H&M opens sustainable supply chain up to third parties - InternetRetailing (2024)

FAQs

Is H&M a sustainable supply chain? ›

Many fashion companies recognize the importance of sustainability in business and incorporate green practices into their supply chain. Examples of this kind of fashion companies include H&M, Uniqlo, The North Face, and New Balance.

In 2023, we increased the amount of recycled materials in our products to 25%, which we hope to double to 50% by 2030, and the share of recycled or sustainably sourced materials to 85%, making good progress towards our goals.

It has revolutionized the fast fashion industry through its efficient supply chain operations. H&M supply chain strategy ensures operational efficiency, sustainability, and customer satisfaction. Key elements include strategic sourcing, efficient production, optimized distribution, and effective inventory management.

On another note, almost none of H&M's supply chain is certified by labour standards which ensure worker health and safety, living wages, or other labour rights. That means not enough of its facilities have collective bargaining or the right for workers to make a complaint.

Surprisingly, of all the materials used by H&M, a mere 23% are recycled, even though the brand touts that 84% of its products are sourced from recycled or sustainable materials, and the criteria for a “sustainable material” remains elusive.

One of the principal risks threatening the H&M supply chain is the scarcity of natural resources. As the fashion industry relies heavily on materials like cotton, water, and energy, any disruption or depletion in these resources can have a profound impact on production.

By avoiding harmful chemicals, fossil-based energy sources, and single-use packaging, we can help protect our water, air and soil. That's why we've set an ambitious goal: to halve our emissions by 2030 and reach a net-zero impact by 2040.

If you've read the above, you might be thinking that H&M clothes are sustainable. Sadly this is not quite true. Sales of these new sustainable fabrics are still small compared to their standard fashion lines. At their core, H&M's business model still relies on low quality clothes that follow short lived trends.

The fashion brand's change in leadership comes at a time when sales are down 4% for December and January year-over-year. H&M also faces intensifying competition from Shein and Zara, both of which saw sales growth in the same period.

We do business with over 574 commercial product suppliers who manufacture products for our brands in over 1,027 tier 1 factories in Europe, Asia and North America. China and Bangladesh are the largest production markets for clothing. The European Union is the largest production market for our beauty assortment.

What is the lead time for H&M supply chain? ›

Also, to mention that ZARA's lead time is 14 days as compared to H&M's lead time that is 21 days meaning H&M takes longer time from initiation to completion of its supply chain operations.

A sustainable supply chain is one that fully integrates ethical and environmentally responsible practices into a competitive and successful model.

Soon after the social media uproar H&M withdrew the ad and apologised. After being accused of sexualising young children in an advertisem*nt, fashion giant H&M has issued an apology and withdrawn the controversial campaign in Australia.

H&M sales were 1% lower for the full financial year in local currencies, and 4% lower year on year in December 2023 and January 2024. The company has struggled to maintain sales growth in recent years amid increasing competition, both from rivals such as Inditex-owned Zara and from online fast-fashion stores.

In June 2022, plaintiff Chelsea Commodore alleged “H&M created an extensive marketing scheme to 'greenwash' its products” in a bid to present items “as environmentally-friendly when they are not”, and that it was “taking advantage of consumers' interest” in sustainable apparel by using “misleading” marketing claims to ...

In the lawsuit filed against H&M, a June investigation by the news outlet Quartz was cited claiming that more than half of H&M's sustainability profiles portrayed products as being better for the environment than they actually were and, in some cases, were allegedly completely untrue.

Supply chain transparency

Supply-chain transparency is about disclosing the details of facilities involved in the manufacturing and production of garments. Our supplier list, which was first published in 2013, maps and shares the details of our tier 1 suppliers, accounting for 99% of relevant production volume in 2022.