H&M GROUP

ANNUAL & SUSTAINABILITY REPORT

2024
H&M Group is not just a family of brands.
It’s something bigger. It’s an idea that goes
all the way back to our founder. In short,
it’s about unlocking the positive power of
fashion for everyone.
CONTENTS
H&M Group overview
H&M Group in brief 4
2024 key figures 6
2024 highlights 8
Word from CEO 10
Case story: Creating fashion that excites 13

Our business
Business idea 15
Case story: The fuel that fashion runs on 19
Our omni model 20

Customer in focus
Fashion and design 23
Circular customer journeys 25
Our brands 26
New growth and ventures 32

22
Innovation 33

Our value chain

Our role in the value chain 35
Case story: Elevating fashion with precision 37

Corporate governance
Customer
Corporate governance report 39

in focus Sustainability report

General 53
Environment 58
Social 90
Governance 104
Auditor’s report 110 About the report

10
This document is H&M Group’s annual and
Financial information sustain­ability report detailing our financial and
non-financial performance in the year from
Administration report 113 1 December 2023 to 30 November 2024 (the
Group financial statements 120 2024 financial year). It in­­cludes comments
from our CEO and a description of the ­business,
Parent company financial statements 127 followed by our statutory annual report.
Notes to the financial statements 132 Our annual and sustainability report complies
with the applicable Swedish and EU legislation
Signing of the annual report 155
Word from Auditor’s report 156
and the International Financial Reporting
Standards (IFRS) adopted by the EU, and is

CEO The share 160 ­prepared in accordance with the Swedish

Annual Accounts Act.
Key financial performance measures 162

52
We complement our annual and sustainability
Definitions 164 report with the sustainability progress report,
which provides highlights on our sustainability
AGM & Financial calendar 166
work. For definitions and explanations in this
Contacts 166 report, see pages 162–165.

Sustainability
report
<<Contents H&M Group overview/H&M Group in brief

A customer-focused
global fashion and design
group 2,449
Europe

North &

759
South America
stores

stores

Founded in 1947, H&M Group’s heritage as a creative company Asia, Oceania

1,045
& Africa
has a rich legacy of liberating fashion for the many. We are committed
to inspire our customers to express themselves, offering affordable
products and great experiences in a ­sustainable way. stores

Product at the core

Fashion is at the centre of everything we do and our
Powered by our people
H&M Group’s team of around 140,000 colleagues with
Global reach and local impact
H&M Group and its franchise partners are H&M
­competitive strengths lie in our inhouse design with more than 180 nationalities bring a rich mix of cultures ­represented in 79 markets, where the largest H&M HOME
strong brand recognition and global reach. We ensure
that customers can engage with our brands when, where
and perspectives. Guided by our values we create a pas-
sionate and creative company culture where everyone
brand H&M has stores in 78 markets and online
in 60 markets, making us one of the world’s
H&M BEAUTY
and how they choose through our omni model. This can grow and contribute to our goals. We strive to have leading fashion retailers. Our global reach, H&M MOVE
approach gives our customers a seamless shopping diverse teams and an inclusive environment that brings ­combined with local presence, enables us to
create tailored experiences that reflect local
COS
WEEKDAY
­experience across both physical stores and digital plat- out the best in people. Our value-based culture supports
forms, strengthening the overall brand experience. the creativity in making relevant customer offerings and trends effectively.

CHEAP MONDAY
contribute to more inclusive products and marketing2.
Fashion for all

MONKI
We believe fashion should be accessible to everyone. The future of fashion
There should be no compromise between exceptional H&M Group is advancing growth through strong brands,
design, affordable prices and sustainable solutions. Each
brand within H&M Group contributes to a fashion industry
digital expansion and enhanced customer experiences.
Our long-term growth will be based on our core business, & OTHER STORIES
ARKET
~4,250
that celebrates individuality and drives positive change. where we invest in decarbonisation of our supply chain.
Alongside, new initiatives and partnerships are being
Sustainability at the core
Sustainability is integrated into our business plan.
developed to bring a more sustainable lifestyle to more
people, and contribute to a circular economy for fashion. SINGULAR SOCIETY
Our climate actions have been recognised in industry
rankings, reflecting our commitment to minimise our
SELLPY
negative impact on people and planet while producing stores worldwide

~79
responsibly made products. Currently 89 percent of the
materials we use are recycled or sustainably sourced,
with a goal of 100 percent by 2030 1.

Our brands and ventures

Our brands are H&M – which includes H&M HOME,
H&M Move and H&M Beauty – and the portfolio brands markets

~140,000
COS, Cheap Monday, Weekday, Monki, & Other Stories,
ARKET and Singular Society. The group also includes
new growth & ventures, which consists of our investment
arm H&M Group ventures, Sellpy, Looper Textile Co.
and Creator Studio.

1. Read more in the sustainability report on page 77.

2. Read more in the sustainability report on page 94.
employees

4 5
<<Contents H&M Group overview/2024 key figures

2024 Key figures 1 Dec 2023–

30 Nov 2024
1 Dec 2022–
30 Nov 2023
1 Dec 2021–
30 Nov 2022
1 Dec 2020–
30 Nov 2021

Key figures
Net sales, SEK m 234,478 236,035 223,553 198,967
Change net sales from previous year in SEK, % –1 +6 +12 +6
Change net sales previous year in local currencies, % +1 –1 +6 +12
Operating profit, SEK m 17,306 14,537 7,169 15,255
Operating margin, % 7.4 6.2 3.2 7.7
Profit after financial items, SEK m 15,443 13,010 6,216 14,300
Profit after tax, SEK m1 11,584 8,716 3,566 11,010
Cash and cash equivalents, SEK m 17,340 26,398 21,707 27,471
Stock-in-trade, SEK m 40,348 37,358 42,495 37,306
Average number of shares outstanding, thousands2 1,611,695 1,629,097 1,649,847 1,655,072
Earnings per share, SEK1, 2 7.21 5.37 2.16 6.65
Cash flow from operating activities, SEK m 31,756 33,949 24,745 44,619
Dividend per share excluding own shares, SEK3 6.50 6.50 6.50 6.50
Return on equity, %1 24.7 17.8 6.4 19.2
Total number of stores 4,253 4,369 4,465 4,801
Average number of employees4 97,710 101,103 106,522 107,375

1. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in note 12.
2. Before and after dilution, excluding own shares.
3. Dividend which was decided and paid during the year.
4. The total average number of employees for 2024 was incorrect in the full-year report 2024 and the correct figure is stated in the table above.
The average number of employees in the group converted into full-time positions.

234 24%
Net sales Net sales Number
New stores (net)
Sales and stores per region 2024 2023
During the year
of stores
(SEK m) (SEK m) 30 Nov 2024

SEK BILLION The Nordics 20,627 21,307 –9 380

in net sales reduction in scope 3 Western Europe 79,550 79,049 –35 1,016

greenhouse gas (GHG) Eastern Europe 21,181 19,633 4 479

15
Southern Europe 31,507 31,186 –34 574
emissions 1 North & South America 51,798 53,785 14 759

SEK BILLION
Asia, Oceania & Africa 29,815 31,075 –56 1,045
Total 234,478 236,035 –116 4,253

65%
in profit after f­ inancial items

SEK 32 BILLION
in cash flow from
of leadership positions
held by women Key figures sustainability Goal
1 Dec 2023–
30 Nov 2024
1 Dec 2022–
30 Nov 2023
1 Dec 2021–
30 Nov 2022

Climate
­operating ­activities

89%
Share of absolute reduction in GHG ­emissions –56% by 2030 –41 –21 –8
(scope 1 and 2) compared with 2019 baseline1, %
Climate
Share of absolute reduction in GHG emissions –56% by 2030 –24 –26 –17

~30%
(scope 3)2 compared with 2019 baseline1, %

recycled or sustainably sourced Climate

Share of renewable electricity in own ­operations, %
100% by 2030 96 94 92

materials in our c­ ommercial Commercial products Total 100% by 2030 89 83 82

Share of recycled or ­sustainably
online sales as a share products, including sourced materials, %
Sustainably
sourced
– 59 57 58

of the group’s net total 29.5% recycled materials Recycled 30% by 2025
50% by 2030
29.5 27 24

1. Refers to science-based targets for own operations (scope 1 & 2) and for the company’s entire value chain (scope 3) and excludes the use of sold products.
The baseline is 2019.
1. Under our science-­based target against a 2019 baseline. 2. Excluding indirect use-phase emissions.

6 7
<<Contents H&M Group overview/2024 highlights

2024
Progress with purpose

H&M at the Met Gala: Charli XCX for H&M

Showcasing our strong in New York

fashion heritage
Connecting fashion,
music and culture
H&M was invited to the world-famous Met Gala in
New York and c­ reated unique, custom-designed out-
fits for several high-­profile attendees. The collection,
inspired by the Costume Institute’s theme ‘Sleeping
H&M launched its Autumn/Winter 2024 collection
Beauties: Reawakening Fashion’, revisited H&M’s
worldwide in September, led by campaign star Charli
archives from its early days in 1947, bridging past
XCX, bringing fashion and music together across
and present.
global fashion capitals such as London, Milan, Paris,
Stockholm, New York and Berlin. The campaign
Paloma Elsesser ­celebrated style, individuality and local culture.
at the Met Gala

Celebrating 20 years of designer collaborations Strong performances in sustainability rankings Further developing H&M Beauty Future Supplier Initiative
Honouring two decades of guest designer partnerships, H&M Group is once again on the Carbon Disclosure’s A list H&M Beauty’s flagship stores offer a new level of in-store H&M Group is co-funding a decarbonisation initiative
from Karl Lagerfeld to Versace, Marni to Moschino, Stella and the Dow Jones S ­ ustainability Index, and is among the top experience with a wide range of beauty products, from in ­Bangladesh, in collaboration with Bestseller, Gap Inc.,
McCartney to Sonia Rykiel, H&M marked the anniver- companies in the Fashion Transparency Index, Stand.earth make-­up and hairstyling to perfume and body care, in­­ and Mango, aiming to reduce greenhouse gas emissions
sary with a curated pre-loved drop of past guest designer as well as the Textile Exchange Material Change Index. creasing the brand’s reach and influence. Since 2023, throughout the supply chain. We are also a member of
pieces. With key vintage pieces from past collections, five H&M Beauty flagship stores have opened. Fashion Pact, an initiative that aims to speed up progress
a new generation of customers can enjoy these unique Elevated experiences in stores and online towards a net zero future for the fashion industry.
designs, while supporting us in our ambition towards Our newly upgraded H&M stores in cities such as L ­ ondon, Investments in innovation
a circular economy for fashion. Berlin, New York, Paris and Tokyo offer an elevated shop- H&M Group are taking important steps towards becoming Raising the bar with recycled material ambition
ping experience with digital enhancements and locally a sustain­able business that has decoupled our growth from As we are moving closer to achieving the target of 30 per-
Expanding global influence with H&M Group brands curated assortments. At the same time, we also upgraded greenhouse gas emissions, resource use and extraction. cent recycled materials by 2025, the ambition is to now
H&M Group brands broadened their global presence: our digital H&M store and app for improved inspiration By building strategic partner­ships to scale circular busi- aim for using 50 percent recycled by 2030.
ARKET opened stores in Milan, Barcelona and Warsaw and experience. ness models and investing in new materials and produc­
and COS made a strong impression with a successful show tion methods, we continue to give customers un­­beatable H&M Studio returns to Paris Fashion Week
at New York Fashion Week. Our wide port­folio of brands Empowering women through H&M Move value and enable them to make more sustainable choices. With an exclusive pop-up in a glass-roofed gallery space
supports H&M Group’s commitment to providing diverse and Women Win partnership Our investment in the second-hand platform Sellpy is an in Paris, fashion names including Yasmin Finney, Elsa
fashion perspectives and unique experiences globally. With this two-year partnership, H&M Move supports example of how we create additional growth, while at the Hosk, Ziwe and Tina Kunakey took in the space. H&M
Women Win’s ONSIDE Fund focusing on local organi­ same time contribute to a sustainable development. Studio is H&M’s most fashion-forward offering, developed
sations to tackle inequalities through movement. by the design team at the brand’s Stockholm atelier.

8 9
<<Contents H&M Group overview/Word from CEO

The past year has been one of progress. We set a clear direction,
raised the bar and we see great potential to further develop our
­business towards continued profitable and sustainable growth.

H&M Group unites around a clear purpose: to liberate customer experience in a signifi­cant share of our remain-
fashion for the many. We are committed to inspiring ing stores. Improvements include better layouts, added
­people to express themselves by offering a wide assort- tech functionality, improved product presentation and
ment of sustainable fashion with great value for money greater product availability.
in an inspiring shopping environment. Online sales developed very well during 2024. We made
2024 has been a year where we have taken steps in ­­­ shopping more intuitive and convenient, with better fit, size
the right direction. By investing in and streamlining our and product recommendations, along with a s­ implified
brands and supply chain, paired with maintained cost search function. We also introduced a new, more inspira-
control, our cash flow from operating activities amounted tional online shopping experience in s­ everal markets.
to SEK 32 billion and an improved operating margin,
although we didn’t reach our ambition of 10 percent. Strengthened brand building
The H&M Group’s net sales for the full year amounted We continue to strengthen the H&M brand, shaping
to SEK 234 billion. meaningful experiences and branding moments with
In 2024, we focused on what matters most to our ­creativity, curiosity and imagination at the core.
­customers. This simple principle guided our decisions We have evolved our brand building by connecting
throughout the year, sharpening our focus on our core more effectively with our customers where they spend
business, with the H&M brand as our top priority. their time – strengthening our digital presence and reach.
H&M continued to strengthen in three key areas: ele- Through collaborations with creators and with more
vated products, a more inspiring s­ hopping experience, ­relevant and inspiring content, we are building stronger
and stronger brand building. customer relationships with increased engagement.

Elevated product offering H&M Lifestyle brands

With creativity at heart, we want to inspire our customers H&M’s extended product range for home, sport and
to dress according to their personal style through our beauty is performing well. Our focus on H&M lifestyle
products and collections. We have invested in design, brands has paid off – H&M HOME, H&M Move, and
craftsmanship, product quality and price. We have H&M Beauty all show strong potential to grow in these
be­come even faster at responding to trends, accelerated expanding global categories. We are especially pleased
decision making, increased supply chain flexibility, with the positive customer feedback on our H&M Move
expanded our nearshoring capacity and tightened the sports range, particularly regarding its improved quality
teamwork with our suppliers. and functionality.
As a result, especially our women’s fashion has
been well received, highlighted by the launch of H&M’s Portfolio brands and ventures
A/W collection. In 2025, we will build on this foundation To make fashion accessible to more people and drive long-­
and elevate our ambitions for all customer groups. term profitable growth, we have a portfolio of brands and
ventures like COS, Weekday, & Other Stories, ARKET
Inspiring shopping experiences and Sellpy. Our brands reach diverse customer groups
In our omni model, we continue to integrate our physical with their own unique offers, while our ventures create
WORD FROM CEO and digital sales channels that collaborate and strengthen additional long-term growth, contribute to sustainable

Building a foundation
each other. By improving our product availability and development and generate new learning.
expanding the use of RFID technology (Radio Frequency Both COS and ARKET developed p ­ ositively, and
Identification) for inventory management, we ensure that our majority-owned venture, Sellpy, c­ ontinued to

for continued profitable

the right products are available at the right time in the grow at a high pace. Today Sellpy is one of Europe’s
right channel so that the customer offering is always the ­largest second-­hand platforms for fashion, available
most relevant. in 24 ­markets.

and sustainable growth

During 2024, we started an extensive upgrade of our While our focus remains on organic growth for the
shopping experi­ence, both online and in store. In physical H&M brand, we have during recent years also invested
stores, we have created modern, engaging environments, in approximately 30 ventures to drive future growth.
with rebuilds in key fashion capitals like London, New These investments complement our customer offering
York, Tokyo, Seoul, Paris, Berlin and Stockholm. We are and include new business models, direct-to-consumer
also rolling out upgrades at speed and scale to enhance brands and new recycled materials.

10 11
<<Contents H&M Group overview/Word from CEO

As we prioritise initiatives that drive sales and profit­

ability, while streamlining efforts that do not add value,
we have decided to discontinue the brand Afound.
­During 2025, we will also integrate the Monki brand
into Weekday, both in stores and online.

