Professional Documents
Culture Documents
H&MGroup
H&MGroup
OVERVIEW
OVERVIEW
Table of contents
HOW WE REPORT
ARKET.
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 8 2 OF 109
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 109
H&M.
OVERVIEW
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 8
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
HOW WE REPORT
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 8 4 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
HOW WE REPORT
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 8 5 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
Executive summary
HOW WE REPORT
H&M.
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 8 6 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
Key achievements 2018
HOW WE REPORT
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 8 7 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
Key achievements 2018
HOW WE REPORT
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 8 8 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
HOW WE REPORT
H&M group UK team accepting the Drapers
For the eight time, H&M group has been bility Award of The Year. Sustainability Award from host Russell Kane.
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 8 9 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
71 markets and
are always working to create the world through our integrated
best offering for our customers, in physical stores and digital
the most sustainable way. channels. Our customer proxim-
ity is amplified by our 177,000
e-commerce in 47 markets.
210 billion
brand DNA – H&M, COS, Week- markets.
day, Cheap Monday*, Monki, H&M
*As previously communicated, Cheap Monday will
Home, & Other Stories, ARKET be ending operations in 2019. The H&M group’s
and Afound. Together, our
transition work in response to the extensive
changes within the fashion industry means that the
Swedish kronor in net sales.
company is prioritising and focusing on its core
brands offer customers a wealth business. Cheap Monday’s business model is based
on traditional wholesale, which is a model that
of styles and trends in fashion, has faced major challenges due to the shift in the
industry. The H&M group has therefore decided to
beauty, accessories and home- close Cheap Monday.
Our products are made in
800
family has donated 1.5 billion Swedish Krona ($200 million/€163
million) to the H&M Foundation. Learn more about the foundation’s
work on pages 24, 38 and 87, and read H&M Foundation’s annual
report, A Catalyst for Change 2018. million customer
Monki.
transactions per year.
HOW WE REPORT
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 8 10 OF 109
OVERVIEW
OVERVIEW
LETTER FROM CEO / EXECUTIVE SUMMARY / KEY ACHIEVEMENTS 2018 / AWARDS & RECOGNITIONS / ABOUT H&M GROUP / OUR VALUE CHAIN
With nine brands selling products in over 4,968 FABRIC AND YARN PRODUCTION
stores and online markets in 47 countries, it is
connected to countless people, communities, eco Medium 46% 6% High
PRODUCTION INFLUENCE I M PA C T * I M PA C T * I M PA C T * *
SALES
the value chain, from raw materials to customer OUR C L I M AT E WAT E R SOCIAL
experience.
INFLUENCE I M PA C T * I M PA C T * I M PA C T * *
USE
Please see the illustrations to the right for a more *Climate impacts are based on a scope 3 assessment made by Ecofys in 2017, based on 2016 data. Deviation from 100% is
due to omission of other emission sources not fitting the format of this illustration, the major one being the scope 3 category
in-depth look at the impacts we have along our
Low 21% 8% Medium
purchased products (other expenditures). The water footprint is based on the Water Footprint Network’s methodology and
includes green, blue and grey water footprints. Deviation from 100% is due to rounding effects.
value chain. Please also visit sustainability.hm.com
HOW WE REPORT
OUR C L I M AT E WAT E R SOCIAL
**For more information about our social impacts, see page 93. A number of these issues related also to H&M group’s salient INFLUENCE I M PA C T * I M PA C T * I M PA C T * *
human rights issues, i.e. those human rights at risk of the most severe impact across our operations and supply chain.
for further information.
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 8 11 OF 109
OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
VISION & STRATEGY
12 OF 109
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 8
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / HOW WE ARE ORGANISED / ENGAGING OUR CHANGEMAKERS / INTERVIEW WITH HEAD OF SUSTAINABILITY
Our vision is to lead the change towards This vision is not only necessary from
HOW WE REPORT
the way towards a truly sustainable
fashion future.
