about h&m the h&m group - green initiatives · •technical difficulties in producing...

ABOUT H&M | THE H&M GROUP

ABOUT H&M | THE H&M OFFER

61 countries

4,000 stores

148,000 employees

More than

Over

Sales including VAT SEK

210 billion

20.9 billion Profit after tax SEK

ABOUT H&M | THE H&M GROUP

ABOUT H&M | THE H&M GROUP

EXPANSION 1974–2014

ABOUT H&M

ABOUT H&M

Conscious materials

WHY?

1900

7.91

1950

6.12

1960

4.29 1970

3.51 1980

2.93

1990

2.47 2000

2.15

Population

• 1900 – 1,6 billion

• Today – 7 billion • 2000 – 6 billion

• 2100 – 10 billion (UN)

WHY FOREFRONT ON SUSTAINABILITY?

Q: Do you actively look for

environmentally friendly clothing?

CHANGED CONSUMER BEHAVIOUR From 2012 to 2030 the globe will need at least: 50 per cent more food 45 per cent more energy 30 per cent more water

RESOURCE SCARCITY

BUSINESS OPPORTUNITIES TALENT RETENTION & CORPORATE VALUES

RISKS OPPORTUNITIES

Yes 45%

OUR VALUE CHAIN APPROACH

Company strategy

5 8

VISION

H&M’s business operations aim to be run in a way that is

economically, socially and environmentally sustainable.

By sustainable, we mean that the needs of both present

and future generations must be fulfilled.

Conscious 2020: Where are we…

Internal information

2020

600,000 Tons of Cotton

60,000 Tons of Recycled Cotton

CLOSED LOOP

Hong Kong, September 2015

https://www.youtube.com/watch?v=s4xnyr2mCuI

H&M CAMPAIGN

https://www.youtube.com/watch?v=bXckKRRQubo

H&M China

− Buying from suppliers in China since the 1970s.

− Opened the production office in China in 1993. Today, the offices in China region employ more than 1000

− Today, about 80% of our products are sourced in Asia, and China is a very

important sourcing country in the region

− Many products are sourced in China from garments to shoes, cosmetics and home

CHALLENGES

• Non- Clarity of the situation in China regarding the regulation for collection, sorting and recycling.

• Non availability of good quality recycled fibers after sorting and shreddding.

• Difficulties in extracting single material fiber from the blends.

• Technical difficulties in producing fabrics with more than 20% post-consumer recycled content.

• Technical difficulties in producing non-denim fabrics using post-consumer recycled materials.

About the garment collecting project • First company to launch a global garment collecting program

• Implemented on all our 59 markets • More than 16 million kg of textiles collected since February 2013

• Collection volume equivalent to 80 million t-shirts

• H&M’s goal: reduce waste, save resources and close the loop on textiles

• Textiles from any brand – in any condition accepted • We want to offer a solution that is easy to use and easy accessible • We want to achive a change of mindset – make customers percieve old textiles

as a resource

How does it work?

FROM STORE TO RECYCLING PLANT

• Customers bring their end-of-life textiles to our stores

• The textiles are exchanged for a voucher

• When the containers are full they are collected from our stores by our partner I:Collect(I:CO) and brought to the nearest sorting plant

• I:CO has sorting plants in Germany, The US and India

Sorting categories

REWEAR REUSE

RECYCLING ENERGY

China CTL Supply Chain Mapping China CTL kick off meeting hosted by CNTAC (China National Textile and Apparel Council) in Jun., 2015.

Work with CNTAC to find out qualified sorting centers.

There were six sorting centers been recommended by CNTAC.

CTL group meeting, sorting centers & spinner, took place at our HK office in Sep., 2015.

Completed 4 sorting centers and 1 spinner visits by 2016 CNY except Shanghai and Beijing sorting centers.

Conclusion was Shenzhen sorting center is the most organized and potential one to work with.

Aoyang applied for being a sorting center and spinner due to their recycled wool expertise in Jan., and

now their sorting center and spinner are ready.

We have developed 4 spinners for PCW (post consumer waste) by the end of May, 2016.

Close the loop supply chain Sorting used garment Shredding Opening

Spinning Weaving Dyeing & finishing

Garment making

Challenges

• Sorting technic & capacity

• Cotton resources

• Lacking of spinner and technic

Challenges

• Opening mill condition

• Traceability

Challenges

• Fabric quality – foreign yarns

• Price - 110

• Compliance requirement

Future Plan Smart sorting with proper quality analysis.

No capacity concern – available yarns in the market.

Collaboration among sorting centers.

I:CO is trying to collaborate with local sorting centers

Price goes down to be lower than virgin cotton. Smart sorting Competition Virgin cotton price goes up

LEARN MORE: www.hm.com/CONSCIOUS

www.globalchangeaward.com

THANK YOU!