanned leather (including full vegetable tanned leather and metal free leather)

Chemicals

  • 100% of H&M’s textile and leather supply chain (over 600 suppliers) are now enrolled in the ZDHC programm, achieving 80% compliance of the ZDHC MRSL

Packaging

  • The group eliminated plastic shopping bags and replaced them with 100% Forest Stewardship Council (FSC) certified paper bags

Minimizing Waste

  • 0.552% of the total product assortment was reused (including charity donations) or recycled due to the products being faulty
  • 0.029% of the total product assortment was destroyed due to the products having failed certain chemical tests, were contaminated by mould, for example, during transportation, or when there was no viable recycling or down-cycling solution available (0.052% in 2018)
  • 91.5% of waste handled in H&M Group distribution centers was recycled or reused
  • 62% of H&M Group stores have sufficient recycling systems in place

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 5

  • In 2019, 76% of all H&M Group employees were female and 69% of management positions were filled by female employees (2018: 74%, 72%). H&M’s Board of Directors was represented by a 67%:33% (female:male) gender split.

SDG 10

  • H&M Group continues to roll out Layers — their comprehensive training on inclusion, diversity and unconscious bias aimed to raise awareness and encourage intentional goal setting and actions. Approximately 3,600 colleagues have been reached since the training was launched in March 2018 (1,000 in 2019)

SDG 13

  • H&M group is determined to play their part in tackling carbon emissions, and their goal is to become climate positive by 2040
  • The group plans to reduce and decouple emissions from business growth through their four priority areas — energy efficiency, 100% renewable energy, H&M’s circular approach and carbon sinks — in order to achieve a climate positive value chain by 2040

SDG 15

  • To help preserve the natural carbon sinks in the forests of Cambodia, the group continued their partnership with French nongovernmental organization Geres. The partnership explored the possibility of using rice husk briquettes as an alternative to firewood for fuel in the garment sector. The final report confirmed technical feasibility but highlighted the need for additional financial incentives to make the switch to briquettes a viable option.

SDG 17

Evaluation

H&M Group is dedicated to incorporating sustainability throughout all of their subsidiary brands. The group has received good awards such as Corporate Responsibility Reporting Awards. In addition, H&M Group has good listings such as the CDP A List and the Dow Jones Sustainability Index Gold Status.

H&M has also declared their dedication to sustainability as seen in their initiatives displayed on their website. While the group considers the UN Sustainable Development Goals, they lack specific targets. 

Concerns regarding how the company deals with waste and accusations regarding labor rights violations lead H&M to be rated a C.

Analyst Outlook: Negative

Historically, H&M has been known for its fast fashion and labor right violations.

Key Points

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