In a bid to achieve its goal of net zero emissions by 2040, Swedish multinational clothing company H&M has announced at COP27 its interim target to reduce the group’s absolute scope 1 and 2 emissions and scope 3 emissions by 56 per cent respectively by 2030. The company has also allotted an annual budget of around SEK (Swedish krona) 3 billion ($287 million) to further decarbonise its value chain.

This budget will be used for investments to phase out coal and increase the share of more sustainable materials, amongst others, the company said in a media release.

H&M Group joined the 27th United Nations Climate Change Conference (COP27) international forum in Sharm El Sheikh, Egypt, to build momentum for collaborative action and share the company’s progress and challenges.

To achieve its goal of net zero emissions by 2040, Swedish multinational clothing company H&M has announced at COP27 its interim target to reduce the group’s absolute scope 1 and 2 emissions and scope 3 emissions by 56 per cent respectively by 2030. The company has also allotted an annual budget of around SEK 3 billion to further decarbonise its value chain.

The company has also launched some initiatives in its pursuit to reduce its carbon footprint, including the green fashion initiative, which will support the company in reducing greenhouse gas emissions across its supply chain, by making funding available to supplying factories to invest in the technologies and processes needed to reduce energy demand and replace fossil fuels across the fashion industry.

H&M Group has also become a lead funder of the Fashion Climate Fund, which is designed to drive collective action to tackle fashion’s supply chain emissions. The fund will help execute foundational supply chain improvements, including transitioning to renewable electricity, improving energy efficiency, eliminating coal in manufacturing, scaling sustainable materials and practices, and accelerating next-gen materials.

In order to reach beyond its own influence, H&M Group and Guidehouse have initiated a sustainable Supplier Facility where other brands and investors will be able to co-invest to share the financial responsibility of a project and give further alternatives to support suppliers in their decarbonisation journey.

The company has also launched internal carbon price initiative, which is a consisting tool within the H&M Group to drive behavioural change within its buying, design, and merchandising teams as well as in production and logistics, that steers toward the purchase of low-carbon materials for its products and the selection of low-emission production units.

H&M Group also signed a multi-year carbon removal agreement with Climeworks in 2022, which covers the removal of 10,000 tons of CO2.

“Instead of measuring the success of these initiatives by financial gain, we measure effective emission reductions. To turn our company growth, profit, and greenhouse gas reduction into equal KPIs is a very ambitious decision that underlines the importance and value of our sustainability work for our business,” said Leyla Ertur, head of sustainability, H&M Group.

Fibre2Fashion News Desk (DP)