H & M Hennes & Mauritz AB

Our sustainability strategy is integrated into our business strategy and put into action across H&M Group, with each team driving change in their area. The sustainability department reports on sustain­ability goals and key performance indicators bi­­annually to the board of directors and quarterly to the CEO and CFO. Quarterly reports cover KPIs, key challenges, learning, activities, impacts, and achievements across brands and markets. [...] |Advocate for systemic change|• Advocate for public policy that aims to limit global temperature rise to 1.5ºC and push for legislation that accelerates the decarbonisation of our value chain. • Engage and collaborate with peers and others to enable and inspire global ­climate action.| [...] **Advocacy and industry action** At a global level we continued to engage with ­in­fluential stakeholders and policy makers to ­advocate for legislation that supports decarbon­ising of our supply chain. In 2024, we signed the [World Economic Forum COP 29 letter and we](https://www.weforum.org/stories/2024/10/alliance-of-ceo-climate-leaders-cop29/) joined the University of Cambridge Institute for Sustainability Leadership's ­Corporate Leaders Group Europe. During 2024, we approached the Board of ­Trustees at SBTi to raise our concerns about their statement on potentially allowing carbon [­offsets for scope 3 targets. Read the letter here.](https://hmgroup.com/wp-content/uploads/2024/05/HM-Group-letter-of-concern-to-SBTi.pdf) We engage with national and regional policymakers in our main retail and production markets, both directly and through participation in stake holder platforms, including the UN Frame­ work Convention on Climate Change Fashion ­Charter (UNCCC), World Wide Fund for Nature (WWF), WEF and RE100. Our primary objective is to support a policy shift in key production markets to improve the availability and accessibility of renewable energy.

Through our public affairs work, we advocate for clear, realistic and effective sustainability legislation that accelerates positive change and transformation in our industry. We support a legal framework that levels the playing field, harmonises policies and aligns to international standards. Increasingly complex legislation and heightened scrutiny of our industry present challenges, although ultimately we see these as positive contexts because they drive progress towards our sustainability goals. [...] Our approach is progressing from agenda setting and policy shaping, to informing and reacting to concrete policy proposals and preparing for upcoming legislative developments. [...] Our priority focus areas are those most relevant to our sustainability work, and which hold the most potential for positive impact: — Energy & climate change. We advocate for policy that aims to limit global temperature rise to 1.5°C and support legislation that accelerates the decarbonisation of our value chain. This includes support for regulations that enable Power Purchase Agreements (PPAs) in our production markets, to accelerate the transition to renewable energy and electrification in our industry. — Circularity. We advocate for clear and realistic legislation that supports the circular transformation and addresses how our goods are produced, consumed and managed at their end of life. In addition, we work to support production markets with their recycling capabilities, most notably to meet future EU requirements. — Chemicals. Harmonised, effective and ambitious chemicals legislation will help us advance our own chemicals strategy. — Transparency and traceability. We advocate for a harmonised legislative landscape that ensures the credibility and accountability of our sustainability claims and promotes transparent, accurate and relevant information about our supply chain, products and business practices. — Governance and responsible business conduct. We support clear legislation aligned with international standards to achieve positive environmental and social impact along our value chain. — Trade. Trade policy and free trade agreements are both influenced by and influence sustainability regulations. Our involvement in the European Branded Clothing Alliance (EBCA) reflects our commitment to advocate for a trade policy that aligns with our sustainability goals. — Artificial intelligence (AI) & tech. We stay engaged in AI and data-related legislative developments. AI and data systems are important levers for tracking, comparing and accelerating progress towards our sustainability goals. [...] We participate in international discussions on our sustainability work, including COP28, the International Labour Organization, the Organisation for Economic Co-operation and Development, the UN Framework Convention on Climate Change (UNFCCC), the UN Global Compact (UNGC) Decent Work in Global Supply Chains Action Platform, the UNGC CFO Coalition for the SDGs and the World Economic Forum (WEF). [...] We are members of multi-stakeholder platforms and trade associations, including: ACT (Action, Collaboration, Transformation), AFIRM, Business for Nature, CEIA (Clean Energy Investment Accelerator), Change Chemistry, ChemSec Business Group, Ecommerce Europe, EuroCommerce, European Branded Clothing Alliance (EBCA), Global Fashion Agenda, ICC, Industry Summit, the Pathways Coalition, Policy Hub — Circularity for Apparel and Footwear, Sustainable Apparel Coalition, Textile Exchange, UNFCCC Fashion Industry Charter for Climate Action and ZDHC (Zero Discharge of Hazardous Chemicals).

