H&m's green push: progress, and a reality check
H&M’s latest sustainability report paints a picture of incremental progress in the fashion industry's long battle against carbon emissions, but also underscores the deep, structural challenges that remain. While the retailer is touting significant reductions in its footprint, the report’s details reveal a familiar story: achieving true decarbonization requires more than just internal efficiency gains.
Renewable power and material shifts drive early wins
The numbers look encouraging at first glance. H&M reports a 41% reduction in Scope 1 and 2 emissions since 2019, largely thanks to a dramatic shift towards renewable electricity—now powering 95% of its supply chain. A further 34.6% decrease in Scope 3 emissions, the notoriously difficult-to-track category encompassing the majority of the industry's impact, is also being touted as a win. According to Leyla Ertur, H&M Group’s chief sustainability officer, this progress stems from “investments in material innovation, our activities to reduce the energy and water demand in our suppliers’ factories, increase their use of renewable electricity, and replace fossil fuels.”
The company has made strides in phasing out onsite coal boilers, a particularly polluting practice common in garment manufacturing. The number of suppliers utilizing these boilers has dropped by 108 since 2022, with a complete phase-out targeted for 2026. Moreover, 91% of H&M’s materials are now either recycled or sustainably sourced, according to the company’s internal assessment, exceeding its 30% recycled content target for 2025 and putting it on track for a 50% goal by 2030.
Beyond the headlines: the scope 3 conundrum
But the devil, as always, is in the details. While these improvements are noteworthy, the persistent challenge lies within Scope 3 emissions. Reducing these requires systemic change across the vast and fragmented network of factories that H&M doesn't directly own. Ertur acknowledges this, noting the limitations imposed by a lack of widespread access to renewable energy and supportive regulatory frameworks in many manufacturing regions. “Having said that, we are committed to continuing to advocate for that,” she states—a carefully worded sentiment that hints at the uphill battle ahead.
The SEK 2.8 billion (approximately $298 million) H&M has invested in decarbonization and material innovation is a significant sum, but it’s paired with a shift in how the company engages with its suppliers. The focus is moving beyond simply demanding change to actively fostering it through long-term partnerships and targeted financing. This approach, Ertur argues, is essential for navigating the complexities of supply chain decarbonization. But it’s a strategy that, by necessity, requires collaboration and shared responsibility.
Water use and the broader ecosystem
Beyond emissions, H&M is also tackling resource intensity, particularly water consumption. The company reports a 22.8% reduction in absolute freshwater use in wet processing among its garment suppliers (Tiers 1 and 2) since 2022—a notable achievement surpassing its 10% reduction target. Future investments are slated for heat pumps, heat storage, and waterless technologies. Ertur emphasizes that these investments are being measured by their impact on greenhouse gas emissions, rather than purely by their return on investment.
Furthermore, H&M has recently adopted science-based targets for nature, mirroring the earlier move by luxury conglomerateKering. This includes avoiding ecosystem conversion, increasing recycled materials to 50%, and supporting restoration initiatives like cotton farming and sheep grazing projects in India and South Africa. The company’s white paper, published alongside consulting firm EY, is a contribution to a growing industry conversation: decarbonization isn’t a series of isolated investments, but a necessary structural overhaul.
Ultimately, H&M’s progress highlights a crucial point. While individual brands can drive change, real, industry-wide transformation demands broader systemic shifts—namely, greater access to clean energy and clear regulatory support in key manufacturing hubs. As Ertur concedes, “There is a long journey ahead.”