How H&M Prioritised Procurement in 2024 Sustainability Push

H&M Group’s 2024 Sustainability Report puts procurement, sourcing and supply chains at the centre of its approach to sustainable fashion.

The report lays out how operational decisions and supply partnerships shape the company’s environmental and social performance, as well as its commercial future.

The Swedish retailer says it cuts Scope 1 and 2 emissions by 41% compared to its 2019 baseline. These cover direct emissions from owned or controlled sources and indirect emissions from purchased energy. H&M aims to hit a 56% reduction by 2030.

Scope 3 emissions – covering the full value chain, including production and transportation – fell 24%. These account for the largest portion of H&M’s carbon footprint and highlight the role of procurement and sourcing strategies in meeting climate targets.

Leyla Ertur, Sustainability Director of H&M Group, explains: “We remain fully committed to our ambitious sustainability agenda. We are on track to achieve our goal for all our materials to be either recycled or sustainably sourced no later than 2030 and we almost reached our 30% goal for recycled materials by 2025 a year ahead of schedule.

"Our efforts to use less and cleaner energy across our supply chain are also delivering strong results in our decarbonisation journey, aligned with our science-based targets. We are aware of the challenges ahead of us and we remain confident that we are on course to fulfil our sustainability agenda in the years to come." 

H&M reports that 96% of the electricity used in 2024 comes from renewable sources, part of its 100% target for 2030.

It also says 89% of the materials in its products are either recycled or sustainably sourced – up from 83% in 2023 – with recycled materials alone making up 29.5%.

The retailer aims for 30% recycled materials by 2025 and 50% by 2030.

This shift is linked to procurement practices focused on sustainable inputs and supplier collaboration. The sourcing team works with partners to prioritise low-impact fibres and processes.

Sourcing second-hand and circularity goals

Circularity forms a central part of H&M’s sourcing strategy, from how raw materials are chosen to how garments are reused.

The company continues investing in Sellpy, its second-hand platform, which supports resale and keeps clothing in circulation longer. This aligns with H&M’s target to develop circular business models – systems in which products are designed, sourced and consumed in a way that minimises waste.

It also marks a shift in the procurement function, which now factors in lifecycle and end-of-use considerations.

A 2024 campaign features a curated collection of pre-owned designer pieces from earlier collaborations, tapping into nostalgia while reducing the need for new production. The approach combines brand heritage with resale procurement.

H&M also takes part in an industry-level decarbonisation programme in Bangladesh, a garment manufacturing hub. Co-funding the initiative with other major retailers, the company supports upgrades and cleaner technologies across shared suppliers.

The move highlights how group procurement teams can collaborate with peers to influence upstream sustainability.

Supply and social equity

Procurement and sourcing decisions also feed into H&M’s work on social responsibility.

In 2024, women hold 65% of leadership roles across the business, including those in global sourcing, where supplier relationships and labour conditions are directly managed.

The company’s partnership with Women Win’s ONSIDE Fund supports local organisations using sport and movement to tackle inequality. This two-year project complements internal inclusion goals and reflects a broader push for equitable sourcing frameworks.

On the financial side, H&M reports net sales of SEK234bn (US$23bn), down from SEK236bn (US$23.6bn) the previous year. The drop is linked to market challenges and planned store closures, reducing the global store count to 4,253.

However, operating profit improves to SEK17.3bn (US$1.7bn), up from SEK14.5bn (US$1.5bn) in 2023. The rise comes from tighter cost controls and efficiency gains in procurement and supply chains.

Long-term procurement strategy and innovation focus

Looking ahead, H&M sets out plans to deepen its procurement-led sustainability strategy. This includes targets for 100% sustainable or recycled materials by 2030 and ongoing decarbonisation of operations and supplier networks.

H&M says it will keep investing in renewable energy, with a focus on reducing emissions across all three scopes.

It also aims to scale up circular procurement models, such as reuse platforms and sustainable material innovation.

Procurement teams are expected to play a larger role in selecting partners that can meet environmental and social requirements, while reducing reliance on virgin resources.

New sourcing standards and materials are being tested to help meet these goals.

“Thanks to the commitment and contribution from our teams and a strong plan, I am optimistic about our potential,” concludes Daniel Ervér, CEO at H&M Group. 

“We will take significant steps forward in 2025 and keep working to build the foundation for continued profitable and sustainable growth.”

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