H&M GROUP SUSTAINABILITY REPORT 2017
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H&M GROUP SUSTAINABILITY REPORT 2017
OVERVIEW
OVERVIEW
Table of contents
VISION & STR ATEGY
100% LE ADING THE CHANGE
1. OVERVIEW 3 5. 100% FAIR & EQUAL 53
About H&M group 4 Key facts & figures 2017 54
Our value chain 5 KPIs and goals 55
Letter from CEO 6 100% Fair & Equal explained 56
Executive summary 7 Fair jobs for all 57
2. VISION & STRATEGY 9 Stewards for diversity & inclusiveness 68
Our vision & strategy 10 6. STANDARDS & POLICIES 73
100% CIRCU L AR & RENEWABLE
Our ambitions 11 Key facts & figures 2017 74
Our Change-Making Programme 12 Standards & policies explained 75
Engaging our changemakers 13 Working with standards & policies 76
How we are organised 14 Our human rights policy 77
Interview with Head of Sustainability 15 Policies within our own operations 79
3. 100% LEADING THE CHANGE 16 Policies for our business partners 81
Key facts & figures 2017 17 Products & materials policies 85
100% Leading the Change explained 18 7. HOW WE REPORT 87
100% FAIR & EQUAL
Innovation 19 How we report 88
Transparency 21 Materiality matrix 90
Rewarding sustainable actions 24 Our salient human rights issues 91
4. 100% CIRCULAR & RENEWABLE 26 UN’s Sustainable Development Goals 93
Key facts & figures 2017 27 Engaging with our stakeholders 94
STANDARDS & POLICIES
KPIs and goals 28 Key collaborations 96
100% Circular & Renewable explained 29 Auditor’s report 97
Becoming 100% circular 30 Get in touch 99
Becoming climate positive 47
HOW WE REPORT
H&M.
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OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
OVERVIEW
3 OF 100
H&M.
OVERVIEW
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OVERVIEW
OVERVIEW
ABOUT H&M GROUP / OUR VALUE CHAIN / LETTER FROM CEO / EXECUTIVE SUMMARY
About H&M group
VISION & STR ATEGY
100% LE ADING THE CHANGE
H&M group loves fashion and design. We are 2017 FIGURES
always working to create the best offering for our
232
customers, in the most sustainable way.
SEK billion in
H&M group includes eight clearly-defined brands
– H&M, COS, Weekday, Cheap Monday, Monki, sales incl. VAT in 2017.
H&M Home, & Other Stories and ARKET. Together,
69
our brands offer customers a wealth of styles and
100% CIRCU L AR & RENEWABLE
trends in fashion, beauty, accessories and home- 4,739 stores in
ware – as well as healthy, modern food in selected
stores. markets and e-commerce
in 43 markets.
Through our integrated physical stores and digital
channels, we reach customers around the world.
Our customer proximity is amplified by our 171,000
colleagues globally, operating in both sales and H&M group
production markets. welcomed approximately
10,000
100% FAIR & EQUAL
ABOUT H&M FOUNDATION
H&M Foundation is a non-profit global foundation, new employees in 2017.
privately funded by the Stefan Persson family,
founders and main owners of H&M group. The
foundation's mission is to drive long lasting positive We have more than
STANDARDS & POLICIES
change and improve living conditions by investing
in people, communities and innovative ideas. Learn
more about H&M Foundation’s work on pages 20, 171,000
35 and 72, and read the annual report, A Catalyst colleagues around the world.
for Change 2017 at hmfoundation.com
H&M.
HOW WE REPORT
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OVERVIEW
OVERVIEW
ABOUT H&M GROUP / OUR VALUE CHAIN / LETTER FROM CEO / EXECUTIVE SUMMARY
Our value chain
VISION & STR ATEGY
Check out where in the world
the different stages of our value chain take
place on an interactive world map here
100% LE ADING THE CHANGE
We create fashion and quality at a great IMPACTS ALONG OUR VALUE CHAIN
price in a sustainable way. To do this, Our vast network of value chain con-
H&M group is responsible for the effi- nections means that our social, envi-
cient and effective running of its own ronmental and economic impacts are In 1947, H&M opened its H&M alone has
value chain. Our value chain describes
the full sequence of processes involved
significant and far-reaching. Therefore,
to maintain our business idea, we need
first store in Västerås,
Sweden. 2017 marked our
800
in the production and lifespan of all to maximise the positive impacts and million customer
our products, from product ideation to minimise the negative impacts we have
70 th
anniversary. transactions per year.
100% CIRCU L AR & RENEWABLE
customer use and disposal. along our value chain. We achieve this
by using our size and scale to leverage
But our value chain does not operate and catalyse changes that improve the
in isolation. With eight brands, sell- operation of our own value chain as well The supplier factories we Our products are made in
ing products in over 4,700 stores, it is
connected to countless people, commu-
as the wider industry.
1.6
work with employ over
million people of
1,668
nities, ecosystems and other businesses Please see the illustrations below for a supplier factories around
around the world. more in-depth look at the impacts we have which 62% are women.
along our value chain. Please also visit
the world.
sustainability.hm.com for further information.
100% FAIR & EQUAL
STANDARDS & POLICIES
Fabric and yarn Product
Design Raw materials production manufacturing Transport Sales Use
Medium 2% 0% Low High 0% 0% High Low 21% 8% Medium
High 0% 0% Low Medium 9% 87% High Medium 46% 6% High Medium 18% 1% High
OUR C L I M AT E WAT E R SOCIAL OUR C L I M AT E WAT E R SOCIAL OUR C L I M AT E WAT E R SOCIAL OUR C L I M AT E WAT E R SOCIAL OUR C L I M AT E WAT E R SOCIAL OUR C L I M AT E WAT E R SOCIAL OUR C L I M AT E WAT E R SOCIAL
INFLUENCE I M PA C T * I M PA C T * I M PA C T * * INFLUENCE I M PA C T * I M PA C T * I M PA C T * * INFLUENCE I M PA C T * I M PA C T * I M PA C T * * INFLUENCE I M PA C T * I M PA C T * I M PA C T * * INFLUENCE I M PA C T * I M PA C T * I M PA C T * * INFLUENCE I M PA C T * I M PA C T * I M PA C T * * INFLUENCE I M PA C T * I M PA C T * I M PA C T * *
HOW WE REPORT
*Climate impacts are based on a scope 3 assessment made by Ecofys in 2016, based on 2014 data. Calculations in the footprint analysis are based on a combination of quality H&M group data (2014 material usage) combined with the best available public data sources on
CO 2 emissions. We are working to further improve the calculations by using primary data from our main suppliers. The water footprint is based on the Water Footprint Network’s methodology and includes green, blue and grey water footprints. Deviation from 100% due
to rounding effects.**For more information about our social impacts, see pg 92. A number of these issues related also to H&M group’s salient human rights issues, i.e. those human rights at risk of the most severe impact across our operations and supply chain.