### Engaging with policy makers

Our public affairs work is an important enabler to address systemic issues and achieve policy developments needed to support meaningful growth in our industry.

We engage with governments on key environmental, social and business topics. The central team reports directly to our chief financial officer and sets the direction for teams in our retail and production markets. H&M Group [is listed in the EU Transparency Register.](https://ec.europa.eu/transparencyregister/public/homePage.do)

###### Priority policy areas

We focus on the issues most relevant to our sustainability work and where we see greatest potential to contribute to positive change.

An important focus area is upcoming European Union (EU) and EU country-level legislation on transparency, circularity and other environmental and social issues. We also prioritise engaging with national and international policy and legislation that:

— Supports transition to a circular and climate positive fashion industry.

— Impacts social development in our production markets, with a focus on wages and social

— Enables stable, predictable development of the industry in our production markets to support equitable economic growth, in line with the Sustainable Development Goals.

— Promotes a free and sustainable trade agenda.

— Addresses the emerging artificial intelligence and digitalisation agenda.

We engage in international dialogue relevant to our sustainability ambitions, including through COP26, the International Labour Organization, the Organisation for Economic Co-operation and Development, the UN Framework Convention on Climate Change (UNFCCC), the UN Global Compact (UNGC) Decent Work in Global Supply Chains Action Platform, the UNGC CFO taskforce and the World Economic Forum.

We are members of multi-stakeholder [platforms, including ACT (Action, Collaboration,](https://actonlivingwages.com) [Transformation), AFIRM, Business for Nature,](https://www.afirm-group.com) [Global Fashion Agenda, the Policy Hub —](https://www.globalfashionagenda.com) [Circularity for Apparel and Footwear, the](https://www.policyhub.org) [Sustainable Apparel Coalition, Textile Exchange,](https://apparelcoalition.org/) [the UNFCCC Fashion Industry Charter for](https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-fashion/about-the-fashion-industry-charter-for-climate-action) [Climate Action and ZDHC (Zero Discharge of](https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-fashion/about-the-fashion-industry-charter-for-climate-action) Hazardous Chemicals).

###### Key 2021 activities

— We contributed in depth to EU consultations on the EU Textile Strategy, sustainable product initiative (including eco-design, circular business models and digital product passports),

Governance), packaging, end-of-waste criteria [for the textile industry, and the EU taxonomy](https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance/eu-taxonomy-sustainable-activities_en) for sustainable economic activities. Our CEO and our Head of Sustainability took part in highlevel meetings with the EU Commission and EU Parliament on topics such as transparency and sustainable textiles.

— In several production markets, we advocated for transparent, inclusive minimum wage revisions and extended social protection mechanisms, either through policy conversations (for example, in Bangladesh and Indonesia) or working with our suppliers to ensure full enforcement of the law (for example, in Turkey).

— We engaged with national authorities to support reforms towards a cleaner energy mix, including in Bangladesh (on the revision of the Renewable Energy Policy), Cambodia, and Indonesia (together with CEIA – Clean Energy Investment Accelerator). In Turkey and Bangladesh we started a collaboration with United Nations Development Programme (UNDP) to understand the legal framework and advocate for the shift towards a climate positive industry.

### 415: Public policy

**3-3** Management approach SD: 76-77 (Note, not a material topic.)

**415-1** Political contributions See note.

H&M Group does not provide direct financial contributions to individual politicians or political parties.

(Note not a material topic )

### 415: Public policy

**3-3** Management approach SD: 76-77 (Note, not a material topic.)

**415-1** Political contributions See note.

H&M Group does not provide direct financial contributions to individual politicians or political parties.

(Note not a material topic )

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# Annual report

Our annual reports can be found and downloaded here.