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 8 13 OF 109
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / HOW WE ARE ORGANISED / ENGAGING OUR CHANGEMAKERS / INTERVIEW WITH HEAD OF SUSTAINABILITY
Our ambitions
HOW WE REPORT
HEAD OF SUSTAINABILITY,
H&M GROUP
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 8 14 OF 109
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / HOW WE ARE ORGANISED / ENGAGING OUR CHANGEMAKERS / INTERVIEW WITH HEAD OF SUSTAINABILITY
HOW WE REPORT
colleagues and customers.
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 8 15 OF 109
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / HOW WE ARE ORGANISED / ENGAGING OUR CHANGEMAKERS / INTERVIEW WITH HEAD OF SUSTAINABILITY
HOW WE REPORT
These colleagues work directly with ARKET.
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 8 16 OF 109
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / HOW WE ARE ORGANISED / ENGAGING OUR CHANGEMAKERS / INTERVIEW WITH HEAD OF SUSTAINABILITY
HOW WE REPORT
SUSTAINABILITY ENGAGEMENT
change our industry needs. MANAGER, H&M GROUP
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 8 17 OF 109
OVERVIEW
OUR VISION & STR ATEGY / OUR AMBITIONS / OUR CHANGE-MAKING PROGR AMME / HOW WE ARE ORGANISED / ENGAGING OUR CHANGEMAKERS / INTERVIEW WITH HEAD OF SUSTAINABILITY
HOW WE REPORT
cept across more markets, which we see as our results of our Fair Living Wage Strategy, the fashion industry within the planetary boundaries, test, and never be afraid to fail.
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 8 18 OF 109
OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
100% LEADING THE CHANGE
19 OF 109
Photo credit: James Morgan/WWF.
100% LEADING
THE CHANGE
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 8
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
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 8 20 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
Weekday collaboration with Peace Force
H&M Conscious Exclusive. for a non-violent world.
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 8 21 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
Innovation
HOW WE REPORT
our company, we prototype ideas that
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 8 22 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
lar economy. centered design process, building best ideas forward. in 2018.
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 8 23 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
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 8 24 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
Transparency
HOW WE REPORT
ity in our value chain, and make impacts 2019, we will take this a step further and
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 8 25 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
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 8 26 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
performance across brands. SAC has a actors takes time. other things, we are conducting further
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 8 27 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
*Apparel and footwear supply chains excluding
H&M Home. ers, stakeholders and legislators for factories with less than 25 employees.
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 8 28 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / 100% LEADING THE CHANGE EXPL AINED / INNOVATION / TR ANSPARENCY / REWARDING SUSTAINABLE ACTIONS
HOW WE REPORT
ability goals at different levels and whenever possible.
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 8 29 OF 109
OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
100% CIRCULAR & RENEWABLE
30 OF 109
COS.
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 8
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
C O N T R I B U T E S T O S D G 6 , 7, 1 2 , 1 3 , 1 4 , 1 5 , 1 7.
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 8 31 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
% of recycled or other sustainably sourced cotton (certified organic, recycled or Better Cotton) 34% 43% 59% 95% 100% by 2020
Tonnes of garments collected through garment collecting initiative 12,341t 15,888t 17,771t 20,649t 25,000t per year by 2020
% of stores with recycling systems for main types of store waste 61% 71% 64% 63% 100%
% of facilities in own operations with water-efficient equipment 37% 51% 51% 64% 100% by 2020
% change in CO2 emissions from own operations (scope 1 + 2) compared with previous year –56% –47% –21% –11% Climate positive by 2040
% change in electricity intensity (kwh/sqm per opening hour compared with 2017) n/a n/a –2.7% –8.2% –25% by 2030
HOW WE REPORT
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 8 32 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
materials and processes we use, to how our * Source: A New Textiles Economy: Redesigning Fashion’s Future by
Ellen MacArthur Foundation and CFI.
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 8 33 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
a fashion industry
“Collaboration
new vision for the industry.