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OVERVIEW
OVERVIEW
ABOUT H&M GROUP / OUR VALUE CHAIN / LETTER FROM CEO / EXECUTIVE SUMMARY
Letter from CEO
VISION & STR ATEGY
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100% CIRCU L AR & RENEWABLE
We believe sustainable fashion and design should This report presents the H&M group’s
be available to everyone, not only to a privileged achievements and progress within
few. Since my grandfather founded the company the sustainability field over the
70 years ago we have had a long-term perspective. past year. There are still challenges
ahead, but I am proud of what we
To secure future business it is essential and natu- have achieved so far and the positive
ral for us to address sustainability proactively. impact we are making.
We are dedicated to continue making great fash-
ion and design affordable, by having a circular
100% FAIR & EQUAL
approach and being a fair and equal company.
Thanks to our size and to our committed
colleagues, H&M group is fit to lead the change
towards a more sustainable fashion future. How-
ever, this is not a task that we can manage on our
STANDARDS & POLICIES
own; collaboration, new-ways of working and joint
industry goals are key for accelerating the changes
and results needed. Our continued commitment
to the United Nations Global Compact and our
ongoing collaborative work with stakeholders,
including local and global experts and NGOs, are
a few examples of how we work to achieve positive Karl-Johan Persson, CEO
change through shared responsibility. H & M Hennes & Mauritz AB
HOW WE REPORT
Karl-Johan Persson, CEO.
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OVERVIEW
OVERVIEW
ABOUT H&M GROUP / OUR VALUE CHAIN / LETTER FROM CEO / EXECUTIVE SUMMARY
Executive summary
VISION & STR ATEGY
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We believe that sustainable fashion and KEY 2017 ACHIEVEMENTS
design should be available to everyone today, I N N OVAT I O N I S T H E K E Y T O A C H I E V I N G BY 2 0 3 0 , W E W I L L O N LY
F U L L C I R C U L A R I T Y. T H AT ’ S W H Y W E U S E 1 0 0 % R E CYC L E D O R
tomorrow and for generations to come. Our ARE SUPPORTING GROUND-BREAKING O T H E R S U S TA I N A B LY-
vision is to use our size and scale to lead the C O M PA N I E S S U C H A S R E : N E W C E L L , S O U R C E D M AT E R I A L S .
100%
WORN AGAIN AND TREETOTEXTILE.
change towards circular and renewable fash- GOAL 2030
ion, while being a fair and equal company.
100% CIRCU L AR & RENEWABLE
To achieve this, we have developed an ambi- We’ve reduced emissions
tious strategy, with a broad range of external from our own operations 35%
and internal experts. Our strategy follows a by a further 21%.
science-based approach wherever possible. This takes us another 26%
step closer to achieving 20%
OUR VISION AND STRATEGY ARE BUILT a climate positive value 13%
ON THREE KEY AMBITIONS chain by 2040. 11%
100% FAIR & EQUAL
1 0 0 % O F T H E FAC T O R I E S W E W O R K
W I T H I N B A N G L A D E S H H AV E N OW
13
14
15
C O N D U C T E D D E M O C R AT I C E L E C T I O N S
16
17
100% LEADING
20
20
20
20
20
THE CHANGE O F W O R K E R R E P R E S E N TAT I V E S .
STANDARDS & POLICIES
Our supplier list includes the
details of tier 1 factories for 98.5%
100% CIRCUL AR
& RENEWABLE
100% FAIR
& EQUAL
of our products and tier 2 factories
for 60% of our products.
HOW WE REPORT
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ABOUT H&M GROUP / OUR VALUE CHAIN / LETTER FROM CEO / EXECUTIVE SUMMARY
VISION & STR ATEGY
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Awards & recognitions
4 5 8 S U P P L I E R FA C T O R I E S H AV E B E E N We’ve set a new
TR AINED IN OUR WORKPL ACE DIALOGUE Dow Jones Sustainability Europe Index
PROGR AMME, AND MORE THAN 620,000 chemical vision and
W O R K E R S A R E N OW R E P R E S E N T E D BY Dow Jones Sustainability World Index
E L E C T E D W O R K E R R E P R E S E N TAT I V E S . roadmap to lead the
Fashion Revolution’s Fashion Transparency Index
change towards a
FTSE4Good
toxic-free fashion future.
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Global Compact 100 index
Global 100 Most Sustainable Corporations
Newsweek Green Ranking
BOARD OF DIRECTORS GENDER SPLIT 2017
5 6 % W O M E N / 4 4% M E N SIGWATCH – most praised company in
the world by activists
Sustainable Cotton Ranking – category “Leading the way”
Today, 59% of the cotton Textile Exchange Preferred Fiber & Materials Report 2017
we use is sustainably- 100% of our
100% FAIR & EQUAL
– second biggest user of organic and recycled cotton
sourced. Our goal is commercial business The Business of Fashion – the Best Companies
to use 100% sustainably- partners have signed to work for in fashion 2017
sourced cotton by 2020.* our Code of Ethics.
STANDARDS & POLICIES
During 2017, we collected Each year, we produce a sustainability report summarizing H&M group’s
sustainability work and progress. The report includes all brands
17,771 tonnes of textiles through (H&M, COS, Weekday, Cheap Monday, Monki, H&M Home, & Other
our garment collecting initiative Stories and ARKET) and is prepared in accordance with the GRI
Standards: Core Option. We also report on human rights in line with the
for reuse and recycling. UN Guiding Principles Reporting Framework and are signatories to the
UN Global Compact. Our sustainability strategy is also well aligned with
HOW WE REPORT
the UN’s Sustainability Development Goals (SDGs).
