How H&M Group Advances Scope 3 Decarbonisation

Scope 3 emissions make up the overwhelming majority of most companies’ carbon footprints – and H&M Group is no exception. Yet, the fashion leader’s Full-year Report 2025 demonstrates how fast fashion’s climate impact can be reshaped when Scope 3 becomes the central focus of climate strategy.

Scope 3 sources account for roughly 99% of H&M Group’s total climate impact, covering everything from materials and manufacturing to transport and product use. Preliminary 2025 data shows a reduction of at least 30% compared with the 2019 baseline, keeping the group on course toward its science-based ambition of a 56% cut by 2030, aligned with the 1.5°C pathway.

“As our climate goals are well integrated into the business, we have reduced our Scope 3 CO₂ emissions by around 30% compared with the 2019 baseline, according to preliminary figures,” says Daniel Ervér, CEO, H&M Group.

“This means that we are well on the way to achieving our science-based target of a 56% reduction by 2030, in line with the 1.5°C target. During the quarter we received further recognition for our work within sustainability and transparency when CDP A-listed the H&M Group for climate and water.”

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Targeting Scope 3 emissions

In 2025, H&M Group reports that it has cut its Scope 3 greenhouse gas emissions by at least 30% compared to 2019 – a substantial milestone given these emissions represent nearly the company’s full footprint.

This progress is benchmarked against H&M’s science-based objective to cut absolute Scope 1-3 emissions by 56% by 2030 (vs. 2019), consistent with the 1.5°C target. Scope 3 spans emissions from purchased goods and services, manufacturing energy use, upstream logistics and product usage – effectively the core of H&M’s value chain.

Earlier assessments placed Scope 3 emissions above 11 million tonnes CO₂e, dominated by raw materials and manufacturing – underscoring the complexity of reducing impact at this scale.

“I am truly proud of the steps we have taken in 2025, not only in our sustainability performance but also in how deeply sustainability is becoming part of daily decisions across H&M Group,” says Leyla Ertur, Chief Sustainability Officer at H&M Group.

“Real change happens when sustainability becomes everyone’s responsibility, embedded in every role, every conversation and every choice. Thank you to all teams, partners and colleagues who continue to drive this work forward. Together, we are building long‑term resilience and meaningful impact.”

Leyla Ertur has been ranked in Sustainability Magazine's Top 250 Leaders list. Read the full list here.

Driving transformation across the supply chain

H&M’s Full-year Report 2025 highlights the key levers enabling the 30% Scope 3 reduction. The group has strengthened long-term supplier partnerships, fostering investment in cleaner production methods and accelerating the phase-out of coal in its supply chain.

An increasing number of suppliers now rely on renewable electricity and energy efficiency measures, particularly in dyeing, washing, and finishing – energy-intensive parts of the apparel lifecycle. The company also prioritised production aligned with real customer demand, reducing excess material use and expanding its portfolio of lower-impact fibres.

Crucially, this progress stems not from a single flagship initiative, but from embedding climate considerations in everyday business decisions.

Integrating climate goals into corporate strategy

Climate action remains a core component of H&M Group’s long-term strategy, not a side project. The company aims for net zero emissions by 2040, with the 2030 milestone of a 56% absolute reduction already supported by measurable progress – preliminary figures show a 30% cut since 2019.

Recognition has followed suit: in 2025, CDP awarded H&M Group an A rating for climate, placing the brand among a select group of global leaders in transparency and environmental performance.

Leading on water stewardship

Alongside emissions, water sustainability is also a defining strategic focus. H&M operates in a sector heavily dependent on water – often in high-risk basins – and is working toward a positive freshwater impact by 2030.

The company targets a 30% reduction in freshwater use across tier 1 and 2 production factories by 2030, with a 10% milestone by 2025, relative to 2022 levels.

Achieving this involves a water stewardship framework developed with partners such as Quantis, offering supplier guidance and self-assessment tools tailored for water-scarce regions like Bangladesh, India, China, Turkey, Indonesia, Vietnam and Pakistan.

This comprehensive approach to water governance and efficiency underpins H&M’s CDP A-list rating for water in 2025, achieved alongside its climate A recognition.

Building resilience through innovation

The full-year Report 2025 underlines broader sustainability efforts strengthening climate resilience across H&M’s value chain.

The group continues to invest in recycled materials, innovative water management and regenerative landscape projects, while equipping suppliers with data-driven tools to improve performance in high-risk regions.

Progress in reducing material use and cutting plastic packaging, down 54% since 2018, reinforces H&M Group’s commitment to building a more sustainable and circular fashion system.