H&M Group Prioritises Sustainable Sourcing to Hit Targets
Founded in 1947, H&M Group encompasses brands including Afound, Arket, COS, Monki and Weekday and employs over 143,000 people in 75 markets. The global fashion and design company’s Annual and Sustainability Report highlights its sustainability goals and progress towards them.
H&M Group, known for its consumer-facing sustainability initiatives, is working towards some of the most ambitious climate goals in the industry. The company is aiming for a 56% reduction in greenhouse gas emissions by 2030, and reports achieving 22% in 2023.
Sustainably sourcing materials is a key area of focus for the company, which is working towards 100% of its materials to be made from recycled or sustainably sourced materials by 2030 and in 2023 reached 85%.
Finding value in its sustainability initiatives, H&M Group prides itself in reinvesting in the climate by providing financial support to projects that contribute to reducing greenhouse gas emissions throughout the value chain.
Key figures from the report include:
- 236 billion SEK (US$21.9bn) in net sales, +6% vs. 2022
- 85% share of recycled or sustainably sourced materials, including 25% recycled materials
- 22% reduction in Scope 3 greenhouse gas (GHG) emissions under its science-based target against a 2019 baseline, excluding use-phase emissions
- 34 billion SEK (US$3.2bn) in cashflow from operating activities.
“Our sustainability initiatives provide the group with long- term business opportunities,” says outgoing CEO Helena Helmersson.
“By building strategic partnerships with important actors and creating growth through various innovative methods, such as circular business models, we can continue to give our customers unbeatable value and enable them to have a more sustainable lifestyle.”
Meet H&M Group’s new CEO
Newly appointed Daniel Ervér came into office as H&M Group CEO on 31 January 2024, having been with the company for nearly two decades. In that time, Daniel has been responsible for merchandising at H&M in Germany and the US, country manager for H&M Sweden, purchasing manager for H&M and responsible for H&M women and men. Most recently, he was head of the H&M brand. His recent work prioritised customer experience and adapting to the ever-developing expectations from consumers.
“Despite continued uncertainties in the world around us, with geopolitical and macroeconomic challenges, we see many opportunities,” says Daniel.
“The market our industry serves is large, growing and fragmented. I look forward to continuing our journey as one of the world’s leading fashion companies along with our fantastic colleagues. With the established plan we are now better prepared than ever to continue to take further steps towards our long-term goals.”
******
Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024
******
Sustainability Magazine is a BizClik brand
******
