Sustainability, Circularity & Social Responsibility at H&M

H&M Group’s 2024 Sustainability Report highlights the company’s ongoing efforts to integrate sustainability into its operations while addressing challenges in the fashion industry.

With ambitious goals for environmental impact reduction, circularity and social responsibility, the report underscores H&M's commitment to creating a sustainable future for fashion.

Environmental progress

H&M Group achieved a 41% reduction in Scope 1 and 2 emissions in 2024 compared to its 2019 baseline, progressing toward its goal of a 56% reduction by 2030.

Scope 3 emissions, which account for the majority of the company’s carbon footprint, saw a 24% reduction, reflecting improvements across the supply chain.

The company continued its transition to renewable energy, with 96% of its electricity sourced from renewable options in 2024, and it remains on track to reach 100% by 2030.

Approximately 89% of materials used in H&M’s products were recycled or sustainably sourced in 2024, up from 83% in 2023.

This includes a notable increase in recycled materials to 29.5%, aligning with the target of 30% by 2025 and 50% by 2030.

These achievements have earned H&M recognition including a place in Sustainability Magazine’s top sustainable fashion brands.

Circular fashion

H&M is advancing circularity through innovative business models and partnerships, including further investment in Sellpy, its second-hand platform, promoting reuse and extending the lifecycle of garments.

This initiative aligns with the company’s broader goal of fostering a circular economy for fashion.

Celebrating two decades of designer collaborations, H&M has launched a curated collection of pre-loved pieces from past partnerships.

By promoting circularity, H&M is celebrating fashion heritage by offering vintage designs to new customers.

The company also co-funded a decarbonisation initiative in Bangladesh alongside other major retailers, aiming to reduce emissions throughout the supply chain.

Social responsibility

Women held 65% of leadership positions across H&M Group in 2024, showcasing progress toward gender equity within the organisation.

Through its collaboration with Women Win’s ONSIDE Fund, H&M Move supported local organisations working to address inequalities through movement-based initiatives.

This two-year is part of H&M’s commitment to social impact beyond its operations.

Challenges and financial performance

Despite these achievements, H&M faced challenges in maintaining growth.

Net sales for the year totalled SEK234bn (US$23bn), a slight decline from SEK236bn (US$23.6bn) in 2023. 

The decrease was attributed to market fluctuations and strategic store closures, with the total number of stores reduced to 4,253 globally.

However, operating profit improved to SEK17.3bn (US$1.7bn) — up from SEK14.5bn (US$1.5bn) in 2023 — driven by cost controls and investments in supply chain efficiency.

The future of sustainability at H&M Group

H&M Group remains focused on achieving its long-term sustainability goals:

• Material goals: The company aims for all materials to be sustainably sourced or recycled by 2030
• Climate targets: Continued investment in renewable energy and decarbonisation initiatives will support reductions across Scope 1, 2 and 3 emissions
• Innovation: H&M plans to scale up circular business models and explore new materials and production methods that decouple growth from resource use.

“Thanks to the commitment and contribution from our teams and a strong plan, I am optimistic about our potential,” says Daniel Ervér, CEO H&M Group. 

“We will take significant steps forward in 2025 and keep working to build the foundation for continued profitable and sustainable growth.”

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