”
FR ANCOIS SOUCHET, LEAD,
HOW WE REPORT
Photo credit: Tiffany Tsang. MAKE FASHION CIRCUL AR
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 8 34 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
OUR PACKAGING STRATEGY developed between the Ellen MacArthur CIRCULAR BUILT ENVIRONMENT
We take a holistic circular approach to Foundation and UN Environment. This We want to lead the change and take a
HOW WE REPORT
Plastic Economy Global Commitment, H&M store in Stockholm built using mainly reused materials.
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 8 35 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
A. Design
HOW WE REPORT
fabrics and products, which has lead to a reduction Agenda Circularity Commitment.
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 8 36 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
B. Material choice
15
16
17
raw materials. These typically require the use of 18 either do not exist or are not commercially availa-
20
20
20
20
20
HOW WE REPORT
For example, we are working with Fashion Positive Again, Moral Fiber and Tyton BioSciences. Institute of Textiles and Apparel (HKRITA).
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 8 37 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
from the European Union’s Horizon 2020
research and innovation programme under
grant agreement no 768573.
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 8 38 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
16
17
18
14
14
16
17
18
20
20
20
20
20
20
20
20
20
Consortium.
20
HOW WE REPORT
An independent assurance statement related to GRI 301-1 is provided on page 106.
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 8 39 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
retailers to assess producers’ impact on the world’s forests,
als and paper. forests here. other brands to eliminate the use of MMC as well as their leadership in finding solutions to eliminate
endangered forest fibre from their supply chain.
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 8 40 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
This will ensure we only source wool ARKET, one of the first brands We have teamed up with other brands and
fibres from farms that respect animals in the world to introduce
organisations to work together for a more
HOW WE REPORT
welfare impacts. recycled down.
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 8 41 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
C. Sustainable production
HOW WE REPORT
Photo credit: Sohail Na.
chemicals and safer alternatives. It includes a duction cycle.
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 8 42 O F 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
PROGRESS
• We adopted Screened Chemistry as
HOW WE REPORT
safer alternatives.
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 8 43 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
Water management
ACTION
COMMUNICATION formance of our suppliers’ facilities.
HOW WE REPORT
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 8 45 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
reported data Higg FEM 3.0 in 2018). efficient water consumption. The many organisations working to improve resources more effectively.
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 8 46 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
Promoting cleaner
”
to their global supply chains “We will continue our work in the will also join us, which is excel-
at a textile engagement event. Büyük Menderes region and scale lent. We feel that we are gaining people, business and nature.
This was followed by a Cleaner to the heart of the textile indus- momentum”. says Julia Bakutis,
Production Guideline launch in try in Turkey, the Ergene region, Sustainability Manager, H&M STUART ORR,
WWF PR ACTICE LEAD,
September 2018. during 2019. Other companies group Europe.
HOW WE REPORT
FRESHWATER
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 8 47 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
*A New Textiles Economy: Redesigning Fashion’sFuture by Ellen MacArthur about MinShed here. initiative out to more and more mar-
Foundation & CFI page 39.
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 8 48 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
D. Product use
HOW WE REPORT
changes like this can dramatically
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 8 49 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
14
brand set a goal to collect 25,000
15
16
17
18
About 35–45%* of the textiles are
20
20
recycled to become products for other Used clothing and shoes are sorted for reuse
tonnes of unwanted clothes annually and recycling at I:CO’s partner facility plants. Please find an independent assurance statement related to our
industries or made into new textile Photo credit: I:CO/SOEX. tonnes of garment collected for reuse and recycling on page 106.
by 2020. In 2018, we collected over fibres. For example, some textiles are
20,649 tonnes. used to make cleaning cloths. Other into new textile fibres and yarns We are constantly working to
textiles are mechanically shredded for our closed loop collections. This increase the share of textile-to-
We started collecting unwanted textiles (from any into fibres and used to make insula- is something we want to change textile recycled materials in our
HOW WE REPORT
*Sorting results vary due to geographical and seasonal changes. recyclable textiles is also recycled is not an option. rials by 2030.
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 8 50 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
HOW WE REPORT
Monki. Cheap Monday.
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 8 51 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
PROGRESS FAULTY PRODUCTS However, if they occur, we follow a strict ban PROGRESS
• With our newly created brand Afound, Waste, particularly product waste, is on landfill. Due to lack of solutions and to • 0.453% of our total product assort-
HOW WE REPORT
and store and distribution centre waste. can handle these challenges. we operate.
