H&M operates in 61 countries with around 4,000 stores and focuses on sustainability by implementing initiatives such as a global garment collecting program that has collected over 16 million kg of textiles since 2013. The company aims to transition towards environmentally friendly practices, addressing challenges in recycling and sourcing, particularly in China where a large portion of their products are made. H&M's strategy includes a value chain approach that respects both current and future resource needs, highlighting their commitment to reducing waste and promoting a circular economy.

1. ABOUT H&M | THE H&M GROUP

2. ABOUT H&M | THE H&M OFFER

3. 61 countries
4,000 stores
148,000 employees
More than
Over
Sales including VAT SEK
210 billion
20.9 billion
Profit after tax SEK

4. ABOUT H&M | THE H&M GROUP

5. ABOUT H&M | THE H&M GROUP
EXPANSION 1974–2014

6. ABOUT H&M

7. ABOUT H&M

8. Conscious materials

9. WHY?
1900
7.91
1950
6.12
1960
4.29
1970
3.51
1980
2.93
1990
2.47
2000
2.15
Population
• 1900 – 1,6 billion
• Today – 7 billion
• 2000 – 6 billion
• 2100 – 10 billion (UN)

10. WHY FOREFRONT ON SUSTAINABILITY?
Q: Do you actively
look for
environmentally
friendly clothing?
CHANGED CONSUMER BEHAVIOUR
From 2012 to 2030 the globe will need at least:
 50 per cent more food
 45 per cent more energy
 30 per cent more water
RESOURCE SCARCITY
BUSINESS OPPORTUNITIES TALENT RETENTION & CORPORATE VALUES
RISKS OPPORTUNITIES
Yes
45%

11. OUR VALUE CHAIN APPROACH

12. Company strategy
VISION
H&M’s business operations aim to be run in a way that is
economically, socially and environmentally sustainable.
By sustainable, we mean that the needs of both present
and future generations must be fulfilled.

13. Conscious 2020: Where are we…
Internal information
 2020
 600,000 Tons of Cotton
 60,000 Tons of Recycled
Cotton

14. CLOSED LOOP
Hong Kong, September 2015
https://www.youtube.com/watch?v=s4xnyr2mCuI

15. H&M CAMPAIGN
https://www.youtube.com/watch?v=bXckKRRQubo

16. H&M China
− Buying from suppliers in China since the 1970s.
− Opened the production office in China in 1993. Today, the offices in
China region employ more than 1000
− Today, about 80% of our products are sourced in Asia, and China is a very
important sourcing country in the region
− Many products are sourced in China from garments to shoes, cosmetics
and home

17. CHALLENGES
• Non- Clarity of the situation in China regarding the
regulation for collection, sorting and recycling.
• Non availability of good quality recycled fibers
after sorting and shreddding.
• Difficulties in extracting single material fiber from
the blends.
• Technical difficulties in producing fabrics with
more than 20% post-consumer recycled content.
• Technical difficulties in producing non-denim
fabrics using post-consumer recycled materials.

18. About the garment collecting project
• First company to launch a global garment collecting program
• Implemented on all our 59 markets
• More than 16 million kg of textiles collected since February 2013
• Collection volume equivalent to 80 million t-shirts
• H&M’s goal: reduce waste, save resources and close the loop on textiles
• Textiles from any brand – in any condition accepted
• We want to offer a solution that is easy to use and easy accessible
• We want to achive a change of mindset – make customers percieve old textiles
as a resource

19. How does it work?

20. FROM STORE TO RECYCLING PLANT
• Customers bring their end-of-life textiles to our stores
• The textiles are exchanged for a voucher
• When the containers are full they are collected from our stores by our
partner I:Collect(I:CO) and brought to the nearest sorting plant
• I:CO has sorting plants in Germany, The US and India

21. Sorting categories
REWEAR
REUSE
RECYCLING ENERGY

22. China CTL Supply Chain Mapping
 China CTL kick off meeting hosted by CNTAC (China National Textile and Apparel Council) in Jun., 2015.
 Work with CNTAC to find out qualified sorting centers.
 There were six sorting centers been recommended by CNTAC.
 CTL group meeting, sorting centers & spinner, took place at our HK office in Sep., 2015.
 Completed 4 sorting centers and 1 spinner visits by 2016 CNY except Shanghai and Beijing sorting centers.
 Conclusion was Shenzhen sorting center is the most organized and potential one to work with.
 Aoyang applied for being a sorting center and spinner due to their recycled wool expertise in Jan., and
now their sorting center and spinner are ready.
 We have developed 4 spinners for PCW (post consumer waste) by the end of May, 2016.

24. Close the loop supply chain
Sorting used garment Shredding Opening
Spinning Weaving Dyeing & finishing
Garment making

25. Challenges
• Sorting technic & capacity
• Cotton resources
• Lacking of spinner and technic

26. Challenges
• Opening mill condition
• Traceability

27. Challenges
• Fabric quality – foreign yarns
• Price - 110
• Compliance requirement

28. Future Plan
 Smart sorting with proper quality analysis.
 No capacity concern – available yarns in the market.
 Collaboration among sorting centers.
 I:CO is trying to collaborate with local sorting centers
 Price goes down to be lower than virgin cotton.
 Smart sorting
 Competition
 Virgin cotton price goes up

29. LEARN MORE:
www.hm.com/CONSCIOUS
www.globalchangeaward.com
THANK YOU!