Parent company of H&M, COS, Weekday, & Other Stories
H&M increased its supply chain emissions target and committed to transition to 100% renewable energy in its supply chain by 2030, in line with keeping warming below 1.5°C. Compared to the 2021 Scorecard, H&M made significant progress piloting energy efficiency measures and exploring renewable energy deployment in its supply chain, pulling ahead of its peers. H&M also stood out in the 2023 Scorecard for playing an active role in international renewable energy advocacy and advocating for access to renewable energy in supply chain countries such as Vietnam and Indonesia. However, despite aligning itself with decarbonisation goals, H&M’s emissions did continue to rise in the last year. H&M demonstrated small progress in disclosing its material mix, but this is far from enough. H&M has not made any commitments to phase out fossil fuel based materials, and needs to do more to demonstrate a commitment to circularity as a means to limit production. If H&M wants to keep ahead of its peers and emerge as a leader in the fashion sector, it should annually report on the renewable energy use of suppliers, track and disclose facility-level GHG emissions, and continue to reduce the impact of its raw materials. H&M should chart near-term plans to avoid aviation and commit to transitioning to zero emissions vessels by 2030.
Key Findings for H&M
H&M has set an emissions reduction target for both its own operations and its supply chains of 56% by 2030, which is in line with keeping warming below 1.5°C. The company has also set the ambitious target to reduce emissions across its value chain by 90% by 2040 as part of its net zero target.
H&M has set a renewable energy target in its own operations of 100% by 2030, and has committed to using a mix of RECs and electricity that is additional to the grid.
H&M has also set a target of 100% renewable electricity for its supply chain by 2030, making it one of only a small number of companies to commit to this essential step for decarbonising its manufacturing.
Coal phase out:
H&M has committed to phase out coal-fired boilers from its supply chain by 2030 as a signatory of the UN Fashion Charter.
H&M publicly reports GHG emissions in its own operations, and in its supply chain. The company does provide a full breakdown of its Scope 3 emissions.
H&M does publicly report its energy use for its own operations, including a breakdown of its renewable energy use and how that energy is sourced.
For its supply chain, H&M does not publicly report its energy use, a breakdown of its suppliers’ renewable energy use or how that energy is sourced.
H&M provides a partial supplier list to Tier 2.
H&M reports providing its suppliers with training and resources to help them make energy efficiency improvements, including developing an internal energy efficiency team to drive efficiency at supplier sites. H&M does report providing its major suppliers with financial incentives for energy efficiency measures, including through its Green Investment team which provides financing alternatives and options to suppliers, and does require all suppliers to make energy savings as a condition of contract.
H&M requires suppliers to reduce thermal coal demand in their manufacturing processes, and has set a timeline for not onboarding new suppliers with thermal coal boilers.
H&M reports providing its suppliers with training and resources to help them transition to renewable energy, including a supplier sustainability performance index, training and onboarding. The company also reports providing financial support or incentives to make the energy transition, such as through its Green Investment team and supplier incentives, and has set a target of 100% renewable electricity in its supply chain by 2030. H&M does not require suppliers to use renewable energy as a condition of contract.
H&M does not require its suppliers to set GHG emissions reduction targets or set science-based emissions reduction targets, but it does require suppliers to provide facility level data and annually report GHG emissions, and claims to be working to educate suppliers on how to develop science-based emissions reduction targets.
H&M has not made any commitments to phase out fossil fuel based materials.
H&M has made a public policy to ban the sourcing of leather from the Amazon Biome, and has a commitment to zero deforestation in its supply chain by the end of 2025. H&M also has a general policy against contributing to deforestation through other materials including cellulose-based fabrics
H&M has begun investing in programs to increase closed-loop apparel-to-apparel recycling for synthetics and plant-based materials, but has not committed to sourcing materials from recycled textiles. Instead, H&M is increasing its use of recycled polyester from plastic bottles, which does not reduce textile waste. H&M has committed to reduce the impact of its raw materials sourcing by switching to organic, recycled or Better Cotton, but has not committed to 100% organic cotton or cotton sourced from regenerative agriculture by 2030.
H&M is acting slowly to increase circularity and address overproduction by policies to improve the repairability, resale, durability and recyclability of its clothes, by offering some limited repair and take-back options, but given its huge market share and volume of production it needs to do far more to promote circularity and reduce overproduction.
H&M does publicly report its material mix, but it does not report the volume of materials. It does not report its volume of deadstock or how it manages or disposes of its deadstock to reduce waste.
H&M does report its shipping emissions annually, and does include shipping emissions in its GHG reduction targets, but does not provide a breakdown of its transportation methods.
H&M does not appear to have a policy to avoid aviation and commit to slower shipping methods such as maritime, rail and land. The company does have a near-term plan to ship its cargo via cleaner methods, including: working with Maersk Eco Delivery to reduce maritime shipping emissions; employing carbon pricing; and, partnering with others to increase efficiency. It reported a 15.34% drop in its upstream transportation and distribution emissions between 2019 and 2021.
H&M has not committed to transitioning to zero emissions vessels (ZEV) by 2030.
However, H&M has committed to transitioning its last mile delivery to zero emission vehicles.
H&M supported the publication of a EuroCham position paper on renewable energy in Cambodia. The paper pushes the government to refocus on renewable energy, remove capacity charges, and promotes rooftop solar in addition to private PPAs. H&M has also signed a joint statement to the government of Vietnam advocating for the creation and implementation of Power Development Plan VIII. This plan must prioritise renewable energy investment while also accelerating the country’s clean energy transition. H&M also signed a statement of mutual aspiration encouraging the government of Indonesia to accelerate a renewable energy transition to achieve at least 50% RE energy mix by 2045. The company participated in a discussion with Swedish brands, the Nordic Chamber of Commerce and Industry, and the Sweden-Bangladesh Business Council to scale up the Sweden-Bangladesh relationship in renewable energy within the Fashion Industry. H&M scored highly in this category for its active engagement on renewable energy on an international level.
More About H&M
EngagementH&M provided feedback on the 2023 Scorecard
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