H&M CEO: How the Fashion Group Has Cut Emissions by 30%

H&M Group's latest full-year results demonstrate how leadership-level integration of climate strategy can drive measurable change across complex global value chains.

With Scope 3 emissions representing around 99% of the fashion group's total climate impact, preliminary 2025 figures showing at least a 30% reduction against the 2019 baseline signal that decarbonisation at scale requires executive commitment and operational transformation in tandem.

For CEOs navigating similar challenges, the H&M case illustrates a fundamental shift: treating Scope 3 not as a reporting obligation but as the primary arena for strategic action.

The group's progress towards its science-based target of a 56% absolute reduction by 2030, aligned with a 1.5C pathway, reflects decisions made at board level to embed climate goals into core business operations rather than delegate them to standalone sustainability programmes.

CEO of H&M Group Daniel Ervér says: "As our climate goals are well integrated into the business, we have reduced our Scope 3 CO₂ emissions by around 30% compared with the 2019 baseline, according to preliminary figures.

"This means that we are well on the way to achieving our science-based target of a 56% reduction by 2030, in line with the 1.5C target. During the quarter we received further recognition for our work within sustainability and transparency when CDP A-listed the H&M group for climate and water."

The leadership challenge centres on transforming supply chain relationships and production planning to achieve reductions where emissions are concentrated.

For H&M Group, Scope 3 spans purchased goods and services, energy use in factories, upstream transport and the use and end-of-life of sold products.

Strategic levers for value chain decarbonisation

The full-year Report 2025 outlines the mechanisms behind the 30% reduction, offering a blueprint for executives in asset-light, globally distributed industries.

H&M Group has moved towards fewer, deeper and longer-term supplier partnerships, enabling joint investment in cleaner production infrastructure and supporting the transition away from coal in the supply chain.

Increased use of renewable electricity and energy efficiency improvements among suppliers have accelerated emissions reductions in energy-intensive stages such as dyeing, washing and finishing.

Production planning has been recalibrated to align more closely with actual customer demand, reducing material waste and increasing the share of lower-impact fibres across key materials.

"I am truly proud of the steps we have taken in 2025, not only in our sustainability performance but also in how deeply sustainability is becoming part of daily decisions across H&M Group," says Leyla Ertur, Chief Sustainability Officer at H&M Group.

"Real change happens when sustainability becomes everyone's responsibility, embedded in every role, every conversation and every choice. Thank you to all teams, partners and colleagues who continue to drive this work forward. Together, we are building long‑term resilience and meaningful impact."

Integrating climate into governance and water stewardship

H&M Group positions climate action as a core strategic priority rather than an ancillary function. The company is targeting net zero emissions by 2040, with the interim 56% absolute reduction by 2030 grounded in a science-based target covering Scopes 1 to 3.

In 2025, H&M Group received A-list status from the Carbon Disclosure Project (CDP) for climate, placing it among a small group of companies recognised for environmental transparency and performance. Water management sits alongside climate as a strategic priority, reflecting the sector's reliance on water-intensive processes.

H&M Group aims to create a positive impact on freshwater by 2030 and has set a target to reduce absolute freshwater consumption in tier 1 and 2 production facilities by 30% by 2030, with a 10% reduction milestone by 2025 against a 2022 baseline.

The company has developed a water stewardship framework with partners including Quantis, featuring supplier guidance and a self-assessment tool focused on high-risk regions such as Bangladesh, India, China, Turkey, Indonesia, Vietnam and Pakistan.

This framework supports improved water governance, efficiency and pollution reduction across the supply chain and underpins H&M Group's A-listing by CDP for water in 2025, achieved alongside its climate A rating.