Fashion giant H&M has reported that it has reduced its Scope 3 emissions by 34.6%, against a 2019 baseline, in its Annual and Sustainability Report for 2025.
In the report, H&M said that it is ‘on-track’ to meet its science-based targets, as it also reported a 41% reduction in Scope 1 and 2 emissions.
Some 91% of the materials the company used last year were either recycled or sustainably sourced, with the share of recycled materials standing at 32%, surpassing its previously-stated 30% target.
Elsewhere, H&M invested SEK 2.8 billion in decarbonisation and material innovation during the year; reported a continued decrease in the number of suppliers using on-site coal boilers (108 fewer than in 2022); and saw a 22.8% reduction in absolute freshwater use in wet processing garment suppliers, compared to a 2022 baseline.
Resale activities accelerated during the year, supported by platforms such as Sellpy and the group’s own brands, with H&M now offering resale services in 26 markets.
‘Deeply committed’
“We remain deeply committed to advancing our sustainability agenda and driving positive change across our industry,” commented Leyla Ertur, chief sustainability officer, H&M Group.
“In 2025, we reduced CO₂ emissions, increased the use of recycled materials, and lowered freshwater consumption. With a clear roadmap, we continue our efforts to decouple growth from resource use and emissions while supporting people and communities.”
Sales performance
H&M reported SEK 228 billion (around €21 billion) in net sales last year, and an 8.1% operating margin. The retailer has also been a leader when it comes to gender parity, with 51% of its senior management comprised of women.
“We are strengthening our offering and showing that growth, profitability and reduced emissions can go hand in hand,” added Daniel Ervér, CEO, H&M Group. “In 2025, we continued to take important steps towards all our long-term targets: profitability increased, the sales trend was positive, and our CO2 emissions decreased.” Read more here.
