Introduction: The world and Business environments are ever changing. More than ever, sustainability is the key to giving businesses a competitive advantage in today’s economy – not just financially but also socially and environmentally. Sustainability is defined by the World Commission on the Environment and Development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” The key to sustainability is the concept of the Triple Bottom Line or the three P’s. The Triple Bottom line requires that a company not only be responsible for making a Profit, but also requires them to be considerate of the Planet and People (employees and the communities that the business operates in.) I have chosen to do my report on a Company that’s Mission Statement encompasses the just that: “Our vision is that all business operations shall be run in a way that is economically, socially and environmentally sustainable” (H&M’s Conscious Mission Statement.)
H&M Background Information: Hermes & Mauritz also known as H&M, are a Swedish multi-national clothing company. H&M has over 2,800 stores placed in 43 countries and they employee around 104,000 people worldwide. In 2012 H&M entered the Dow Jones Sustainability Index – according to Helena Helmersson the Head of Sustainability at H&M “This is of course great news and an acknowledgement of H&M’s efforts within sustainability.”
H&M’s Sustainability Overview: H&M Defines Sustainability as Conscious Actions: “Sustainability is a key element of both our corporate values and our business idea of offering fashion and quality at the best price. Our industry faces a number of challenges – from the way we use natural resources to working conditions in supplier factories. Given our size, we have the opportunity to tackle these challenges by taking Conscious Actions and thereby make more sustainable fashion accessible and affordable to customers around the world.” Karl-Johan Person CEO. H&M believes in the three P’s: People, Planet, Profit. They believe that being fully aware of all three elements is the key to the long-term success of their company.
H&M’s Sustainability Practice: H&M has Seven Commitments on Sustainability and they are: 1. Provide Fashion for Conscious Customers 2. Choose and reward responsible partners 3. Be Ethical 4. Be Climate Smart 5. Reduce, Reuse, Recycle 6. Use Natural resources responsibly 7. Strengthen Communities
In H&M’s CSR report they address many, many issues facing the globe today. Below is compiled list of those issues: Raw Materials: H&M does not purchase any raw materials directly, but they do work very hard to influence the way raw materials are produced (using less water, chemicals, re-growing, ect) by working with producers and driving up the demand for sustainable alternatives. Better Cotton: H&M has started using Better Cotton to produce their clothing. Better cotton is grown with less impact on the environment and offers more benefits to the farmers. Water Based Adhesives: In 2010 only 450,000 pairs of H&M shoes were made with water based adhesives. That number is now at 7,000,000. Design: When designing new clothes H&M chooses materials that are more sustainable and designs that are classic and can be worn in different seasons. Fabric Production: H&M started a voluntary partnership with the fabric mills used by their suppliers in order to help them make sustainable improvements. Manufacturing: H&M production takes place at 1,650 supplier factories around the globe. H&M is very hands on with all of their suppliers, monitoring them to make sure they are compliant with their human rights standards (fair wages, overtime, etc.) Transport: H&M knows that shipping between four continents results in the release of mass amounts of carbon emissions. They work hard to choose the right modes of transportation and they use their influence over transport...