In this conversation, we discuss the realities behind overproduction, the promise and limits of resale, and why transparency is both a communications challenge and a business imperative. Marcus also shares H&M’s perspective on upcoming EU legislation and the role of collaboration in driving systemic change.
In this conversation, we talk about:
- Why H&M is doubling down on transparency in its sustainability efforts
- The significance of disclosing total production volumes — and what the numbers reveal
- How resale is growing, but still accounts for just 0.6% of turnover
- Why decoupling financial growth from resource use is a “tough cookie,” but non-negotiable
- The technologies H&M is betting on — from AI to fiber-to-fiber recycling
Hosted by Konrad Olsson, Editor-in-chief and founder of Scandinavian MIND.
Key takeaways
A renewed transparency push
While H&M has published sustainability reports for over 20 years, Marcus Hartmann described a recent push to deepen transparency—especially through more contextual communication with stakeholders. “It’s new and it’s not new,” he said of the effort, adding that while the data reporting has long been in place, the company is now more focused on how it communicates sustainability progress. Rather than dropping numbers in isolation, H&M aims to set the scene for journalists, influencers, and consumers to better grasp the scope and complexity of its work.
H&M produced 524,739 tons of garments
The 2024 Sustainability Report disclosed H&M’s total material use at 524,739 tons, a slight decrease from 561,000 tons in 2022, suggesting a shift toward more efficient production. Marcus emphasized that only 0.7% of garments remain unsold, stating, “At the end of the day, that kind of disclosure is there.” Though the fashion industry is often accused of widespread overproduction, he asserted that “we do not want overproduction. Overproduction is stupid from both an environmental and a financial point of view.” He noted that better data, RFID tech in stores, and customer insights are being used to close the gap between production and demand.
Decoupling growth from impact Is a “tough cookie“
Despite the inherent tension between financial growth and environmental responsibility, H&M is committed to decoupling the two. “The ambition that we have is to decouple our growth from resource use,” Marcus said. The company’s emissions reduction targets – -56% by 2030 (from 2019 levels) and net zero by 2040 – are verified by the Science Based Targets initiative. Reaching them will require scaling the use of recycled materials, reducing water usage (which was down 9.5%), and optimizing logistics and energy systems across their supply chain.
Resale is still small — but valued at over SEK 1 Billion and doubling
Resale currently represents 0.6% of H&M’s turnover, a small share but one that’s doubled over the past two years. “It doesn’t sound like a lot,” Marcus admitted, “but it would account for probably somewhere about 1.2, 1.3 billion SEK.” He framed resale as a vital part of the company’s circularity ambitions, acknowledging that scaling it further will require policy incentives—such as reduced VAT on secondhand goods—and stronger industry collaboration.
Transformation demands full-Spectrum action
Sustainability at H&M spans cutting-edge tech and old-world infrastructure. While AI and RFID are used to better understand customer demand, upstream the company is still working to eliminate 30–40 remaining coal boilers in its tier 1–3 supply chain by 2026. “That’s the span width of the work we’re doing—from cold boilers to AI,” Marcus reflected. He also highlighted H&M’s role in supporting EU Digital Product Passport initiatives, noting that while it’s complicated and still evolving, “we are working with it,” and industry-wide collaboration is essential to get it right.