Annual and sustainability report 2024

Annual and sustainability report 2023

Annual and sustainability report 2022

Annual and sustainability report 2021

Annual report 2020

Annual report 2019

Annual report 2018

Annual report 2017

Annual report 2016

Annual report 2015

Annual report 2014

Annual report 2013

Annual report 2012

Annual report 2011 Part 2

Annual report 2011 Part 1

Annual report 2010 Part 2

Annual report 2010 Part 1

Annual report 2009 Part 2

Annual report 2009 Part 1

Annual report 2008 Part 2

Annual report 2008 Part 1

Annual report 2007

Annual report 2006

Annual report 2005

Annual report 2004

Annual report 2003

Annual report 2002

Annual report 2001

Annual report 2000

Annual report 1999

#### Governance

We integrate responsibility for climate action throughout the company to ensure accountability and transparency, and drive effective action. Accountability starts at board level and runs throughout our brands and operations.

— The board monitors our sustainability performance and initiates change where necessary, ensuring sufficient resource allocation.

— Sustainability performance, including progress towards climate targets, influences the CEO's remuneration.

— The Head of Sustainability and the executive management team are responsible for implementing sustainability strategies. The Head of Sustainability reports on sustainability key performance indicators biannually to the Board of Directors and quarterly to the CEO and CFO.

Implementation of this policy and supporting strategies is the responsibility of the Head of Sustainability together with the Executive Management team. Accountability for implementation and performance against this policy lies with respective business functions and brands. Business functions and brands are supported by a team of experts in our Group Sustainability Department. [...] We engage with policymakers and international institutions to influence legislation in support of systemic and meaningful change.

###### Dialogue with policymakers

Our public affairs work focuses on enabling effective legislation that supports positive change in our industry. Increasing legal requirements and heightened scrutiny of the fashion industry help to level the playing field, alongside presenting opportunities for us and the wider sector to accelerate progress towards our sustainability goals.

Our approach is progressing from agenda setting and policy shaping to informing and reacting to emerging proposals. Helping policymakers to understand practical implications of new legislation is key to this process.

We're expanding our public affairs resources to help drive systemic change, led by a central public affairs team and supported by teams in our production and retail markets.

###### Priority policy areas

Our priority focus areas are those most relevant to our sustainability work that hold the most potential for positive impact:

— Chemicals, to further improve our progressive chemicals management and pro-actively drive for increased transparency about the content of chemicals.

— Climate change[1] — especially around Scope 3 greenhouse gas emissions, as these require a systemic change in the energy frameworks of our production countries — and Circularity models, in support of the transition to a circular economy. This is notably through advocacy for legislation supportive of Power Purchase Agreements and improved electricity grid connectivity in our markets of production, and through EU policies [and legislations,[2] such as the Energy Efficiency](https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficiency-targets-directive-and-rules/energy-efficiency-directive_en) [Directive (EED), Renewable Energy Directive (RED),](https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficiency-targets-directive-and-rules/energy-efficiency-directive_en) [EU strategy for sustainable and circular textiles,](https://environment.ec.europa.eu/publications/textiles-strategy_en) [Ecodesign for Sustainable Products Regulation](https://environment.ec.europa.eu/publications/proposal-ecodesign-sustainable-products-regulation_en) [(ESPR), Waste Shipment Regulation (WSR),](https://environment.ec.europa.eu/publications/proposal-new-regulation-waste-shipments_en) [Extended Producer Responsibility (EPR), and](https://consult.defra.gov.uk/extended-producer-responsibility/extended-producer-responsibility-for-packaging/) [Waste Framework Directive (WFD).](https://environment.ec.europa.eu/topics/waste-and-recycling/waste-framework-directive_en)

— Data protection, focusing on increasing legislation around cybersecurity and responsible use of data.

— Governance, reporting and responsible **business practices. This includes but is not** [limited to supporting development of the EU](https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en) [Taxonomy, Corporate Sustainability Due Diligence](https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en) [Directive (CSDDD), and Corporate Sustainability](https://ec.europa.eu/info/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en) [Reporting Directive (CSRD).](https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en)

— Impacts on nature, including active involvement in the work leading up to the adoption of a new global agreement on nature at COP 15 and ongoing work through Business

1) We are committed to aligning all our climate change policy work with a

for Nature, calling for mandatory disclosure of impacts and dependencies on nature by 2030.

— Transparency and traceability, to ensure the credibility of sustainability claims.