*Which includes certified organic cotton, Better Cotton (BCI) and/or recycled cotton.
To learn more, please visit sustainability.hm.com
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OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
VISION & STRATEGY
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H&M.
STRATEGY
VISION &
H & M G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 7
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / ENGAGING OUR CHANGEMAKERS / HOW WE ARE ORGANISED / INTERVIEW WITH HEAD OF SUSTAINABILITY
Our vision & strategy
VISION & STRATEGY
VISION & STR ATEGY
100% LE ADING THE CHANGE
At H&M group, we believe that sustainable fashion and design should Our sustainability strategy
be available to everyone. Our vision is to lead the change towards a
circular and renewable fashion industry, while being a fair and equal VISION
Our vision is to lead the change
company. Using our size and scale, we are working to catalyse these towards circular and renewable fashion
while being a fair and equal company.
systemic changes across our own operations and the wider industry
to ensure that we can continue to create great fashion and design in a
100% CIRCU L AR & RENEWABLE
sustainable way for many generations to come.
This vision applies to every brand within relevant and successful in our rapidly 100% LEADING THE CHANGE
H&M group. We all share the same val- changing world. 100% CIRCUL AR & RENEWABLE 100% FAIR & EQUAL
ues, the same belief in fairness, diversity
and equality and the same ambition to We know that achieving our vision
lead the change towards a sustainable will not be easy, but we always strive CHANGE-MAKING PROGR AMME
fashion and design industry. to embrace and tackle challenges. By
100% FAIR & EQUAL
Our Change-Making Programme is at the heart of all our sustainability work. It includes
continuing to work with and learn from goals, roadmaps, standards and methods that help us work towards our vision, enable
While we have a long and well- stakeholders and industry experts who changemakers and ensure that sustainability is integrated in everything we do.
established history in sustainability, help set and shape our sustainability
projected population growth figures and work, we believe that we are in a strong
natural resource levels make it clear position to have a positive impact.
ENGAGING CHANGEMAKERS
that a different approach to our work is Furthermore, by applying a science-
STANDARDS & POLICIES
needed, hence the creation of our latest based approach to our work, we can set
vision and strategy. the best goals and roadmaps possible
to drive positive change throughout our
But our vision is not only necessary from company and the wider industry.
a social and environmental perspective ALL COLLEAGUES ALL PARTNERS
– it also makes good business sense.
Long-term investments in sustainabil- ALL CUSTOMERS
ity provide us with long-term business
HOW WE REPORT
opportunities that will keep H&M group
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OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / ENGAGING OUR CHANGEMAKERS / HOW WE ARE ORGANISED / INTERVIEW WITH HEAD OF SUSTAINABILITY
Our ambitions
VISION & STRATEGY
VISION & STR ATEGY
100% LE ADING THE CHANGE
Our vision and strategy are built on three key ambitions
100% LEADING THE CHANGE Our ambitions set a very high bar and
– Promote and scale innovation that’s because we believe big change
– Drive transparency requires big ambitions. Solutions
– Reward sustainable actions to many of the challenges facing the
industry are simply not in place yet and
100% CIRCULAR & RENEWABLE as such we need strong ambitions and
100% CIRCU L AR & RENEWABLE
– A circular approach to how products vision to help us find those solutions.
are made and used It is our ambitions that give us the long-
– Use only recycled or other sustainably- term focus, direction and motivation 100% LEADING
sourced materials needed to really drive positive change THE CHANGE
– A climate positive value chain across the industry.
100% FAIR & EQUAL
– Fair jobs for all
– Stewards for diversity and
inclusiveness
100% FAIR & EQUAL
“ Ahascompany of our size and scale
a responsibility as well as a great
STANDARDS & POLICIES
100% CIRCULAR 100% FAIR
opportunity to lead the change & RENEWABLE & EQUAL
towards a more sustainable fashion
and design industry.
”
HOW WE REPORT
ANNA GEDDA, HEAD OF SUSTAINABILITY, H&M GROUP
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OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / ENGAGING OUR CHANGEMAKERS / HOW WE ARE ORGANISED / INTERVIEW WITH HEAD OF SUSTAINABILITY
Our Change-Making Programme
VISION & STRATEGY
VISION & STR ATEGY
100% LE ADING THE CHANGE
While our strong vision and
ambitions help set the direction of our We turn our vision and strategy into action by working with:
sustainability strategy, it is our Change-
Making Programme that really turns
this strategy into action.
100% CIRCU L AR & RENEWABLE
As H&M group is comprised of multiple brands,
operating in a variety of functions across many GOALS ROADMAPS STANDARDS AND METHODS AND
different countries and cultures, we need a Our vision and These are strategic POLICIES FOLLOW-UP
programme that systematically and effectively ambitions are trans- plans, targets and Our sustainability These are the
integrates sustainability into all aspects of our lated into concrete actions for reaching standards ensure that processes, routines
business. Our Change-Making Programme is our goals at group, market our goals. we and our business and methods we use
and function levels. partners operate in to set goals and evalu-
solution. We have roadmaps a sustainable way. ate our progress.
Each function and for specific sustainabil-
The programme brings together the goals, road- market has ownership ity areas, for example They include our They ensure that our
maps, standards and follow-up methods we need of its own sustaina- energy, water, inno- Code of Ethics, strategy is well-
100% FAIR & EQUAL
to work towards our vision, while leaving room for bility goals. vation, waste and Sustainability integrated across
transparency. Commitment, Human our business.
locally-tailored implementation and activities. This Rights Policy, etc.
approach helps us make sustainability a relevant
part of all our colleagues’ daily working lives. See more on page 79 in
Standards & policies.
STANDARDS & POLICIES
CULTURE AND VALUES
HOW WE REPORT
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OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / ENGAGING OUR CHANGEMAKERS / HOW WE ARE ORGANISED / INTERVIEW WITH HEAD OF SUSTAINABILITY
Engaging our changemakers
VISION & STRATEGY
VISION & STR ATEGY
100% LE ADING THE CHANGE
We believe that changemakers are the people who can help
H&M group achieve our vision of a sustainable fashion and
design industry.