Integrated sustainability
Sustainability is a key priority. It is fundamental to how
we operate and essential for long-term success.
We have identified four areas where we have the greatest
Ann-Sofie Johansson, Chief
potential: Decarbonising our supply chain, shifting towards ­Creative Advisor at H&M Group
recycled or sustainably sourced materials, optimising pro-
duction to match demand and scaling circular business
models to keep materials in use and extend product life.
In 2024 we integrated sustainability even further into CREATIVITY IN FOCUS

Creating
our business, for example in our design and product

In 2024 the first development processes. We also made targeted invest-

H&M store and

ments to decarbonise our supply chain. In 2024, our

fashion that
scope 3 greenhouse gas emissions decreased by 24 per-

online opened
cent compared to our 2019 baseline. This sets us up
well to reach our long-term goal of reducing greenhouse

in Costa Rica.
excites
gas emissions by 56 percent by 2030. Currently, 85 per-
cent of the materials we use are recycled or sustainably
sourced, and we aim to make that 100 percent by 2030.
Our efforts have been recognised by global rankings,
such as Stand.earth and the Dow Jones Sustainability

During autumn
Index, as well as being r­ ecognized as one of the leaders
H&M has a dedicated design team that is driven
in the business by the Textile Exchange. We have yet

2025 H&M will

by creativity. With the guidance of the company’s
again been included in CDP’s A list for our work to reduce
creative advisor Ann-Sofie Johansson, the H&M
emissions, mitigate climate risk and contribute to the

open its first store

brand has strengthened its design philosophy
transition to a fossil-­free economy.
around creativity. H&M’s innovative design is

and online in Brazil. Outlook

With our business idea – fashion and quality at the best
paired with cultural relevance and sustainable
practices. By listening to customer feedback world-
wide, H&M ensures its designs stays accessible,
price in a sustainable way – we are well positioned for
engaging and full of personality for a diverse audi-
growth in the global fashion market. As living costs rise,
ence. “We always want to make fashion exciting
consumers also increasingly prioritise best value for
and inspiring, yet meaningful,” says Ann-Sofie
money when making their purchases.
Johansson. “It’s about finding that perfect balance
We will continue strengthening our business to navi-
where creativity and responsibility meets what
gate a rapidly changing world marked by challenging
­customers are looking for.”
­macroeconomic conditions and geopolitical uncertainty.
Behind this strategy is a talented team of
Our flexible supply chain helps us build resilience and
in-house designers, exceptional at spotting and
mitigate negative external impact in different markets.
trans­lating global trends for local markets. H&M’s
We have a strong foundation and clear path forward.
teams draw inspiration from the latest styles and
Our top priority remains the H&M brand and organic
trends, to create high-quality collections that have
growth, which are essential for our future success. Most
the right mix of essentials and the latest fashion.
importantly, we have extraordinary teams around the
New ideas come from influences as diverse as art,
world, whose dedication I see every day in our stores,
music, travel, films, fashion shows, street style and
warehouses and offices. The increase in full-year p­ rofits

“ We always want
social media. The design team is encouraged to
means we can allocate a further SEK 236 million to the
explore their creativity and customer knowledge,
H&M Incentive Program for all H&M Group employees.

to make fashion
which fuels confidence and innovation. “I feel joy
Thanks to the commitment and contribution from
and playfulness shine through our collections,
our teams and a strong plan, I am optimistic about our

exciting and
­creating an excitement that make customers feel
potential. We will take significant steps forward in 2025
this is exactly what I wanted!”
and keep working to build the foundation for c­ ontinued

inspiring, yet
Looking ahead, H&M is set to redefine afford­able
profitable and sustainable growth.
fashion, with a focus on relevance and durability.
“The future of fashion is about creating pieces that

meaningful”
Daniel Ervér
stand the test of time, both in quality and style,”
CEO H&M Group
Ann-Sofie adds.

Ann-Sofie Johansson,
Chief Creative Advisor

12 13
<<Contents Our business

We exist to liberate
fashion for the many

Our ­
H&M Group is a global family of strong fashion brands offering
­customers the best combination of fashion, design, quality and
­sustainability and price, while our ventures build solutions to

business
­transform our industry for the better. Our brands have a shared
­purpose, business idea and values, while shaping their own
unique worlds with different target customers, product offerings
and customer experiences.

Our business idea and purpose lead the way

Our business idea, fashion and quality at the best price
in a sustainable way, is at the heart of everything we do.
We are here to liberate fashion for the many, making the
positive power of fashion accessible for everyone to enjoy.
This means liberating fashion from unreasonable prices
and dictating standards, while minimising negative
impact on people and the planet. It is a continuous effort
that shapes every product and style, every experience
and customer interaction. We want customers to be able
to celebrate self-expression with the confidence that
they are making a sustainable choice. With our diverse
assortment, we make sure that we are offering great value
for everyone.
Achieving this is both our passion and responsibility. Purpose Liberate fashion for the many.
We have a long-term and committed main owner, finan- Business idea Fashion and quality at the
cial resources, a global team of committed colleagues best price, in a sustainable way.
and a strong culture of innovation and entrepreneurship Values We are one team. We believe in people.
We are entrepreneurs. We make constant
supporting us on our way.
­improvement. We are cost-conscious.
We are straight­forward and open-minded.
The world around us We keep it simple.
The apparel category is a growing, constantly evolving Key areas Product offering, Shopping
global market, with an estimated market value of around ­experience and Brand marketing.
USD 1.45 trillion. The market is fragmented, featuring

14 15
<<Contents Our business/Business idea

many small players and only a few major global companies.

The top 10 apparel brands make up about 14 percent of
to gather valuable consumer insights, continuously
im­proving our businesses. The H&M brand is our core Strengthening our core
the total market 1. focus, as its success strengthens our ability to invest in,
The fashion industry is evolving fast, driven by a support and expand the entire portfolio of brands and
demand for transparency, ethics and sustainability, as ventures across H&M Group. All our brands are commit-
With our in-house design, omni model and affordable Improved shopping experience
well as great affordability. H&M Group’s brands are well-­ ted to do business in an ethical, responsible, sustainable
position we have a unique opportunity to grow. During We have increased inspiration, relevance and convenience
positioned to meet these demands, offering a mix of out- and transparent way.
the year we have focused on what matters the most to for our customers by leveraging the unique strengths of
standing value for money, style and quality that resonates
our customers, with H&M as our top priority. We have our physical and digital stores, along with our social
across diverse markets. With its expected industry growth, Ambitious long-term targets
strengthened our customer offer with shifts in three key channels. We have further focused on localising our offer
the apparel market holds significant opportunity. We have three ambitious long-term targets: l­ ong-term
areas: product, shopping experience and brand building. in physical stores while personalising it in the digital
sales growth of at least 10 percent per year, an operating
channels. Additionally, we are improving customer s­ ervice
How we do business margin that exceeds 10 percent and a 56 ­percent reduc-
Elevated product offering and continue to integrate our stores within our omni-­
H&M Group operates primarily in the affordable fashion tion in greenhouse gas (GHG) emissions no later than
We have developed our products and assortment to channel supply chain.
category with a diverse portfolio of direct-to-consumer 2030, with 2019 as a baseline2. These goals underline
deliver on our business idea. This means c­ reating fashion
brands spanning a wide range of styles and price points. our dedication to long-term growth with environmental
that customers want, while building a flexible supply Strengthened brand building
Our strong brands are each unique in their customer and social responsibility.
chain focused on minimising our negative impact on We continued to strenthen our branding, shaping
offerings yet complement one another, enabling us to
­people and the planet, better match demand with supply meaning­f ul experiences and inspiring marketing.
reach a diverse spectrum of customers.
and extending each product’s l­ ifecycle. To connect with diverse audiences, we have optimised
With our design teams, our fashion brands create their
our use of media channels and content for greater rele-
own collections primarily sold in their own digital and 1. Euromonitor 2024.
2. Refers to science-based targets for own operations vance, engagement and traffic. We have also strength­
physical stores, ensuring relevance for a wide customer (scope 1 and 2) and for the company’s entire value chain ened our brand presence in global fashion cities.
base both globally and locally. This approach allows us (scope 3) and excludes the use of sold products.

Shared operational enablers

– foundations for success
To achieve our ambitious goals, we have four operational Integrated sustainability
enablers that underpin our key areas. At H&M Group, we are committed to offer our customers
afford­able products that are designed with sustainability
People and leadership in mind and in a way that allows us to circulate products
Our most important strength and asset is our engaged and materials at their highest possible value. We believe
colleagues and our unique company culture. Attract­ fashion should be accessible to everyone and that our
ing and developing world-class talent is central to products should be made in a responsible way, and
H&M Group’s vision. At H&M Group, colleagues are
designed to be used, re­­used and recycled. Therefore,
trusted with great responsibility right from the start.
we focus on optimising our production and resource use,
We focus on building purpose-driven leadership that
decarbonising our value chain, shifting to recycled and
encourages creativity, care and strong business out-
sustainably sourced materials, and scaling circular busi-
comes by e­ n­abling people to reach their full potential.
ness models while respecting human rights. Sustain­
This approach ensures that our teams are empowered
to drive our p
­ urpose ­forward. ability is deeply embedded in our operations, from the
materials we choose to the products we sell, to ensure
AI & Data we continue to deliver unbeatable value to our customers.
Leveraging AI and data will strengthen our core.
Advanced analytics provide actionable insights, ­enabling
us to ­better understand customer needs, optimise inven- Our integrated sustainability focus
tory and streamline supply chains, all supported by a
robust technology foundation. • Decarbonising our supply chain
• Shifting towards recycled or sustainably
Resource efficiency
sourced materials
By prioritising efficiency and productivity, we optimise
our cost structure. The combination of financial strength • Optimising production to demand
and long term approach enables us to continue to invest • Scaling circular business models to keep
in improvements to the customer offering and experience, materials in use and extend product life
as well as in innovations across the value chain, to secure
a long-term profitable and sustainable growth. In all our work and key areas, respecting
human rights remains an integral component.

16 17
<<Contents Our business/Case story

Jörgen Andersson,
Chief Creative Officer at H&M

CREATIVITY IN FOCUS

The fuel
that fashion
runs on
H&M is raising the level of ambition, with creativity
at the core. “We want to take the H&M brand to
the next level,” says H&M’s Chief Creative Officer
Jörgen Andersson. “And creativity is the fuel that
fashion runs on.” By supporting curiosity and imag-
ination, H&M brings fresh ideas to life, shaping
exceptional products and experiences.
One great example was the Autumn/Winter
2024 campaign, merging fashion, music and culture
in a way that really connected with people. “This
is how we want to move forward, creating fashion
experiences that inspire and excite the many.
Our message is clear: relevance and uniqueness
are power!”

“We want to
Incorporating creativity and curiosity across the
organisation has always been essential to H&M’s
approach, rooted in the vision of its founder, Erling

take the H&M

Persson. Building on these strengths, H&M focuses
strongly on the core of the business – the product,
the experience and the brand.

brand to the
To meet the evolving demands of customers,
H&M is intensifying its efforts and capacity to
deliver high-quality fashion made in a sustainable

next level”
way and with exceptional value for money. It begins
with our collegues, strong leadership and engage-
ment at every level. By leveraging sophisticated
technologies and tailoring experiences to local
Jörgen Andersson, markets, each interaction – whether online or
Chief Creative Officer in-store – becomes a source of inspiration. ”We
will continue to build a future where creativity
drives both style and b­ usiness, making H&M
a brand that truly resonates with the many.”

18 19
<<Contents Our business/Our omni model

The best of both worlds

– our omni model

H&M Group’s omni-channel model blends physical and digital

­shopping for an inspiring, seamless and convenient customer
experience. In 2024, we have expanded services, improved store
formats and developed our digital f­ eatures.

With the group’s diverse brands and ventures, we are visit should captivate and inspire. By further incorporat-
dedicated to creating engaging, unique customer experi- ing technologies such as RFID (Radio Frequency Identi-
ences across all channels, continually evolving to meet fication), we make it easier for customers to quickly locate
and exceed customer expectations. Whether in store items and get accurate availability information. Stores are
or through digital touchpoints – such as websites, apps, also key to our supply chain, supporting last-mile services
social media, or online marketplaces – our goal is to such as our buy online pickup in store and facilitating
offer a convenient and inspiring shopping experience on­line returns in-store. Along with second-hand sales
wherever, whenever and however our customers within several of our brands, we can extend the life of
engage with us. ­garments and support the transition to a circular econ-
Sustainability is a core part of our omni-channel strat- omy for fashion.
egy where we use technology and circular initiatives to
broaden our customer offer. Predictive AI is one of the A smarter digital shopping experience
techniques that enables us to meet customer demand Our physical and digital channels complement each other,
quicker with higher accuracy and precision, as well as strengthening our overall customer offering. Alongside
­better align supply with demand. increased integration of both channels to offer a seamless
experience, we are continually enhancing the online
Stores that inspire and connect experience for our customers. We are making it easier for
Our stores around the world are more than just retail customers to find items they love through improvements
spaces – they are destinations where customers can find to our product exposure and search capabilities, and to
inspiration, explore their personal style and experience find items they want to keep with personalised fit and
our brands firsthand. Whether it is trying on clothes, ­sizing recommendations. In 2024, we rolled out a new
­creating looks or finding the perfect fit, customers digital store and app that elevate the visual experience
value the proximity, accessibility and experience our with improved fashion imagery and presentation as well
stores provide. as clearer styling and fit recommendations to further
We are ensuring that we have a well-balanced and inspire customers.
­relevant store portfolio in each market. H&M Group’s Our omni-channel approach continues to evolve with Stores Online
contracts allow around a third of leases to be renegotiated the introduction of the updated app and digital features
In 2024, we opened 88 (101) new stores and closed 204 H&M has a presence in 60 online markets. COS, Weekday,
or exited each year. in stores and online to give an even better experience,
(197) stores. This resulted in a net closure of 116 stores. Monki, & Other Stories and ARKET offer global selling,
In 2024, we have deepened our focus on regional flag- as well as introducing our brands on new marketplaces, We had 4,253 stores in 78 markets at the end of the 2024 which enables customers in around 70 additional markets
ship stores, elevating customer experience and aligning bringing them to a broader audience. By continuing to financial year. Most openings are in growth markets, while to shop online. The exact number of markets that have this
store formats with each brand’s unique direction. The invest in both physical stores and digital advancements, closures are mainly in established markets. H&M will open service varies between brands. Several of our brands can
its first store as well as online in Brazil in 2025. also be found on various external marketplaces.
same approach that we apply to fashion, blending global we are ensuring that our customers enjoy a seamless,
trends with local insights, also shapes our stores. Every ­f lexible shopping journey – anytime, anywhere.

20 21
<<Contents Customer in focus/Fashion and design

Empowering
personal style
through creativity

Customer We are here to liberate fashion for the many. Our passion for
design drives us to create collections that inspire our diverse

in focus
­customer base. In 2024, we raised the bar with dedication to
­craftsmanship and innovation, making high-quality, trend-­
forward fashion accessible to the many.

Across all brands we have talented designers, dedicated

to creating styles that reflect the latest trends while staying
true to our core values of accessibility and inclusivity.
The collections draw from a dynamic mix of art, nature,
culture, social media and the vibrant energy and street
fashion of global cities, offering a range of styles that
­resonate with diverse customers.
Our product teams are truly customer-focused which
mean that they can react quickly to trends and an ever-­
changing market. As we are taking big steps in becoming
even faster to deliver current fashion to our customers,
we are collaborating even closer with our demand-driven
supply chain to be constantly flexible to customers prefer-
ences and upcoming new trends.
With shorter lead time from design to the product
reaching the customer, the precision, availability and rele-
vance are improved in all touchpoints. At the same time
our customers are gaining access to a broader and more
relevant assortment. This means a stronger offer in all
­categories, with a wider variation in styles, qualities and
trims to meet customer expectations.
Our philosophy is simple: fashion should be for every-
one. By integrating global perspectives with an under-
standing of our customers’ preferences, we deliver collec-
tions that inspire multi-faceted communities, ensuring
that everyone can dress their personality.

22 23
<<Contents Customer in focus/Fashion and design

Circular
A commitment to quality and sustainability made from 100 percent bio based ingredients, an alter­
Quality and sustainability are embedded in every piece we native to animal leather. This material is a result of a close

customer journeys
create, from careful fabric selection to garment manufac- collaboration with H&M Group’s ­Circular ­Innovation Lab.
turing. We have many criterias when selecting materials,
including environmental impact, durability, comfort and COS at New York Fashion Week
purpose. We ensure that our products can be enjoyed COS returned to New York Fashion Week, unveiling its
over time, meeting the growing consumer awareness on Autumn/Winter 2024 mainline and Atelier collections.
sustainability issues. In 2024, 89 percent of the materials Renowned for its commitment to precise craftsmanship
were either recycled or sustainably sourced, of which 29.5 and innovative design, COS draws inspiration from
percent were recycled. We have also launched a new ­contemporary culture and the arts, seamlessly blending Through our circular business models, we are committed to
ambition for 50 percent recycled materials by 20301.
Through initiatives such as H&M second-hand sales
elegance with modernity.
­optimise resource use and increasing product life span. We offer
Pre-loved, ARKET Archive, COS Resell and Sellpy, we rokh H&M several different secondhand initiatives including curated in-store
promote a circular economy for fashion, offering pre­
loved fashion that extends the life of each garment. This
H&M launched a collaboration with Korean designer
Rok Hwang that combines avant-garde style with every-
assortments and websites where people sell their preloved pieces
approach aligns with our vision of reducing negative day wearability. Featuring adaptable classics such as direct to other consumers.
environ­mental impact by prolonging the life of garments. double-­layer trench coats and detachable-hem dresses,
the line offered versatility, enabling customers to style
Collections that inspire each piece in their own way.
An exciting approach to fashion Giving our c­ ustomers different ways to engage with Secondhand
Complementing the strength of our own design team, H&M Studio collection ­fashion and style is in our DNA and also goes in line Our brands H&M, ARKET, COS and Weekday (including
2024 also marks 20 years of successful H&M designer H&M Studio is H&M’s most progressive fashion offering. with our business idea. We test and invest in innovative Monki) all have secondhand as a part of their customer
collaborations. Since the iconic Karl Lagerfeld collection Launched in 2013 and developed by an in-house design services that span the whole product lifecycle. These offer. We are also the majority owner of Sellpy, a digital
in 2004, these partnerships have continually brought team at the brand’s Stockholm atelier, the limited-­edition ­initiatives enable products and materials to circulate platform that connects customers and makes it easy to
fresh perspectives and unique styles, making high-end collections are unveiled several times a year. In 2024 six ­multiple times through repair, resale and recycling. buy and sell preloved items.
fashion accessible to the many. In 2025 we are looking drops were successfully launched. Our approach p ­ rioritises repurposing garments,
­forward to a range of exciting collaborations, including ­enabling both textile-­to-­textile recycling and recycling Repair and care services
collections with Polish designer Magda Butrym launching Anamika Khanna collaboration to be used in other industries. In select stores, we offer repairs and provide guidance
in April and one with renowned designer and creative Since 1998, Anamika Khanna has been a driving influ- Read more about our circular business model in to help customers care for and prolong their garments’
Glenn Martens this Autumn. ence in recontextualising Indian fashion to the wider our sustainability report, pages 73–78. lifespan.
world. Together with H&M, the designer merged
& Other Stories’ Fashion & Innovation collection Indian and Western style codes to create a collection Key initiatives Garment collecting and recycling
& Other Stories released a Fashion & Innovation collec- of carefully considered contrasts, fluid silhouettes, Circular design principles We collect used garments worldwide for reuse or re­­
tion featuring innovative materials made from discarded ­hand-­embroidered embellishments and vibrant prints. Our design process prioritises responsibly sourced, dura- cycling, enabling both textile-to-textile recycling and
resources to give them a second life, bio-based ingredients ble materials and methods, supporting repair, reuse and recycling to be used in other industries. Our joint ven-
as an alternative to leather, and recycled and organic mul- recycling, all aimed at prolonging product lifespan and ture Looper Textile Co. with Remondis, provides collect-
berry silk. MIRUM® is an innovative premium material 1. Read more in our sustainability report on page 77. minimising negative environmental impact. ing and sorting solutions to enable reuse and recycling.