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 8 52 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
We at H&M group are determined to 1.5°C of warming to avoid the worst yet have all the solutions we will need to • Priority 2 tackles our 100% renewable
take the lead in tackling the challenge of impacts of climate change and called for achieve this goal, but the urgency of immi- energy goal, which will help us to ensure
HOW WE REPORT
(IPCC) described how we must stay below phere than our value chain emits. We don’t energy as possible. tions and those across our value chain.
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 8 53 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
330,952
151,753 MANUFACTURING** FABRIC
(scope 1 + 2) by 2030. H&M group also commits to 9,308 PRODUCTION**
reduce scope 3 GHG emissions from raw materials,
fabric production and garment manufacturing 59% 20%
80,541 USE OF SOLD
142,445
10,376 63,690 56,978 PRODUCTS 1%***
2017 baseline. 12,484
11,818
70,165
2% 1% 3%
51,206
45,160
TCFD H&M group has publicly endorsed the Task UPSTREAM END-OF-LIFE OTHER
force on Climate Related Disclosure (TCFD) and TRANSPORT OF SOLD EXPENDITURES**
PRODUCTS
aims to comply with its recommendations. We are in 14
15
16
17
18
the process of analysing our climate risks according
20
20
20
20
20
to the TCDF guidelines and will follow the recom- *Our GHG emissions accounting and reporting is aligned with the GHG protocol. *Climate impacts are based on a scope 3 assessment done by Ecofys in 2017, based
Scope 2 emissions under the market-based approach is equal to 45,160 tonnes on 2016 data. The categories are based on GHG Protocol. Calculations in the footprint
mendations for disclosure. CO2e. Under the location-based approach (using grid average emission factors), analysis are based on calculations on a combination of high-quality H&M group
comparable to emission figures in our 2013, 2015, 2016 and 2017 reports, data combined with the best available public data sources on CO2 emissions, using
HOW WE REPORT
efficiency and renewable energy.
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 8 54 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
Priority 1 group’s own electricity consumption. We PROGRESS • We are gradually replacing all existing
Leadership in energy efficiency have increased our store energy goal from • In line with our 2025 goal, we lighting with LED, while phasing out
14
15
16
17
18
20
20
20
20
20
ENERGY USE IN GIGAJOULES 2014 2015 2016 2017 2018
n/a n/a n/a
–2.7%
Electricity* 3,804,291 4,399,990 4,995,002 5,575,996 5,841,296
–8.2 %
An independent assurance statement related to GRI
HOW WE REPORT
*Energy related to electricity based cooling consumption is included. CO2e emissions include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), 302-3 is included on page 106.
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). An independent assurance statement related to GRI 302-1 is included on page 106.
**We unfortunately reported the wrong figure of 214,451 in 2017 report. The correct figure is 214,558.
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 8 55 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
16
17
18
14
our markets in Southeast Asia due to late our progress using the number maturity of energy management.
20
20
20
20
20
expansion to new geographical areas, of factories we had at the time of this Having conducted a supplier cat-
has caused our upstream air trans- goal-setting, we reached this goal. egorisation exercise, we created
*Please find an independent assurance statement related to GRI 305-3 on page
106. Reported scope 3 emissions include energy use, goods transport and port emissions to increase. We are However, because the number of targeted strategies and actions
distribution, and business travel. CO2e emissions include carbon dioxide (CO2), concerned about this and will look for
methane (CH4), nitrous oxide (N2O), hydroflourocarbons (HFCs), perflourocarbons factories has substantially increased that directly address each group’s
(PFCs) and sulphur hexaflouride (SF6). Increase in emissions from transport is other ways to distribute our garments unique level of maturity, capacity
HOW WE REPORT
mainly related to an increase in air freight. Emission data from previous years was
since we set the goal, programme
likely underreported and actual historic emission data is unavailable. in these areas. enrolment is currently at 18%. and resulting needs.