STAKEHOLDERS & EXPERTS OUR COLLEAGUES
Building and maintaining partnerships Everyone at H&M group should feel like
100% CIRCU L AR & RENEWABLE
and dialogue with industry stakeholders they can contribute. We’re working to
and experts is crucial to achieving our enable all employees to use their talents,
vision. Stakeholders and experts provide skills and passions in their daily work to
us with direction and expertise that we lead the change our industry needs.
can then use to develop our long-term
goals and action plans. They also work OUR CUSTOMERS
together with us to address specific We are working to inspire our customers
challenges and help us to find the best to make more sustainable choices and
solutions. to join our sustainability mission. Our
size and scale means that we have many
100% FAIR & EQUAL
BUSINESS PARTNERS customers, so every single action, no
We build rewarding partnerships with matter how small, makes a huge collec-
our business partners and are working tive difference.
with them to raise environmental and
social standards across our industry.
“ Achieving
STANDARDS & POLICIES
systemic change is not
something that can be done alone.
Collaboration is essential.
”
HENDRIK ALPEN, SUSTAINABILITY ENGAGEMENT MANAGER, H&M GROUP
HOW WE REPORT
& Other Stories.
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OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / ENGAGING OUR CHANGEMAKERS / HOW WE ARE ORGANISED / INTERVIEW WITH HEAD OF SUSTAINABILITY
How we are organised
VISION & STRATEGY
VISION & STR ATEGY
100% LE ADING THE CHANGE
As our Change-Making Programme illustrates, to drive long- Organisational chart
term change throughout our entire value chain, it is crucial
that sustainability play an active role in the daily work of all our
colleagues and across every function within H&M group. BOARD OF DIRECTORS
Reporting directly to our CEO, our In our 20 production markets, we employ
100% CIRCU L AR & RENEWABLE
Head of Sustainability is responsible for more than 150 people working specifi-
the implementation of our sustainability cally in sustainability. These colleagues
vision and strategy together with the work directly with our business partners Bi-annual
performance
Executive Management Team. Twice to assess their performance against
reporting
a year, our CEO, CFO and Head of Sus- our Sustainability Commitment (which CEO
tainability review the progress made replaced our Code of Conduct in 2016 –
and report performance (against key read more on page 82) and support them
sustainability indicators) to our Board in making improvements through capac-
of Directors. ity building programmes and activities.
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Our global sustainability department Each function within each sales market
consists of more than 30 experts respon- then additionally sets its own measur-
sible for setting strategies, targets, goals, able sustainability goals and activities HEAD OF JOINT GROUP FUNCTIONS
policies and follow-up procedures to based on the strategy set by our global SUSTAINABILITY AND BR ANDS
ensure that our sustainability work is sustainability department. Within each
Define
carried out systematically. sales market, we employ a dedicated priorities annually
STANDARDS & POLICIES
sustainability manager who drives the based on business
implementation of our strategy across intelligence and
the entire market to engage all colleagues innovation
process
and customers.
GLOBAL LOCAL
SUSTAINABILITY SUSTAINABILITY
DEPARTMENT FUNCTIONS
HOW WE REPORT
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OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / ENGAGING OUR CHANGEMAKERS / HOW WE ARE ORGANISED / INTERVIEW WITH HEAD OF SUSTAINABILITY
Interview with Head of Sustainability
VISION & STRATEGY
VISION & STR ATEGY
100% LE ADING THE CHANGE
How have H&M group’s new sustainability innovation. Finding innovations to fill I don’t believe that providing fashion on
vision and strategy been received since the technological gaps we have through- a large scale and working in a sustainble
their launch last year? out our supply chain and bringing these way needs to be a contradiction. Like
I think our new sustainability strategy new innovations to market fast enough many other industries, there are inherent
has been well received. As it was devel- are two of our biggest challenges. challenges, but for truly systemic change
oped with the support and guidance of to take place, industry-wide collabora-
leading industry experts with a great What are the three main priorities tion is essential. At H&M group, we are
knowledge of the current sustainability going forward? positive that by working to achieve a
100% CIRCU L AR & RENEWABLE
landscape, we believe that it resonates Accelerating the move towards full 100% circular and renewable value chain,
with many key challenges and opportu- circularity is one of our main priori- that treats people in a fair and equal way
nities that face the fashion industry. ties. Here our focus is on the continued and makes it possible for our customers
quest for more recycled and sustainably to make more sustainable choices, we
Since the launch, our focus has been sourced materials, improved design, pro- can lead the way to this systemic change
on the long-term implementation of the duction processes and product lifespan. and provide truly sustainable fashion to
strategy across the entire H&M group. Innovation will be key to achieving our all our customers around the world.
But alongside our work towards achiev- 100% circular ambition.
ing our key long-term goals, we are also Is H&M group afraid to fail?
continuously adding short-term goals On the social side, our main priorities We are, of course aware that our strat-
100% FAIR & EQUAL
and milestones to really help drive our are to deliver the goals we set for 2018. egy is very ambitious and the solutions
vision and ambitions forward. Looking beyond this, we will focus on needed to achieve some of our goals are
maintaining the stability of our produc- simply not in place yet. However, a com-
What are the biggest challenges to Anna Gedda. tion markets to ensure the provision of pany of our scale and reach has a respon-
fulfilling your goals? good, fair opportunities for workers. Our sibility as well as a great opportunity to
The main challenges we face are not third priority is to further develop cus- lead the change towards a more sus-
STANDARDS & POLICIES
specific to H&M group, they are indus- and GFA, systemic change takes time. tomer engagement around sustainability. tainable industry. The evidence is clear:
try-wide. Therefore, solutions cannot It is a complex undertaking that involves We will, for example, continue our com- our planet is running out of natural
be reached by us alone – they all require multiple players. mitment to the SAC and the Higg Index, resources and our population is growing
industry collaboration. For example, our as well as exploring other solutions. exponentially so we must be bold and
goal to become 100% fair and equal is Similarly, on the environmental side, ambitious in our work. Of course, there
very much dependent on industry collab- our core goals – to become 100% circular H&M group is one of the world’s leading is always the risk of some failures along
oration. While we are seeing good pro- and climate positive – depend heavily design companies and to many, associated the way, but I would rather fail having
gress with industrial relations and wage on collaborations that will further the with fast fashion. Can a fast fashion com- pushed the boundaries as far as possible
HOW WE REPORT
systems through our work with ACT development of new technology and pany ever really be sustainable? than having only done what’s expected.