rokh H&M

Anamika Khanna collaboration

24 25
<<Contents Customer in focus/Our brands

Fashion brands
for diverse styles
and occasions

H&M
H&M HOME
H&M BEAUTY
H&M MOVE
COS
WEEKDAY H&M
Dedicated to liberating
CHEAP MONDAY fashion for the many
MONKI H&M is committed to making fashion accessible to all
through its business idea: fashion and quality at the best

& OTHER STORIES

price in a sustainable way. H&M offers a broad range
of styles for different personalities, preferences, body
types, ages, identities, occasions and cultures. The

ARKET
H&M brand also includes H&M HOME, H&M Move
and H&M Beauty. Customers can express themselves
through the brand’s diverse, fashionable and current

SINGULAR SOCIETY
assortment, which includes everything from unique
designer collaborations and functional sportswear to
affordable wardrobe essentials, beauty products and

SELLPY
accessories. H&M has 3,777 stores in 78 markets and
is available online in 60 markets.
hm.com

26 27
<<Contents Customer in focus/Our brands

H&M Lifestyle brands COS

An exploration of the
H&M HOME
A design-driven global interior brand
modern wardrobe
H&M HOME’s assortment ranges from high-quality bed COS offers a wardrobe of ready-to-wear and accessories
linen and timeless dinnerware to diverse textiles, furniture rooted in exceptional quality and lasting design. The
and lighting. Contemporary style and attention to quality brand has an elevated aesthetic that embodies luxury
and detail are at the brand’s core. By merging modern with an emphasis on craftmanship, innovation and com-
design and quality with sustainability and affordable pelling fashion movements. Fuelled by a connection to
prices, H&M HOME enables interior lovers across the modern culture and dynamic global cities, its consid-
world to create a personal and modern space – a place ered handwriting blends contemporary with timeless
to feel at home. H&M HOME was launched online in – always creating with a mindful approach. COS has
2009. Today, it is available in most H&M online markets, 238 stores in 48 physical markets and online stores in
through standalone H&M HOME concept stores, and 38 markets. The assortment is delivered to additional
at shop-in-shops in H&M stores. markets via global selling through online channels and
hm.com/home is also available on external platforms.
cos.com

H&M Beauty
The most fashionable beauty destination Weekday
H&M’s own beauty concept, H&M Beauty, offers a wide
Influenced by youth
­culture and street style
range of affordable and high-quality products, including
its in-house makeup line, a new fragrance c­ ollection,
and over 80 global and Scandinavian beauty brands.
H&M Beauty is available in shop-in-shops in H&M Weekday is a street fashion and lifestyle brand pushing
stores and since 2023, five H&M Beauty flagships stores the boundaries of everyday dressing. It is a collective,
have opened across Scandinavia. a platform for expression – cultivating the creative gen-
hm.com/beauty eration in the search of hypeworthy inspiration, new
styles and emerging cultural trends. Launched in 2002,
Weekday offers a unique retail experience and a care-
fully curated mix of jeans, women’s, men’s and acces­
sories. When making its comeback in 2024, the brand
Cheap Monday, that is also available through selected
H&M Move retailers, joined Weekday online and in selected stores.
Invites the whole world to move Weekday has 46 stores in 14 physical markets and
online stores in 29 markets. The brand also delivers to
H&M Move provides functional, fashionable activewear,
additional markets via global selling through online
accessible for the many. H&M Move celebrates move-
channels as well as external platforms.
ment and invites the world to move – however you move.
weekday.com
The range includes collections for all types of movements
from yoga, running, training to racket and much more.
H&M Move offers collections for women, men and kids
online and in around 2,400 stores worldwide at dedicated
areas within H&M stores.
hm.com/move

28 29
<<Contents Customer in focus/Our brands

Monki ARKET
A vibe: friendly, playful, Modern Nordic design
bold and empowering and lifestyle destination
Monki, founded in 2006, draws inspiration from those ARKET offers essential collections for women, men,
who bravely express their style and creativity without ­children and the home, along with a seasonal vegetarian
the filter of conventions and aims to be a catalyst for café and coffee shop. Inspired by simplicity, nature, and
others to do the same. During 2025 Monki’s distinct the aesthetics of slow living, the assortments features
brand experience will be integrated into the Weekday ­garments, objects, and food carefully made and artfully
youth destination, both online and in store. curated for a more beautiful everyday life. Its first store
monki.com opened in London in 2017 and on arket.com. The brand
currently has 40 stores in 17 markets across Europe and
Asia. ARKET is online in 31 markets and the products
are available in additional markets through global selling.
It is also available on selected external platforms.
arket.com

& Other Stories Singular Society

Feminine fashion Welcome to the
for your whole look next generation of retail
Launched in 2013, & Other Stories offers a curated range Singular Society is an innovative membership-based
of shoes, bags, accessories, beauty and ready-to-wear brand that offers premium products at the price they
– all equally important for the whole look. & Other Stories cost to make. Founded in 2020, Singular Society’s
inspires its customers to explore and express their own ambition is to help change the way retail operates, and
personal style with thoughtfully designed collections that to offer an alternative to the traditional way of consum-
focus on quality and attention to detail, always embracing ing – no markups, no shortcuts and transparent pricing
modern femininity. & Other Stories has 70 stores in 25 and product information. Singular Society is currently
markets and online stores in 32 markets. The brand also shipping to the EU and has a flagship store in Stockholm.
delivers to more markets via global selling through online singular-society.com
channels as well as external platforms.
stories.com

30 31
<<Contents Customer in focus/New growth and ventures

Pioneering fashion
from ideas to impact

At H&M Group, innovation means rethinking what fashion can

be. By bringing together experts across teams we are developing
­solutions that make fashion both accessible and responsible,
empowering our customers to make choices they can trust.

Innovation at H&M Group is a collaborative force that

brings together the expertise within strategic innovation,
Innovation initiatives
sustainability and business development. This approach

Driving entrepreneurship
Our Circular Innovation Lab supports innova-
drives innovation across every part of our business model, tion from early-stage to commercial production, and
­integrates these across our organisation and supply

and innovation
from products to processes, as we build a resilient future
chain. We fund new and developing ­tech­nologies
for fashion. that, for example, improve customer ­experience,
enable a circular economy for fashion and support
Driving innovation across the group our sustainability goals.
New growth & ventures includes venture investments, items. H&M Group has been the majority owner of Sellpy Within innovation we explore new growth areas to future-
H&M’s business development and product
joint-­ventures, potential acquisitions and our own since 2019. Sellpy is currently available in 24 markets, proof our business model. By balancing structured processes
team has launched a new data-powered assortment
­startups. The objective is to drive entrepreneurship, including Sweden and Germany. with entrepreneurial agility, this ensures that H&M Group structure, enabling us to increase our product offer
explore opportunities at a faster pace, contribute to sellpy.com is both adaptable and forward-looking, advancing projects relevance in each store. This structure has initially
the devel­opment of the industry and H&M Group’s that can reshape our business and the broader industry. been rolled out for H&M womenswear.

­long-term growth. Looper Textile Our sustainability capabilities act as the ethical compass Logistics is essential to our business, and we
Beyond the capital invested, new growth & ventures In 2023, we launched Looper Textile Co., an independent of our innovation efforts. This work is critical in rethinking are innovating through partnerships with industry
adds value through its expertise, cost or customer syner- joint venture with Remondis that provides local munici- materials, optimising resource use and minimising our and ­academia. We have initiated GHG emission
tracking pilots for transportation, gathering real-
gies. The investments are complementing H&M Group’s palities and retailers with collecting and sorting solutions negative impact on people and the planet.
time data to identify actionable ways to reduce our
customer offering, including business models, enablers, to extend the useful life of no longer used garments via To complement these efforts, new growth & ventures carbon footprint. Additional pilots use AI and machine
direct-to-consumer brands and new recycled materials. reuse and recycling. This is part of our work to invest in invests in pioneering startups that share our vision of sus- learning to optimise workforce planning and distri­
The aim is to engage with customers in new ways to add progress around key processes, visibility and technology, tainable fashion and retail technology. These investments bution efficiency. Other initiatives include gamified
learning and skills management to drive operational
value, create additional growth, contribute to sustainable which increase the likelihood of extending the useful life enable us to bring fresh, external perspectives into our
excellence.
development and generate new learning. Examples of of garments. business, encouraging a culture of creativity and innova-
ventures are Sellpy, Syre, A Retro Tale, Rondo, Looper loopertextile.com tion that extends beyond our walls.
Textile Co. and C
­ reator Studio.
Creator Studio
Sellpy Creator Studio is a global platform for merchandise
H&M Foundation This year’s Global Change Award Summit
Founded in 2014, Sellpy has grown into a broad digital design and production. With an easy-to-use platform, ­ athered changemakers, systems thinkers, suppliers,
g
platform for secondhand fashion and other products. lean production process, made-to-order digital printing brands, industry experts, investors and more in M
­ umbai,
With its vision of enabling everyone to live in a more and e-commerce integration, Creator Studio aims to H&M Foundation’s work, which is independent from India, under the theme ‘How can we accelerate innova-
the H&M Group, aims to enable a socially inclusive and tion and what actions can we take today to create the
­circular way, Sellpy has created a unique service that lower the barriers for creators to offer good quality
planet positive textile industry. The H&M Foundation net zero industry of tomorrow?’.
makes it easy for people to buy and sell secondhand ­merchandise. supports this through initiatives such as the Global
creatorstudio.com H&M Foundation works with the Hong Kong
Change Award, which supports early-stage projects
Research Institute of Textiles and Apparel (HKRITA)
with transformative potential. In 2024, the Foundation
on the Planet First programme. Planet First aims to
has sharpened its focus on climate solutions that
find technologies that can contribute positively to all
­promote fairness and justice.
aspects of earth’s n
­ atural support systems. All solu-
tions and learning are shared openly with the industry
to ensure maximum impact.

32 33
<<Contents Our value chain/Our role in the value chain

Building an even more ­

responsive and responsible
value chain

Our value Through continuous development and a firm commitment to

­sustainability, H&M Group’s value chain reflects our journey towards

chain
an even more responsible, transparent and efficient business model
that meets the expectations of today’s conscious c­ onsumer.

To ensure we deliver the best customer offering and an Decarbonising our value chain
elevated experience across all sales channels at the right Decarbonising our value chain remains a core focus.
time, we focus on maintaining an efficient and demand- In order to speed up our sustainability actions we con-
driven supply chain, which can react quickly to trends tinue to work closely with suppliers to support them to
and ever-changing customer demands. Our value chain decarbonise, transitioning to renewable energy sources
includes the full range of activities required to plan, design, and improving energy efficiency. We have also inte-
source, process and manufacture, transport, sell, use, grated sustainability targets into our partnerships, help-
reuse and recycle our products. The part of the value ing suppliers meet environmental goals. Our logistics
chain that covers production, logistics and distribution infrastructure has received sustainable upgrades, such
is what we refer to as our supply chain. as the addition of solar panels and rainwater harvesting
Our supply chain is built on long-term strategic partner- ­systems in our distribution centres. Preferred transport
ships, mutual trust and fair purchasing practices. We main- options, including electric vehicles and bicycle deliveries
tain a close dialogue with our suppliers through our pro- in selected markets, have further reduced emissions.
duction offices located in the different sourcing markets.
As a global company it is vital to have an efficient and Recycled and sustainably sourced ­materials
demand-driven supply chain that enables us to quickly As we are very reliant on materials, our commitment to
adjust volumes, sales channels and markets based on investing in startups focused on new innovative materials
changes in customer demand and unexpected events. remains steadfast. Our long-term ambition is to only use
We are improving lead times and optimising the customer recycled or sustainably sourced materials and in 2024
experience by using efficient distribution systems and we took decisive steps to increase use of recycled and
highly automated logistics centres. sustain­ably sourced materials, such as organic cotton,
By integrating advanced technologies and deepening recycled polyester and innovative fibres made from re­­
strategic partnerships, we are creating value by driving newable sources.
economic growth while optimising resource use, mini-
mising our negative environmental impact, and building Improving product flow
a responsive and responsible value chain. Our distribution centres are central to our omni-model
strategy, strengthened by our investments in technology
Optimising production and AI. Across our global network, we are continuously
With our strategic partner framework, we consolidate enhancing our logistics infrastructure to ensure optimal
­volumes with fewer and stronger suppliers. This shift product flow, offering flexibility and speed between sales
has allowed us to respond to trends more swiftly and channels to improve availability. Our warehouses com-
­predict demand more accurately. AI-driven forecasting bines the latest techonology with smart building manage-
and RFID technologies have further optimised supply ment, with features including photo­voltaic panels, rain-
planning, better ensuring that we produce what we sell. water harvesting and biological sewage s­ ystems, to
minimise the negative environmental impact.

Read more about our value chain in the sustainability

report, page 56.

34 35
<<Contents Our value chain/Case story

Tina Felixon, Chief Product

Officer H&M

CREATIVITY IN FOCUS

Elevating
fashion with
precision
“ Creativity, “We believe in the power of great fashion and

c­ ustomer focus,
design, afford­ability and sustainability. Our goal
is to inspire p
­ eople around the world to express
their personal style through our collections. Great

and salesmanship design and craftsmanship, quick decision making,

a flexible supply chain and a very tight teamwork

are keys to deliver all the way out to our suppliers are key to deliver on
our b­ usiness idea and purpose”, says Tina Felixon,

a strong product
Chief P ­ roduct Officer H&M.
In 2024, H&M started to adopt to a more effi-

offering”
cient way of working within the product function,
enabling improved product availability, both in
store and online, and a faster and more accurate
response to customer demands and emerging
Tina Felixon, Chief Product Officer H&M
­fashion trends.
“Creativity, customer focus, and salesmanship
are keys to deliver a strong product o ­ ffering. Our
product teams have developed a stronger offer
with a better variation in styles, qualities, and trims,
giving our customers access to a broader and more
relevant assortment. With shorter lead time from
design to the product reaching the customer, H&M
will improve precision and relevance in all touch-
points”, continues Tina Felixon.

36 37
<<Contents Corporate governance

Corporate governance report

Effective corporate governance ensures that companies are managed as regarded as a guarantee that the interests of the board of directors are
sustainably, responsibly and efficiently as possible in the interests of their aligned with the interests of all shareholders to maintain and increase the
shareholders. For H & M Hennes & Mauritz AB (H&M Group or H&M), this share price, ­manage the company’s risks, and maximise opportunities.
means ensuring compliance with external regulations, supported by the use • Neither the Code nor the Swedish Companies Act impose any restriction
of important tools such as company values, global policies and guidelines. on the age or length of service of members of the board of directors. There
H&M Group operates across multiple markets, each with their different is also no time limit beyond which an independent member of the board
laws, environmental requirements, social conditions and challenges. These of directors is no longer considered independent of the company or its
varied contexts underline the importance of acting consistently guided by a principal owners.
strong ethical compass. It is of utmost importance for H&M Group to always
• The Code stipulates that at least one of the company’s auditors is to attend
act ethically, transparently and responsibly across all parts of the business
the AGM. It is also common practice in Sweden for the company’s chief
– from collaborating with suppliers to meeting with customers.
auditor to attend the AGM. The auditors are deemed to act as the control
H&M Group has a long tradition of transparent reporting, supply chain
body for the board of directors on behalf of all shareholders. As a result,
­disclosure, and helping its customers to make more informed choices. H&M
shareholders can pose questions to the auditors at the AGM irrespective
Group is committed to continually improving the comparability and quality of
of the size of their shareholding.
the data, systems and calculations it uses, together with industry partners
and all relevant stakeholders. H&M Group’s commitment to transparency is • The option of having different classes of shares has been present in the
set out in more detail in the sustainability report, see page 52. In the sustain­ Swedish Companies Act for a long time and is widely used. These different

Corporate
ability report the group’s sustainability governance is also further described. share classes – usually referred to as class ‘A/B/C’ shares – often have
H & M Hennes & Mauritz AB is a Swedish public limited company. The com- ­different voting rights and sometimes have different rights with respect to
pany’s class B shares are listed on Nasdaq Stockholm. This report covers the dividends.
financial year from 1 December 2023 to 30 November 2024 (the 2024 finan- • By law, employees have the right to appoint employee representatives to
cial year) and is prepared in accordance with the Swedish Corporate Govern- the board of directors of large companies. All members of the board of
ance Code (the Code) and the Swedish Annual Accounts Act, and has been directors are invited to the same meetings, receive the same information,
examined by the company’s auditors. and have the same voting rights. Board fees are paid only to members

­governance
elected at the AGM.
Corporate governance in Sweden
H&M Group has applied the Code since 2005. The Code is based on the External and internal governance
­principle of ‘comply or explain’, which means that companies applying the H&M Group’s corporate governance operates in accordance with external
Code may deviate from individual rules, as long as they explain how they have regulations, international frameworks, and internal control documents.
deviated, provide the reasons for the deviation and describe the alternative It is founded on the company’s values and a corporate culture that empha-
approach they have adopted. sises simple, straightforward, cost-conscious, entrepreneurial business
The full Code is available at corporategovernanceboard.se. During the practices, teamwork, a belief in people, and a drive for constant improve-
2024 financial year H&M Group did not deviate from the Code. ment. Sustainability is core to H&M Group and is integrated into all parts
of the business.
Listed companies in Sweden must be aware of the following aspects of
­corporate governance: Examples of external regulations and frameworks include:
• The nomination committee plays a key role. Unlike the Anglo-American • Accounting legislation, including the Swedish Bookkeeping Act
system, members of the nomination committee are appointed by the com- and Annual Accounts Act
pany’s largest shareholders. The nomination committee proposes the size
• The EU Market Abuse Regulation (MAR)
of the board of directors and who should be elected to the board of direc-
tors at the annual general meeting (AGM) of shareholders. Members of the • Nasdaq Stockholm Rules for Issuers
board of directors are elected by all shareholders eligible to vote at the • The General Data Protection Regulation (GDPR)
AGM. This means the nomination committee has a decisive influence over
• The Swedish Companies Act
who is elected to the board of directors. The nomination committee also
recommends the appropriate level of board of directors’ fees, as well as • The Swedish Corporate Governance Code (the Code)
fees to the company’s auditor. The process for appointing members to the • The Global Reporting Initiative (GRI)
nomination committee is decided by the AGM. • The UN Guiding Principles Reporting Framework
• Swedish law states that members of the board of directors are appointed • The Task Force on Climate-related Financial Disclosures (TCFD)
to represent the interests of all shareholders. If a large shareholder pro-
• The COSO framework.
poses a new member via the nomination committee, that member of the
board of directors is required to represent the interests of all shareholders With specific regard to sustainability, H&M Group reports in line with ­existing
and not just those of the shareholder(s) that nominated them. legislation, including policies developed by the European Union, Germany
• For many decades, Swedish enterprise in general has viewed it as positive (Supply Chain Due Diligence Act), Norway and the UK. For more information,
for the CEO and other members of the board of directors elected by the see the sustainability report on page 52 and read more on hmgroup.com/
general meeting to own shares in the company they operate in. This is sustainability and in the sustainability p
­ rogress report.

