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H & M Hennes & Mauritz: A Company That Aspires To Make Sustainable Fashion Available To All

Gulzhan Musaeva profile picture
Gulzhan Musaeva


  • A look at fast fashion behemoth’s sustainability credentials and latest financials.
  • Although the nature of business is essentially unchanged, H&M is attempting to incite the industry toward sustainability through its clout and scale.
  • The Group is in a financially precarious state at the moment but there are reasons to be hopeful.

Fast fashion is not exactly a darling of sustainability advocates. Its business model of churning out new collections of low-cost apparel at speed has been reviled for fuelling rampant consumerism and creating colossal environmental waste. A lot of the bad press is justified but credible numbers to back the claims are too few and far between — which gives fast-fashion retailers plenty of leeway for greenwashing their damaging practices.

Though one company appears to be genuinely embracing sustainability. H & M Hennes & Mauritz AB (OTCPK:HNNMY) (OTCPK:HMRZF) is on a mission “to make great design available to everyone in a sustainable way”, while its brands endeavor “to offer customers the best combination of fashion, quality, price and sustainability”.

H&M_conscious_collectionSource: hmgroup.com

With the new chief at the helm, the company is accelerating its transformation along the lines of digitalization and sustainability — the two trends the pandemic has decisively fast-tracked. The Group is investing heavily in technologies to enable innovation to meet changing customer expectations around material sourcing and supply chain transparency. H&M is effectively scaling what smaller responsible fashion brands do, hence proving that sustainable fashion can be commercially viable.

The business has been hit hard over the past year but there are signs that the company's nuanced approach to sustainability — offering sustainable creations aimed at value-conscious shoppers — is working. The recovery is certain but it may take longer than initially expected due to H&M's recent misfortunes in the Chinese market.


H&M Group has been formally reporting on sustainability since 2002 and generally has been talking about it more than any other fast-fashion brand. But sustainability has assumed an ever-greater role starting from 2020 which saw the former sustainability chief Helena Helmersson appointed the CEO, the first outside the founding family and the first female.

A big

This article was written by

Gulzhan Musaeva profile picture
Analyst. I cover overlooked companies in two areas: (1) green investing opportunities globally; and (2) growth stocks at reasonable prices across emerging markets.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (2)

User314 profile picture
Thanks - I enjoyed the article
Gulzhan Musaeva profile picture
@User314 Thank you for reading.
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