{"id":22657,"date":"2017-11-15T18:21:47","date_gmt":"2017-11-15T23:21:47","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/save-1\/"},"modified":"2017-11-15T18:21:47","modified_gmt":"2017-11-15T23:21:47","slug":"fast-fashions-fast-feedback-hm-commits-to-sustainable-cotton","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/fast-fashions-fast-feedback-hm-commits-to-sustainable-cotton\/","title":{"rendered":"Fast Fashion\u2019s Fast Feedback: H&M Commits to Sustainable Cotton"},"content":{"rendered":"

Will Climate Change Affect H&M?<\/u><\/p>\n

H&M, a \u2018fast fashion\u2019 brand that manufactures clothing quickly and inexpensively, relies on a readily available supply of cotton at cheap prices. Managing cotton resources is critical to H&M\u2019s supply chain \u2013\u00a0 cotton is the most commonly used fiber in H&M\u2019s clothing [i].<\/p>\n

However, as global temperatures rise due to climate change, droughts will become more prevalent and the supply of cotton will be threatened [ii]. Growing cotton requires a significant amount of water \u2013 representing 10% of all water used for agriculture \u2013 and water shortages will therefore significantly reduce cotton yields [iii]. Global cotton shortages will result in greater competition among companies to secure raw materials, increasing the price of cotton and ultimately hurting H&M\u2019s future profitability. H&M must focus on strategies to sustain and improve the supply of cotton in the long-term.<\/p>\n

Furthermore, H&M is one of the largest consumers of cotton globally [i]. Fashion brands consume substantial quantities of cotton, and as a \u2018fast fashion\u2019 brand, H&M cycles through trends frequently and consumes textiles in significantly higher quantities than its luxury counterparts. Given its size and scale, H&M has a responsibility to drive change across the industry and influence other companies to follow suit [iv].<\/p>\n

H&M\u2019s Short-Term Strategy<\/u><\/p>\n

H&M publicly committed to sourcing 100% of its cotton from sustainable resources, including organic and recycled cotton, by 2020 [iv]. Organic cotton is grown without pesticides, thereby sustaining the health of the soil and surrounding water sources, and is majority rain-fed, reducing pressure on local water sources. Overall, compared to non-organic cotton, organic cotton production could reduce water consumption by 90% and energy use by 60% [v].<\/p>\n

H&M partnered with farmers and non-profit organizations to source sustainable cotton, increasing its use over three-fold from 13% of overall cotton consumption in 2012 to 43% in 2016 (Figure 1) [iv]. H&M remains dedicated to bridging the gap to reach its 2020 goal of 100% sustainable cotton use: H&M employs 220 people globally who focus on sustainability, the Head of Sustainability reports directly to the CEO and together they review progress biannually, and finally, H&M publishes an annual sustainability report, which is made available to the public [iv].<\/p>\n

Figure 1: Sustainable Cotton as a % of H&M\u2019s Total Cotton Consumption <\/em>[iv]<\/p>\n

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H&M\u2019s Medium-Term Strategy <\/u><\/p>\n

In 2016, H&M commissioned a study to understand the impact of using recycled cotton to produce its clothing [iv]. The results revealed that by using recycled cotton instead of virgin cotton, water usage could be reduced by 80-90% for the stages up to when the fiber is ready for spinning. However, due to quality issues, H&M is unable to incorporate more than 20% of recycled cotton in its clothing. Going forward, H&M is investing in technology to overcome this challenge.<\/p>\n

Further Recommendations<\/u><\/p>\n