H&M Group Announces Annual & Sustainability Report 2025
H&M Group has released its 2025 Annual & Sustainability Report, detailing progress in balancing profitability with environmental goals.
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- 📰 Published: March 31, 2026 at 01:00
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H&M Group has published its 2025 Annual & Sustainability Report. The 2025 "Annual and Sustainability Report" from H&M Hennes & Mauritz AB demonstrates that the Group continues to build a stronger foundation for long-term growth through improved profitability, enhanced brand strength and customer offering, and ongoing progress on its climate agenda.
We are strengthening our offering and demonstrating that growth, profitability, and reduced emissions can go hand in hand. 2025 has been a year where we continued to take important steps towards all our long-term goals. Profitability has improved, sales trends are positive, and CO₂ emissions have decreased. Daniel Ervér (H&M Group CEO)
We continue to be strongly committed to driving sustainability initiatives and creating positive change across the industry. In 2025, we achieved reductions in CO₂ emissions, increased the use of recycled materials, and reduced freshwater consumption. Based on a clear roadmap, we are advancing initiatives that support people and communities while decoupling growth from resource use and emissions. Leila Erturk (H&M Group Chief Sustainability Officer)
Sustainability Highlights for 2025 include:
• 91% of materials were recycled or sustainably sourced. The proportion of recycled materials alone reached 32%, exceeding the company's 2025 target of 30%.
• Greenhouse gas emissions were reduced by 41% for Scope 1 and 2, and 34.6% for Scope 3 (both compared to a 2019 baseline). This puts the company on track to achieve its Science Based Targets (SBT).
• SEK 2.8 billion was invested in decarbonization and material innovation.
• The number of garment suppliers (Tier 1, 2, and 3) reporting the use of on-site coal boilers has decreased by 108 since 2022. These boilers are scheduled for complete phase-out by 2026.
• Freshwater consumption by garment suppliers (Tier 1 and 2) involved in wet processes was reduced by 22.8% compared to 2022. This significantly surpassed the company's 2025 target of a 10% reduction.
• Resale business expanded through Sellpy and group brands, now operating in 26 markets and accounting for 0.8% of group sales in 2025, a 31% increase from 2024.
FAQ
What is the H&M Group's Annual & Sustainability Report 2025 about?
The report details H&M Group's performance in 2025, focusing on improved profitability, enhanced brand strength, and continued progress on its climate agenda, demonstrating a balance between business growth and sustainability goals.
What were the key sustainability achievements in 2025?
Key achievements include 91% of materials being recycled or sustainably sourced (exceeding the 30% target for recycled materials at 32%), significant reductions in greenhouse gas emissions (41% for Scope 1&2, 34.6% for Scope 3), SEK 2.8 billion invested in decarbonization and material innovation, a decrease in suppliers using coal boilers, and a 22.8% reduction in freshwater consumption by garment suppliers.
Did H&M Group meet its sustainability targets for 2025?
Yes, H&M Group exceeded several key targets, including the proportion of recycled materials (32% vs. 30% target) and freshwater reduction (22.8% vs. 10% target). The company is also on track to meet its Science Based Targets (SBT) for emissions reduction.
What is the company's stance on profitability and sustainability?
H&M Group emphasizes that growth, profitability, and reduced emissions can go hand in hand. The 2025 report demonstrates this by showing improved profitability and sales trends alongside significant environmental progress.
How is H&M Group investing in sustainability?
The group has invested SEK 2.8 billion in decarbonization and material innovation. They are also working to phase out coal boilers by 2026 and have expanded their resale business.
What is the significance of the resale business mentioned in the report?
The resale business, expanded through Sellpy and group brands, now operates in 26 markets and accounted for 0.8% of group sales in 2025, showing a 31% increase from 2024, indicating a growing circular economy initiative.
What does the report say about CO2 emissions?
Greenhouse gas emissions were reduced by 41% for Scope 1 and 2, and 34.6% for Scope 3, compared to a 2019 baseline. This progress aligns with the company's commitment to Science Based Targets (SBT).
What is the target for phasing out coal boilers?
H&M Group aims to completely phase out on-site coal boilers used by garment suppliers (Tier 1, 2, and 3) by 2026.
What is the status of H&M Group's commitment to sustainable materials?
In 2025, 91% of materials used were recycled or sustainably sourced. Specifically, 32% of materials were made from recycled sources, surpassing the company's goal of 30% for the year.
Where can I find the full Annual & Sustainability Report 2025?
The full report is available for download at [link to the report, if provided in the original text, otherwise state it's available on their website].