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H&M commended for its advanced decarbonisation model

23 Jun '25
2 min read
H&M commended for its advanced decarbonisation model
H&M Summer 2025. Pic: H&M

Insights

  • H&M has been commended for its Scope 3 targets, supplier financing for clean energy, and policy advocacy.
  • The brand is providing low-cost loans for new energy to suppliers in Asia.
  • Aim is to become net zero by 2040 across its supply chain.
  • Only three out of 42 brands cutting emissions fast enough to align with 1.5°C targets.
  • Most peers lag, with 40 per cent increasing emissions since baseline years.
H&M has been recognised by environmental NGO Stand.earth, headquartered in San Francisco, as the apparel brand with the most detailed decarbonisation roadmap among the 42 leading major companies evaluated.

Stand.earth’s stringent 2025 Fossil-Free Fashion Scorecard awarded H&M a B+ —the highest grade ever given in the report’s history—placing it well above the company average of D.

The NGO’s assessment evaluates apparel and footwear brands on their progress in phasing out coal, oil and gas across materials manufacturing, supply chains, products and shipping.

It highlighted H&M’s ambitious science-based Scope 3 (supply chain) targets, in addition to a groundbreaking supplier financing programme for providing low-cost loans for Asian manufacturers transitioning to rooftop solar or biomass energy.

The NGO also commended H&M’s public advocacy for renewable energy policies in major production hubs like Bangladesh and Vietnam.

In response to the recognition, H&M emphasised its commitment to “ambitious climate targets through clear roadmaps, renewable energy investments and supplier financing.”

“While there is more work ahead, this reinforces our determination to drive meaningful change and reduce absolute emissions,” said Henrik Sundberg, the company’s climate impact lead.

H&M aims to have reduced its absolute Scope 3 emissions by 56 per cent by 2030 from 2019 levels and to achieve net-zero by 2040.

Call to action

Only three of the 42 brands assessed, however, are said to be cutting emissions fast enough to align with 1.5°C warming limits, and 40 per cent have actually increased their individual footprints since baseline years.

“H&M proves that brands can align capital and advocacy with climate goals, and its scorecard proves meaningful action is possible,” said Stand.earth executive director Todd Paglia.  

Rachel Kitchin, a senior campaigner at the NGO, urged H&M competitors to accelerate efforts.

“Fashion is at a crossroads and demanding detailed transition plans backed by supplier support and policy engagement,” she said.

ALCHEMPro News Desk (IL)

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