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H&M.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
100% Leading the Change: Key facts & figures 2017
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
In addition to all tier 1
supplier factories, the Higg
Index facility module is now
applied to 60% of our total
tier 2 supplier factories.
100% CIRCU L AR & RENEWABLE
In 2017, we trialled a new
customer-facing transparency
layer for the launch of our H&M
Conscious Exclusive Collection on
Innovation is the key to H&M group launched a new hm.com. This allowed customers
achieving full circularity. brand called ARKET in 2017. to see where garments were made,
100% FAIR & EQUAL
That’s why we are supporting The brand is all about well-made, what materials were used and
ground-breaking companies sustainable design, while providing who made them. This feature runs
such as re:newcell, Worn Again customers with transparency of again for the 2018 Conscious
and Treetotextile. the origin of its products. Exclusive Collection.
STANDARDS & POLICIES
Our supplier list includes the details of
tier 1 factories for 98.5% of our products and
tier 2 factories for 60% of our products.
OUR LEADING THE CHANGE AMBITION
C O N T R I B U T E S T O S D G 1 2 A N D S D G 1 7.
HOW WE REPORT
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
100% Leading the Change explained
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
100% Leading the Change is our
commitment to act as a catalyst for
change across the entire fashion
industry. By bringing partners together
to identify challenges and share
innovative ideas and solutions, we
100% CIRCU L AR & RENEWABLE
want to push boundaries and break
new ground to improve the way our
COS.
products are designed and made.
This leadership approach is core to our strategy
and will empower us to fulfil our ambitions to
become both a 100% Circular & Renewable and a
100% Fair & Equal business.
100% FAIR & EQUAL
To lead the change across our own operations and
those of the industry, we are working to catalyse
three core focus areas:
– Innovation
STANDARDS & POLICIES
– Transparency
– Rewarding sustainable actions
HOW WE REPORT
Our collections are created by our own designers, patternmakers and buyers. H&M.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
Innovation
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
We believe that innovation is the key
to achieving industry-wide change. Case study: Interview with Nanna Andersen – Head of H&M CO:LAB
Many challenges that the industry currently faces What is H&M CO:LAB? Worn Again are developing a
can and will be overcome through new innovation. H&M CO:LAB is a business area within ground-breaking chemical separation
For example, there is currently no viable technology The Laboratory. The Laboratory is a and recycling technology for blended
for recycling blended fibres on a large scale, there- think-tank within H&M group that works fibre textiles.
fore, we simply cannot make new products from as to take an outside-in perspective on
100% CIRCU L AR & RENEWABLE
many old products as we would like to. But we are our business and challenge our think- re:newcell have developed a unique
working with experts who are developing technol- ing. H&M CO:LAB invests in companies technology for recycling textiles made
ogies to tackle this and when a scalable solution that can add value to our business. We from cellulosic fibres (such as cotton,
comes to fruition, it will transform the way the entire look to help these companies thrive lyocell and viscose) into a pulp, which is
industry works with materials. and reach their vision. H&M CO:LAB used as input for making fully circular
invests in three areas: sustainable fash- viscose or lyocell.
At H&M group, we are working to identify, invest in ion – that develop the technologies the
and promote all types of sustainable innovations from industry needs to become fully circular Treetotextile are developing a new
digital systems that provide traceability information and sustainable, innovative business sustainable process to make textile
to new energy-saving solutions. We want to use our models – companies that explore how fibres from forest raw material in a
100% FAIR & EQUAL
size and global reach to take sustainable innovations consumers will shop fashion in the sustainable way.
to scale because for us, innovation means transfor future and enablers – companies that Nanna Andersen.
mation and that is exactly what our industry needs. provide technology and solutions that Thread is a marketplace focusing on
makes us better. By investing in these personalization. By combining tips from
2017 PROGRESS & LEARNINGS types of companies, we support the By doing this we learn and challenge real stylists with machine-learning algo-
INNOVATION long-term growth of H&M group. ourselves in a way that, besides provid- rithms, Thread reduces the millions of
STANDARDS & POLICIES
• We invested in a new innovation company called ingthe opportunity for financial return, style options available by only suggest-
re:newcell which has developed a new technology How does H&M CO:LAB decide what can improve and develop our business ing things that are perfect for you.
for recycling materials. projects to invest in? in a positive way.
H&M CO:LAB only invests when we Sellpy is a service helping people
• In 2017, the HKRITA innovation and H&M think we can make a big difference for Which projects are H&M CO:LAB to easily sell their unwanted clothes,
Foundation saw further positive developments the companies we invest in with our currently supporting? giving fashion a second life.
(read more on page 35). Funding for the project is knowledge and resources, and always in We currently support around ten
made possible thanks to the surplus funds generated collaboration with the existing business. companies including:
HOW WE REPORT
from H&M’s garment collecting scheme.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
Case study: WINNERS OF THE GLOBAL
H&M Foundation’s Global CHANGE AWARD 2017:
€300,000: Grape Leather – using leftovers
Change Award from winemaking to create fully vegetal
The Global Change Award, initiated by the leather (Italy)
non-profit H&M Foundation in 2015, is one of
the world’s biggest challenges for early stage €250,000: Solar Textiles – harvesting
100% CIRCU L AR & RENEWABLE
innovation, calling for ideas that will help pro- the sun’s energy to make fashion fabrics
tect the planet by accelerating the shift from (US/Switzerland)
a linear to a circular fashion industry.
