Through initiatives such as product life maximization, emissions reduction, conservation of biodiversity, and incorporation of recycled materials in its products, H&M is trying to become a more sustainable company. Yet, its business model, together with its history of being in the eye of the storm for its environmental impact and treatment of its workers make us wonder: How sustainable is H&M really?
H&M Group’s Sustainability Report
Last year was the first year in which the H&M Group (which includes H&M, COS, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home, and ARKET), integrated its annual and sustainability reports. After explaining that it offers “customers the best combination of fashion, quality, and sustainability at affordable prices and thereby give them unbeatable value and the ability to access a more sustainable lifestyle,”[1] the report briefly explains its sustainability strategy. Here are the three key ambitions on which it’s based:
- Scale innovation; promote transparency; engage and partner for industry-wide progress.
- Become a circular and climate-positive business; have a climate-positive approach across the value chain; have a net positive impact on biodiversity; have a circular ecosystem for the products, supply chains, and customer journeys.
- Fair and equal jobs, with inclusive and diverse workplaces and communities.[2]
Because H&M is the largest brand of the H&M Group, the policies, and commitments made by the latter apply to the former. Yet, the retailer has its own objectives and targets, which bring down to earth the Group’s (rather general) ambitions. Let’s take a closer look, shall we?
H&M’s Targets and Progress
Reduction of Greenhouse Gas Emissions
H&M has set a science-based target to reduce its greenhouse gas emissions across its value chain by 56% by 2030 and reach net zero by 2040 (against a 2019 baseline). Ironically, early this year, the company pledged to double its sales by 2030! The idea is to do this while halving its carbon footprint by reducing its dependency on virgin resources and finding new ways to generate growth.[3]
The great thing is that these targets are science-based: the company takes the Paris Agreement and the Science Based Targets Initiative’s (SBTi) Net-Zero Standard as a base for setting its corporate targets.
Circularity and Durability
H&M is working on becoming a circular business, by maximizing the value of its products and resources by reusing, repairing, and recycling them.[4] Among others, the brand is working with the Ellen MacArthur Foundation (EMF) to integrate circularity into all parts of its business.[5] It has also created the ‘Circulator’, a “new approach that helps its product teams understand the impact of their decisions, make better choices and develop products that are fit for a circular fashion economy.”[6] The brand has pledged to use this approach to develop all its products by 2025.
H&M is also expanding ways for its customers to purchase pre-loved products (here are some options provided). It has also been working with innovative and long-lasting materials “to keep in your wardrobe for several seasons.”[7]
Natural Resources and Biodiversity
By working towards its 2030 goal to only source recycled or more sustainably sourced materials, H&M is reducing its reliance on natural resources and raw materials. This, of course, is a great plus for biodiversity conservation.
H&M is “investing in projects connected to the parts of [its] value chain where [it has] the biggest environmental impact, raw materials.” The retailer has also been working in regenerative agriculture, which is known for increasing soil fertility, biodiversity, soil carbon sequestration, water retention, and cleanliness, as well as contributing to community resilience and livelihoods.
Animals
For H&M, “no animals should be harmed in the making of [its] products.”[8] A good start, for sure.
The retailer doesn’t perform animal tests and has strict requirements and long-term goals in place for materials of animal origin, such as wool, leather, or down. It doesn’t use fur and has banned the use of exotic skin. Also, as part of its 2030 goal to only use sustainably sourced materials, it’s begun to gradually phase out conventional cashmere, which is known to come with both environmental and animal welfare challenges.[9] It does, however, use leather and exotic animal hair.
Workers
H&M wants “to be part of a fashion industry that provides fair jobs and equal treatment for everyone”[10] and identified the most relevant issues for its operations, including labor rights, working hours, wages, and the fight against modern slavery. This is good, considering that the fashion industry is known to be a big participant in the latter.
However, not all is good news on this front. After the Rana Plaza disaster, H&M joined the Bangladesh Fire Safety Accord (to address health and safety issues in hundreds of factories) and promised to pay 850,000 workers a living wage by 2018. Unfortunately, the retailer didn’t keep its promise.[11] Likewise in 2018, according to reports by Global Labour Justice pressure to meet fast fashion deadlines lead to women working in Asian factories supplying H&M being sexually and physically abused.[12]
Luckily, in recent years H&M has made some improvements on this front. In August 2021, a new agreement called the International Accord for Health and Safety in the Textile and Garment Industry was signed between the H&M Group, trade unions and other brands. This new agreement will ensure H&M’s joint efforts for a safe work environment in the Bangladesh garment industry. Also, in the latest Fashion Transparency Index, it received a score of 61-70%. It publishes detailed information about its suppliers and supplier policies, audits, remediation processes, and information about forced labor, gender equality, or freedom of association.
H&M and the Matrix Failure…
According to H&M, the more it uses its size and influence to make a positive impact, the more it can grow and create value in a sustainable way.[13] Of course, the retailer cannot solve the ‘fashion problem’ (so to speak) by itself; “the whole industry must contribute.”[14] Yet, let’s not lose sight of the fact that it is the second largest retailer in the world, just behind Inditex! So, is the Swedish giant really using its full size and influence?
For starters, H&M’s business model is “fast fashion”, this is, a low-cost, high-volume, and trend-based business. To keep up with the absurd pace of (over-)production demanded by this business model, H&M has to consume massive amounts of resources. Not to mention the ridiculous number of garments that end up in landfills, and shipments made around the world, which naturally result in a huge amount of carbon emissions.
The driving force behind the fast fashion business model is consumerism so, when consumers asked for more sustainable products, the retailer had to think fast. To target the growing segment of eco-conscious consumers, H&M has been trying to advertise itself as a sustainable business by launching a “Conscious” collection and all sorts of ingenious marketing strategies.
But consumers are becoming more and more educated about sustainability and are questioning brands’ “eco” moves. An example of this is the proposed class action complaint that Chelsea Commmodore filed in New York last July. She claimed that H&M was “taking advantage of consumers’ interest” in sustainability and products that “do not harm the environment”.[15] In case you didn’t know, H&M incorporated ‘environmental scorecards’ for its products called ‘Sustainability Profiles’ into the labeling, packaging and marketing materials for hundreds of its offerings. Commodore accused H&M of “falsif[ying]” them with “inaccurate and misleading data” and “misrepresentin[ing] its products as being better for the environment than comparable garments when they are not”.[16]
Final Thoughts
H&M has set sustainability targets and has adopted some positive practices and policies. Which is AMAZING! Yet, coming from such a massive player as H&M, it leaves us wanting more…
One thing is 100% clear, it doesn’t matter how many programs, innovations, targets, etc. the brand makes, if it’s not ready to change its business model, then being “green” is virtually impossible.
What do you think about H&M’s progress? Do you think it’s enough? Let us know in the comments below!