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Examples of internal control documents include the company’s: policies, and goals in all areas, including sustainability, is the responsibility Articles of association Number of shareholders and ownership structure
• Articles of association of the respective business functions and brands, and forms part of their According to H&M’s articles of association, H&M’s board of directors is to At the end of the financial year, H&M had 213,223 shareholders. The total
­performance review with the CEO. consist of at least three and no more than 12 members elected by the general number of shares in H&M is 1,610,542,225, of which 194,400,000 are class A
• Board of directors’ rules of procedure, including instructions for
meeting and no more than the same number of deputies. The AGM decides shares with 10 votes per share and 1,416,142,225 are class B shares with one
the CEO and the audit committee Shareholders and annual general meeting the exact number of members of the board of directors and which individuals vote per share. As at 30 November 2024, a total of 6,050,850 B shares in
• Corporate Governance Policy, including the Internal Control Framework The shareholders in H&M have the final decision on the company’s govern- are to be elected to the board of directors. Members of the board of directors H&M had been repurchased as part of the share buy back programme.
ance. Shareholders vote at the general meeting to adopt the articles of asso- are elected for the period until the close of the next AGM. The general meet- H&M’s largest shareholder is Stefan Persson and family, who via Ramsbury
• The ethics policy ‘code of ethics’
ciation, which determine what the business will focus on, and to appoint the ing also decides on amendments to the articles of association. Invest AB hold all the class A shares, which represent 57.9 percent of the
• Communications policy board of directors and its chair, whose task is to administer the company’s votes, as well as 764,799,715 (708,744,122) class B shares, representing 22.8
• Data privacy policy affairs on behalf of the shareholders. The shareholders at the general meet- Annual General Meeting 2024 (21.0) percent of the votes. In addition, the family privately owns 36,400,289
• Environmental policy ing elects auditors and decide on the instructions for the nomination commit- H&M’s 2024 AGM was held on 3 May in the Erling Persson Hall, Aula Medica in class B shares. This means that as at 30 November 2024, Stefan Persson and
tee and elects its members. Solna. The option of postal voting was also provided. family privately and via Ramsbury Invest AB represented 81.9 (79.7) percent
• Financial policy
The general meeting is thus the company’s highest decision-making body A total of 1,365 shareholders were represented at the meeting, represent- of the votes, excluding treasury shares, and 61.8 (57.7) percent of the total
• Human rights policy and is the forum in which shareholders exercise their right to decide on the ing 90.6 percent of the votes and 79.4 percent of the c
­ apital. number of shares. Ramsbury Invest is thus formally the parent company of
• Insider policy company’s affairs. H&M’s annual general meeting (AGM) is held once a year, H & M Hennes & Mauritz AB. Ramsbury Invest AB is owned by Stefan Persson
in late April or early May. The main resolutions passed were as follows: and family, and primarily by Stefan Persson. Karl-Johan Persson is also a
• ‘Our way’ document, which details H&M Group’s culture, ­values, policies
The date and venue are announced in conjunction with H&M’s nine-month shareholder in Ramsbury Invest AB.
and guidelines • The lawyer Andreas Steen was elected as chair of the meeting.
report, as well as at hmgroup.com. The notice of the meeting is published in A class A share has greater voting power at the company’s general meet-
• Responsible business conduct policy full four to six weeks before the meeting as a press release and in the news- • Balance sheets and income statements were adopted for H&M and for ings. All the shares have the same dividend entitlement and share in the
• Social policies paper Post- och Inrikes Tidningar and at hmgroup.com. Publication of the the group. ­company’s assets. Since the company was first listed on the stock exchange
• Sustainability commitment notice is announced by an advertisement placed in the newspapers Dagens • The dividend would be paid to shareholders in two instalments, the record in 1974, all the class A shares in H&M have belonged to the founding Persson
Nyheter and Svenska Dagbladet. Shareholders registered directly in the reg- date for the first payment being 7 May 2024 (SEK 3.25 per share) and for family. This is common when family-owned businesses are floated on the stock
• Tax policy ister of shareholders who have given notice of their attendance on time are the second payment 8 November 2024 (SEK 3.25 per share). The remain- exchange since it allows the founding family to have a controlling interest. The
• Whistleblowing policy entitled to participate in the meeting and vote in accordance with the total der of the company’s earnings would be carried forward. division into class A and class B shares is set out in H&M’s articles of associa-
numbers of shares that they hold. Shareholders who cannot be present in tion, providing transparency to those considering buying shares in H&M.
• The members of the board of directors and the CEO were discharged from
H&M Group’s governance structure person may be represented by proxy.
liability for the 2022/2023 financial year.
H&M Group’s corporate governance structure encompasses the share­ Shareholders wishing to have a particular matter considered by the meet- Annual General Meeting 2025
ing may submit a written request to the board of directors at least seven • The number of members of the board of directors elected by the meeting H&M’s AGM in 2025 will be held on 7 May 2025. To register to attend the 2025
holders, the board of directors, the audit and nomination committees, the
weeks before the meeting. An email address for H&M is also provided in the to serve until the close of the next AGM was set at eight, with no deputies. AGM, see the notice of the meeting at hmgroup.com/agm.
company’s auditors, the CEO and executive management team, individual
business areas organised by brand, employees, and employee organisations. press release for the notice of the meeting, for shareholders who wish to sub- • The following ordinary members of the board of directors were re-elected:
H&M Group’s shareholders have overall responsibility for the company’s mit their questions in advance. All the material related to the meeting, includ- Stina Bergfors, Anders Dahlvig, Danica Kragic Jensfelt, Lena Patriksson Auditors
direction. They appoint the board of directors and the chair of the board of ing the minutes of the meeting, is available on the company’s website in both Keller, Christian Sievert, Christina Synnergren and Karl-Johan Persson. The auditors are independent and appointed by the shareholders at the AGM.
directors at the AGM based on proposals from the nomination committee. Swedish and English. Extraordinary general meetings can also be held when Helena Saxon was elected as a new member of the board of directors. They are responsible for:
Proposals for the composition of the board of directors, board fees and the there is a particular need to do so.
• Karl-Johan Persson was re-elected as the chair of the board of directors. • auditing and examining the H&M group’s annual and sustainability report,
election of auditors are prepared in advance by the nomination committee. consolidated financial statements and accounts, ensuring these have been
Shareholders’ decision-making powers • The board fees proposed by the nomination committee were approved as
The board of directors includes three employee representatives. Each also prepared in accordance with current laws and recommendations,
Among other things, the general meeting makes decisions concerning: follows: chair of the board of directors SEK 1,900,000; members of the
has a deputy. The representatives and their deputies are all chosen by their
board of directors elected by the AGM SEK 825,000; members of the audit • reviewing the management of the H&M group by the board of directors and
respective employee organisations. • The election of members and the chair of the board of directors
committee an additional SEK 210,000; and the chair of the audit committee the CEO, and,
The board of directors selects individual members to serve on an audit • Board fees, including the compensation paid to members for work on
an additional SEK 315,000. • ensuring compliance with the guidelines on remuneration to senior
committee. The committee oversees financial reporting, including com­ the audit committee
pliance with legal requirements on statutory sustainability reporting, and • Deloitte AB was appointed as the auditors until the close of the 2025 AGM. ­executives adopted by the AGM.
• Discharging members of the board of directors and the CEO from liability
the effectiveness of the company’s risk management and internal control, Auditors’ fees are to be paid based on approved invoices.
• Amendments to the articles of association The accounting firm Deloitte AB (Deloitte) was elected as auditors for the
ensuring impacts, risks and opportunities are appropriately managed. • The board of directors’ remuneration report was approved. H&M group at the 2024 AGM. The firm was appointed for a one-year term
The committee is the main channel of communication between the board • The election of the auditors
• A reduction in the share capital, for allocation to non-restricted equity, was ending at the 2025 AGM. Authorised public accountant Didrik Roos from
of directors and the auditors. • The adoption of the income statement and balance sheet approved through the cancellation of the 19,144,612 class B treasury Deloitte has overall responsibility for the audit.
The board of directors is also responsible for appointing the CEO to over-
• The distribution of earnings for the past financial year shares repurchased within the framework of H&M’s buyback programme, As in previous years, the 2024 AGM resolved that the auditors’ fees should
see day-to-day management and administration of the company. The CEO
resulting in a reduction of the share capital of SEK 2,430,352.764. To be paid based on invoices submitted and approved. The fees invoiced by the
appoints members of the executive management team. Accountability for • The instructions for the nomination committee
restore the share capital, the AGM simultaneously resolved to increase the auditors over the past two financial years are reported in note 11 of the annual
implementation and performance relative to the company’s strategies, • Guidelines for remuneration to senior executives share capital by SEK 2,430,352.764 through a bonus issue without issuing and sustainability report for 2024.
new shares, with the amount of the reduction being transferred from non- Deloitte is a member of a global network used by most H&M Group com­
restricted equity. panies for auditing purposes and meets the H&M group’s requirements with
respect to competence and geographic coverage. The auditors’ independent
• The board of directors was authorised to make decisions concerning the
status is guaranteed by legislation and professional ethics, the accounting
purchase of own class B shares on as many occasions as it deems appro-
firm’s internal guidelines, and the fact that non-auditing assignments must be
priate in the period up to the 2025 AGM. The company’s acquisition and
H&M Group’s holding of treasury shares may not exceed 10 percent of all the shares in
approved in advance by the audit committee. Didrik Roos also acts as auditor
Shareholders to Axfood AB, Boozt AB, Loomis AB and New Wave Group AB.
governance structure the ­company.
The auditors attend all meetings of the audit committee. Didrik Roos also
attended the January 2024 board meeting to notify the board of directors of
the scope and focus of the 2024 financial year audit, as well as any significant
Annual general meeting Nomination committee Votes and capital represented at the H&M group’s
­considerations arising from the audit.
annual general meeting
In addition to this involvement, the auditors regularly meet with the chair of
Year % of votes % of capital the board of directors, the audit committee’s chair and other members, the
Board of directors Audit committee executive management team and other key individuals. The auditors also take
2019 84.6 68.4 part in the AGM, reporting to all shareholders on the outcome of the audit.
2020 86.7 72.7 Alongside its mandate as elected auditors, Deloitte has provided other
2021 87.8 74.9 services, such as limited assurance of the sustainability progress report and
CEO
consulting work, primarily tax advice. Deloitte has internal processes to
2022 87.8 75.0
ensure its independence before embarking on these assignments. The audit
2023 89.5 76.9 committee also has a process for approving non-auditing services before
Management organisations 2024 90.6 79.4 commencement.
The audit committee evaluates the auditors annually to confirm the
­auditors’ objectivity and independence.

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Board of directors Of the eight board meetings held in 2024, one was a constituent meeting Since H&M does not have a separate review function (internal audit func- requirement 7.4 of the Code. The board of directors prepares the proposed
The board of directors’ role is to manage H&M’s affairs in the interests of in connection with the annual general meeting. Attendance at the board tion) for work on internal control but has instead established its own model guidelines for remuneration to senior executives that are presented at the
the company and all its shareholders, and to safeguard and encourage meetings was very high; see the attendance for each member of the board for managing the company’s risk and internal control (see pages 48–51), once AGM, and it is the board of directors that decides on the CEO’s salary in
a good corporate culture. This means that the board of directors has the of directors in the table on page 43. a year the board of directors assesses the need for a separate internal audit accordance with the latest guidelines adopted at the AGM. The board of
overall responsibility for the company’s administration, taking a long-term, Generally, one or more departments or brands are invited to each meeting function. In 2024, the board of directors again reached the conclusion that directors continually assesses the CEO’s work and once a year discusses this
sus­tainable approach with a focus on the customer offering and growth. to give a status presentation concerning the work of their function or brand. the present model for monitoring internal control is satisfactory. matter alongside setting of the CEO’s remuneration for the coming year. No
In addition to legislation and recommendations, the work of the board of These presentations act as a complement to the CEO’s status reports, pro- Ahead of the AGM, the board of directors presented a remuneration report member of executive management is present when this is discussed.
directors is regulated by the board of directors’ rules of procedure which viding an opportunity for more in-depth discussions concerning specific for 2024 in accordance with the Swedish Companies Act and the Remunera- The board of directors continually evaluates its work, and the chair of the
contain rules on the distribution of work between the board of directors, its areas of operation. Each board meeting also includes a summary of the tion Rules issued by the Swedish Corporate Governance Board. The remu- board of directors is in regular contact with members of the board of directors
committees and the CEO as well as on financial reporting and sustainability ­matters addressed by the audit committee at its most recent meeting within neration report describes how the guidelines for remuneration within H&M between meetings as part of the board of directors’ work and its evaluation
reporting, investments and financing. The rules of procedure, which also areas such as accounting, audit, security, tax, internal control, and risk, as adopted at the 2021 AGM were applied in the 2024 financial year. The remu- process. The evaluation covers working methods, the working climate,
include the procedure for the audit committee, are updated as needed but well as various new regulations and legislations. neration report for 2024 is available at hmgroup.com/about-us/corporate- wishes and the main focus of the board of directors’ work.
are established at least once a year. governance/remuneration. The evaluation also focuses on access to and the need for specialist exper-
Work of the board of directors in 2024 H&M does not have a remuneration committee since the board of directors tise within the board of directors. The evaluation is used as a tool for how the
Composition of H&M Group’s board of directors and ­ H&M’s board meetings are generally structured as shown below. This is deems it more appropriate for the entire board of directors to carry out the board fo directors is to operate and additionally forms a basis for the work of
independence of its members ­supplemented by one or more business presentations. tasks of a remuneration committee, which is entirely in accordance with the nomination committee.
The members of the board of directors are elected by the shareholders at the
general meeting, normally at the AGM and for the period up to and including The following are usually reviewed at each board meeting:
the next AGM. Since the 2024 AGM the board of directors has consisted of • Minutes of the previous meeting
eight ordinary members elected by the general meeting, with no deputies, • The CEO’s status report and report by the CFO
as well as three employee representatives and three deputies for these posi-
• Strategic matters
tions. Only the employee representatives and their deputies are employed
by the company. Since the 2024 AGM the board of directors has consisted of • Feedback from the latest audit committee meeting
the following members elected by the general meeting: Karl-Johan Persson • Financial reporting such as the interim report, full-year report, Composition of the board of directors and attendance at meetings in the 2024 financial year
(chair), Stina Bergfors, Anders Dahlvig, Danica Kragic Jensfelt, Lena and the annual and sustainability report
­Patriksson Keller, Helena Saxon, Christian Sievert and Christina Synnergren. • Any other business
Keith Barker, Tim Gahnström and Agneta Gustafsson are the regular Year Fees Board Audit Share- Shares held
Name elected Independent 1 Independent 2 (SEK)3 meetings 4 committee holdings 5 by related parties
employee representatives, with Therese Nordström, Sofia Almbrandt and Sales, costs and efficiency within the organisation are discussed continually
Hans Nilsson as their deputies. For more information about members of at the board meetings. During the year the geopolitical and macroeconomic
H&M’s board of directors, see pages 44–46. situation remained challenging, and the effects of this on the H&M group’s Karl-Johan Persson, chair 2020 Yes No 1,850,000 8/8 12,136,289 Shareholder in
Ramsbury Invest AB6
Members of the board of directors are required to devote the time and operations formed a key part of the board of directors’ work. This includes
attention that their position on the board of directors demands. New mem- how the H&M group has been navigating inflation, rising interest rates, the Stina Bergfors 2016 Yes Yes 800,000 8/8 9,000 6,0007
bers receive introductory training that includes meetings with the heads of competitive landscape, digitalisation, security and climate matters across Anders Dahlvig 2010 Yes Yes 1,000,000 8/8 5/5 17,510
the various brands and functions. areas such as customer offerings and pricing, the supply chain for example Danica Kragic Jensfelt 2019 Yes Yes 800,000 8/8 2,500 120
The composition of the board of directors during the year met the in­­ in production and transport, the store portfolio and omni-­channel business,
Lena Patriksson Keller 2014 Yes Yes 800,000 8/8 1,200 and 9,4508
dependence requirements set out in sections 4.4 and 4.5 of the Code. This sustainability, technology and AI, as well as communication and marketing.
means that a majority of members of the board of directors elected by the During the year the board of directors continued to address topics such as Helena Saxon 11
2024 Yes Yes 5/5 3/3 5,000 19,000 and 2,40010
general meeting are independent of the company and its management. Most store format development and online commerce and the ongoing integration Christian Sievert 2010 Yes No 9
1,100,000 8/8 5/5 87,000
members of the board of directors are also independent of the company’s of physical and digital channels (omni), brand-building activities, organisa-
Christina Synnergren 2023 Yes Yes 800,000 8/8 34,475
major shareholders. tional changes, capital allocation, and cybersecurity. Developments within
the group’s brands and business areas are continuously monitored at the Niklas Zennström11 2014 Yes Yes 800,000 3/3 72,700
Employee organisations meetings, for example by various representatives from the company pre­ Keith Barker,13 2024 4/5
Under Swedish law, the employees have the right – via employee organisa- senting the work of their respective areas to the board of directors. During employee rep.
tions (trade unions) – to appoint employee representatives with deputies to the year the board of directors also held two strategy days during which it Tim Gahnström, 2021 8/8
the company’s board of directors. The trade unions appoint three members reviewed and set next year’s business plan. employee rep.
of the board of directors and three deputies to H&M’s board of directors. An account of what has been reviewed at the latest audit committee meet- Agneta Gustafsson,12 2022 8/8
ing is provided. This has primarily concerned accounting, IFRS 16 effects, employee rep.
Number of board meetings audit, tax, customs duties, internal control, risk, and various new regulations, Sofia Almbrandt,14 2024 1/5
H&M normally holds six regular board meetings during the financial year, one legislations and directives, including the EU’s new Corporate Sustainability deputy employee rep.
of which is the statutory board meeting. Extraordinary board meetings are Reporting Directive (CSRD). During the year the entire board of directors Hans Andersson,12 2024 4/5
held when the need arises. The CEO attends all board meetings, except when received training in CSRD, and information was provided by the head of deputy employee rep.
the CEO’s terms of employment are being discussed. The CEO reports to the ­sustainability about the status of and plan for meeting the new disclosure
Therese Nordström,13 2024 2/5 380
board of directors on the operational work within the group and ensures that requirements. The significant risks discussed at the audit committee meet- deputy employee rep.
ahead of each board meeting the board of directors is given ­relevant and ings were also discussed at the subsequent board meetings. The board of
objective information on which to base its decisions. The CFO also attends directors goes through interim financial reports before they are published
the board meetings to provide financial information. The board of directors at four meetings in the year. At the January meeting, the board of directors 1. Independent of the company and company management in accordance with the Swedish Corporate Governance Code.
2. Independent of major shareholders in the company in accordance with the Swedish Corporate Governance Code.
is assisted by a secretary who is not a member of the board of directors. discusses the annual and sustainability report and the auditors’ reports on 3. Fees as resolved at the 2023 AGM. This means that the fees related to the period until the next AGM, i.e. for the period 4 May 2023 to 3 May 2024.
the year’s audit. During the year the board of directors also met with the The amounts were paid out after the 2024 AGM.
Members of the board of directors and 2024 meetings ­company’s auditors without the CEO or other representatives of executive 4. Attendance via technology is equated with attendance in person.
5. There are no outstanding share- or share price-related incentive programmes for the board of directors.
The board of directors has eight members elected at the AGM, five women management being present. 6. Ramsbury Invest AB owned 194,400,000 class A shares and 764,799,715 class B shares as of 30 November 2024.
and three men, and three employee representatives supported by three dep- As every year, in 2024 the board of directors took various decisions includ- 7. 6,000 shares held by spouse.
uties appointed by employee organisations in accordance with Swedish law. ing approving a SEK 1 billion share buyback programme based on authorisa- 8. 1,200 shares owned through Lena Patriksson Keller’s private company Verdani Holding AB. 9,450 shares held by spouse and children.
9. Christian Sievert is considered dependent in relation to Ramsbury Invest AB since Ramsbury Invest AB is a major shareholder in a company of which Christian Sievert is CEO.
In total, the board of directors has 14 members – eight women and six men. tion from the AGM, a proposed dividend of SEK 6.50 per share to be paid 10. Shares held by related parties: 19,000 shares held through Christian Sievert’s company Whitechris Industri AB and 2,400 shares held by spouse and children.
The composition of the board of directors exhibits breadth and diversity in two instalments, the remuneration report and decisions concerning the Supplementary ­disclosure: in addition to Christian Sievert’s shareholding shown above, Christian Sievert holds 9,000 H&M shares via a pension plan.
and ensures significant complementarity between the members of the board 11. Niklas Zennström left the board of directors at the annual general meeting in May 2024 and Helena Saxon was elected as a new member of the board of directors.
financial statements, as well as deciding on an investment plan, a growth
Niklas Zennström’s shareholding as of 3 May 2024.
of directors’ different areas of expertise. Their experience in areas such as plan, targets and the closure of Afound. On 31 January 2024 the board of 12. Agneta Gustafsson, previously deputy employee representative, replaced Ingrid Godin as employee representative in spring 2024. Hans Nilsson became a new deputy
retail, entrepreneurship, fashion, digitalisation, finance, AI, advanced analytics directors decided to appoint Daniel Ervér as the new CEO of the H&M group. employee representative, replacing Agneta Gustafsson.
13. Keith Barker became a new employee representative, replacing Louise Wikholm. Therese Nordström became a new deputy employee representative, replacing
and automation, sustainability and communication forms a strong basis for Daniel Ervér, who was previously responsible for the H&M brand, succeeded Margareta Welinder.
effective and highly productive discussions with the CEO and ­management. Helena Helmersson, who had announced her departure. 14. S ofia Almbrandt replaced Ramon Horvath as deputy employee representative in spring 2024.

