H&M Group has made significant progress in cutting its supply chain emissions, according to its latest sustainability report. Scope 1 and 2 emissions dropped 41% from a 2019 baseline in 2025, while Scope 3 emissions fell 34.6%. The company attributes these gains to investments in renewable energy and sustainable materials.
In its 2025 sustainability report, H&M detailed ambitious strides toward decarbonizing its operations. The retailer achieved 95% renewable electricity across its supply chain, driving the 41% reduction in Scope 1 and 2 emissions compared to 2019 levels. Scope 3 emissions, which dominate the fashion industry's footprint, declined by 34.6% over the same period, H&M said. Chief sustainability officer Leyla Ertur credited this to “investments in material innovation, our activities to reduce the energy and water demand in our suppliers’ factories, increase their use of renewable electricity, and replace fossil fuels.” She highlighted the replacement of fossil fuels and increased use of recycled or sustainably sourced materials as key advances. H&M defines sustainable materials based on environmental impact, social risks, and traceability assessments. The company nearly eliminated onsite coal boilers in supplier factories, with the number of garment suppliers (Tiers 1, 2, and 3) using them dropping by 108 since 2022. A full phase-out is targeted for 2026. In 2025, 91% of materials were recycled or sustainably sourced, including 32% recycled—exceeding the 30% goal and positioning H&M on track for 50% by 2030. H&M invested SEK 2.8 billion (about $298 million) in decarbonization and material innovation that year. Water use in wet processing among Tier 1 and 2 suppliers fell 22.8% from a 2022 baseline, beating the 10% target. Priorities now include heat pumps, heat storage, and waterless technologies. Ertur noted challenges like limited electrification and renewable energy access in some countries but affirmed H&M's commitment to advocacy. The firm also set science-based nature targets and published a white paper with EY to share supplier financing insights. Ertur emphasized long-term supplier partnerships as crucial for structural change.