H&M Group Releases 2025 Sustainability Report

On March 27, H&M Group released its comprehensive annual report and sustainability report for the fiscal year 2025, showcasing the group’s progress in profitability growth, brand building, and climate action.

H&M Group’s CEO Daniel Ervér stated that in 2025, the group achieved improved profitability and positive sales trends while completing carbon dioxide reduction, confirming that growth, profitability, and emission reductions can be advanced in synergy. Chief Sustainability Officer Leyla Ertur stated that the group will continue to promote the sustainability agenda, drive industry transformation, and decouple corporate growth from resource consumption and emissions.

The core sustainability metrics for the group in 2025 are as follows: the share of recycled and sustainably sourced materials reached 91%, of which recycled materials accounted for 32%, exceeding the annual target of 30%; compared to the 2019 baseline, Scope 1 and Scope 2 greenhouse gas emissions decreased by 41%, and Scope 3 emissions decreased by 34.6%; 2.8 billion Swedish kronor was invested in decarbonization technologies and material innovations; from 2022 to date, the number of coal-fired boiler using companies among Tier 1-3 apparel suppliers has decreased by 108, with plans to phase out coal-fired boilers entirely by 2026; compared to the 2022 baseline, freshwater usage among Tier 1-2 apparel suppliers has decreased by 22.8%, exceeding the 10% reduction target.

The group’s second-hand resale business has covered 26 markets, and by 2025, this business is expected to account for 0.8% of revenue, a year-on-year increase of 31%. The year 2025 also marks the 10th anniversary of the group’s global framework agreement signed with the global industry trade union and the Swedish union IF Metall, which guarantees the rights of over one million workers.

(H&M Group)