What is H&M Group’s strategy for investing in carbon removal technologies?
We have science-based targets to reduce our absolute greenhouse gas (GHG) emissions across our value chain by 56% by 2030 and to achieve net zero by 2040. The "net" in net zero involves using permanent removals to mitigate any remaining emissions after achieving at least a 90% reduction. Our investments in carbon removal projects aim to address this need. Some of these partnerships include the Frontier coalition, an advance market commitment for permanent carbon removal, as well as an agreement with Climeworks to purchase 10,000 tons of removals by 2030. These initiatives are designed to create demand, driving the generation of supply necessary for meeting our net zero target by 2040. This dual role helps us contribute to global climate goals while ensuring we have the necessary resources when we reach our net zero milestone.
How do you perceive the demand for sustainable products among H&M’s customers?
The awareness and demand for more sustainable products and practices is indeed growing, driven by clear expectations from various stakeholders, including consumers, investors, NGOs, and governments. While it's challenging to pinpoint specific demands due to the diverse range of actors involved, there is an evident need for action on climate issues. Consumers increasingly seek products that are sustainably sourced and produced, and we strive to meet these expectations by integrating sustainability into our operations and product offerings.
What are the main challenges in making H&M Group’s production more sustainable?
One of the primary challenges is ensuring access to renewable electricity in all our production markets. This involves both the capacity of the grids to supply sufficient renewable energy and the stability and reliability of these grids to support our production processes. In some regions, such as Bangladesh, the infrastructure is not yet developed enough to meet these needs. Additionally, we often use a small portion of a supplier's capacity, meaning our investments in decarbonizing a facility benefit other brands using the same supplier. To address this, we have launched the Future Supplier Initiative, collaborating with other brands to jointly finance these transitions, thus accelerating the process.
Can circularity be achieved in the fashion industry, and how does H&M Group plan to realize this?
Circularity in fashion involves creating a system where products are designed to be recycled and reused, thus minimizing waste. We focus on three main areas: circular products, circular supply chains, and providing consumers with access to circular options.
Circular products use recycled materials and are designed for durability and recyclability. Our supply chains ensure that end-of-life products can re-enter the system as new raw materials or through reuse and resale initiatives. For instance, we offer resale options in stores and online for several of our brands. This holistic approach to circularity not only benefits the environment but also enhances our overall sustainability efforts.
How do trends like oversized garments impact the environment, and how does H&M Group address this?
Trends in fashion, such as oversized garments, can influence environmental impact. However, our primary focus remains on decoupling emissions from raw materials and production processes. By prioritizing the decarbonization of production and improving energy efficiency, we aim to mitigate these impacts regardless of changing fashion trends. Our goal is to maintain a laser focus on reducing emissions throughout our value chain, ensuring that we meet our sustainability targets while continuing to offer the products consumers desire.
What is H&M Group’s vision for the future in terms of sustainability and environmental impact?
Looking towards 2040, we envision significant changes in the global energy landscape and the fashion industry. Key achievements will include the development of stable, renewable electricity grids in production markets, particularly in developing countries. This transformation will not only support our sustainability goals but also bring broader benefits to these regions. Additionally, we aim to operate in a more circular manner, maximizing the use of every fiber as a valuable resource. This shift will involve a comprehensive approach to recycling, reuse, and reducing waste, ultimately creating a more sustainable and efficient fashion industry.
In conclusion, how does H&M Group plan to achieve its long-term sustainability goals?
Our approach combines immediate actions with long-term innovation. We advocate for using available technologies to make progress now while continuing to invest in future advancements. This pragmatic strategy ensures that we address current challenges and move towards our long-term goals effectively. By leveraging existing solutions and fostering collaboration across the industry, we can achieve significant environmental benefits and drive meaningful change in the fashion sector.
