H&M’s Big Bet on Sustainable Supply Chains (And Why It’s Working)
The apparel industry is known for its complex, opaque, and long supply chains, which present significant sustainability challenges. However, this industry is also at the forefront of innovative decarbonisation efforts and ambitious climate programmes.
Today, we’ll delve into these initiatives with Paul Goff , Traceability and Sustainability Product Manager at H&M . Working closely with H&M's production and technology team, Paul shares his insights on how to embed sustainability throughout the entire supply chain.
Insight #1: Listening as the Fundamental Scope 3 Skill
Listening is a crucial skill, when tackling Scope 3 emissions. Paul emphasises the importance of understanding the needs of your suppliers.
For instance, H&M runs workshops with strategic partners and engages in regular conversations with suppliers to understand their energy consumption challenges. This approach has helped H&M identify and implement a range of solutions such as rooftop solar, electrification of production processes and innovations such as waterless dyeing.
Insight #2: Energy Security as a Catalyst for Change
Energy security plays a significant role in driving the transition to renewable energy. In regions like Bangladesh, the instability of the energy grid motivates local textile manufacturers to adopt on-site renewable energy systems.
Insight #3: Successful Collaboration Needs the Right Partners
Successful supply chain collaboration is tied to ambitions and shared goals. H&M sets minimum sustainability requirements across all facilities to create a common baseline. Once these requirements are met, the focus shifts to finding partners that are strategically aligned with H&M's sustainability ambitions.
Insight #4: Enhance Supply Chain Transparency with Tech
H&M leverages tech to enhance supply chain transparency and improve traceability.
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These tools help to track and analyse data across various tiers of the supply chain, from raw materials to final products, ensuring that sustainability standards are met at every stage.
Insight #5: Financing Innovation and Suppliers Up-Skilling
Innovation and supplier capability development is a cornerstone of H&M's sustainability strategy.
The company invests heavily in programmes designed to enhance the skills and resources of its suppliers, ensuring they can meet H&M's sustainability standards.
H&M also engages in macro-level industry-level transformation by influencing energy policies and investing in regional renewable energy projects.
For example, in Indonesia, H&M improved access to renewable energy for their facilities in collaboration with the state electricity company PT PLN with the goal to support the decarbonisation journey. In Bangladesh, H&M partnered with other brands such as Bestseller, to invest in wind farms to support the availability of renewable energy.
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Want to learn more about H&M initiatives? Read below: