Climate and Net Zero Targets
Scope 1 and 2: Yes, committed to reduce absolute scope 1 and 2 GHG emissions by 56% by 2030, against a 2019 baseline.

Scope 3: Yes – Reduce absolute scope 3 GHG emissions by 56% by 2030, against a 2019 baseline.

Mid-term (2035/2040) milestones: Company aims to be net zero by 2040. Has goals for 2030 but has not made concrete targets for the interim period of 2035 yet. Company demonstrates strong reporting and identification of focus areas for value chain emissions during this time period in its transition plan

Net Zero Roadmap: Has clear net zero target for 2040 and clear target boundaries for Scope 1-3, noting that Scope 3 excludes indirect emissions from use of sold products.

Renewable Energy Targets
Own operations RE target: Yes. By 2030, source 100% RE in own operations, including more than 50% from power purchase agreements with new renewable electricity generation, and achieve a 36% reduction in electricity intensity in stores vs 2016 baseline.

Supply chain RE target: Yes. Has 100% target of RE in supply chain by 2030 from Tier 1 – 3. Good example of including Tier 3.

Thermal Coal Phase Out
2030 Coal Phase-out Target: Yes, new clear target for 2025 to phase out coal by 2026, ahead of 2030 Fashion Charter deadline. Stopped onboarding new suppliers who used coal as of January 2022.

Thermal energy transition/ electrification: Yes. Brand reports clearly on progress; number of supplier factories reporting the use of on-site coal boilers declined to 67 in 2023 (compared to 117 in 2022, and 105 in 2021). Also reports working closely with business partners and local stakeholders in our production countries to accelerate total substitution of coal, as well as financially supporting suppliers to transition to solar photovoltaic and thermal energy from agricultural residues. Coal phase out has been a focus of H&M Group’s Green Fashion Initiative.

Transparency
Emissions data: Company provides Scope 1 – 3 historic data and a breakdown of Scope 3 category. This is not split into country or supply chain tier, according to public reports.

Supply chain energy data: Yes. Published a full report on supply chain energy consumption including 3 years data + baseline across tiers 1-3 of supply chain, including breakdowns of thermal energy, electricity and data on renewable energy procurement with high impact sourcing vs REC/EAC purchases provided by country.

Supplier lists published: Shares Tier 1 and Tier 2 lists publicly. Strong presence in Bangladesh.

Supplier list link

Training, feasibility studies, and non-financial support for climate action
Yes. Through Green Fashion Initiative. Has in house energy efficiency engineers. Provides training, support and best practices on how to make credible renewable energy usage claims, measure their GHG emissions and how to mitigate environmental impact. as well as setting SBTs. Reports on progress; Since 2021 our team has worked with 200 of our supplier factories in Bangladesh, Cambodia, mainland China, India, Indonesia, Türkiye and Vietnam. In 2024, enrolled 78 new facilities. Shares data on expected emissions savings, enrollment and opportunities for suppliers.

Says 100% of Tier 1 and Tier 2 suppliers have access to this training and support.

Additional, targeted support for transition planning: Yes. Brand said that with: Tier 1 and tier 2 suppliers, we set decarbonization roadmaps and collect data to assess and evaluate progress against these. The actions needed for decarbonization are agreed upon, and H&M Group provides financing options for suppliers when this is challenging. Green Fashion Initiative working on several aspects of decarbonisation, including solar installation, energy efficiency, coal phase-outs and electrification. These initiatives have the potential to reduce approximately 50 kilotonnes of CO2e annually within H&M Group’s supply chain, with an additional reduction of approximately 120 kilotonnes beyond our supply chain. Says 100% of our Tier 1 and Tier 2 suppliers have access to this training and support.

Financial Support for Decarbonization
Loans and financing: Yes. Multiple ways including the Green Fashion Initiative (GFI) Includes financing on favorable terms for those with limited technical expertise, restricted access to finance, high interest rates and low financial return are common barriers to our suppliers when considering decarbonization interventions. 2024 Sustainability Report discloses that 23 projects have been funded, and discloses project emissions reduction and spend on decarbonization activities. Also works with Apparel Impact Institute on the Future Supplier Initiative and also the Aii Climate Fund.

Collective financing initiatives: Yes, does this through company’s direct Green Fashion Initiative, works with banks to support

Direct/debt-free financing: Yes, does this through company’s direct Green Fashion Initiative.

Responsible/equitable buying to enable climate action
Purchasing decisions incentivize climate action: Yes. Says it rewards its suppliers with training opps/LT contracts through Sustainable Impact Partnership Programme. All suppliers are required to sign a sustainability commitment, made up of two parts, a fundamental: The enterprise conducts all operations in full compliance with all applicable laws and regulations on air quality, air emissions and energy efficiency, including maintaining valid permits.

And an aspirational: The enterprise actively mitigates its impacts on climate change and air quality by: improvement in energy management and efficiency, reduction or elimination of (GHG) and other air emissions, calculating emissions and setting targets according to the GHG Protocol. And, selecting energy sources responsibly and taking a progressive approach towards adopting lower-carbon-intensity and renewable energy sources.

Equitable/long-term sourcing to enable climate action: Yes. Through the companies Sustainable Impact Partnership Programme (SIPP). H&M also founding member of ACT – Action, Collaboration and Transformation, alongside 18 other brands and the global union IndustriALL which covers fair payment terms, purchasing prices to include wages as itemised costs and responsible exit strategies. Response: Depending on what type of support a supplier needs, we aim to stay flexible and provide that support instead of staying within certain policy framework. Some of our long term suppliers have been with us for 15 years and they have developed with us over the years. Our focus lies on carbon intensity within each facility, where we ask our suppliers to have plans in place for a long term reductions on carbon intensity.

Prices enable climate action: Unclear specifically on prices/wages. Incentives through SIPP as outlined in previous box. Company also has a published Fair Living Wage Strategy, not tied to decarbonization but worth noting. Membership of ACT – Action, Collaboration and Transformation, alongside 18 other brands and the global union IndustriALL includes notes on purchasing prices including wages, fair payment terms.

Climate Adaptation
Adaptation/worker just transition training funded or provided: Green Fashion Initiative does not explicitly cover areas related to adaptation like heat stress, warning systems, flood/heat resistant infrastructure. Also reports updating Global Framework Agreement (GFA) with IndustriALL Global Union and IF Metall, commiting to collaborating on just transition through this partnership. However, concrete plans have not been made yet.

Emergency support developed with local groups: No clear evidence, although H&M Foundation has supported communities impacted by extreme weather events, and supports projects related to worker automation skills in Bangladesh.

Decarbonization Progress
Reducing manufacturing emissions: H&M’s 2024 Sustainability report shows a total 25% reduction in Scope 3 Category 1 emissions compared with baseline, although a 2% increase in the past year, which it attributes to increases in volume.

Increasing supply chain renewable electricity: Yes; H&M reports that in 2024 it increased the share of renewable electricity source in its Tier 1-3 supply chain to 36%, of which 7% is from PPAs and green tariffs, and 9% is generated on site.

Coal phase out transition progress: H&M reported its supply chain thermal energy sourcing for 2024 to Tier 3, including a breakdown of fuel sources, and reports a reduction in the number of suppliers still using coal, although it does not provide specific figures on electrification or non burning alternatives.

Commitment to phase out fossil fuel-derived fibers
No. overarching material goal is to use 100% recycled or sustainably sourced materials in commercial products by 2030, ideally with at least half coming from recycled sources. Defined to Textile Exchange preferred materials matrix.
Specific to polyester; only source recycled polyester by 2025.

Deforestation-free materials
Leather: Not there yet, aims to do so by 2030. In response, company said: Leather is only 0.1% of our material basket. We are committed to improving our leather sourcing and to contribute to reducing these negative impacts. Leather is covered in our animal welfare policy, and we work with partners to address issues such as deforestation, transparency and traceability, and human rights.

Man-made Cellulosic Fibers: Yes – through Canopy. We only use man-made cellulosic fibres from suppliers who are ranked green in the Canopy Hot Button Report and thereby have a low risk of sourcing from ancient and endangered forests.

Low-carbon materials
Yes. Multiple strong examples, also motivated by Green Bond which has targets on circular economy. Efforts include; Capital expenditures for the resell platform Sellpy.
– Equity investment in Syre – Equity investment in TreetoTextil. Invest in and scale sustainably sourced material solutions by partnering with innovators (see page 37). Through our brands, our Circular Innovation Lab, The Laboratory, and our investment arm, H&M Group Ventures, we’re working to support development of innovative materials, recycling infrastructure, production processes and regenerative practices in agriculture

Increasing Circularity
Broad goal, 100% sustainably sourced cotton by 2030. Includes recycled, organic, regenerative, in-conversion or sourced through Better Cotton.
Reports several examples of working with farmers to support a transition to regenerative agriculture, including: invested in several projects in India that aim to improve soil health, which will restore and enhance biodiversity, as well as help farmers become climate resilient, among other things. Reported placing first orders for regenerative cotton in 2023.
Is a founding member of an industry initiative called the Organic Cotton Accelerator (OCA). The OCA aims to further strengthen the supply, demand and integrity of organic cotton.
In the process of piloting and scaling resale and rental. These include Sellpy, H&M Preloved & Rental, ARKET Archive, COS Full Circle, COS Restore and COS Resell, and Weekday & Monki in-store second hand.

Target & increase recycled cotton
Recycled cotton is included in target for 100% sustainably sourced materials by 2030. No specific goal just on recycled cotton but does report progress. 11% of all cotton FY23.

100% recycled/organic/regen cotton + wool, report on progress
Broad goal, 100% sustainably sourced cotton by 2030. Includes recycled, organic, regenerative, in-conversion or sourced through Better Cotton.
Reports 11% recycled, 13% organic, 76% ‘sustainably sourced’ i.e. better cotton

Support farmers, transition to regen/organic farming
Yes invested in several projects in India that aim to improve soil health, which will restore and enhance biodiversity, as well as help farmers become climate resilient, among other things. Reported placing first orders for regenerative cotton in 2023.
Is a founding member of an industry initiative called the Organic Cotton Accelerator (OCA). The OCA aims to further strengthen the supply, demand and integrity of organic cotton.
In response says: We are investing in a range of three-to-five-year collaborative projects with expert partners in South Africa, where most of our wool is produced. More recently, Regenerative, Ecologically and Economically Viable Agriculture (REEVA) project with WWF aims to help smallholder farmers to remain profitable through enhanced business practices and increased resilience, so that this cotton producing area can continue to serve as a functioning critical corridor for tigers and other wildlife.

Resale/repair – % total sales/disclosure on #
In the process of piloting and scaling resale and rental. These include Sellpy, H&M Preloved & Rental, ARKET Archive, COS Full Circle, COS Restore and COS Resell, and Weekday & Monki in-store second hand

H&M Group started investing in Sellpy in 2015, and has since then participated in all investment rounds through its investment arm CO:LAB. With its recent investment and purchase of secondaries, H&M Group has gone from being a minority shareholder to a majority owner.

Direct link resale/repair to reduce production
No. Focused on circularity and increasing market of second hand fashion

Materials transparency
Shares material mix: No. Company shares details as % of material mix and % that are sustainably sourced/recycled.

Provides data on units sold: No

H&M does have a target to reduce its shipping emissions as part of its Scope 3 commitment. The company reported an overall 11% reduction in shipping emissions compared with its baseline, but also reported a significant increase of 36% compared with 2023, which it attributes to an increased share of aviation. H&M clearly discloses its transportation modes and a breakdown by CO2 emissions, and reports that the share of aviation rose from 1% to 2% in 2024, sharing a broad goal to keep this share low.

Actions to reduce impact of marine shipping: Signatory of Arctic Shipping Pledge. part of The Pathways Coalition, which aims to accelerate the decarbonisation of heavy transport. Company is also part of the Clean Cargo Initiative with Smart Freight Centre.

Reports expanding the use of low-emission transport alternatives, including electric vehicles.

Company offers best practice example on direct renewable energy advocacy efforts, especially in Asia. This includes examples like, National Solar Roadmap 2041 – Bangladesh, Power System Master Plan (PSMP) (2016) – Bangladesh, China Green Electricity (Corporate PPA) regulation tracking & China Renewable Electricity Market Regulation, Green Energy Open Access – India, , Bangladesh Offshore Wind Project – Renewable Energy Initiative and Asia Clean Energy Coalition (ACEC) alongside; Engaged with Indonesian government, state-owned electricity company, and local manufacturing suppliers US AID Vietnam Low Emissions Energy Program (VLEEP)