The H&M Group is dedicated to fostering enduring partnerships with suppliers based on trust and openness. The complexity of its supply chain means products traverse numerous suppliers from raw materials to the final product, with over 570 commercial product suppliers across 1,100 factories in Europe, Asia, and North America. Notably, China and Bangladesh serve as primary production markets for clothing, while the EU dominates beauty product manufacturing.
With an average supplier relationship spanning nine years, H&M has established enduring connections with some suppliers for over 19 years. The group’s supply chain involves approximately 1.4 million employees, with 61% being female and a minimal percentage of migrants. To oversee these operations, 15 local production offices employ over 1,600 staff, ensuring seamless collaboration with suppliers.
Transparency is a key focus for H&M, evident in the publication of its supplier list, which discloses tier 1 suppliers and their manufacturing sites, accounting for the majority of products sold. The list also includes tier 2 mills supplying fabric to these suppliers, with ongoing efforts to disclose all fabric-dyeing and printing locations involved in the production process.
As part of the Transparency Pledge, H&M shares detailed information on its suppliers, including worker demographics, union representation, and the duration of collaboration. The supplier list is regularly updated to reflect any changes in the supplier network, aligning with the group’s Responsible Exit Policy for seamless transitions.
Supply chains in the fashion industry vary in structure, influenced by product type and material composition. H&M’s supply chains can be vertical or horizontal, with tier 1 companies directly engaged in product manufacture or processing. Additional tiers handle component production, processing, and raw material production, shaping the comprehensive supply chain ecosystem.
Manufacturing and processing factories play a vital role in producing H&M’s goods, adhering to sustainability standards through initiatives like the Sustainable Impact Partnership Programme. Subcontracted processing factories, responsible for specialized tasks like embroidery, are subject to the same scrutiny as direct suppliers, ensuring uniform sustainability practices across the supply chain.
Collaboration with fabric mills in tier 2 enables H&M to assess and integrate fabric production into its sustainability assessment program. By engaging with suppliers at different tiers, the group maintains visibility and accountability throughout the supply chain, contributing to its commitment to transparency and responsible sourcing practices.
Annual reporting on sustainability progress underscores H&M’s dedication to setting and achieving goals while providing stakeholders with insights into the group’s ongoing efforts. By prioritizing transparency and sustainability in its supply chain operations, H&M continues to lead the charge towards a more responsible and ethical fashion industry.
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