{"id":22148,"date":"2017-11-14T18:02:57","date_gmt":"2017-11-14T23:02:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/climate-change-and-fast-fashion-at-hm-is-sustainability-the-answer\/"},"modified":"2017-11-14T18:39:23","modified_gmt":"2017-11-14T23:39:23","slug":"climate-change-and-hm-is-sustainability-the-answer","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/climate-change-and-hm-is-sustainability-the-answer\/","title":{"rendered":"Climate Change and H&M: Is Sustainability the Answer?"},"content":{"rendered":"

A Supply Chain Storm Brewing<\/strong><\/p>\n

For H&M, a major fast fashion retailer, a comprehensive approach to environmental sustainability is a core pillar of its business. The rationale for this model is well founded; the apparel industry has complex supply and production chains that contain many environmental touch points, all of which are at risk to be meaningfully impacted by climate change. An overview of an apparel production chain is shown below [1]:<\/p>\n

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The impact of climate change on the fashion industry is exceedingly relevant to the long-term profitability of apparel companies: Greenhouse gas emissions are expected to double in 50 years and the average surface temperature of the earth is expected to increase [2], potentially affecting cotton-growing and textile manufacturing. Agriculture uses more than 70% of global freshwater [3], and growing cotton, a core element of many textiles requires a water-intensive process [4]. In fact, producing one pair of jeans uses ~3,000 liters of water [5]. Water withdrawals around the world, however have tripled over the last 50 years, and it\u2019s expected that the cost of water will increase as it becomes a scarcer resource [6].<\/p>\n

H&M may have already begun to experience the impact of doing business in a world affected by climate change; its average cost of goods sold has steadily increased as gross margins have decreased over the last five years [7]. As resources become scarce and increasingly expensive, it\u2019s critical that apparel retailers like H&M prepare for and mitigate the effects of climate change.<\/p>\n

Preparation, Preparation, Preparation<\/strong><\/p>\n

H&M has an extensive environmental sustainability program to lessen this impact, comprised of both short-term projects and long-term target initiatives. Some of the principal program elements are:<\/p>\n

The Use of Sustainable Materials: H&M has targeted using 100% sustainable cotton in textile production by 2020 and an increased quantity of recycled polyester, in order to utilize 100% recycled or sustainable materials by 2030 [8].<\/p>\n

Greenhouse Gas Emissions: H&M has targeted becoming climate positive, or reducing more emissions than its supply and production chains generate by 2040 [9]. Additionally, H&M joined the World Wildlife Foundation (WWF) as a partner in its Climate Savers program in April 2017, with the mission to reduce C02 emissions and influence market and policy development surrounding the topic [10].<\/p>\n

Water Usage: H&M entered into a partnership with WWF in 2013 specific to water stewardship, with the following objectives: improve awareness about the use of water, more responsibly use water throughout H&M\u2019s value chain and encourage sustainable water practices with H&M stakeholders. The initial two-year partnership was successful; more than half H&M employees completed water training and 75% of suppliers met the global water quality standard [11]. The partnership has since been extended for an additional five years, during which time H&M plans to integrate water-efficient equipment into all stores and warehouses, ~5,000 locations [12].<\/p>\n

Garment Recycling: In 2013, H&M instituted a global clothing recycling program for used, unwanted or damaged clothing. This initiative has resulted in thousands of tons of garments collected, 99% of which are re-worn, reused or recycled [13]. Further, H&M has partnered with celebrities to raise awareness about garment sustainability and its clothing recycling program. One such YouTube ad featuring M.I.A. has been viewed more than 3.4 million times [14]. An ad for the program can be seen below [15]:<\/p>\n