Spotlight On: H&M Group

Learn about H&M Group’s investments in the use of renewable energy.

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Current fashion industry value chains mostly rely on non-renewable energy sources. Increasing energy efficiency and the use of renewable sources to divert coal use, curb emissions to air, and limit global warming is crucial. Transitioning to renewable energy across the fashion value chain presents a significant and necessary opportunity for emissions reduction.

H&M Group is focused on investments that further strengthen the availability and usage of renewable electricity and fund the innovation and distribution of technology that will allow the Group to move towards the decarbonisation of its production and logistics value chain.

H&M Group’s Climate Strategy

H&M Group recognises the responsibility as a large company to rapidly reduce its own climate impact as well as make contributions to climate action beyond its value chain. The Group is committed to achieving a 56% CO2e emission reduction by 2030 and net zero by 2040 as defined by the Science Based Targets initiative’s (SBTi) net-zero standard (against a 2019 baseline). H&M Group’s climate work is closely linked to its efforts to reduce impacts on water resources, biodiversity, and land use.

Recognising the complexity and scope of the climate challenge, H&M Group identifies collaboration as a cornerstone of its climate action framework and collaborative financing efforts as a crucial approach to create rapid change at scale. Existing collaborative financing models have the potential to build an ecosystem of solutions. However, further commitment from brands and investors is needed to co-invest and share the financial responsibility of a project and give further alternatives to support suppliers in their decarbonisation journey. H&M Group actively encourages other brands and financial institutions to join its collaborative financing initiatives. Learn more here.

H&M Group x US Apparel: Bidding Farewell to Coal

To achieve H&M Group’s 2030 and 2040 emission reduction goals, significant strides include transitioning to 100% renewable electricity by 2030 and eliminating coal boilers across its supply chain. Since January 2022, onboarding new suppliers with coal boilers ceased. Instead, they collaborate closely with suppliers and local stakeholders to expedite their replacement and finance renewable alternatives. In 2022 alone, H&M Group spent ∼2.6 billion SEK on decarbonisation initiatives, including renewable energy, energy efficiency projects, and increasing the share of more sustainably sourced materials.

H&M Group’s Green Fashion Initiative (GFI) makes funding available to supplying factories to invest in the technologies and processes needed to reduce energy demand and replace fossil fuels. Supported by H&M Group’s GFI, Pakistani denim manufacturer, US Apparel, successfully phased out one of its 10-tonne coal boilers. This transition resulted in a substantial annual CO2e emission reduction of 14,000 metric tonnes – this is equivalent to the carbon sequestered by over 231,000 tree seedlings grown for ten years. Previously reliant on two 10-tonne coal boilers, US Apparel’s Lahore factory continues to significantly improve energy efficiency and reduce its environmental impact, for example via on-site solar PV generation.

Since January 2023, H&M Group’s GFI has 17 approved projects focusing on various aspects of decarbonisation, including solar installation, energy efficiency, coal phase-outs, and electrification. These initiatives have potential to reduce ∼50,000 tonnes of CO2e annually within H&M Group’s supply chain, with an additional reduction of ∼140,000 tonnes beyond its own supply chain.

In addition to this, H&M Group’s team of energy experts provides training to their suppliers on energy efficiency and renewable energy. These experts conduct audits and offer support to identify potential energy efficiency measures.

Ulrika Leverenz Head of Green Investment, H&M Group
"Projects to reduce emissions can come with significant up-front costs for suppliers. But we need to find ways to make these projects happen as they drive lasting change. We’re dedicated to achieving our climate goals by closely collaborating with our suppliers and facilitating access to effective financing solutions.
"

Learn more about the Green Fashion Initiative here.

H&M Group is one of Global Fashion Agenda’s Strategic Partners. Find out more about our partners here.

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