H&M Group Announces Annual & Sustainability Report 2025

H&M Group Sustainability Disclosure Report 2025

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.

Annual & Sustainability Report 2025

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.