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 8 56 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
Priority 2 4 .1 0. % O F R E N E WA B L E S
100% renewable energy I N O U R OW N O P E R AT I O N S T O TA L
16
17
18
14
20
of electrical vehicles and ian market. This makes up for batteries, and the fact
scale renewables projects, rooftop solar
*Due to inaccuracy in calculation, the 2017 share has second generation bio-fuels. 19% share of total transport that electric vehicles can
PV and EACs. We are also members of been corrected from 96% to 95%. in Italy, and 79% of the total spend less time on the road
RE100, a group of businesses commit-
HOW WE REPORT
the link between business growth and savings of EUR 4 million.
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 8 57 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
OUR SUPPLIERS
To reach our climate positive goals,
PROGRESS
• In Vietnam, we signed a Declaration
of Support to encourage the gov-
ernment in its efforts to simplify and
expand access to renewable energy.
We stand ready to offer further sup-
• We have initiated several projects with Accelerating solar energy in our supply chain
our suppliers in China and India for the We are engaging our suppliers to Like other suppliers, Wuxi Shilead Dyeing erate 2,133,200 kWh electricity every year;
installation of rooftop solar panels. accelerate the adoption of renewa- Co., Ltd was convinced by the feasibility >90% of this will be used on-site. The pro-
HOW WE REPORT
implementation. 22,000 m² rooftop solar system can gen- roadmap.
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 8 58 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% CIRCUL AR & RENEWABLE EXPL AINED / BECOMING CLIMATE POSITIVE
Priority 3 PROGRESS
Climate resilience & carbon sinks • We partnered with WWF to launch
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 8 59 OF 109
OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
100% FAIR & EQUAL
60 OF 109
H&M.
100% FAIR
& EQUAL
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 8
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
T O S D G 1 , 2 , 3 , 4 , 5 , 8 , 1 0 , 1 6 , 1 7.
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 8 61 O F 1 0 8
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
% of business partners regarding H&M group as a fair business partner 84% 83% 94% 93% 90% by 2018
% of employees agreeing with the statement “I feel comfortable being myself at work”,
n/a n/a n/a 83%, 81% Year on year improvement
and % of employees agreeing with the statement “I am treated with respect and dignity”.*
% of remediated issues (defined by the Bangladesh Accord**) 61% 81% 90% 98% 100%
Our 100% Fair & Equal ambition has tribute to a more open society where every-
two focus areas: one is welcome, and we recognise we can
promote diversity and equality through
1. Providing fair jobs for all our actions, products and marketing.
• within H&M group
• within our supply chain Ultimately, by providing fair jobs, being
2. Inclusion and diversity inclusive and encouraging diversity and
HOW WE REPORT
inclusion and diversity. We want to con- Embroidery work at one of our supplier factories.
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 8 63 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
we interact with the world around us. this through our internal and external expectations and ongoing support.
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 8 64 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
Knitting factory in Cambodia.
Photo credit: Tiffany Tsang.
* Tier 1 and tier 2.
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 8 65 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
facilitate stronger relationships between the trust from their peers and respect trade union or democratically-elected well-functioning industrial relations.
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 8 66 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
“Efficient
Name Shahida Khanom workers’ representatives and H&M group suppliers
Role Machine operator
It has been great professional
and personal development for
workplace to support well-functioning industrial relations,
dialogue is the key to
”
and dialogue with workers and confident overall. It is also a great
managers in my factory inspiring, feeling to know I am contributing future! trade unions that exists to address the issue of
so I decided to stand for re-elec- to improving the workplace a living wage through industry-wide collective
tion in 2017. I am very happy dialogue in this factory. ARIF IBR AHIM, MANAGING DIRECTOR, bargaining. Read more about our work with ACT
HOW WE REPORT
NEWAGE APPARELS LTD on page 75.
