How H&M Group is Reducing Scope 3 Emissions

Scope 3 emissions account for the majority of most companies’ footprints and H&M Group is no exception – but the fashion giant's Full-year Report 2025 shows how fast fashion’s climate footprint can be reshaped when Scope 3 becomes the main arena for action. 

Scope 3 accounts for around 99% of H&M Group’s climate impact, spanning materials, manufacturing, transport and product use, and preliminary 2025 figures show a reduction of at least 30% versus the 2019 baseline, keeping the group on track for its science-based target of a 56% cut by 2030 in line with 1.5°C.

“As our climate goals are well integrated into the business, we have reduced our Scope 3 CO₂ emissions by around 30% compared with the 2019 baseline, according to preliminary figures,” says Daniel Ervér, CEO, H&M Group.

“This means that we are well on the way to achieving our science-based target of a 56% reduction by 2030, in line with the 1.5°C target. 

“During the quarter we received further recognition for our work within sustainability and transparency when CDP2 A-listed the H&M group for climate and water.

Scope 3 emissions: cutting where it counts

In 2025, H&M Group reports it has reduced Scope 3 greenhouse gas emissions by at least 30% compared with 2019, a significant shift given Scope 3 represents almost the entire footprint. 

This progress is measured against a long-term science-based target to reduce absolute Scope 1–3 emissions 56% by 2030 from a 2019 base year, classified as aligned with a 1.5°C pathway.

Scope 3 covers emissions from purchased goods and services, energy use in factories, upstream transport and the use and end-of-life of sold products, making it the “heart” of its value chain. 

In earlier years, Scope 3 emissions were above 11 million tonnes CO₂e, dominated by raw materials and manufacturing, underlining the scale of the decarbonisation task now underway.

“I am truly proud of the steps we have taken in 2025, not only in our sustainability performance but also in how deeply sustainability is becoming part of daily decisions across H&M Group,” says Leyla Ertur, Chief Sustainability Officer at H&M Group.

Leyla Ertur has been ranked in Sustainability Magazine's Top 250 Leaders list. Read the full list here.

“Real change happens when sustainability becomes everyone’s responsibility, embedded in every role, every conversation and every choice.

“Thank you to all teams, partners and colleagues who continue to drive this work forward.

“Together, we are building long‑term resilience and meaningful impact.”

All sustainability, net zero and sustainable supply chain leaders should attend:

• Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Sustainability LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Supply Chain LIVE, these events brings together CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

How H&M is driving Scope 3 reduction

The Full-year Report 2025 and accompanying commentary point to a set of levers behind the 30% Scope 3 cut. 

H&M Group has shifted to fewer, deeper, long-term supplier partnerships to enable real investment in cleaner production and supports the move away from coal in its supply chain. More suppliers are now using renewable electricity and improving energy efficiency, accelerating emissions reductions in energy-intensive dyeing, washing and finishing stages.

The company has also planned production closer to real customer demand, using less material overall and increasing the share of lower-impact fibres across key materials, helping decouple growth from resource use and emissions. 

This performance did not come from a single flagship project, but from integrating climate considerations into everyday business decisions.

Climate strategy

H&M Group positions climate action as a core strategic priority rather than a standalone programme. 

The company is targeting net zero emissions by 2040, with the interim 56% absolute reduction by 2030 grounded in a science-based target covering Scopes 1–3. The Full-year Report 2025 notes that preliminary figures show a roughly 30% cut in CO₂ emissions compared with 2019, signalling that the group is “well on the way” towards its 2030 target.

In 2025, H&M Group was A-listed by CDP for climate, placing it among a relatively small group of companies recognised for leading environmental transparency and performance.

Water strategy and CDP water A-list

Water sits alongside climate as a strategic priority, particularly in a sector that relies heavily on water-intensive processes and operates in high-risk basins. 

H&M Group aims to create a positive impact on freshwater by 2030 and has set a target to reduce absolute freshwater consumption in tier 1 and 2 production factories by 30% by 2030, with a 10% reduction milestone by 2025 against a 2022 baseline.

To deliver this, the company has developed a water stewardship framework with partners such as Quantis, including supplier guidance and a self-assessment tool focused on high-risk regions like Bangladesh, India, China, Turkey, Indonesia, Vietnam and Pakistan. This approach supports better water governance, efficiency and pollution reduction across the supply chain and underpins H&M Group’s A-listing by CDP for water in 2025, achieved alongside its climate A rating.

A resilient fashion value chain

H&M Group’s Full-year Report 2025 also points to broader sustainability shifts underpinning climate and water performance. 

The company continues to invest in innovation for better water management, new recycled materials and regenerative landscape projects, while supporting suppliers in high-risk basins with data-driven tools and guidance. Efforts to reduce material use, increase lower-impact fibres and cut plastic packaging build on earlier progress, including a 54% reduction in plastic packaging since 2018 reported in previous updates.