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OMGT129

H & M Company

GC&E Term Project

Kamalpreet Singh (301179965)

Deepka (301207975)

Baljeet Kaur (301216875)

Ramit (301232798)

Amritpal Singh (301220728)

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Introduction

This report aims to compare the latest sustainability report of H & M Company that is

globally renowned company in apparel industry with the past reports to analyse a difference

in the sustainability goals and using of resources effectively to minimise the carbon footprint

by the company. The aspects like Green product design, eco – friendly production process,

green supply chain management will be discussed and compared with the report of 2017 with

the current report 2021 to develop a comprehensive understanding of the sustainability goals

of the company.

1. Ecological and Sustainability and Corporate Social Responsibility Goals

H & M Company follows such sustainable policies that are continuously providing fashion

and accessories in a way that is good for all people, planet, humanity, industry and

businesses. The company aims to achieve the goal of Net-zero Greenhouse Gas Emission as a

part of an environment friendly approach in 2021 report. ("Sustainability Disclosure 2021",

2021) But in 2017, the company was working with a goal of sustainability like 100% circular

and renewable products, 100% leading the change, 100% fair and equal towards the society.

In 2021, the company adopted more sustainability measures after the Covid-19 pandemic, but

the 2017 report states that the company relied on a science based approach and setting best

roadmaps for driving positive change. The 2017 report relied upon three ambitions of 100%

circular and renewable products, 100% leading the change, 100% fair and equal but the 2019

report relied on net zero emission, inclusion and diversity, scaling circular materials etc.

(H&M GROUP SUSTAINABILITY REPORT, 2017) The company has also been socially

responsible by following CSR policies and improving the life of the communities in which it

operates. The areas where the company focuses its CSR activities are water and sanitation,

education and environment, empowerment and livelihood etc. The company implements such
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activities through the partnerships of agencies, NGO’s and the government. These areas may

be a part of social responsibility goals of the company i.e., to raise awareness on water

conservation, providing access to clean water and sanitation, reuse, reduce and recycle as a

part of eco-friendly environment responsibility, enhancement of livelihood of people and

empowerment of youth etc. ("Corporate Social Responsibility (CSR) Policy", n.d.)

2. Green Product Design

2a.

The Company understands that each material used for production has an effect on the planet

and environment. So, it has some guidelines in the choice of material that is used for

production so that minimum damage to the environment can be possible and environment

friendly guidelines can be followed in maximum production. According to the 2021

sustainability report of the company, the objective is to source 100% of materials from

recycled or in sustainable ways by the end of 2030 in which 30% of all recycled material will

be completed by 2025. ("Sustainability Disclosure 2021", 2021) The Responsible Raw

Material Sourcing Policy defines the guidelines for maintaining environmental sustainability.

In the 2017 report the company claimed that in 2017 it has achieved a 35% target of using

sustainable and recycled materials for production. (H&M GROUP SUSTAINABILITY

REPORT, 2017)

2b.

The company 2021 report claims that design is its top priority in enabling circular products in

which the products are prepared from renewable inputs, designed in a way that can be used

again and again. This is called circular design of sustainability that helps to achieve climate

goals through resource use reduction. ("Sustainability Disclosure 2021", 2021) Material

categorization is also a design followed by H & M so that right materials can be selected for
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the production. In the 2017 report, the company used named bionic as a material for

production and worked with a new material called Econcyl that is made from the waste of

fishing nets and nylon waste. (H&M GROUP SUSTAINABILITY REPORT, 2017)

2c.

According to The Textile Exchange’s 2020 Material Change Insights Report it was found that

H & M is one of the 36 leading companies that are transforming sustainability out of 191.

The company makes various products which are environmentally sustainable and call them

circular products. For example – organic and recycled fabrics is one of them. The company is

the biggest promoter of organic cotton and that is a renewable fibre. It uses organic cotton in

all of its production. In addition to this, it is promoting an initiative in which people can bring

old clothes and get 15% off on their next purchase. This is an incredible service operated by

the company to go green and sustainability towards the environment to reduce the old clothes

wastage. (Wortham, 2014)

3. Eco Friendly Production Process

3a.

The production process has to go through a series of processes to produce a garment like

washing, dyeing, printing etc that uses chemical, energy and water. The company is using

such production processes, lowering the impact of these processes on the environment. For

example – reducing the use of chemicals and reusing it for maximising the re-usage through

screened chemistry. The energy emissions are reduced during production like reducing CO2

gas emission. Proper use of PPE kits by the workers during production so that their health

and safety can be ensured. Reducing waste during production with recovery, reuse and

recycling methods. Reducing the usage of water and reusing it maximum for saving it

minimising wastage.

3b.
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The example for minimising waste and green manufacturing process is that the company uses

lean production process and made to order digital printing in which waste is minimised and

supply is controlled according to demand by following green manufacturing practices to save

the environment.

4. Green Supply Chain Management

4a.

H & M aligns suppliers with its vision of sustainability and improving environment

performance. The process of selecting suppliers includes making suppliers to sign the

sustainability commitment and adhere to its code of ethics. Also self assessment by the

company is done for validation of suppliers through Sustainable Apparel Coalition.

4b.

The company believes in the development of suppliers so that mutual growth is possible. This

is followed through evaluation of suppliers annually through the help of industry tools. The

high performing suppliers are promoted and encouraged in the form of incentives and provide

them opportunities to grow their business. The policies are developed from time to time for

the development of suppliers.

4c.

According to a 2021 report, the company works to reduce energy emissions so that its

logistics and transportation are as energy efficient as possible with sustainability. For this

purpose, the company is using last mile delivery services with the help of electric vehicles

that are energy efficient and emit less carbon in the environment. The company has partnered

with Global Logistics Emissions Council to find a way to accurately find the carbon

emissions by the logistics operations. ("Sustainability Disclosure 2021", 2021) According to

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the 2017 report, optimising routes and using energy efficient logistics was the implemented

measures of the company. (H&M GROUP SUSTAINABILITY REPORT, 2017)

5. Conclusion

In conclusion we can state that the company’s reforms and measures related to sustainability

and environmental impacts are commendable and it is continuously moving ahead towards a

sustainable future with minimisation of wastage of raw material and human resources and

maximising the energy efficient usage of materials and resources in every area of operation.

The both sustainability reports of the company were somewhat similar with one vision of

promoting sustainability and improving the global environment with a little difference in the

achievements and growth attained at different points of time. The company not only takes

into consideration carbon footprints and emissions but also the efficient usage of existing

resources so that a sustainable future can be achieved that will be beneficial for the

environment as well as society.

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References

Corporate Social Responsibility (CSR) Policy. H&M. Retrieved 12 August 2022, from

https://www2.hm.com/en_in/customer-service/corporate-social-responsibility/

corporate-social-responsibility-csr-policy.html.

H & M. (2017). H&M GROUP SUSTAINABILITY REPORT 2017. Retrieved 12 August

2022, from

https://hmgroup.com/wp-content/uploads/2020/09/HM_group_SustainabilityReport_2

017_FullReport.pdf.

Sustainability Disclosure 2021. Hm Group. (2021). Retrieved 12 August 2022, from

https://hmgroup.com/wp-content/uploads/2022/03/HM-Group-Sustainability-

Disclosure-2021.pdf.

Wortham, H. (2014). H&M produces eco-friendly clothing for conscious consumers. Sundial.

Retrieved 12 August 2022, from https://sundial.csun.edu/79663/uncategorized/hm-

produces-eco-friendly-clothing-for-conscious-consumers/.