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 8 67 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
PROGRESS • In December 2018, we held our annual • We have been working with Ethical Trading LEARNING
• Our industrial relations and workplace global meeting for National Monitoring Com- Initiative (ETI) to raise our concerns about • Our Global Framework Agreement (GFA)
dialogue programmes reached 594 mittees (NMCs) in Phnom Penh, Cambodia. Cambodia’s change in trade union law. with IndustriALL and IF Metall is an agree-
factories in 2018 (2017: 458, 2016: 290, Each NMC reported on its progress during ment between the global union of textile
HOW WE REPORT
elected worker representation. national Labour Standards. of this long journey.
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 8 68 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
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 8 69 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
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 8 70 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
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 8 71 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
Difference in take-home wages, between supplier factories implementing improved Increase in take-home wages at factories implementing improved Wage
Wage Management Systems vs factories not yet enrolled in such a programme Management Systems
HOW WE REPORT
*The figures are based on data gathered from tier 1 textile supplier factories. Time frame of data for 2017 is 1 Jan–31 December 2017. Time frame of data for 2018 is 1 Jan–30th June 2018 . The data has been collected through our SIPP method and has been validated
by H&M group’s developers in the different production markets. The data is weighted by factory in flat averages. We are currently working to further improve our data method and instead report wage data as a weighted average per worker, since we see it as a better and
more representative measure of salary in a country. We plan to report according to this new method with our 2019 report. The Conversion to USD is based on Swedish Central Bank average exchange rate for the period.
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 8 72 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
Ekpen Tekstil.
HOW WE REPORT
Julia Bakutis, H&M group.
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 8 73 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
When looking at all H&M group’s We share the view of the UN body ILO
supplier factories, including those not and many other experts, that the only
HOW WE REPORT
**Conversion to USD based on Swedish Central Bank average exchange rate for the period. Time frame of data for 2013 is 1 Jan–31
December 2013. Time frame data for 2018 is 1 Jan–30th June 2018. in most markets is not a living wage. an industry and country level.
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 8 74 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
“
You can read more about ACT and wide collective bargaining agreement.
By addressing the structural barriers to living the meaning of an industry-wide collec-
wages, ACT has the best chance of increasing
sustainable and enforceable.
”
JENNY HOLDCROFT, ASSISTANT GENER AL SECRETARY,
INDUSTRIALL GLOBAL UNION
HOW WE REPORT
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 8 75 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
“Ooururbusiness
purchasing practices should make it possible to fulfil and not the workers’ wages. and it’s basically old facts
packaged into a modern and
idea and give long-term benefits to workers, What does the isolation of user-friendly way! We believe
”
the labour cost mean to that the only way to create
suppliers, customers and the environment. workers, suppliers and our change in the industry is to get
DAVID SÄVMAN, HEAD OF PRODUCTION, business? as many brands as possible to
H&M GROUP By isolating the labour cost, join us.
HOW WE REPORT
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 8 76 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
WORKERS AND SUPPLIERS ARE PROGRESS • In December 2018, we shared the LEARNINGS
BETTER PREPARED FOR COLLECTIVE • We reached and exceeded the Fair ETI’s feedback from 150 key stake- • Together with trade unions and other
HOW WE REPORT
Panel discussion at the Fair Living Wage
report is publicly available here. summit in Phnom Penh, Cambodia.
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 8 77 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
targets already
“Progress
Bringing all these stake-
holders together was our against the H&M group’s 2018
first achievement. Our
points to the measurable
”
country a preferred country
of sourcing if they share our challenged to follow suit.
vision of a living wage for
textile workers. CAROLINE REES,
Frank Hoffer.
HOW WE REPORT
BUSINESS & HUMAN RIGHTS EXPERT,
PRESIDENT AND CO-FOUNDER OF SHIFT
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 8 78 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
TURKEY
•W
orkplace dialogue training in 64
factories, reaching 16,577 workers.
•W
orkplace dialogue training in 33
factories, reaching 52,600 workers.
INDONESIA
HOW WE REPORT
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 8 79 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
people, both directly and indirectly. For in line with the legal minimum wage and with working parents.
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 8 80 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
factories in Cambodia.
Photo credit: Tiffany Tsang. and modern slavery. June 2018.
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 8 81 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
Photo credit: Tiffany Tsang.
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 8 82 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
diversity towards our customers and the for everyone’s right to be included and
communities around us. An important accepted, and to express who they are.