€150,000: Content Thread –facilitating
Every year, a panel of international experts sorting and recycling of clothes using
helps to select five winning innovations, a digital thread (US/UK)
and the global public distributes a €1 million
grant between the winners through an €150,000: Denim-dyed Denim – letting
online vote. The winners also gain access to used denim give colour to new denim
Global Change Award 2017 winners.
a one-year innovation accelerator provided (Australia)
100% FAIR & EQUAL
by H&M Foundation, Accenture and KTH
Royal Institute of Technology in Stockholm, €150,000: Manure Couture – making cow Global Change Award is calling for equity or intellectual property rights in
offering tailor-made support to further manure-based fabric (the Netherlands) game-changing ideas that can help the competing innovation ideas.
develop their innovations. reinvent the entire industry. Neither H&M
Foundation nor H&M group takes any Learn more at globalchangeaward.com
“Now in its third year, the Global Change
“ The
STANDARDS & POLICIES
Award has really become a positive force
in the fashion industry. It has proven to be
a true catalyst for the winners, giving them
Global Change Award has opened so many doors.
support and access to a valuable network If we hadn’t won the award, I think it would have taken
”
so they can bring their innovations to the
market quicker and better prepared,” says us at least five years to reach the point we’re at today.
Karl-Johan Persson, Board member of H&M
Foundation and CEO of H&M group. ANN RUNNEL, ONE OF THE GLOBAL CHANGE AWARD WINNERS
HOW WE REPORT
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
Transparency
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
Transparency is key to building trust and credibility along
our supply chain and empowering our business partners and An example of the tiers in a supply chain
customers to make more sustainable choices. Transparency
means knowing how and where our products are made and
sharing that information wherever possible. As such, supply chain H&M
GROUP
transparency creates greater accountability for both ourselves
100% CIRCU L AR & RENEWABLE
and our business partners, allowing us to pinpoint priorities, set
better goals, take smarter actions and communicate confidently
about our progress. 1
At H&M group, we believe that greater of 2016, it also includes tier 2 factories
2
transparency will help lead the change which account for 60% of our products.
towards a more sustainable industry and We are working towards greater trans-
100% FAIR & EQUAL
therefore, we are working with transpar- parency across our tier 2 and tier 3 sup-
ency in two key ways: pliers as well, however, the challenge lies
in the fact that in most instances neither
3
– We share information in a we nor our competitors have a direct TIER 1
transparent way. business relationship with those tier 2 Garment production
– We collaborate on industry-wide and tier 3 suppliers.
TIER 2
STANDARDS & POLICIES
transparency tools. Fabric production
In spite of these challenges, we believe
TIER 3
1) WE SHARE INFORMATION IN that we can do more. We want our cus- 4
Yarn spinning
A TRANSPARENT WAY tomers to have faith in the operations we
TIER 4
In 2013, we were one of the first fashion run and the products we create, so we are Different supply chains involve
different numbers and levels of tiers. Raw material sold
retailers to make our supplier list cus- working to build transparency layers into The purpose of this illustration is to at wholesale
tomer-facing. Our supplier list includes our brands that go beyond our supplier show the complexity of supply chains,
however this is purely an example of 5 TIER 5
tier 1 manufacturing supplier factories list i.e. sharing more than business name one type of supply chain and is not
HOW WE REPORT
intended to represent all supply chains. Raw material sourcing
for 98.5% of H&M group products. As a and address details.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
2017 PROGRESS & LEARNINGS Case study: How does
CUSTOMER-FACING
TRANSPARENCY ARKET work with
• In 2017, we trialled a new type of transparency?
customer-facing transparency for our
H&M Conscious Exclusive Collection on With transparency as a core pillar of its
hm.com. This feature allowed customers business model, ARKET is taking an industry
100% CIRCU L AR & RENEWABLE
to see where garments were made, what lead with a new and innovative way of
materials were used and who made them. making supplier information customer-
This feature will be offered again for the facing. Using a simple search function,
2018 Conscious Exclusive Collection. customers visiting the ARKET website, are
immediately provided with the option to
• In 2017, we launched ARKET, the select and buy products based upon the
latest brand within H&M group. Built products’ country of origin. As such, the tier
with principles of transparency and 1 supplier details of each individual ARKET
sustainability at its core, the brand allows product are presented to the customer
customers to search all ARKET products directly alongside the product itself. Details
100% FAIR & EQUAL
on its website based on the country of listed include supplier name and produc-
production and material type. tion unit. Selected products also provide
customers with supplier stories, giving them
an in-depth look at the facility responsible
for making the product. Not only does this
level of transparency increase awareness
STANDARDS & POLICIES
amongst our customers, it also provides
suppliers with recognition for their contri
bution to the brand’s products.
HOW WE REPORT
ARKET Brussels.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
2) WE COLLABORATE ON INDUSTRY-
WIDE TRANSPARENCY TOOLS The Higg Index MEASURING ENVIRONMENTAL, SOCIAL & LABOUR IMPACTS
In 2010, H&M group joined the Sustaina-
ble Apparel Coalition (SAC) as a founding
member. The SAC is an industry-wide
alliance between brands and stakehold-
HIGG
ers who are all working towards a more BUSINESS PARTNERS CUSTOMERS
Total score FACILITY Total score
transparent and therefore sustainable & ALL BRANDS MODULE
100% CIRCU L AR & RENEWABLE
fashion industry.
Since its inception, the SAC has been
focusing on the ground-breaking devel-
HIGG
opment of the Higg Index, a measure- Total score BRAND Total score
ment tool which assesses sustainability MODULE
performance. Using self-assessment and
verification tools, the Higg Index meas-
ures the environmental, social and/or
labour impacts that are associated with
100% FAIR & EQUAL
HIGG
a brand, a facility (i.e. a factory) or a PRODUCT Total score
IMPROVE SUSTAINABLE Total score MAKE MORE
product and generates a holistic score. MODULE
PRACTICES SUSTAINABLE CHOICES
This score adds comparability and
enables areas for improvement to be
readily identified and addressed.
STANDARDS & POLICIES
The Higg Index is an industry first – it is The brand module of the Higg Index The ambition is for the Higg Index to 2017 PROGRESS & LEARNINGS
currently the only assessment tool that is currently used internally while the become a customer-facing, universal TRANSPARENCY TOOLS
provides transparency information of product module is still in development. benchmark for sustainability performance • In addition to all tier 1 factories, the
this nature and detail and H&M group Once the product module is complete, we assessment across all brands. This will Higg Index facility module is now applied
were one of the first global fashion com- will be able to assess the sustainability allow customers to compare the perfor- to 60% of our total tier 2 factories.
panies to implement it. The facility mod- performance of a single product within mance of our products to those of our
ule was applied to all our tier 1 suppliers H&M group. competitors. We see this as healthy com- • In 2017, we began to use the brand
in 2015. We also began using the assess- petition that is needed to drive real pro- module of the Higg Index internally.