We participate in international discussions [on our sustainability work, including COP27,](https://cop27.eg/#/) [the International Labour Organization, the](https://www.ilo.org/global/lang--en/index.htm) [Organisation for Economic Co-operation and](https://www.oecd.org/unitedkingdom/) [Development, the UN Framework Convention](https://www.oecd.org/unitedkingdom/) [on Climate Change (UNFCCC), the UN Global](https://unfccc.int/) [Compact (UNGC) Decent Work in Global Supply](https://www.unglobalcompact.org/) [Chains Action Platform, the UNGC CFOs Coalition](https://www.cfocoalition.org/about) [for the SDGs and the World Economic Forum](https://www.cfocoalition.org/about) (WEF).

We are members of multi-stakeholder [platforms, including ACT (Action, Collaboration,](https://actonlivingwages.com/) [Transformation), AFIRM, Business for Nature, CEIA](https://afirm-group.com/) [(Clean Energy Investment Accelerator), ChemSec](https://chemsec.org/business-and-investors/chemsec-business-group/) [Business Group, EuroCommerce, Global Fashion](https://chemsec.org/business-and-investors/chemsec-business-group/) [Agenda, ICC, Industry Summit, the Pathways](https://globalfashionagenda.org/) [Coalition, the Policy Hub — Circularity for Apparel](https://www.thepathwayscoalition.com/) [and Footwear, the Sustainable Apparel Coalition,](https://www.policyhub.org/) [Textile Exchange, the UNFCCC Fashion Industry](https://textileexchange.org/) [Charter for Climate Action, and ZDHC (Zero](https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-fashion/about-the-fashion-industry-charter-for-climate-action) Discharge of Hazardous Chemicals).

###### Key 2022 activities

— We engaged with global policymakers to advocate for effective climate and circularityrelated legislation. This included meetings

Environment and Forestry from Indonesia as well as EU Commissioner for the Environment [Virginijus Sinkevicˇius at Stockholm+50. Our CEO](https://www.stockholm50.global/) and CFO contributed to high-level meetings with EU authorities on implementing the EU Textile Strategy. Our CEO also spoke at the WEF on our transition towards renewable energy and a circular business model.

— We worked with governments in our production markets to support the development of social protection systems, including increased unemployment benefits for workers in Indonesia, improved pension systems in Cambodia, and the launch of a workplace injury insurance scheme trial in Bangladesh.

###### Future focus

— We are preparing to comply with new sustainability and reporting legislation while using dialogue as an opportunity to drive systemic progress. Continued integration of sustainability into finance and technology will further enable innovation and accelerate progress.

— We welcome policy developments enabling sustainable progress, such as accelerating the planning and construction of a new green power system in mainland China, increasing opportunities for renewable electricity in Indonesia thanks to collaboration with the national [electricity company PLN, and the I-REC launch in](https://www.irecstandard.org/cambodia/) Cambodia. But more is needed. We will continue

###### Dialogue with policymakers

Our public affairs work focuses on enabling effective legislation that supports positive change in our industry. Increasing legal requirements and heightened scrutiny of the fashion industry help to level the playing field, alongside presenting opportunities for us and the wider sector to accelerate progress towards our sustainability goals.

Our approach is progressing from agenda setting and policy shaping to informing and reacting to emerging proposals. Helping policymakers to understand practical implications of new legislation is key to this process.

We're expanding our public affairs resources to help drive systemic change, led by a central public affairs team and supported by teams in our production and retail markets.

###### Priority policy areas

Our priority focus areas are those most relevant to our sustainability work that hold the most potential for positive impact:

— Chemicals, to further improve our progressive chemicals management and pro-actively drive for increased transparency about the content of chemicals.

— Climate change[1] — especially around Scope 3 greenhouse gas emissions, as these require a systemic change in the energy frameworks of our production countries — and Circularity models, in support of the transition to a circular economy. This is notably through advocacy for legislation supportive of Power Purchase Agreements and improved electricity grid connectivity in our markets of production, and through EU policies [and legislations,[2] such as the Energy Efficiency](https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficiency-targets-directive-and-rules/energy-efficiency-directive_en) [Directive (EED), Renewable Energy Directive (RED),](https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficiency-targets-directive-and-rules/energy-efficiency-directive_en) [EU strategy for sustainable and circular textiles,](https://environment.ec.europa.eu/publications/textiles-strategy_en) [Ecodesign for Sustainable Products Regulation](https://environment.ec.europa.eu/publications/proposal-ecodesign-sustainable-products-regulation_en) [(ESPR), Waste Shipment Regulation (WSR),](https://environment.ec.europa.eu/publications/proposal-new-regulation-waste-shipments_en) [Extended Producer Responsibility (EPR), and](https://consult.defra.gov.uk/extended-producer-responsibility/extended-producer-responsibility-for-packaging/) [Waste Framework Directive (WFD).](https://environment.ec.europa.eu/topics/waste-and-recycling/waste-framework-directive_en)