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 8 83 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
PROGRESS – INTERNAL has been around for three years and has had the executive management team and the also participated in the Anti-Racism Network
• According to our employee survey, 83% a positive impact for all participants. Going CEO, have completed our internal training conference. In the USA, we partnered with
16
17
18
20
20
20
20
HOW WE REPORT
IN CAPE TOWN, SOUTH AFRICA
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 8 84 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
HOW WE REPORT
Nur Ger.
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 8 85 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
PROGRESS – EXTERNAL an unrestricted opportunity to create the inspired by an H&M employee who
• Monki HQ was LGBTQ certified by sort of images they wanted to see. survived breast cancer and couldn’t
control
“We
paign that was created by women for
women. “My Body, My Image” was a want to engage women to take
collaborative campaign that invited 25 and reflect over how the female
”
women to contribute self-portraits of
themselves in one of the brand’s eight body is portrayed in media.
new swimwear designs. With com-
HOW WE REPORT
NADINE SCHMIDT, HEAD OF MARKETING AT WEEKDAY
plete creative control, the women had “All the feels.” Monki.
ON THE CAMPAIGN “MY BODY, MY IMAGE”
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 8 86 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / KPIS AND GOALS / 100% FAIR & EQUAL EXPL AINED / FAIR JOBS FOR ALL / ENABLING WELL-FUNCTIONING INDUSTRIAL REL ATIONS / SUPPORTING A FAIR LIVING WAGE / ADDRESSING HUMAN RIGHTS ISSUES / INCLUSION & DIVERSITY
H&M Foundation supported the world’s first TEDx event at a refugee camp
In June 2018, the Kakuma Refu- empowered refugees can shape a Iran, Kenya, Malaysia, Pakistan, the world’s first TEDx in a refu- Speakers included current and
gee Camp in the north of Kenya peaceful and tolerant future. Rwanda, Sudan, South Sudan, gee camp, we want to highlight former Kakuma Camp refugees.
HOW WE REPORT
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 8 87 OF 109
OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
STANDARDS & POLICIES
88 OF 109
Monki.
STANDARDS
& POLICIES
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 8
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
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 8 89 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
& Other Stories. *
A list of our policies can be found at sustainability.hm.com.
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 8 90 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
combination of our own assessments and and regular reports.
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 8 91 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
human rights management include: at global and local levels. industry, we as a company need to to Monki.
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 8 92 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
Rights issues. managers on the risk assessment process. H&M.
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 8 93 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
cally risky markets or positions. place so that potential breaches can be tion for all colleagues.
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 8 94 O F 1 0 9
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
relationship. We believe that taking such brand must sign the Sustainability
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 8 95 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
6 .1 . H & M G R O U P S U P P L I E R FAC T O RY
HIGG FEM SCORE*
40 Becoming an H&M Group business partner for commercial goods
New supplier
New Minimum Regular
Supplier signs our Minimum New supplier
supplier requirements performance
identified Code requirements signs our
needed checks assessments
met Sustainability
19
Minimum
requirements not met Full-day sustainability
training on our:
14
15
17
16
20
20
20
20
MINIMUM REQUIREMENTS SELF-ASSESSMENT zero and 100, which we assign based on 2015 (who base their self-assessment on
Before starting any working relation- We empower our suppliers to use their the Higg Facility Modules and our own the previous year’s data) and by 2018 it
ship with a supplier, we conduct an initiative to further their s ustainability criteria. was rolled out to 100% of tier 1* and tier 2
“entry level minimum requirement ver- credentials. Once our suppliers have factories representing 65% of our products
HOW WE REPORT
*Factories in the apparel and footwear supply chain,
verification findings on page 97. (SI). This index has a score of between used by all our tier 1 apparel suppliers in with more than 25 employees.
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 8 96 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
VALIDATION CAPACITY BUILDING ones. This consistent presence helps us recent years. As a result of expanding our
Our suppliers self-report through SIPP We use the validated assessments of our build long-term and mutually rewarding scope, we have seen an increase in the
HOW WE REPORT
*Please find an independent assurance statement related to
H&M Home. strengthening these requirements over GRI standard disclosure 205-3 on page 106.
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 8 97 OF 109
OVERVIEW
KEY FACTS & FIGURES 2018 / STANDARDS & POLICIES EXPLAINED / WORKING WITH STANDARDS & POLICIES / OUR HUMAN RIGHTS POLICY / OUR SALIENT HUMAN RIGHTS ISSUES / POLICIES WITHIN OUR OWN OPERATIONS / POLICIES FOR OUR BUSINESS PARTNERS / PRODUCTS & MATERIALS POLICIES
HOW WE REPORT
fully traceable. to comply with our restrictions. As a Please see more information about overall evaluation.
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 8 98 OF 109
OVERVIEW VISION & STR ATEGY 100% LE ADING THE CHANGE 100% CIRCU L AR & RENEWABLE 100% FAIR & EQUAL STANDARDS & POLICIES HOW WE REPORT
HOW WE REPORT
99 OF 108
H&M Home.
HOW WE
REPORT
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 8
OVERVIEW
HOW WE REPORT / MATERIALITY MATRIX / UN’S SUSTAINABLE DEVELOPMENT GOALS / KEY COLL ABOR ATIONS / AUDITOR’S REPORT / GET IN TOUCH
How we report
HOW WE REPORT
HOW WE REPORT
of our operations or our value chain. reporting is aligned with the GHG Proto- consumption reporting, as well as our pliers and suppliers for non-commercial
HOW WE REPORT
HOW WE REPORT
on defining report content and topic Boundaries GRI 102-46 on
Rights. Detailed references to the UN categories down further. For frequency, communities, suppliers and their employ- page 106.
HOW WE REPORT
HOW WE REPORT
MoschinoXH&M. human rights issues, read more here. H&M Home.
Materiality matrix
REWARD SUSTAIN- Design, raw materials, fabric and yarn production, product manufacturing,
3. Reward sustainable actions
14 15 ABLE ACTIONS transport, sales, use
18 23
4 4. R ecycled and other sustain- Design, raw materials, fabric and yarn production, product manufacturing,
ably sourced materials sales, use
2 1
5 7. Water Design, raw materials, fabric and yarn production, product manufacturing, sales, use
10. Chemical management Raw materials, fabric and yarn production, product manufacturing, sales
8 100% RENEWABLE
17 Raw materials, fabric and yarn production, product manufacturing, transport,
11. Climate sales, use
21. A nti-competitive Fabric and yarn production, product manufacturing, transport, sales
behaviour
22. Biodiversity Raw materials, fabric and yarn production, product manufacturing
NO REPORTING REPORTED AT LEAST IN NARRATIVE, OTHER
OR REPORTING ON REQUEST WHEREVER POSSIBLE WITH MEASURABLE KPI IDENTIFIED 23. Economic performance Sales
HOW WE REPORT
HOW WE REPORT
TOPICS
24. Market presence Raw materials, fabric and yarn production, product manufacturing, sales
S I G N I F I C A N C E O F E C O N O M I C , E N V I R O N M E N TA L A N D S O C I A L I M PA C T S
HOW WE REPORT
HOW WE REPORT
SDG14 Life below water
SDG15 Life on land
Key collaborations
HOW WE REPORT
HOW WE REPORT
• Green Freight Asia (GFA)
(SAC) sustainability.hm.com. ARKET.
Auditor’s report
HOW WE REPORT
HOW WE REPORT
• Materials: Materials used by weight or clusion on the above specified indica- disclosed on other web pages. The pre- not enable us to obtain assurance that
we would become aware of all signifi- Our procedures are based on the criteria
cant matters that might be identified defined by the Management as described
The firm applies ISQC 1 (International We believe that the evidence we have
Standard on Quality Control) and obtained is sufficient and appropriate to
accordingly maintains a comprehensive provide a basis for our conclusion below.
HOW WE REPORT
HOW WE REPORT
Authorized Public Accountant Authorized Public Accountant
Get in touch
Laura.Cars@hm.com or