H&M Advances Sustainability and Cuts Emissions by 2025

By 2025, 91% of the materials used in H&M Group products came from recycled or more sustainable sources, while the share of recycled materials reached 32% , exceeding the company’s sustainability target of 30%.

On the climate front, greenhouse gas emissions also decreased: -41% in Scope 1 and 2 and -34.6% in Scope 3 compared to 2019, keeping the company on track with its science-based climate targets. This is what emerges from the group’s Annual and Sustainability Report 2025, which notes progress on both the financial and climate fronts.

According to the financial statements, the group continues to strengthen its foundations for long-term growth, with improvements in profitability and customer offerings, coupled with progress in its sustainability strategy.

CEO Daniel Ervér emphasized how the group is working to demonstrate that growth, profitability, and emissions reduction can go hand in hand, while Chief Sustainability Officer Leyla Ertur reaffirmed her commitment to supporting positive change in the fashion industry.

H&M invested approximately SEK 2.8 billion in initiatives for decarbonization and material innovation through 2025

These initiatives focused in particular on reducing the climate impact along the supply chain, which accounts for the largest share of emissions in the textile sector.

Among the most significant initiatives is the progressive abandonment of coal in supplier plants . Since 2022, the number of apparel suppliers using on-site coal boilers has decreased by 108 , a number that will only improve as the group aims to completely eliminate this technology by 2026.

The sustainability report also highlights progress in water management

Apparel suppliers using wet processes saw absolute freshwater consumption decrease by 22.8% compared to 2022 levels, exceeding the company’s 10% reduction target for 2025.

Regarding circular business models, the group has expanded its resale activities through the Sellpy platform and its own brands . The service is currently available in 26 markets and in 2025 represented 0.8% of the group’s overall revenue, recording a 31% growth compared to the previous year.

Finally, 2025 marked the tenth anniversary of the global framework agreement signed by the group with the international trade union IndustriALL Global Union and the Swedish trade union IF Metall, which protects workers’ rights along the supply chain and affects over one million people employed in the group’s supply chain.

The sustainability report therefore confirms the direction taken by the group: reducing emissions and resource consumption along the fashion supply chain, while accelerating innovation in materials and improving social standards.

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(Featured image by Sei via Unsplash)

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