Key takeaways:
- In a fast-moving, high-volume business, H&M presents a uncommon stage of transparency about sustainability progress.
- The corporate’s circularity efforts are rising however stay marginal.
- Regardless of progress in decreasing provider emissions, the street forward stays difficult.
H&M Group has more and more positioned its model, for higher or worse, round ambitions to cut back its burden on nature. The group’s efforts embrace investing in circularity and driving down emissions throughout its hundreds of suppliers and 4,000-plus retail shops. H&M’s 2024 sustainability report revealed the tensions between its newest achievements and the work that continues to be.
On this period of hyper-fast trend, H&M — with its quest for sustainability and relative transparency — present a foil to upstarts equivalent to Shein of Singapore, which ship polyester garments at disposable costs straight to shoppers and create astounding quantities of waste. Stockholm-based Hennes Mauritz, based 1947, is one among few attire giants that has shared a detailed local weather transition plan detailing near-term steps towards its science-based, internet zero goal for 2040.
“We intention to make use of our energy, scale and information to push the style business in direction of agreeing and performing on trend being produced inside planetary boundaries, to hurt no-one in creating our items, and to empower our clients,” the corporate acknowledged in its newest sustainability report on March 27. In these 35 pages, H&M defined the way it has labored to decarbonize its provide chain, undertake “sustainably sourced” supplies, and scale round enterprise processes.
Right here, in response to veteran attire business sustainability specialists, are three main insights from H&M’s 2024 report — with the related caveats:
1. Provider emissions are dropping — however subsequent steps look difficult
“What stood out was their long-term aim to shift to 100% renewable vitality with phasing out on-site coal within the fast future for Tiers 1, 2, and three together with spinning to the completed challenge,” stated New York-based Chana Rosenthal, founder and principal of reDesign Consulting. “Their efforts to decarbonize are proving helpful by their discount in emissions to this point.”
In 2024, H&M shaved down its Scope 3 CO2 emissions by 24 % in contrast with 2019 ranges. Most reductions got here from altering suppliers’ manufacturing practices and vitality utilization.
“H&M’s appreciable funding in sustainability is laudable and their report is edifying,” stated Ken Pucker, a senior enterprise lecturer at Tufts College and advisory director at Berkshire Companions.
In two years, the corporate whittled down the variety of coal fired boilers in its Tier 1 and a couple of suppliers’ vegetation from 118 to 27. By 2026, it goals for zero. For instance, amongst H&M’s efforts to encourage its mills to drop coal, it invested in Rondo Power’s thermal brick batteries for suppliers’ vegetation.
For the primary time, H&M was in a position to depend the 12 Tier 3 operations utilizing coal.
That stated, the corporate grew Scope 3 emissions by 3 % in 2024, on account of an increase in general materials weight and a slight uptick in delivery by air.

Certainly, H&M could battle to achieve its aspiration to cut back local weather emissions general by 56 % 2030, in response to Pucker. That concentrate on would require 10 % reductions of carbon every year and no income development, he added.
On the similar time, the corporate’s stage of ambitions and disclosures lead these of most friends. As an illustration, alongside Patagonia, ASICS and Marks & Spencer, H&M is one among solely 4 manufacturers conserving emissions targets in keeping with United Nations objectives of 55 % reductions by 2030 over a 2018 baseline, in response to a Style Revolution 2024 report. Behind Puma and Gucci, H&M scored among the many prime three manufacturers on that “What Fuels Style” report.
As well as, H&M updates a public spreadsheet of suppliers each month, detailing greater than 6,100 firms from Albania to Vietnam. Some 570 are Tier 1 product suppliers and the remaining embrace cloth producers, tanneries, and dyeing operations. But the model doesn’t equally determine Scope 3 suppliers, which embrace supplies manufacturing, transportation and different actions.
In 2024, the corporate invested about $170 million (kr 1.7 billion) in worth chain decarbonization. Most of that went to utilizing options to virgin supplies, in addition to decreasing fossil fuels and boosting vitality effectivity.
2. Round enterprise is rising — however solely to a degree
“Style is filled with shiny guarantees,” sustainable trend knowledgeable Anna Blom, of Stockholm, posted on LinkedIn. “This time, we’ve received numbers.” For instance, resale and different round enterprise fashions doubled in 2024 to 0.6 % of gross sales, over .3 % in 2022.
Nonetheless, specialists agreed that this represents an extremely small slice of general revenues. Lauren Fay, a Seattle trend guide and founding father of BFG Lab, advised creating a brand new function, equivalent to “a Chief Returns Officer, to assist join their product crew with their returns knowledge for higher design.”
Lower than 1 % of H&M’s shops inventory resale gadgets, however that has tripled since 2022. In 2023, the model teamed up with resale platform ThredUp to listing secondhand gadgets there.
The promised features from circularity haven’t materialized, in response to Pucker of Tufts.
But Blom discovered extra to encourage. “The indicators of decoupling development from useful resource use are there, she wrote. “Emissions rose by 3 %, whereas materials quantity elevated by 8 %.”
In 2024, H&M disclosed that it created 524,739 metric tons of merchandise. Though that’s up barely from the 2023, it’s down from 561,087 metric tons in 2022.
The corporate spotlighted the usage of shopper insights, synthetic intelligence, digital product creation to optimize planning and steadiness manufacturing with potential demand, decreasing waste throughout the provision chain.
3. Recycling ambitions are massive — however so are synthetics
Towards its 2030 aim of utilizing absolutely “recycled or sustainably sourced” supplies in its types, H&M reached 89 % in 2024. Practically 30 % of that was recycled, towards a 2030 aim of fifty %.
Serving to that progress was sourcing extra polyester from recycled sources. The model used 94 % recycled polyester in 2024, closing in on the 100% aim for 2025.
However Rosenthal identified that this depend doesn’t embrace part supplies, equivalent to linings, fill and pocketing. “By together with all supplies within the manufacturing of their product, it could maybe enhance their turnover for round enterprise fashions aiding within the product feasibility for recycling,” she stated.
“H&M is pulling many levers to begin shifting in direction of circularity,” in response to Tamera Manzanares, supervisor of water and firm community communications for the nonprofit Ceres, primarily based in Boston. She cited a collaboration with the Round Design Consortium for instance.
“The potential impression of these efforts, nevertheless, is not going to be realized till the business solves its core problem of scaling post-consumer textile-to-textile recycling,” she stated. “Notably, H&M is partnering with Infinited Fiber Firm and Ambercycle to handle that problem, and Ceres would hope to see H&M and different trend manufacturers doubling down on efforts to scale systemic options for textile reclamation and recycling as a core exercise to allow circularity.”
For the previous 12 months, H&M has backed a new chemical recycling enterprise, Syre by committing to $600 million of eventual purchases of round polyester. The startup is scheduled to open a plant in North Carolina this fall.
However the infrastructure for recycling industrial quantities of textiles isn’t up and working but, famous BFG Lab founder Fay. Recyclers vying to handle artificial fiber blends are nonetheless comparatively younger. “Additionally,” she requested, “with the risk that microfibers pose to our crops and our well being, are we holistically contemplating whether or not producing principally recycled fibers is a good suggestion?”
Though polyester accounts for 22 % of H&M’s supplies, it makes use of extra pure fibers; 55 % of its merchandise use cotton, and H&M has taken steps to spice up various sources of cotton, equivalent to by investing in lab-grown cotton startup Galy.