HOW WE REPORT
ment tool on tier 2 factories in 2015. gress in transparency across the industry.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
Rewarding sustainable actions
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
We believe that it is important to encourage and empower
sustainable actions throughout our value chain. We know that Case study: Rewarding each other to see who can collect the
biggest volume of unwanted garments
incentives and reward systems help to achieve long-term, positive sustainable actions at through the in-store H&M, garment col-
behavioural changes. Therefore, we want to work with reward H&M UK & Ireland lecting scheme. The winning store is then
selected, announced and rewarded with
systems that engage our changemakers and accelerate progress To encourage colleagues to take an a trip to visit the I:CO recycling facility in
towards our sustainability vision. active role in our sustainability vision, the Germany. Not only does the competition
100% CIRCU L AR & RENEWABLE
H&M UK & Ireland management team help H&M group work towards its goal to
runs a garment collecting competition collect 25,000 tonnes of unwanted tex-
across all UK & Ireland stores every quar- tiles each year by 2025, it also provides
ter. As such, store teams compete against colleagues with a deep understanding
To achieve this, we have developed and COLLEAGUES of how garment
will continue to use different reward We ensure that all our colleagues are recycling works and
systems that are tailored to the needs of encouraged to contribute to our sus- why it is so impor-
three different groups of changemakers: tainability work and we seek to reward tant. Colleagues can
– Business partners them for doing so. We implement and then return to their
– Colleagues measure sustainability goals at every stores with a greater
100% FAIR & EQUAL
– Customers level and across all functions within understanding of how
H&M group and crucially, this includes we work with I:CO and
BUSINESS PARTNERS goals set at an executive level. Sustain- a greater belief in our
Using the Sustainable Impact Partner- ability goals are included in our overall sustainability work.
ship Programme (SIPP), we are working management evaluation process and we Rewarding colleagues
with our business partners to raise their regularly follow up on function specific in this way has proven
STANDARDS & POLICIES
environmental and social performance. goals. Through a range of activities and to be very successful
This involves rewarding high-achieving strategies, we encourage colleagues to in the UK & Ireland
and ambitious partners with more contribute to change in the workplace – it builds loyalty,
orders, training opportunities and and in their communities. pride and trust while
long-term contracts. This helps improve increasing knowledge
environmental and social standards and engagement in
across our whole industry. Read more H&M group's sustaina-
about SIPP in our Standards & policies UK colleagues visiting the ICO facility in Germany. bility vision.
HOW WE REPORT
chapter on page 83.
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KEY FACTS & FIGURES / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
VISION & STR ATEGY
100% LEADING THE CHANGE
100% LE ADING THE CHANGE
CUSTOMERS
We know that we have a responsibility to Fact box: Rewarding & OTHER STORIES – As well as collect-
take sustainable actions on behalf of our ing customers’ unwanted textiles, which
customers, but we also need active par- customers for garment are also reworn, reused or recycled via
ticipation from our customers to really collecting the H&M group’s partnership with I:CO –
achieve our 100% Circular & Renewable & Other Stories also encourages custom-
ambition and drive this change across H&M – At all H&M stores around the ers to return empty beauty containers for
the whole industry. By providing our world, customers are encouraged to recycling. In return for either sustainable
100% CIRCU L AR & RENEWABLE
customers with optional incentives for bring unwanted garments and textiles, action, customers are rewarded with 10%
sustainable actions, we can increase cus- by any brand and in any condition, off their next in-store purchase.
tomer interest and knowledge in sustain- to be recycled, reworn or reused via
ability and create positive behavioural the brand’s in-store garment collect- CHEAP MONDAY – By 2020, 5% of all
change. We therefore use incentives to ing scheme. In return, customers are cotton used in Cheap Monday denim will
help encourage our customers to rewear, rewarded with a voucher that they can be recycled cotton from post-consumer
Cheap Monday.
reuse and recycle unwanted clothes use towards their next H&M purchase. waste. To encourage customers to recycle
wherever possible. We reward customers with them, Cheap Monday offers them
for sustainable actions in several ways 10% off their next purchase every time
across H&M group brands. they hand in a bag of unwanted textiles.
100% FAIR & EQUAL
Unwanted textiles are reused or recycled.
MONKI – All Monki stores around the
world offer an in-store garment recycling
service. Customers are rewarded with
a “10% off your next purchase” voucher
STANDARDS & POLICIES
when they bring a bag of unwanted tex-
tiles into any Monki store.
HOW WE REPORT
& Other Stories.
H & M G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 7 25 OF 100OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
100% CIRCULAR & RENEWABLE
26 OF 100
H&M.
100% CIRCULAR
& RENEWABLE
H & M G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 7OVERVIEW
KEY FACTS & FIGURES / KPIs AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING 100% CIRCUL AR / BECOMING CLIMATE POSITIVE
100% Circular & Renewable: Key facts & figures 2017
VISION & STR ATEGY
100% LE ADING THE CHANGE
We’ve set a new chemical T O TA L S H A R E
O F R E CYC L E D O R
vision and roadmap to lead O T H E R S U S TA I N A B LY-
S O U R C E D M AT E R I A L S 100%
the change towards safe GOAL 2030
products and a toxic-free
fashion future.
100% CIRCULAR & RENEWABLE
100% CIRCU L AR & RENEWABLE
We are the biggest buyer 35%
of Better Cotton,*
and the second biggest user 26%
of organic cotton and 20%
recycled cotton.** 13%
11%
Our cleaner
100% FAIR & EQUAL
In 2017, we reduced production programmes
emissions from our own have reduced
operations by a further 21% water consumption by
13
14
15
16
17
20
20
20
20
20
compared to 2016. 7.82 million m3.
STANDARDS & POLICIES
We’ve collected 17,771 tonnes of textiles through
our garment collecting initiative for reuse and
recycling. That’s 12% more than last year, and the
equivalent of 89 million t-shirts.
O U R C I R C U L A R & R E N E WA B L E A M B I T I O N
HOW WE REPORT
C O N T R I B U T E S T O S D G 6 , S D G 7, S D G 1 2 & S D G 1 3 .
*Source: Better Cotton Initiative’s (BCI) latest annual report (2016).**Source: Textile Exchange Preferred Fiber & Materials Market Report 2017.
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KEY FACTS & FIGURES / KPIs AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING 100% CIRCUL AR / BECOMING CLIMATE POSITIVE
100% Circular & Renewable: KPIs and goals
VISION & STR ATEGY
100% LE ADING THE CHANGE
Goal-setting is an ongoing process. We work with experts – both internally and externally – and follow a science-based approach to define targets and actions wherever possible.
The below KPIs and goals represent the initial key milestones along the way to achieving our ambition to become 100% Circular & Renewable.
100% Circular & Renewable
KPI 2014 2015 2016 2017 GOAL
100% by 2030
% of recycled or other sustainably-sourced material of total material use (commercial goods) 13% 20% 26% 35%
100% CIRCULAR & RENEWABLE
100% CIRCU L AR & RENEWABLE
at the latest
% of cotton from sustainable resources (certified organic, recycled or Better Cotton) 22% 34% 43% 59% 100% by 2020
25,000t per year
Tonnes of garments collected through garment collecting initiative 7,684t 12,341t 15,888t 17,771t
by 2020
% of stores with recycling systems for main types of store waste 58% 61% 71% 64% 100%
% of facilities in own operations with water-efficient equipment 24% 37% 51% 51% 100% by 2020
100%
% business partner factories in compliance with wastewater quality requirements as defined by BSR 71% 75% 82% 84%
100% FAIR & EQUAL
% of renewable electricity in own operations 27% 78% 96% 96% 100%
Climate positive
% change in CO 2 emissions from own operations (scope 1 + 2) compared with previous year -4% -56% -47% -21%
by 2040
% change in electricity intensity (kwh/m2 per opening hour compared with 2016) n/a n/a n/a -2.7% -25% by 2030
STANDARDS & POLICIES
HOW WE REPORT
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KEY FACTS & FIGURES / KPIs AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING 100% CIRCUL AR / BECOMING CLIMATE POSITIVE
100% Circular & Renewable explained
VISION & STR ATEGY
100% LE ADING THE CHANGE
Our 100% Circular & Renewable
Our planet provides us with an
ambition represents our commitment
abundance of natural resources. to achieve the shift from a linear to a
However global demands are rapidly circular model. We are approaching
this ambition holistically by building
outstripping supply. If population growth circularity into every stage of our value
continues as expected, the volume of chain, including the products we design
and make, the materials and processes
clothes sold across the world will triple to
100% CIRCULAR & RENEWABLE
100% CIRCU L AR & RENEWABLE
we use and how our customers care for
160 million tonnes by 2050.* This level and dispose of our products.
of demand would require the equivalent
But a business model can only be truly
of 2.3 planets’ worth of resources.** Put circular if it is powered by renewable
simply, the fashion industry is running energy. As such, we are working to use
100% renewable energy throughout
out of the natural resources it uses to our own operations, which will signifi-
make products and cannot continue to cantly reduce our climate impact.
operate in the same way. At H&M group,
100% FAIR & EQUAL
Beyond switching to renewable energy
we believe that an industry-wide shift and cutting our emissions, we also
from a linear to a circular business want to set an example in our own
operations, drive change along our
model is the only solution. entire value chain and lead our indus-
try towards positive transformation.
STANDARDS & POLICIES
Our goal is therefore to achieve a
Circular models maximise resources and minimise climate positive value chain – a value
waste. Using the current linear model, less than chain that creates a net positive impact
1% of material used to produce clothes across the on the climate by 2040.
industry is recycled into new products.*** But in
a circular model, resources stay in use for as long
as possible before being regenerated into new
* Source: A New Textiles Economy: Redesigning Fashion’s
products and materials, resulting in a reduction in Future by Ellen MacArthur Foundation & CFI – pg 20.
HOW WE REPORT
** Source: footprintnetwork.org. ***Source: A New
waste and negative impacts. H&M. Textiles Economy: Redesigning Fashion’s Future by
Ellen MacArthur Foundation & CFI pg 21.
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KEY FACTS & FIGURES / KPIs AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING 100% CIRCUL AR / BECOMING CLIMATE POSITIVE
Becoming 100% circular
VISION & STR ATEGY
100% LE ADING THE CHANGE
Making the shift from a linear to a circular model is
not only necessary for the planet, it also presents a
Our circular approach
strong business case. Once customers are finished
with products, 87% of the material fibres used by the
industry to create those products end up in landfill.
This represents a lost opportunity of more than
USD 100 billion every year.*
STAGE A
100% CIRCULAR & RENEWABLE
100% CIRCU L AR & RENEWABLE
By designing for circularity, maximising resource Design
use by working with recycled or other sustainably
sourced materials, prolonging product lifespan
and creating a climate positive value chain, we will
increase the efficiency and the value of our opera-
tions and products. This responsible production and
consumption will enable us to continue designing STAGE E STAGE B
and producing great, sustainable products while Product reuse & Material choice
creating positive social and environmental impacts. recycling
100% FAIR & EQUAL
To become 100% circular, we are focusing on five key
I:CO facility in Germany.
stages within our value chain that are applicable to
both commerical and non-commerical products:
A. Design, B. Material choice,
C. Production processes, D. Product use,
E. Product reuse and recycling. STAGE C
STAGE D
STANDARDS & POLICIES
Production
Product use processes
“ AInitiative,
s a core partner of the Circular Fibres
H&M group acts as an industry
pioneer in the transition to a circular economy.
”
HOW WE REPORT
* Source: A New Textiles Economy: Redesigning Fashion’s Future by Ellen MacArthur
ELLEN MACARTHUR, FOUNDER OF ELLEN MACARTHUR FOUNDATION Foundation & CFI – pg 36.
H & M G R O U P S U S TA I N A B I L I T Y R E P O R T 2 0 1 7 30 OF 100You can also read
