The company has successfully made the shift from developing fashion at the lowest price to focusing on quality products (at the best price) designed to last, with the hopes of addressing the inherent unsustainability of the fashion industry. H&M is incorporating organic cotton into its garments and is working with suppliers on chemical restrictions, resource efficiencies and the development of environmental management systems. The company has a number of products meeting the strict environmental criteria for The Flower, the official eco-label of the European Union.
Our interviews with H&M reveal that environmental principles are an integral part of both Swedish and H&M culture. The company also has good auditing of suppliers on social issues, and has worked with the Clean Clothes Campaign to make improvements in this area. Portfolio 21 suggests that H&M could improve its reporting by covering environmental metrics for global locations. Additionally, we suggest the company develop a clearer strategy for integrating green building techniques in its new and remodeled stores.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/12 and may not reflect current opinions or subsequent events.