H&M said it is implementing an annual budget of around SEK3bn (US$283.4m) to work toward its goal of cutting emissions throughout its value chain.
The budget will be used for investments to phase out coal and increase the share of more sustainable materials, amongst others.
H&M made the announcement about cutting emissions against the backdrop of the 27th United Nations Climate Change conference (COP27) in Sharm El Sheikh, Egypt.
“We have been engaged in climate mitigation for years and continuously push ourselves to demonstrate climate leadership within our industry. Our recently strengthened climate goals are verified by the Science Based Targets initiative. We are dedicated to contributing to the limitation of the global temperature increase to 1.5 °C and keeping our climate strategy aligned with the latest science-based target setting frameworks is crucial for us to create impact beyond our own organisation and value chain,” said Leyla Ertur, head of sustainability H&M Group
“Instead of measuring the success of these initiatives by financial gain, we measure effective emission reductions. To turn our company growth, profit and greenhouse gas reduction into equal KPIs is a very ambitious decision that underlines the importance and value of our sustainability work for our business.”
H&M said its ‘scope 3’ includes all emissions, from the design of a product to the end of its life – including all the supporting activities – except the electricity used to wash and dry it.
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Earlier this week H&M was named among a raft of companies to commit to a new Canopy-led initiative to purchase over 500m tonnes of low-carbon, low-footprint alternative fibres for the fashion textiles and paper packaging industries.
It also signed multiple open letters along with a number of other global organisations for world leaders at COP27 highlighting the need to decarbonise economies and lay down laws that will tackle climate change in alignment with the Paris Agreement.