— Data protection, focusing on increasing legislation around cybersecurity and responsible use of data.

— Governance, reporting and responsible **business practices. This includes but is not** [limited to supporting development of the EU](https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en) [Taxonomy, Corporate Sustainability Due Diligence](https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en) [Directive (CSDDD), and Corporate Sustainability](https://ec.europa.eu/info/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en) [Reporting Directive (CSRD).](https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en)

— Impacts on nature, including active involvement in the work leading up to the adoption of a new global agreement on nature at COP 15 and ongoing work through Business

1) We are committed to aligning all our climate change policy work with a

for Nature, calling for mandatory disclosure of impacts and dependencies on nature by 2030.

— Transparency and traceability, to ensure the credibility of sustainability claims.

We participate in international discussions [on our sustainability work, including COP27,](https://cop27.eg/#/) [the International Labour Organization, the](https://www.ilo.org/global/lang--en/index.htm) [Organisation for Economic Co-operation and](https://www.oecd.org/unitedkingdom/) [Development, the UN Framework Convention](https://www.oecd.org/unitedkingdom/) [on Climate Change (UNFCCC), the UN Global](https://unfccc.int/) [Compact (UNGC) Decent Work in Global Supply](https://www.unglobalcompact.org/) [Chains Action Platform, the UNGC CFOs Coalition](https://www.cfocoalition.org/about) [for the SDGs and the World Economic Forum](https://www.cfocoalition.org/about) (WEF).

We are members of multi-stakeholder [platforms, including ACT (Action, Collaboration,](https://actonlivingwages.com/) [Transformation), AFIRM, Business for Nature, CEIA](https://afirm-group.com/) [(Clean Energy Investment Accelerator), ChemSec](https://chemsec.org/business-and-investors/chemsec-business-group/) [Business Group, EuroCommerce, Global Fashion](https://chemsec.org/business-and-investors/chemsec-business-group/) [Agenda, ICC, Industry Summit, the Pathways](https://globalfashionagenda.org/) [Coalition, the Policy Hub — Circularity for Apparel](https://www.thepathwayscoalition.com/) [and Footwear, the Sustainable Apparel Coalition,](https://www.policyhub.org/) [Textile Exchange, the UNFCCC Fashion Industry](https://textileexchange.org/) [Charter for Climate Action, and ZDHC (Zero](https://unfccc.int/climate-action/sectoral-engagement/global-climate-action-in-fashion/about-the-fashion-industry-charter-for-climate-action) Discharge of Hazardous Chemicals).

Implementation of this policy and supporting strategies is the responsibility of the Head of Sustainability together with the Executive Management team. Accountability for implementation and performance against this policy lies with respective business functions and brands. Business functions and brands are supported by a team of experts in our Group Sustainability Department. [...] We engage with policymakers and international institutions to influence legislation in support of systemic and meaningful change.

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Accountability for implementation and performance against our strategies, policies and goals is integrated into respective business functions and brands, and part of their performance review with our CEO. Business functions and brands are supported by a team of 31 experts and five managers in our global Sustainability Department, in order to achieve the best possible impact. As part of this, we work continuously with external stakeholders to ensure material issues are incorporated into the company's strategies and procedures. Every quarter, Sustainability Department teams report progress against the sustainability KPIs, key challenges, learnings and activities to facilitate visibility of impacts, achievements and challenges across functions, brands and markets. [...] Transparency enables informed decisions by the company and by our stakeholders. Read about H&M Group's commitment to transparency on page 16.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We have dedicated personnel responsible for engagement and public affairs on climate, that collaborate closely with the team responsible for the overall climate strategy. The public affairs team consistently works on the basis of the data available on scope 1, 2, 3 emissions.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes