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OUR SUPPLY CHAIN

CLIMATE GOALS

As part of the H&M Group, our target is to reduce emissions across our value chain by 56% by 2030 and 90% by 2040 (against a 2019 baseline), by which time we also aim to achieve net-zero. It means we need to reduce our dependency on virgin resources and find new ways to generate growth.

To reach net-zero, we need to change how our products are made and enjoyed. About 70% of a garment’s climate impact happens in manufacturing. Making fibres, processing materials, dyeing and fabricating requires a lot of energy.

THESE ARE THE ACTIONS WE TAKE TOGETHER WITH H&M GROUP

Phasing out coal
At the beginning of 2022, we stopped onboarding new supplier factories with on-site coal boilers into our supply chain.

Financial support to our suppliers
We are investing in our suppliers to help them become more energy efficient and to transition to renewable energy.

Internal carbon pricing
In 2021, we set up internal carbon pricing to support our teams to minimise carbon emissions when making decisions about materials, production processes and transport. Choices with higher emissions will impact a product’s margin negatively. The internal carbon price will increase over time to encourage more sustainable buying decisions.

Green investment team
We have set up a green investment team with a single focus: To financially support projects to reduce H&M Group´s emissions throughout the value chain and remove carbon from the atmosphere. The team will measure return on investment by emissions reductions, not financial gain.

Circular business models
We are trialing several circular business models. Moving to a circular economy will decrease the amount of virgin resources we use to make products and reduce our carbon emissions.

Our climate goals include:

  • Reduce supply chain emissions by 56% by 2030 for our manufacturing and processing factories owned or subcontracted by our suppliers. 

  • Net-zero by 2040 throughout H&M Group’s entire value chain. 



Supply Chain
Social Responsibility
H&M Group

WHY MATERIALS MATTER

We work hard to make sure our material choices are the best suited selection to meet responsible requirements. In 2022, 99% of all materials are recycled and/or sustainably sourced. Combined, we call these materials ’Responsible’.

We’re proud to have reached this number in 2022, but also work to increase the share of materials with higher rankings within our responsible material benchmark, like the recycled category, which make up 24% of our material share. We are also exploring the opportunity of increasingly reuse our own waste streams, for example via our garment collect program. 

WHAT DOES 'SUSTAINABLY SOURCED' MEAN?

In our definition, sustainably sourced materials are materials that have significantly lower environmental footprint than the comparable raw material. When using them, we reduce the impact on natural resources and protect the welfare of animals.   

QUICK FACTS

  • 99% responsible materials in 2022 collections.

  • 100% responsible materials by 2025.

  • 20% of our total value chain emissions occur at raw material stage.

MOST COMMON RESPONSIBLE MATERIALS

COTTON

Organic cotton

POLYESTER

Recycled polyester

VISCOSE

Sustainably sourced viscose

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