Environmental Sustainability in the production sector of Zara and H&M

1.Introduction:
Introduce the topic of Environmental Sustainability in the production sector and why it is important.
Briefly explain the two companies Zara and H&M, their position in the industry, and their CSR and ESG
reporting practices.

Zara and H&M are two of the largest and most well-known fashion brands in the world. They have made
commitments to sustainability and CSR and have published annual reports on their ESG practices. This
assignment will compare and analyze their ESG reports to evaluate their approach to environmental
sustainability.

2. Methodology:
Explain the methodology used for the comparison and analysis of the ESG reports of Zara and H&M.
Highlight the specific areas of comparison and explain why those areas were chosen.

For the comparison and analysis of the ESG reports of Zara and H&M, the following methodology will be
used:

1. Review the ESG reports of Zara and H&M to identify the specific areas of comparison related to
environmental sustainability in the production sector. These areas may include carbon emissions, water
usage, waste management, sustainable sourcing, and supply chain management.

2. Evaluate the relevance of these areas to the fashion industry and the potential impact of each area on
the environment.

3. Collect data from the ESG reports of Zara and H&M on each area of comparison, including the
companies' goals, strategies, initiatives, and performance indicators.

4. Analyze and compare the data collected from the ESG reports, highlighting the similarities and
differences between Zara and H&M in terms of their approach to environmental sustainability in the
chosen areas of comparison.

5. Comparing and analyzing the environmental sustainability practices of Zara and H&M to gain insights
into their approach to responsible production, such as carbon emissions, water usage, waste
management, sustainable sourcing, and supply chain management.

3. Zara's ESG Report Analysis: Provide an overview of Zara's ESG report and analyze its strengths and
weaknesses. Highlight the areas of the report that are relevant to the chosen comparison areas.

Zara's 2022 Sustainability Report provides a comprehensive overview of the company's sustainability
practices and progresses toward its goals. It provides detailed information on the company's
environmental footprint, commitments to sustainable sourcing and production, and clear and
measurable sustainability goals. However, it lacks transparency in certain areas, such as waste
management and the social impact of its supply chain. Zara's ESG report provides detailed information
on its carbon emissions, water usage, and sustainable sourcing. The company has set a goal to become
carbon neutral by 2025 and has implemented initiatives such as renewable energy sourcing and energy
efficiency measures. However, there is room for improvement in terms of transparency and disclosure in
certain areas, particularly around waste management and social impact.

4.H&M's ESG Report Analysis:

H&M's 2022 Sustainability Report provides a comprehensive overview of the company's sustainability
practices and progresses toward its goals. It focuses on responsible sourcing and sustainable production
and is transparent and accountable with metrics and performance indicators to track progress.
However, it lacks disclosure in certain areas. H&M's ESG report provides detailed information on the
company's environmental impact, social impact, supply chain, labor practices, and governance practices.
It outlines H&M's commitment to sustainable sourcing, responsible production, and community
engagement. However, there is room for improvement in transparency and disclosure in certain areas,
particularly around social impact and governance practices.

5. Comparison and Analysis:

The most important details in this text are the comparison and analysis of the ESG reports of Zara and
H&M. Zara has set goals to increase its use of sustainable materials, while H&M has taken steps to
reduce its environmental impact. Zara's ESG report provides more detailed information on its
environmental impact and sustainability initiatives, while H&M's report is more comprehensive in its
coverage of social and governance issues. H&M's commitment to becoming climate positive by 2030 and
its focus on circular economy initiatives may give it an edge in terms of its long-term sustainability
strategy.

6. Conclusion: Summarize the findings and draw a conclusion about the environmental sustainability
practices of Zara and H&M. Provide recommendations for improvement and suggest areas for further
research.

Zara and H&M have both set ambitious goals to increase their use of sustainable materials, reduce their
environmental impact, and engage with local communities. Zara's ESG report provides more detailed
information, while H&M's report is more comprehensive. H&M's commitment to becoming climate
positive by 2030 and its focus on circular economy initiatives may give it an edge. Recommendations for
improvement include improving transparency and disclosure, exploring new sustainable materials, and
further research into the impact of sustainable fashion on consumer behavior.

7. References: Include a list of all the sources used in the report.

1. Zara's Sustainability section: https://www.zara.com/us/en/csr/sustainability-l1393.html

H&M's Sustainability section: https://www.hm.com/sustainability