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Board of directors’ profiles

KARL-JOHAN PERSSON STINA BERGFORS ANDERS DAHLVIG LENA PATRIKSSON KELLER CHRISTIAN SIEVERT CHRISTINA SYNNERGREN HELENA SAXON DANICA KRAGIC JENSFELT
Chair of the board. Board member. Board member and member Board member. Board member and chair Board member. Board member and member Board member.
Born 1975. Born 1972. of the audit committee. Born 1969. of the audit committee. Born 1978. of the audit committee. Born 1971.
Born 1957. Born 1969. Born 1970.
Primary occupation Primary occupation Primary occupation Primary occupation Primary occupation
Chair of the Board of Directors of Board ­assignments. Primary occupation Executive chair at branding and Primary occupation Board assignments. Primary occupation Professor of computer science at
H&M Group. Board assignments. communications agency Patriksson CEO of AB Max Sievert. Board assignments. KTH Royal Institute of Technology
Other significant board Group AB. Other significant board conducting research in the fields
Other significant board ­assignments Other significant board Other significant board ­assignments Other significant board of computer vision and robotics.
­assignments Member of the boards of, ­assignments Other significant board ­assignments No other significant board ­assignments The aim of the research is to use
Member of the board of directors ­Handelsbanken and Tele2. Chair of Inter IKEA Holding BV and ­assignments Member of the board of directors ­assignments. Board member and audit com­ sensors to build future systems
of Ramsbury Invest AB, the member of the board of directors Member of the boards of directors of AB Max Sievert and of the boards mittee chair at Sobi and Stockholm that interact with people and their
GoodCause Foundation and the Education of Oriflame SA. of Elite Hotels, Wanås Art of portfolio companies of AB Max Education School of Economics, as well as environment in a natural way.
H&M Foundation. MSc in business administration Foundation, Jeanerica AB and Sievert; also, member of the board M. Sc. in Economics and Business at SEB until 1 April 2025.
and honorary doctorate from Education Maria Nilsdotter AB. Lena is also of directors of AB Anders Löfberg. Administration, Stockholm School Other significant board
Education Luleå ­University of Technology. MSc in business administration, involved in the Prince Daniel Fellow- of Economics. Education ­assignments
BA in business administration from Lund University, and MA from ship at the Royal Swedish Academy Education M. Sc. in Economics and Business Board member at FAM, SAAB and
the European Business School, Professional experience the University of California, of Engineering Sciences (IVA). M. Sc. in Economics and Business Professional experience Administration, Stockholm School the Institute for Future Studies;
London. 1999–2000 TV3 MTG Sales. Santa Barbara. Administration, Stockholm School Christina has 20 years of experi- of Economics. Certificate in member of the Royal Swedish
2000–2004 Media strategist Education of Economics. ence from management consulting ­C orp­o­rate Governance from ­Academy of Sciences and the Royal
Professional experience OMD Nordics. Professional experience Design and marketing at Parsons firm BCG (Boston Consulting ­International Directors Program Swedish Academy of Engineering
2001–2004 CEO of European 2005–2008 CEO of Carat. 1983–1993 Various roles within School of Design in New York and at Professional experience Group), most recently as managing at INSEAD, France. Sciences (IVA).
­Network. 2008–2013 Country director for IKEA in Sweden, Germany, the American University in London. 1994–1997 Bain & C­ ompany, Stock- director and senior partner. She has
2005–2009 Operational executive Google and YouTube in Sweden. ­Switzerland and Belgium. holm, and San Francisco, USA. also held several other leadership Professional experience Education
roles within H&M Group, including 2014–2020 Founder and CEO etc. 1993–1997 Managing director Professional experience 1997–2003 Investment manager positions within BCG, including After her studies Helena began MSc in mechanical engineering
within expansion, ­business at United Screens. of IKEA UK. 1993–1996 Buying & product and partner at Segulah. roles in the global Fashion & Luxury working as a financial analyst at from the Technical University of
development and new business. 1997–1999 Vice president development at H&M. 2003–2013 CEO/managing partner and Retail leadership teams, Goldman Sachs in London. She Rijeka, Croatia. Danica was
2009–2020 CEO of H&M Group. of IKEA Europe. 1996–1998 Global communications at Segulah. as well as being a member of subsequently moved to Investor AB, awarded a PhD in robotics by KTH
2020– Chair of the board of 1999–2009 President and manager, J.Lindeberg. 2013–2014 Partner, Segulah. BCG’s Executive Committee – the where she has worked for most of Royal Institute of Technology,
H&M Group. CEO of IKEA. 1999– CEO and later executive 2014– CEO of AB Max Sievert. decision-­making body responsible her career, including as CFO and Stockholm, in 2001. Honorary
chair, Patriksson Group AB. for managing the entire firm glob- member of Investor’s executive ­doctorate from Lappeenranta
ally. Christina left BCG before management team 2015–2024, ­University of Technology in Finland.
H&M’s 2023 annual general meet- and has also worked as investment
ing at which she was elected to manager within tech and health. Professional experience
the board of directors. 2008– Professor of computer
­science, conducting research in
the fields of computer vision and
robotics, at KTH Royal Institute of
Technology in Stockholm.

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Employee representative profiles

Nomination committee that the proposed board of directors exhibits the required diversity and
The nomination committee prepares information for decisions at the general breadth of qualifications, experience and background, as well as gender
meeting concerning the election of the board of directors, the chair of the ­balance. The nomination committee has continued to stress the importance
board of directors, the auditors and the chair of the annual general meeting, of gender balance, and H&M’s board of directors has had a good gender
fees to the board of directors and auditors, and instructions for the nomina- ­balance for many years. The members of the board of directors proposed for
tion committee. The nomination committee’s proposal for the composition of election by the general meeting were five women and three men.
the board of directors considers diversity and breadth with regard to exper- The proposed board composition was considered to more than satisfy the
tise, experience, background and gender balance. It also takes into consider- requirements in terms of expertise and experience, ­taking into account the
ation the company’s stage of development and future focus. company’s operations and future development. The proposal was considered
Before each AGM the nomination committee’s report is available to read to meet the applicable requirements regarding the independence of members
as a separate document at hmgroup.com/corporategovernance. The com- of the board of directors, their stock market experience and their expertise in
position of the nomination committee is based on the instructions for and accounting and auditing.
proposed composition of the nomination committee adopted at the 2022 The nomination committee has also discussed the members of the board
AGM, which apply until a general meeting of shareholders resolves otherwise. of directors’ independence and assessed that the proposed board composi-
The nomination committee below is based on the principle that the nomina- tion satisfies the requirements that apply in respect of the members’ inde-
tion committee is to consist of the chair of the board of directors plus four pendence, stock market experience, and accounting and auditing expertise.
others nominated by the four largest shareholders in terms of voting rights, To decide whether a member is independent, an overall assessment is
as set out in the register of shareholders on the last banking day of August. made of all circumstances that might call into question the member’s inde-
In autumn 2024 the nomination committee thus consisted of: pendence of the company and its management. Rule 4.4 of the Code states
• Karl-Johan Persson, chair of the board of directors at least seven different circumstances that are to be considered here. At
least two of the members of the board of directors who are independent of
• Stefan Persson, Ramsbury Invest AB the company and its management must also be independent of the compa-
• Lottie Tham ny’s major share­holders. To decide whether a member of the board of direc-
HANS NILSSON THERESE NORDSTRÖM KEITH BARKER • Anders Oscarsson, AMF Tjänstepension and AMF Fonder tors is independent, the extent of the member’s direct and indirect relation-
ships with the major shareholder are to be considered in the assessment.
Deputy employee representative, Deputy employee representative, Employee representative, on the • Joachim Spetz, Swedbank Robur Fonder
A member of the board of directors who is employed by or is a member of the
on the H&M group board since on the H&M group board since H&M group board since 2024.
The nomination committee meets the requirements of the Code regarding board of directors at a company that is a major shareholder is not to be con-
2024. 2024. Born 1961.
the independence of members. Stefan Persson chairs the nomination com- sidered independent. Regarding the composition of the audit committee,
Born 1965. Born 1988. Employed since 2007. section 7.2 of the Code states that the majority of the committee’s members
mittee, in accordance with the rules in the nomination committee’s instruc-
Employed since 1987. Employed since 2011. tions which state that the chair of the nomination committee shall be the are to be independent of the company and its management. At least one of
Current position member representing the largest shareholder unless the nomination com­ the members of the board of directors who is independent of the company
Current position Current position IT architect. mittee appoints another person. The nomination committee unanimously and its management must also be independent of the company’s major
Sales advisor, H&M Hudiksvall. Pattern maker. decided that in view of H&M’s ownership structure, Stefan Persson in his shareholders. The chair of H&M’s audit committee is independent of the
capacity as principal shareholder is the natural choice to chair H&M’s company and its management, as are the other members of the committee.
­nomination committee. Two of the three members are also independent of the company’s major
shareholders. There is nothing in the Code stating that the chair of the com-
Work of the nomination committee in preparation for mittee must be independent of major shareholders.
the 2024 AGM, including description of diversity policy Between the 2024 AGM and the end of the 2024 financial year, the nomina-
for the board of directors tion committee held one meeting at which minutes were taken. The commit-
Before the 2024 AGM the nomination committee held one meeting at which tee was also in contact at other times. In autumn 2024 the nomination com-
minutes were taken. The committee was also in contact at other times. As a mittee began its review, starting with information from the chair of the board
basis for its work to analyse the composition of the board of directors ahead of directors concerning the functioning of the board of directors during the
of the 2024 AGM, the nomination committee studied the report by the chair year. It was established that the board of directors has functioned well and
of the board of directors on the work of the board of directors. The board of fulfilled its work effectively. In the period up until the proposals to the 2025
directors’ work has functioned well over the course of the year, with great AGM are presented, the nomination committee will discuss the size and com-
commitment from the individual members. The report by the chair of the position of the board of directors based on such factors as expertise, experi-
board of directors, along with interviews conducted with members of the ence and the outlook for the company, the election of a chair of the board of
board of directors elected by the general meeting, also informed the nomina- directors and a chair of the general meeting, fees for members of the board
tion committee’s proposal to the 2024 AGM regarding the composition of the of directors, the instructions for the nomination committee and the election
board of directors. The different competencies of board of directors’ mem- of auditors. The nomination committee’s work in preparation for the AGM in
bers are complementary, which contributes to a good whole. All the members May 2025 is not yet complete; more information will be presented before and
attended all the board meetings and showed great commitment, both at and at the 2025 AGM.
between the meetings. The nomination committee endeavours to ensure that
TIM GAHNSTRÖM SOFIA ALMBRANDT AGNETA GUSTAFSSON the board of directors consists of individuals with a high level of expertise Audit committee
and integrity, while at the same time ensuring that the board of directors has The audit committee oversees H&M Group’s financial reporting, including
Employee representative, on the Deputy employee representative, Employee representative, on the
a good and appropriate mix of experience and expertise in order to meet compliance with legal requirements on statutory sustainability reporting,
H&M group board since 2021. on the H&M group board since H&M group board since 2024.
H&M Group’s present and future opportunities and challenges. The nomina- and the effectiveness of the company’s risk management and internal con-
Born 1979. 2024. ­Deputy employee representative
tion committee’s proposal to the 2024 AGM was to re-elect the following trol, ensuring impacts, risks and opportunities are appropriately managed.
Born 1979. on the board 2022–2024.
Employed since 2015. members of the board of directors: Stina Bergfors, Anders Dahlvig, Danica The committee oversees all auditing topics and publication of company’s
Employed since 2008. Born 1969. Kragic Jensfelt, Lena Patriksson Keller, Karl-Johan Persson, Christian financial reports.
Current position Employed since 1988. Sievert and Christina Synnergren; and to elect Helena Saxon as a new The audit committee also assists the nomination committee with any
Solution architect (Business Tech). Current position ­member of the board of directors, as her expertise and background are seen ­proposals to the AGM concerning the election of auditors. The audit com­
Data engineer. Current position as contributing valuable input to the work of the board of directors. Niklas mittee reviews and monitors the impartiality and independence of the audi-
Sales advisor, H&M Jönköping. Zennström had asked to step down from the board of directors since after tors and determines which assignments the accounting firm may conduct
10 years as a member of H&M’s board of directors, he intends to focus on for H&M Group in addition to the audit. The auditors provide an annual writ-
his own companies and foundations. Niklas still believes strongly in the ten statement to the audit committee providing assurance of the auditors’
H&M group and will continue to assist with his network and experience ­in­­dependence and outlining which additional services the accounting firm has
when needed. The nomination committee also proposed the re-election provided to H&M Group during the financial year. The audit committee com-
of Karl-Johan Persson as chair of the board of directors. prises three members of the board of directors with expertise in accounting
The nomination committee judged that the proposed board of directors or auditing. The audit committee is appointed annually by the board of
complied well with section 4.1 of the Code, which the nomination committee ­directors at the statutory board meeting held in conjunction with the AGM.
uses as the standard in relation to diversity policy. The policy aims to ensure Since the 2024 statutory meeting, Christian Sievert has served as chair of

