H&M and Sustainable Fashion: Transforming the Face of Fast Fashion

For years, H&M has been a dominant force in the world of fast fashion—an industry frequently criticised for its environmental and ethical shortcomings. However, in recent times, the company has taken notable steps toward sustainability in an effort to reframe its public image. This transformation is not just about marketing; it reflects a broader industry shift and H&M’s response to increasing pressure from consumers, regulators, and environmental watchdogs.

The Shift from Volume to Value

Historically, H&M built its success on affordable, trend-driven clothing produced in high volumes. Yet this business model, synonymous with overproduction and waste, became a focal point for criticism in the 2010s. Acknowledging this, H&M began to gradually pivot towards a model that prioritises value—both in terms of material quality and environmental impact. This includes designing longer-lasting garments and investing in circular business models.

One of the most prominent initiatives is the company’s “Circular Design” strategy, launched to ensure that all products are designed with recyclability and reuse in mind. The goal is to become fully circular and climate positive by 2040. The brand now uses design principles that enable easier disassembly and recycling of garments.

Furthermore, H&M’s Conscious Collection—composed of garments made with more sustainable materials—represents a clear move away from disposable fashion. While critics argue the collection is still a small fraction of overall output, it demonstrates a testing ground for future scaling of sustainable practices across the entire catalogue.

Recycling Programmes and Circular Economy

H&M has also committed to textile recycling schemes through its global in-store garment collection programme. Customers can drop off used clothes of any brand to be reused or recycled, depending on their condition. As of June 2025, this programme is active in over 60 markets worldwide.

Collected garments are sorted into three categories: rewear (second-hand sales), reuse (converted into other products like cleaning cloths), and recycle (transformed into new textile fibres). In 2024 alone, the initiative collected over 18,000 tonnes of textiles, a 12% increase from the previous year.

The long-term goal is to integrate recycled fibres into H&M’s production process more extensively. However, textile recycling technology is still developing, and only a limited percentage of garments can currently be turned into new clothing. H&M is funding research partnerships to accelerate breakthroughs in fibre recycling, particularly through collaborations with institutions like the Hong Kong Research Institute of Textiles and Apparel (HKRITA).

Transparency and Supply Chain Accountability

Another cornerstone of H&M’s sustainability efforts lies in supply chain transparency. Since 2013, the brand has been publishing detailed supplier lists online, listing the names, addresses, and production volumes of factories involved in manufacturing. This move set a precedent within the industry and has been praised by human rights groups.

In 2025, H&M extended its transparency practices by launching a traceability feature on its website and app. This function allows customers to view supply chain details about each product, including the factory, country of origin, and material breakdown. It aims to increase accountability and consumer awareness at the point of purchase.

In parallel, the company has committed to ensuring living wages across its supply chain. Through the ACT (Action, Collaboration, Transformation) initiative, H&M is working with unions and industry players to develop collective bargaining agreements and wage setting mechanisms. While challenges remain, pilot countries like Bangladesh and Cambodia have seen early signs of progress.

Criticism and Greenwashing Concerns

Despite the positive strides, H&M has faced criticism for potential greenwashing. In 2022, the Norwegian Consumer Authority challenged the company for misleading marketing claims regarding its Conscious Collection. The case sparked broader debate over the need for stricter definitions and independent verification of sustainability claims in the fashion industry.

In response, H&M now follows the EU’s proposal for a Green Claims Directive, aiming to substantiate environmental messaging with quantifiable data. Products labelled as sustainable must meet third-party verified criteria and include detailed sustainability profiles accessible online.

Critics also note that a truly sustainable transformation requires slowing down the rate of production. While H&M reports reduced volumes in certain categories, the core fast fashion model remains intact. The brand faces the dual challenge of satisfying investor expectations while advancing genuine environmental reform.

Innovation and Material Science

To future-proof its sustainability efforts, H&M is increasingly investing in next-generation materials and biotechnology. In collaboration with innovators like Renewcell and Infinited Fiber, the company is exploring materials derived from post-consumer textiles and agricultural waste.

One of the flagship partnerships involves Circulose®, a material made entirely from discarded cotton clothing. In 2024, H&M launched a capsule collection featuring Circulose® fibres, marking one of the first large-scale commercial uses of the material in mainstream fashion. Plans are underway to double this usage in 2025.

Additionally, H&M’s venture arm, H&M CO:LAB, is funding research in bio-based textiles such as lab-grown leather and mycelium (mushroom) fabrics. These alternatives offer promising reductions in carbon footprint and water usage compared to conventional materials.

The Role of Digital and AI in Sustainability

Technology plays a growing role in optimising sustainability at H&M. In 2025, the company integrated AI-driven demand forecasting to reduce overproduction and improve inventory accuracy. This has helped lower unsold inventory rates by 15% year-on-year, reducing the need for end-of-season markdowns and waste.

Moreover, H&M’s online customisation tools now allow customers to choose fabric options with lower environmental impact, offering a more transparent and interactive shopping experience. These digital touchpoints help consumers make informed decisions while reinforcing brand accountability.

Looking forward, H&M is developing digital product passports for each garment, embedding blockchain-backed data on materials, recyclability, and care instructions. This initiative, expected to roll out in 2026, will further enhance transparency and facilitate future recycling processes.