46 47
<<Contents Corporate governance/Corporate governance report

the audit committee, Anders Dahlvig and Helena Saxon as members. All three Daniel Ervér holds 76,900 shares in H&M. He also holds 450,000 call and functions of H&M Group, as well as external stakeholders. Read more In 2024, the company’s group functions assessed internal control within
are independent of the company and its management. Christian Sievert is not options issued by Ramsbury Invest AB, with each option providing the right to about ‘Our way’ at hmgroup.com/about-us/our-way and under Business their respective area for each sales country. The work covered both general
considered independent of the company’s major shareholders, specifically buy one class B share in H&M during the 12-month period following the expiry conduct in the sustainability report, on page 105. issues and department-specific issues. This internal control assessment
Ramsbury Invest AB, since Ramsbury Invest AB is a major shareholder in a of a three-year agreement dated 15 February 2024. resulted in a plan of action for each group function, defining areas for
company of which Christian Sievert is CEO. Anders Dahlvig and Helena Saxon H&M’s internal control structure is based on: improvement to strengthen internal control at both country and group level.
are independent of the company’s major shareholders. The committee held Organisation and management • The division of accountability between the board of directors, the audit The group functions also followed up on assessments made in the previous
five minuted meetings during the 2024 financial year. The company’s auditors H&M Group is a multi-brand matrix organisation comprising the following committee and the CEO, which is clearly described in the board of year to ensure recommendations had been implemented.
attended all meetings of the audit committee and provided a report to the brands: H&M, which includes H&M HOME, H&M Beauty and H&M Move; and ­directors’ formal rules of procedure
committee on their review of H&M Group’s annual report and financial the Portfolio Brands consisting of COS, Weekday, Cheap Monday, Monki, Information & communication
• Regular reports from the executive management team and the audit
­statements, including the consolidated financial statements. The meetings & Other Stories, ARKET and Singular Society. The group also consists of Policies and guidelines are of particular importance for accurate accounting,
­committee to the board of directors, according to established routines
were also attended by, among others, the CFO, the chief accountant, the new growth & ventures, which includes the company’s investment arm reporting and provision of information, and define the control activities to be
head of investor relations and the head of corporate governance. Minutes H&M Group ventures, Creator Studio, Looper Textile Co. and Sellpy. • The company’s organisational structure carried out.
from the committee’s meetings were distributed to all members of the The matrix organisation provides a combination of group and local per- • The company’s values, guidelines, policies and manuals H&M Group has a communications policy providing guidelines for commu-
board of directors. spectives on leadership and entrepreneurship. The regional sales organisa- • Control activities, checks and balances, analysis and reporting nication with external parties. The purpose is to ensure that all disclosure obli-
tions are responsible for daily retail operations in their market and region. gations are met, and that the information provided is accurate and complete.
During the year the audit committee addressed the following matters, The CEO is responsible for day-to-day management of H&M Group and H&M Group is a matrix organisation, which means that those responsible for
among others: appoints the members of the executive management team. On 30 November Financial communication is provided via:
group functions are also responsible for the ­efficiency and effectiveness of
• The company’s financial reporting, including interim reports, and 2024, the executive management team, including the CEO, comprised the work of their function within each brand. • The annual and sustainability report
the c
­ orporate governance report as part of the annual and sustain­ seven individuals, four of whom were women. In addition to the CEO, the Internal controls are monitored regularly and evaluated annually by the • Interim reports, the full-year report and quarterly reports
ability report. executive management team consisted of the CFO, the person with respon­ ­relevant group function, checking corresponding functions in each country
sibility for the Portfolio Brands, the person with responsibility for new • Press releases on events and circumstances that may impact
• Compliance and effectiveness of H&M Group’s internal control and are operating in accordance with the prescribed group and local policies and
growth & ­ventures, and the heads of the following group functions: guidelines. Store operations are checked by internal store auditors.
the share price
risk management ­processes and review of its enterprise risks.
­Communications, Sustainability, and People & Organisational Development/ All subsidiaries within H&M Group have the same structure and accounting • H&M Group’s website hmgroup.com
• Information provided by the following functions and departments on Human Resources. system and the same chart of accounts. This simplifies the creation of appro-
their work: People & Organisational Development/HR; Security; Those responsible for other group functions than the ones included in the priate routines and control systems and facilitates internal control and com- More information on specific policies can be found in the sustainability report
­E xpansion; Accounting and Tax; Supply Chain; and Business Tech, executive management team are appointed by the CFO. parisons between the various companies. on page 108.
­including ­specific topics on Cyber Security. By the 30th of January 2025 the description of the Exectuive Management There are multiple policies, guidelines and manuals in place across the
• The transfer pricing model, tax matters and matters relating to customs. team was updated, for the latest information on H&M Group executive man- group, including detailed instructions for store staff that control the daily Risks and uncertainties
• The yearly report on Data Privacy. agement, see hmgroup.com/about-us/corporate-governance/. work in the stores. In most cases these are drawn up by the group functions Operational, financial and sustainability risks are continuously analysed by all
• Follow-up on H&M Group policies. at head office in Stockholm and then communicated to the respective brands and group functions. The risk management process and way of work-
Further reading departments in regional and country offices. Each group function regularly ing is set by corporate governance function and established through the
• Review of the company’s annual reporting cycle and the work to prepare Read more about H&M Group’s corporate governance at hmgroup.com/ reviews its guidelines and manuals to keep them up to date, adding new company. This process of risk review and assessment identifies the systems,
for the new Corporate Sustainability Reporting Directive (CSRD), informa- about-us/corporate-governance/, which contains: guidelines whenever necessary. methods and controls required to minimise any impact from identified risks.
tion provided by Deloitte on the audit plan, the scope of the audit and the
• Articles of association For the most significant issues, the corporate governance function manages
results of the review.
Control activities a quarterly review of risk level and associated mitigation plans.
• Information and material from previous AGMs and Extraordinary
• Review of the auditors’ independence and impartiality. There are several control activities built into the business processes to sup- A summary of the group’s enterprise risks is presented quarterly to the
General Meetings
port business efficiency and accurate financial and sustainability reporting. CEO and CFO, bi-annually to the audit committee and subsequently to the
The audit committee has an established routine for approval of any non- • Information about standards and policies board of directors.
These control activities are designed to prevent, find, and correct inaccura-
auditing services provided by the auditors, the routine is applied before such • Information about the board of directors, CEO, auditors, cies and non-compliance. Control activities can exist at all levels and in all The company’s first Task Force on Climate-related Financial Disclosures
service can be delivered. The audit committee agreed it was clear which and audit committee parts of the organisation. Within H&M Group, control activities include effec- (TCFD) analysis was conducted in 2019. An updated climate risk analysis
assignments Deloitte had taken on in addition to auditing and found no tive control and analysis of sales statistics, account reconciliation, monthly according to the guidelines issued by the TCFD was carried out during 2024,
• Information on the nomination committee
r­eason to question the accounting firm’s impartiality. H&M Group also uses accounts, financial and sustainability reports and on systems relating to read more on page 85.
consulting services from other accounting firms and tax advisors. • Previous corporate governance reports
financial and sustainability reporting.
Risk management process
CEO Internal control
Monitoring H&M Group has an entrepreneurial approach to business development.
The CEO is appointed by the board of directors and reports to the board Internal control is critical to safeguard the company’s assets and thereby the
H&M Group’s execution of internal control is firmly established within Launching new initiatives and ventures makes it necessary to accept a
of directors on H&M Group’s development. The CEO is responsible for the shareholders’ investment. Internal control and risk management are part of
the company, providing a means for group functions to ensure that their degree of business risk, while presenting many opportunities. H&M Group
daily management of the company as directed by the board of directors. the board of directors’ and the management’s responsibilities to manage the
respective function operates in line with company guidelines in all sales carries out regular risk assessments for both operational and financial risks.
This includes: business in the most appropriate and effective manner possible, ensuring
­markets and regions. Financial risks are related to the use of economic funds and financial
reliable financial reporting and compliance with applicable laws and regula-
• Recruitment of senior executives The assessment of internal control also allows for interaction across resources and include foreign currency fluctuations, taxes and various
tions. The audit committee monitors the effectiveness of internal control and
the group to identify potential areas for improvement, with each sales ­regulations and ordinances. Operational risks mainly comprise internal
• Buying, production and logistics matters risk management, reporting regularly to the board of directors on the status
­country and region providing valuable and constructive feedback to the ­business risks and external events which may affect the group. These include
• The customer offering of these processes.
group ­function and the group function delivering feedback to regional sustainability risks, which are identified through a systematic approach to
H&M Group’s internal control framework is based on the internationally
• Pricing strategy and country manage­ment. human rights and environmental due diligence. It is an ongoing process to
recognised COSO framework. The company’s internal control framework and
• Sales and profitability Within the production organisation, additional control and monitoring identify, prevent, mitigate and remedy potential and actual negative impacts
control environment is based on the five components of the COSO frame-
activities are outlined in the internal Routine Handbook for Production, on people, while leveraging opportunities to advance their rights. Read more
• Sustainability work – control environment, risk assessment, control activities, information
which helps to ensure the company does business in an ethical and trans­ about the sustainability risks and the human rights and environmental due
• Marketing and communication, and monitoring – which are further described below.
parent way. Most of the activities described in the Handbook are monitored diligence in the sustainability report on page 52.
• Company growth and expansion monthly at a regional level and every other month at a global level. Internal During 2024 a number of external risks and uncertainties were identified
Control environment
• Digital development store auditors perform annual checks at a subset of stores to identify and handled within the company’s risk management ­processes. In 2024 most
The control environment forms the basis of internal control. It c ­ onsists pri-
strengths, weaknesses and corrective actions. risks related to external events, such as geopolitical uncertainty, increased
• Development and further integration of the store and online channels marily of the company’s ethical values and integrity, expertise, management
As a complement to the internal control work performed, additional regulatory demands, and macroeconomic factors affecting the overall cost,
philosophy, organisational structure, responsibility and authority, policies
reviews of specific areas have been conducted by external audit firms. Over- rather than to internal business risks. Given the nature of the business, expo-
The CEO is required to make the necessary preparations to enable all and related guidelines and instructions, as well as routines. It is underpinned
all, the results have been satisfactory and where findings have been identi- sure to external risks is still high and will remain high as geopolitical and global
­commercial decisions, including on investment and company expansion. by the culture that the board of directors and management create and com-
fied corrective actions have been put in place. The board of directors and the risk events will possess a risk on the global supply chain and retail setup.
The role of CEO includes contact with financial markets and investors, municate.
audit committee continually evaluate information provided by the executive
the media and regulatory authorities. Management documents, such as internal policies, guidelines and manu-
management team on company operations, including information on the Financial risks
Daniel Ervér, born 1981, has been CEO for H&M Group since 31 January als, are particularly important, giving employees solid guidance on the way
­efficiency of internal control procedures and activities. This work includes Foreign currencies
2024. Daniel Ervér has worked within H&M Group for 18 years in various roles the company operates. The ‘Our way’ document summarises the company’s
checking that the necessary steps are taken in response to any shortcomings The most significant currencies for the H&M group’s purchasing are the US
in different parts of the company, most recently as head of H&M, which is the values, policies and guidelines and how they shape the way H&M Group oper-
detected and that suggestions made during assessments by the group func- dollar and the euro. Fluctuation in the exchange rate between the US dollar
largest brand within H&M Group. Since Daniel Ervér was appointed as CEO, ates to ensure business is carried out in an ethical, responsible, sustainable
tion and internal store auditors, as well as by external auditors, are acted on. and the euro is the single largest foreign currency transaction exposure for
he continues to be operationally responsible for H&M. and transparent way. ‘Our way’ is intended for all employees within all brands
This monitoring work maintains awareness of the importance of effective the group.

48 49
internal control and supports continuous improvement within the group.
<<Contents Corporate governance/Corporate governance report

Large and rapid exchange rate fluctuations, particularly in the US dollar In recent years H&M Group has therefore made substantial investments to the same ones facing any company of the same size, broad customer base H&M Group’s commitment to respect internationally recognised human
as the most important sourcing currency, may also have a significant effect enable elevated customer experience. Continuous investments and improve- and geographical spread. H&M Group can also see a threat arising from rights is the foundation of everything the company does and contributes to
on purchasing costs – even if this may be regarded as relatively competition- ments are in focus and new development areas are constantly monitored and the potential multi-polar world with four major trade zones, at information-, more favourable social and environmental conditions for communities and
neutral over time. adapted. cyber- and privacy security levels. The moreover traditional security breaches people. Read more about H&M Group’s approach to human rights on page 91.
In addition to the effects of transaction exposure, translation effects also that H&M Group faces include hacking attacks, phishing attempts, system
impact the group’s results. These effects arise due to changes in exchange Customer offering disruptions and system overloads. Anti-bribery and corruption
rates between the local currencies of the various foreign sales companies Fashion has a limited shelf-life and there is always a risk that part of any H&M Group continues to invest in its colleagues, processes, systems, pro- Corruption risks exist in many of the markets in which the company and its
and the Swedish krona compared with the same period the previous year. The ­collection is not well-received by customers, limiting commercial potential. cedures and technologies to mitigate and remediate these risks and keep our suppliers operate. As with human rights and environmental risks, the com-
underlying profit/loss in a market may be unchanged in the local currency ­Purchasing decisions are also increasingly influenced by customers’ desire company, its stakeholders, partners and its customers safe. H&M Group con- pany maps risks related to corruption across its operations and supply chain
but may increase when converted into SEK if the Swedish krona has weak- to live more sustainably. stantly monitors, evaluates and protects from threats to its assets and third- through annual risk assessments and reviews.
ened or decrease if the Swedish krona has strengthened. Within each segment and each collection, it is crucial to have the correct party risks, and are on top of the increasing regulatory landscape that the The company identifies the greatest risks based on location or type of
Translation effects also arise in respect of the group’s net assets on con- balance between fashion basics and the latest trends and the right volume of company is subject to on a global, regional and local level. operations and determines its response, with appropriate follow-up actions
solidation of the foreign sales companies’ balance sheets. For more informa- each. Each collection must achieve the optimum balance between fashion, and timeframe for review. Tackling the risk of corruption benefits the company
tion on currency hedging see note 2, Financial risks. quality, price and sustainability. This is achieved through increasing accuracy Data protection and ethical AI by strengthening its business ethics and corporate culture, and enhancing
To hedge flows of goods in foreign currencies and thereby reduce the in purchasing decisions and volume planning, which also reduces overall Breaches of data security can lead to negative impact on customers, its reputation with stakeholders. Read more about H&M Group’s business
effects of future exchange rate fluctuations, payments for the group’s flows resource consumption and contributes to the company’s climate and circu- ­employees and business partners, for example if personal information conduct on page 105.
of goods – i.e. the group’s purchases of goods and, in most cases, also the larity goals. is made public.
corresponding foreign currency inflows from the sales companies – are H&M Group works intensively to optimise buying during the season in par- H&M Group actively monitors its privacy risks and has policies, guide­
hedged under forward contracts on an ongoing basis to the companies allel with detailed analysis of daily sales and stock levels in different markets. lines and a group function in place to protect individuals’ data and meet the
H & M Finance AB and H & M Hennes & Mauritz GBC AB. H&M Group has invested in its capability to create regional and local customer requirements of the EU General Data Protection Regulation (the GDPR), as

Trade intervention
offerings to meet this demand.
H&M Group is constantly evolving its customer offering and experience
well as local legislation in countries relevant to H&M Group. The development
of laws and regulations is continuously monitored, and the company’s pro-
Internal audit
Purchasing costs may be affected by decisions at a national level on issues to improve its capability and capacity to have a more relevant and attractive cesses and controls are updated accordingly.
such as export/import subsidies, customs duties (see more below), textile customer offering than its competitors. H&M Group has appointed a data protection officer (DPO) for the group During the year, in accordance with section 7.4 of the Code, the board of
quotas and embargoes. The effects primarily impact customers and compa- Mitigation plans are continuously monitored and refined to lower the risk and data privacy managers within each region. The data protection proce- directors assessed the need for a specific internal audit process. The board
nies in individual markets. exposure of H&M Group. dure is similar in all local operations and all office employees and store man- of directors concluded that H&M Group’s present model of monitoring inter-
Global companies with operations in many countries are affected to a agers must undergo data protection training. nal control is the most appropriate for the company. It is applied by functions
lesser extent, and among global corporations, trade interventions may be Reputational risk Reporting is done regularly by the group’s DPO to the company’s manage- such as finance & accounting, expansion, logistics, production, business
regarded as largely competition neutral. In the event of changed trade rela- Being one of the world’s leading fashion companies, H&M Group’s brands ment and the board of directors through the audit committee. In addition, a tech, sustainability, legal, communications and security, and embraces the
tions, not just sourcing costs but generally also the entire flow of goods from attract a great deal of interest and are constantly in the spotlight. technical team within the company’s business tech function provides group- work of all subsidiaries. In the board of directors’ opinion, the current H&M
production to the customer would be affected, which companies would need To safeguard and manage its brands, it is important that H&M Group wide ­support and management on how artificial intelligence should be used Group model is in line with the work performed by an internal audit depart-
to mitigate. ­continues to evolve operations in response to growing legal requirements, in an ethical way. ment in other companies. Therefore, the board of directors deemed that
Related party customs valuation continues to attract attention at a global, especially in relation to Environmental, Social and Governance (ESG) areas, there is no need for an internal audit department.
European and national level, both from authorities and importers such as and to operate in accordance with its values, which are characterised by Sustainability risks The issue of a specific internal audit department will be reviewed
H&M Group. It will therefore continue to be important for H&M Group to strong business ethics. Climate again in 2025.
­proactively monitor and manage future developments in this area. It is of the utmost importance for H&M Group to live up to the high Climate change may impact the conditions for producing and distributing
­ambitions set out in internal policies and guidelines and that anyone involved products in certain regions and countries. The growing effects of climate Stockholm, March 2025
Taxes in the business has a good knowledge of the way the company’s products change mean that these variations will likely increase in the future. The com-
Multinational companies, such as H&M Group, face growing tax risks, includ- are produced. pany is continously working with various mitgation activities to minimize The Board of Directors
ing double taxation and disputes with tax authorities. The OECD’s BEPS 2.0 Delivering on the set sustainability goals and ambitions is a crucial part. the impacts to business and customers. More in detailed description of the
framework adds complexity to tax compliance and transfer pricing. H&M Being proactive with new legislation and ensuring implementation and climate risks are described in the sustainability report on page 58.
Group operates globally, paying various taxes, including corporate income ­compliance with proper risk management and internal control work is equally
taxes and VAT, while adhering to local laws. a core part of the work. Water and natural resource use
Financial reporting under IFRS 16 presents additional challenges. This
standard alters lease accounting, potentially distorting profitability ratios
Accurate, transparent, and reliable communications supports to prevent
damage to the company’s reputation and mitigate the consequences of
Environmental risks to H&M Group’s business, value chain, communities and
the planet include depletion of natural resources, biodiversity loss, land use
The auditor’s examination of the
and affecting transfer pricing benchmarks, leading to disputes with tax
authorities, despite compliance with OECD guidelines.
any incidents. change and water impacts. Many environmental risks are closely connected
to human rights risks – for example land rights and livelihoods, the right to
­corporate governance statement
H&M Group also faces complications from contradictory national court Negative macroeconomic & geopolitical changes access clean water and the impact of climate change on communities that
rulings regarding indirect taxes, which can complicate tax credit claims in Macroeconomic or geopolitical events can negatively affect market condi- already have inequitable access to resources or finance. The Board of Directors is responsible for that the corporate governance
their headquarters’ jurisdictions. This inconsistency poses challenges for tions in a country. This includes political instability, conflict and war, as well The company’s focus recycled and sustainably sourced materials, use of statement on pages 39–51 has been prepared in accordance with the
managing international tax positions. as sudden changes in the business environment, such as rising inflation, innovative materials, further improved planning accuracy, and growth in new Annual Accounts Act.
H&M Group complies with BEPS 2.0 guidelines to ensure profits are taxed ­significant disruption to the supply chain or economic slowdown affecting and circular business models will improve the resilience of H&M Group’s busi- Our examination of the corporate governance statement is conducted in
where value is created. Pillar One reallocates taxing rights to consumer consumer purchasing behaviour. All could negatively impact the company’s ness and supply chain by reducing dependence on limited natural resources. accordance with FAR´s standard Rev 16 The auditor´s examination of the
­markets, while Pillar Two introduces a global minimum tax to prevent profit sales. Meanwhile, any new markets that an H&M Group brand enters may Read more about H&M Group’s environmental risks on page 58. corporate examination of the corporate governance statement is different
shifting to low-tax areas. The group avoids tax havens, ensuring income is have a heightened risk of political instability, corruption or armed conflict. and substantially less in scope than an audit conducted in accordance with
not ­artificially shifted. Uncertainties exist concerning how fluctuations in external factors such as Customer demand International Standards on Auditing and governance statement. This means
H&M Group’s tax policy ensures compliance with OECD guidelines the price of raw materials, transport costs and suppliers’ capacity impact the Growing consumer interest in sustainability is stimulating a change in cus- that our generally accepted auditing standards in Sweden. We believe that
and aims to tax profits where value is created. The company maintains company’s cost base. There are also risks associated with social tensions in tomer preferences and consumption patterns. This could have a major effect the examination has provided us with sufficient basis for our opinions.
a sustain­able tax rate and engages in legitimate tax planning, avoiding markets where H&M Group sources its products, which may lead to instabil- on H&M Group’s sales – both positive and negative – depending on how A corporate governance statement has been prepared. Disclosures in
aggressive strategies. ity for suppliers, and in manufacturing and deliveries. During 2024 mutliple ­successfully the company evolves its offerings and business models. accordance with chapter 6 section 6 the second paragraph points 2–6 of
For the 2024 financial year, H&M Group has adhered to its tax policy, events across the world have shown an increasing level of instability. The company’s focus is to further accelerating investments in shifting the Annual Accounts Act and chapter 7 section 31 the second paragraph the
achieving ISO 9001:2015 certification for its quality management system H&M Group monitors geopolitical developments in the world day by day towards circular design principles, recycled and sustainably sourced materi- same law are consistent with the other parts of the annual accounts and
in international tax. The group ensures that each subsidiary’s tax residence and act to minimise impact on the company’s product availability, freight als, optimising production and resource use, and scaling circular business ­consolidated accounts and are in accordance with the Annual Accounts Act.
aligns with its domicile, promoting transparency in its tax structure. costs and stock levels. Action plans are in place to mitigate and minimise models and solutions across our value chain.
potential impact on the supply of products.
Operational risks Business continuity plans are continuously reviewed in order to ensure Human rights Stockholm, March 20, 2025
Changes in customer demand ­relevance based on changing circumstances across the world. H&M Group’s salient human rights Issues show how the company identifies
Rising numbers of purchases are made online, making this channel an and assesses risks across its value chain and prioritises action. Current Deloitte AB
increasingly important part of the customer experience. Customers are Information security and cybersecurity ­salient issues include access to water, land rights and livelihoods, labour
­looking for a smooth, simple and inspiring experience in which stores and All companies are today exposed to various risks associated with the use of rights, safe workplace, wages, working conditions in addition to environ­ Didrik Roos
online channels interact and enhance each other. information technologies. The risks to which H&M Group are exposed to are mental ­challenges. Authorized Public Accountant

50 51
<<Contents Sustainability report

General 53
Our approach to sustainability 54

Environment 58
Climate 59
Chemicals and water pollution 67
Water 69
Biodiversity, ecosystems and land-use 71
Resource use and circularity 73
EU Taxonomy reporting 80
TCFD climate risk analysis 85

Social 90
Human rights 91
Own workforce 94
Workers in the value chain 97
Affected communities 102
Consumers and end-users 103

Governance 104
Business conduct 105
Our policies and commitments 108

Auditor’s report 110

Sustainability
report General
Our products are at the core of our business and we believe
there should be no compromise between exceptional design,
affordable prices and sustainable options. H&M Group aim to
create a responsive and responsible value chain, by optimising
our production and resource use while respecting human rights,
to minimise our negative impact on people and the planet.
We want our customers to be able to celebrate self-expression
with the confidence that they are making a sustainable choice.

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<<Contents Sustainability report/General/Our approach to sustainability

Our approach to sustainability

Our customers are at the heart of everything we do and for almost 30 years, The H&M group responsible business conduct (RBC) policy sets out Our key stakeholders
we have been working with sustainability to meet their expectations and build the additional steps required for conducting an HREDD. This applies to
a resilient business. We aim to support the transition towards a sustainable our ­operations, value chain and the communities where we operate. H&M
design and ­fashion industry by offering our ­customers responsibly made Group’s HREDD process is based on OECDs Guidelines for Multinational Description Main channels for engagement Prioritised sustainability areas
products, designed to be used, reused and recycled. Enterprises and the UN Guiding Principles and other relevant legislation,
where applicable. Customers Understanding, meeting and exceeding our Surveys and direct dialogue. Product quality, design and durability,
Basis for preparation of the sustainability report H&M Group carries out regular risk assessments to identify any risks ­customers’ needs and expectations is funda­ ­ roduct transparency and traceability,
p
mental to the success of our business and ­sustainably sourced materials, garment
Our sustainability reporting is based on the results of an impact materiality to our business, financial position or performance. Our risk management
­scaling circular business models. ­collecting and ­recycling, overall impacts
analysis covering an assessment of impacts across our own operations as ­process is set out by the corporate governance function and includes the
of products and business models on
well as our upstream and downstream value chain. For many years, H&M identification and assessment of sustainability related risks to H&M Group. ­people and the ­environment.
Group has been conducting its materiality analysis in line with applicable Our assessment is based on the analysis of events happening over the
Global Reporting Initiative (GRI) Standards. In 2023, we began developing ­short-term (less than one year), medium-term (one to five years), and long- Colleagues Our colleagues play a vital role in putting our Surveys and direct dialogue. Employees’ working conditions, wages,
our materiality analysis process to align our approach with the Corporate term (five to fifteen years). Read more about H&M Group’s risk management ­sustainability initiatives into action. health and safety, inclusion and diversity,
Sustainability Reporting Directive (CSRD) and the European Sustainability ­process on pages 49–51. and data security and privacy.
Reporting Standards (ESRS), along with EFRAG’s Implementation Guidance
for Double Materiality. The annual and sustaina­bility report 2024 and our Our sustainability strategy Supply chain We engage with our supply chain workers through Direct dialogue, partnerships, Value chain workers’ working conditions,
impact materiality analysis has been prepared to align with the format of the We believe fashion and design should not be limited to the few. With several workers representative groups such as trade unions, as surveys, multi-stakeholder wages, freedom of association, collective
upcoming reporting requirements but does not claim any compliance with the clearly positioned brands, businesses and ventures – each with their own well as via anonymous surveys. ­initiatives. bargaining, health and safety, secure
CSRD or the ESRS. The sustainability report is prepared in accordance with unique identity – we meet our customers’ ever-increasing expectations and ­employment, gender based violence and
the GRI, see page 110, and with the requirements on statutory sustainability diverse needs. Our aim is to make the positive power of fashion available ­harassment, just transition towards a
­circular economy, reversed supply chains,
reporting in the Swedish Annual Accounts Act. The sustainability report is for everyone to enjoy, while minimising our negative impact on people and
coal phase-out.
prepared on a con­solidated basis according to the same principles as the the planet. H&M Group’s strong financial position and long-term approach
financial statements and in accordance with laws and frameworks disclosed enable us to continue to invest in new ventures and initiatives, to support the
Communities We listen to feedback from affected communities Surveys, direct dialogue, events, Access to clean water, gender equality
on page 3. Read more about how we report on hmgroup.com/sustainability/ transition towards a sustainable design and fashion industry.
and their representatives, and use their input to conferences, partnerships, and gender-based violence, just transition
sustainability-reporting/how-we-report/reporting-frameworks. Our sustainability work is centred around H&M Group’s key impact areas, inform our decisions. multi-stakeholder initiatives. towards a circular economy, mitigation of
which have been identified through stakeholder engagements and an analysis ­climate change, reversed supply chains,
Sustainability governance of our value chain. Our key impact areas inform our overall business strategy ­support for local communities and
The sustainability director is responsible for setting the sustainability strategy and idea to ensure we meet our stakeholders’ expectations and include: emergency relief.
which is integrated into our business idea and implemented on throughout
H&M Group by the different functions. The sustainability director reports on • Climate Suppliers and By collaborating with our manufacturers, Surveys, direct dialogue, events, Wages, freedom of association, collective
sustainability goals and key performance indicators biannually to the board • Water, chemicals and pollution business ­suppliers of commercial and non-commercial conferences, partnerships, bargaining, health and safety, gender based
of directors and quarterly to the CEO and CFO. Quarterly reports cover KPIs, ­partners goods, service providers and franchise partners multi-stakeholder ­initiatives. violence and harassment, carbon accounting
• Land-use and biodiversity we can share knowledge and raise industry frameworks, renewable energy sources,
key challenges, learning, activities, impacts and achievements across brands
• Raw materials and resource use ­standards. investments in decarbonisation, carbon
and markets. The audit committee ­monitors the effectiveness of internal
­dioxide removals beyond value chain mitiga-
control and risk management, reporting regularly to the board of directors • People tion, waste management and disposal, supply
on the status of these processes. chain management and transparency and
H&M Group’s corporate governance structure encompasses the share- These areas are deeply interconnected, requiring a holistic approach to ­sustainability regulations.
holders, the board of directors, the audit and nomination committees, the ­minimise any associated business risks and negative impacts. Our use of
company’s auditors, the CEO and the executive management team, individual resources – such as energy, water, chemicals, land and raw materials – is Experts and We support and invest in process, material and Surveys, direct dialogue, Purchasing practices, wages in the supply
business areas organised by brand, employees and employee organisations. directly tied to how we design our products and collections with implications ­innovators infrastructure innovators. We also work with events, conferences, partner- chain, climate targets alignment with best
The board of directors consists of 14 non-executive members, including for millions of people and workers across our value chain. Therefore, our experts to develop ideas for systemic change and ships, multi-stakeholder available ­science, recycling and material
three employee representatives and three deputy employee representatives. ­sustainability strategy and targets are aligned with our aim to build a more to create p
­ ositive impact beyond our business. ­initiatives. innovation, business model innovation, prod-
The percentage of female board members is 57 percent, while the percent- responsive and responsible value chain that delivers fashion and quality uct design and durability, microfibre impacts,
waste management and resource recircula-
age of male board members is 43 percent, and the board’s gender diversity at the best price, in a sustainable way. For more information about our
tion, product and supply chain transparency.
ratio is 75 percent. The percentage of board members (excluding employee sustain­ability strategy and performance, see our sustainability progress
representatives and their deputies) independent of the company and com- report, available at hmgroup.com/sustainability/sustainability-reporting.
NGOs and We welcome scrutiny and benchmarking against Surveys, direct dialogue, events, Wages, gender based violence and harrass-
pany management is 100 percent and the percentage of board members
opinion formers our peers from NGOs and others who push us and conferences, partnerships, ment, human rights, forced labour, GHG
independent of majority stakeholders in the company is 75 percent. For The interest and views of our stakeholders our industry to do better. multi-stakeholder ­initiatives. emissions across the value chain, progress
­further information, see our corporate governance report, pages 38–51. We continuously engage with stakeholders across our value chain to ensure on coal phase-out, decarbonisation, resource
that material matters are identified, prioritised and incorporated into the use and re­­­circulation, waste management,
Management of sustainability matters company’s business activities and procedures. Our interaction with key animal welfare, supply chain transparency.
H&M Group performs due diligence to identify and assess risks and impacts stakeholders include workshops and surveys to understand how they may
within its own business and with its business partners in relation to relevant be impacted by our value chain activities and their view on our mitigation Investors and As a publicly listed company, we engage Surveys, direct dialogue, GHG emissions, investments in decarbonisa-
external and internal requirements, based on need and as required within the actions. We work closely and regularly with our key stakeholders through our ­ nalysts
a closely with our investors, while analysts track events, conferences. tion, innovative materials, circular business
company’s business processes. We take a systematic approach to Human dedicated stakeholder engagement team, and we systematically integrate and assess our sustainability performance. models, preparedness for sustainability
Rights and Environmental Due Diligence (HREDD) by continously identifying, the feedback we receive into our strategies and priorities to ensure we deliver We ­integrate feedback from these groups into ­legislations and supply chain transparency.
our strategy and reporting.
assessing, mitigating and remedying any potential and actual negative on our business idea. See details about how we collaborate with our key
impacts on people or the planet, while leveraging opportunities to advance stakeholders in the table on page 55.
Policy makers To influence legislative change that supports Surveys, direct dialogue, events, HREDD, industrial relations, wages, social
the rights of affected stakeholders. H&M Group’s HREDD is also integrated
industrywide environmental and social progress conferences, partnerships, pro­tection, sustainability reporting, waste
into our corporate governance and risk management process to ensure
and vital systemic shifts, we work with policy­ multi-stakeholder ­initiatives. management, resource recirculation, trans-
that business decisions are made while considering the impact on affected makers and ­international institutions. parent customer communications, supply
stakeholders. chain transparency and traceability.

Media, public We have conducted a market analysis to gain an Surveys and direct dialogue. Waste management, recycling, garment
and industry understanding of other public stakeholders such ­collecting, sustainability claims, working
reports as the media and public opinion. ­conditions, wages, health and safety,
GHG emissions and a just transition.

54 55
<<Contents Sustainability report/General/Our approach to sustainability

Our business model and value chain Our materiality analysis process and results Material sustainability matters
Our value chain includes the activities required to design, manufacture and To identify and prioritise sustainability matters along our value chain that are
sell our products. As a global company, we recognise that we have an impact most relevant to our business, we analyse inputs from our stakeholders and Area Impact Value chain location
on many stakeholders across our value chain. Through our own operations investors in a materiality analysis. We start our yearly materiality analysis pro-
we have an impact on our employees, customers and business partners, and cess by identifying possible impact areas as part of our overall risk manage- Climate GHG emissions in own operations
we are committed to acting with respect towards all people we engage with. ment process, using a wide range of sources, including OECD sector risks,
Our own operations include the in-house design teams, our in-store services, topical ESRS, GRI standards, and a systematic analysis of stakeholder inputs Climate GHG emissions in the value chain
and the online sale and distribution of clothes, accessories, footwear, cos­ and expectations. Identified matters are assessed and prioritised at the end
metics and homeware sold through our unique brands. of the year by our subject matter experts. The process is coordinated by the Climate Energy use in own operations
Our upstream value chain includes the sourcing, processing, production sustainability department, responsible for ensuring consistency and align-
and transportation of materials and input goods such as cotton and wool ment of the methodologies and assumptions used, and includes the: Climate Energy use in the supply chain
required to produce our goods. Like most fashion brands, we do not own any • Identification of relevant sustainability impact areas along our value chain
factories, but instead we work with independent manufacturers to produce Chemicals and water pollution Chemical use in the supply chain
through continuous dialogue with our key stakeholders and international
our goods sold. A large part of our negative environmental impact occurs in organisations such as ILO, OECD, international trade unions, human rights
our upstream value chain, particularly during textile manufacturing processes, Chemicals and water pollution Generation of microfibres and microplastics
organisations, and policy­makers during the year.
which are resource intensive. Our upstream business activities also have a
• Assessment and prioritisation of relevant sustainability impact areas Chemicals and water pollution Pollution of water
large impact on workers in our supply chain employed at different ­production
based on the severity and likelihood of the impact. Severity is calculated as
facilities, as well as on people living in communities affected by the sourcing
the average between the scale, scope and irremediable character of the Water Water withdrawals and consumption
and processing of raw materials and natural resources used to produce our
impact. The assessment of our sustainability impact is closely connected
input materials.
to our overall risk management process, to ensure these processes are Biodiversity, ecosystems and land-use Land-use change, deforestation and biodiversity loss
Our downstream value chain includes the use, reuse, resell, recycling and
aligned. The threshold for impact materiality is based on the inherent
disposal of clothes, textiles and homeware. Along our downstream value chain
impact level. Resource use and circularity Raw materials and resource use
we have an impact on our ­customers and the communities we operate in as
well as the environment through resource outflows and the generation of • Monitoring and reporting prioritised sustainability matters. Relevant
­matters are categorised and listed in our overall risk management system Resource use and circularity Resource outflows across the value chain
waste. Through our investment arm, H&M Group ventures, we continue to
explore new business models and partnerships with the aim to reduce our along with their associated mitigation plans and actions, and are moni-
tored during the year to follow up on the effectiveness of our actions. Resource use and circularity Generation of waste across the value chain
environmental negative impact and improve our customer offering.
Our products are at the centre of our business model and everything Our prioritised matters form the basis of our ­sustainability strategy and
reporting, see the table on page 57 for the results of the impact materiality Own workforce Employee health and safety
we do, to ensure we offer the best combination of fashion, design, quality
and ­sustainability at affordable prices. Therefore, we aim to build a resilient analysis for 2024.
Own workforce Employee well-being, wages and working conditions
­business and value chain that supports the transition towards a sustainable
fashion industry. For more information about how we work towards building Read more about this process on hmgroup.com/sustainability/­
Own workforce Employee diversity and inclusion
a responsive and responsible value chain, see pages 34–35. sustainability-reporting/how-we-report/materiality/.

Own workforce Employee work-life balance

Own workforce Employee data and security

Own workforce Forced labour in own operations

Own workforce Working hours and secure employment for employees

Our value chain
Workers in the value chain Health and safety of workers in the value chain
Design and
marketing Workers in the value chain Working conditions and adequate wages in the value chain

Reuse and (T4) Raw material Upstream Workers in the value chain Secure employment for value chain workers
recycling sourcing and processing
The sourcing, processing, production, manufacturing
and transportation of input materials and products. Workers in the value chain Right to freedom of association for value chain workers
Waste
disposal (T3) Yarn
production and Workers in the value chain Forced labour in the value chain
Own operations
processing
The design, marketing, sale, warehousing and distribution Workers in the value chain Child rights in the value chain
of products and finished goods.
Workers in the value chain Sexual harassment and gender-based violence in the value chain
(T2) Fabric
Product Resell production and Downstream Affected communities Water and sanitation in affected communities
­ nd-of-use
e and repair ­processing
The use, reuse, resell, repair, recycling and disposal
of products and output materials. Affected communities Land-use, land rights and livelihoods

(T1) Garment Affected communities Communities access to a clean and healthy environment
Customer and product­
use manufacturing Consumers and end-users Product safety and consumer health
NOTE: This value chain was created for the purpose of mapping
our material sustainability areas and impact on affected stake- Consumers and end-users Privacy and integrity of consumers
holders across our value chain. Therefore, it includes our key
Retail and International materials and value chain activities, and should not be seen as
online sale transportation a complete representation of all our business activites. Business conduct Corporate culture and ethical business behaviour

Warehousing
Business conduct Animal welfare
and distribution

Upstream Own operations Downstream

56 57
<<Contents Sustainability report/Environment

Climate
Communities and ecosystems around the world are experiencing the effects Identification and management of material matters
of climate change firsthand. We recognise that the business activities related To identify and manage impacts, risks and opportunities related to climate
to the design, production and transportation of materials and products change we frequently engage with affected stakeholders. In addition, we
across our value chain contribute to climate change through the release of have undertaken a qualitative scenario analysis to identify ­climate-related
GHG emissions. The largest impact on the climate and environment occurs in risks to our business. The analysis used climate models and company spe-
our upstream value chain during the production and processing of materials cific data to identify which physical and transition hazards are most likely to
such as cotton and polyester. Our dependence on raw materials and natural impact operations across our value chain. Using the Task Force on Climate-
resources along with the increased frequency of extreme weather events, related Financial Disclosures (TCFD) framework, the analysis was carried
could also lead to increased sourcing and production costs posing a financial out over the short-, medium-and long-term across three different scenarios.
risk to our business. The results of the analysis show that increasing frequency and severity of
extreme weather events, may influence the availability and price of raw
Strategy and governance ­materials and resources such as cotton and water, potentially increasing our
Our ambition is to contribute to the limiting of global warming to 1.5°C in line sourcing and production costs in the long-term. Increased carbon taxes may
with the Paris Agreement. We aim to achieve this by decarbonising our supply also lead to higher production costs in the medium to long-term if not miti-
chain, optimising production and improving resource efficiency. To reach our gated through the use of new production technologies. While climate change
ambition, we have integrated accountability for reaching our climate targets poses a risk to our current business model, it also creates opportunities for
into our core business throughout our brands and operations. In addition, we us to accelerate the transition towards a sustainable fashion industry and
have developed a five-step climate action framework which guides and sup- adapt our strategy by decoupling our growth from resource use and extrac-
ports H&M Group’s climate ambition and commitment to help us reduce our tion. Read more about the results from our TCFD analysis and the manage-
negative impact on the planet. ment of climate-related impacts, risks and opportunities on pages 85–89.

Climate-related incentive schemes Policies and procedures

Senior executives’ variable remuneration depends on the fulfilment of targets Our work is guided by our environmental policy, which states that we are
in the various areas of the business plan in total, which include sustainability, committed to reducing our climate impact in line with the Paris Agreement
where GHG emission reduction is a key component. For more details and to limit global warming to 1.5°C. The policy does not address climate change
information about incentive schemes read our remuneration report, available adaptation, energy efficiency or renewable energy deployment specifically,
at hmgroup.com. but these underpin the strategy to reach our science-based targets, and to
manage the climate-related financial risks in our operations and value chain.
Transitioning to a net zero value chain In addition, H&M Group’s sustainability commitment, which applies to all our

Environment
Our climate transition plan functions as a strategic action plan for our organi- business partners and suppliers, includes requirements related to the reduc-
sation to reach our 2030 climate targets. It outlines our emission reduction tion of GHG emissions.
journey and key enablers to reach our targets. The transition plan presents Our policies and procedures are available at hmgroup.com and the supplier
our targets, strategy and methodology related to climate, and is reviewed by portal for all our business partners. Read more about H&M Group’s policies
the H&M Group board of directors and approved by the CEO. Read more and commitments on page 108.
about our climate transition plan on hmgroup.com.

A large part of our environmental impact occurs

in our upstream value chain, particularly during textile
manufacturing processes such as dyeing and washing,
which are often energy and water intensive. We recognise Our climate action framework
the impact our business has on the planet, and we believe
we must work with others to enable necessary systemic
change across the wider fashion industry to reduce our STEPS ACTIONS
­negative impact and our dependence on the extraction

and beyond our value chain

accelerated change within
Advocate for systemic change • Advocate for public policy that aims to limit global temperature rise to 1.5ºC
of natural resources.

Actions for wider and

and push for legislation that accelerates the decarbonisation of our value chain.
• Engage and collaborate with peers and others to enable and inspire global
­climate action.

Contribute to addressing impact • Remove and permanently store atmospheric carbon dioxide to reach net zero
by 2040.
• Protect existing carbon sinks to avoid emissions and biodiversity loss that arise
from ­degradation.

Address direct and indirect impact • Prioritise actions for emissions reductions based on potential for impact and our

Impact targets
­ability to influence.
• Identify and work collaboratively to remove barriers to decarbonisation, through
financing and innovation.
• Reduce absolute emissions in line with a 1.5ºC pathway.

Calculate and disclose impact • Collect GHG emissions and energy-use data in accordance with the latest
­industry models and science.

Foundation
• Disclose results transparently and openly.

Identify, quantify and mitigate risk • Identify climate risks in line with the latest science and best practice.
• Assess financial, people and planet effects and prioritise risks.
• Create and follow up on plans to mitigate risks and build resilience.

58 59
<<Contents Sustainability report/Environment/Climate

Targets and actions have set a target to source 100 percent renewable electricity for our garment Production of goods and materials in the supply chain • Financial support. There is a need for direct financial support in our supply
To reach our ambition and limit global warming to 1.5°C we have set targets production, from spinning to a finished product, by 2030. We have also set a In 2024, the production of goods in tier 1, 2 and 3 accounted for about 48 per- chain to finance measures related to reducing greenhouse gas emissions.
related to our GHG emissions and energy consumption across our value target to completely phase out coal from our garment supply chain by 2026. cent of H&M Group’s total GHG emissions. Our key actions for reducing these Our Green Fashion Initiative supports our suppliers to replace the use of
chain. We continually evaluate our climate targets, ­metrics, disclosures and For emissions related to raw material sourcing, we have a target to increase emissions are: fossil fuels. Since the start, we have funded a total of 23 projects with the
annual progress, with a dual focus: improving our calculation methods and the share of recycled materials, see pages 73–75 for details about this target. • Energy efficiency. Our team of energy experts provides suppliers with free potential emission reduction of 148,000 tonnes Co2e annually, of which
reporting of climate data, and our consultation with external stakeholders energy audits to identify potential efficiency improvements. Key focus 67,000 tonnes CO2e can be attributed to H&M Group’s efforts. During
such as WWF, Stand.earth, and the United Nations Framework Convention on Key actions and decarbonisation levers areas include waste heat recovery from various manufacturing processes, 2024, the operational projects resulted in a reduction of 98,000 tonnes
Climate Change (­UNFCCC). These collaborative efforts ensure the c ­ ontinual Current levers towards reaching our 2030 climate targets, in line with limiting focusing on dyeing process efficiency and replacing fossil fuel-driven CO2e, of which 45,000 tonnes CO2e can be attributed to H&M Group, as
improvement of our targets and operational strategies. global warming to 1.5°C, mainly focus on implemented regulations and public ­boilers. In 2024, the energy efficiency programme enrolled 78 new facili- specified in note 1.
policies, currently available technology and prevailing market conditions. ties, identifying potential reductions of more than 656,000 tonnes CO2e
Reducing absolute GHG emssions Through our climate transition plan, we outline the key changes needed in the throughout the year. Since its launch in 2021, the programme has initiated Transport of goods and materials across the value chain
H&M Group has set targets to reduce absolute scope 1 and 2 GHG emissions legal framework and explain how we are driving these changes across every 1027 projects, which have been or are being implemented by suppliers, • Low-emissions transport alternatives. We are actively expanding the use
by 56 percent by 2030, against a 2019 baseline, and to reduce absolute part of our value chain. To clearly showcase our key actions and levers, we resulting in total expected annual reductions of 350,000 tonnes CO2e. of ­preferred transport options, which include electric and zero emissions
scope 3 GHG emissions by 56 percent by 2030, against a 2019 baseline. have organised them by the relevant areas within the organisation. These initiatives will generate financial savings for the suppliers, reduce vehicles, with a particular emphasis on electric vehicles (EVs). In regions
In addition, we have set targets to reduce absolute scope 1 and 2 GHG energy usage, increase feasibility to electrify processes, and thereby where EV infrastructure is less advanced, we use biofuels as a transitional
­emissions by 90 percent by 2040, and to reduce absolute scope 3 GHG Renewable electricity in our own operations ­enable us to lower our emissions. The GHG emissions per unit energy used, alternative.
­emissions by 90 percent by 2040, against a 2019 baseline. In 2040, our In addition to increasing the share of renewable electricity, we are also com- or carbon intensity is a key metric for the energy profile, that is used to
­overall target is to reach net zero by balancing out any remaining emissions mitted to procuring in more impactful ways. We are entering power purchase • Reducing number of journeys. We are cutting the total number of transport
track progress of individual supplier facilities.
through the use of permanent carbon dioxide removal. agreements (PPA) with renewable energy developers to bring new generation journeys through initiatives such as using parcel collection points instead
• Phasing out coal. We are working closely with business partners and local of direct home delivery. In addition, we are refining our returns manage-
These targets have been validated against Science Based Targets initia- capacity to electrical grids where we operate. To date, we have signed ten
stakeholders in our production markets to accelerate total substitution ment and store replenishment processes. Other ongoing initiatives include
tive (SBTi) net zero standard and were formally approved by the SBTi during PPAs with solar parks in the UK (1), Spain (3), the US (1), Poland (1) and Sweden
of coal. This will make a significant contribution to reaching our absolute improving load efficiency, consolidating shipments and optimising delivery
2022 as being in line with what the latest climate science regards as neces- (4). At the end of 2024, five PPAs were operational and covered 20 percent of
GHG emissions reduction goal. schedules.
sary to limit global warming to 1.5°C above pre-industrial levels. our total electricity consumption, up from 10 percent last year. The total
capacity secured through the signed PPAs is 380 MW, and is expected to • Renewable energy. To meet the heat and steam energy demands in our
Supporting targets to reduce GHG emissions generate 600 GWh of renewable electricity annually when operational. textile supply chain, we prioritise electrification, supported by the procure- Financing investments in new technology
In addition to these emission reduction targets, we have also set supporting In 2024, we sourced renewable electricity equal to 96 percent of the group’s ment of renewable electricity, along with the use of ground or air-source H&M Group has introduced a strategy to channel investments effectively,
­targets that contribute to reaching our ambition. For our stores, we have set total electricity use. When we procure standalone energy attribute certifi- heat pumps and on-site solar photovoltaic systems (PVs). Where electri­ balancing reduction opportunities with financial viability. Within green invest-
a target to achieve a 36 percent reduction in electricity consumption per cates (EACs), we focus on the lowest-impact sources – primarily wind and fication is not yet feasible, we prioritise producing thermal energy from ments we measure return on investment by emissions reductions rather than
square metre and opening hour by 2030, against a 2016 baseline. This is an solar. All our EAC purchases comply with the RE100 technical criteria. ­agricultural residues as a transitional solution. By consolidating the number financial gain. As most of our emissions are in scope 3, we have a dedicated
updated target, as we reached our previous 2030 target in 2023. For our own of suppliers and facilities we work with, as well as deepening our collabora- programme to decarbonise our supply chain by providing finance to suppliers.
operations as a whole, we have set a target to source 100 percent renewable • Energy efficiency. We are rolling out energy efficiency programmes tion with those that already use low-carbon energy sources, we can reduce Limited technical expertise, restricted access to finance, high interest rates
electricity, including at least 50 percent from power purchase agreements such as real-time ­monitoring, LED lighting, installing motion sensors GHG emissions in our supply chain. Read more about our energy transition and low financial return are common barriers to our ­sup­pliers when consider-
with new renewable electricity generation by 2030. For our ­supply chain we and adjusting indoor ­temperatures. at hmgroup.com. ing decarbonisation interventions. We address these ­barriers by offering

H&M Group’s GHG emission reduction targets H&M Group’s supporting climate targets Green investment initiatives
• Reduce absolute scope 1, 2 and 3 GHG emissions by 56 percent Own operations
by 2030, against a 2019 baseline. 1 • By 2030, achieve a 36 percent reduction in electricity
Our green investments are designed
• Reach net zero by reducing absolute scope 1 and 2 emissions2 and ­intensity in our stores from a 2016 baseline.1 Fashion Green Fashion H&M Group H&M Group initiative
to speed up the decarbonisation of
absolute scope 3 emissions2 respectively by at least 90 percent • By 2030, source 100 percent renewable electricity in our Climate Fund Initiative ­ventures
our business and supply chain. They Collaborative initiative
by 2040, against a 2019 baseline, and ­balance out any remaining own operations, including ≥50 percent from power ­purchase bridge the gap between business goals
­emissions with permanent3 ­carbon removals. agreements with new renewable electricity generation. and our climate ambition, bringing
1. E xcluding indirect GHG emissions from use of sold products. These emissions
financing for projects with long pay-
are not within the ‘minimum boundary’ for category 11 (use of sold products) Our supply chain back periods within reach. We have
of the GHG Protocol’s scope 3 standard. SBTi does not include such optional developed a range of solutions to Technological
emissions in the target boundary for science-based targets. Instead, compa-
• By 2030, source 100 percent renewable electricity for our
­target our suppliers’ different needs. solutions
nies with significant optional emissions are encouraged to develop optional garment production supply chain, from spinning to a finished
­targets. We have in the past been engaging with the SBTi to identify a credible product in tier 1, 2 and 3. Together, they create an ecosystem
mitigation approach that would enable ­setting a high integrity target for in­­ of support that drives down emissions
direct use-phase emissions. The engagement has not yet resulted in a way • By 2026, phase out onsite coal from all of our garment
­forward but will be renewed once the current revision of the GHG Protocol in a cost-effective way.
­suppliers in tier 1, 2 and 3. 2
is finalised (likely in 2026). This target is restated to clarify the scope of the
­target, covering the ­garment products and the production stages, but ­excluding
the raw ­material stage, as there is limited possibility for traceability into it. 1. This is an updated target, since we reached our 2030 target in 2023,
See hmgroup.com/sustainability/circularity-and-climate/climate for details we have increased the ambition in reducing electricity demand in
on the coverage and progress towards this target. our stores.
2. Target boundary includes 100 percent of scope 1 and 2 emissions, and 2. The increased traceability, allowing us to include tier 3 facilities in the PRODUCTION
100 percent of minimum boundary scope 3 emissions (which excludes coal phase-out by 2026, means the total number of facilities increased Bangladesh Future Supplier Fashion
­indirect emissions from use of sold products). by 12 for 2024, to a total of 39. Windfarm Initiative Climate Fund
3. Permanent carbon dioxide removals for use under the net zero ­standard have Renewable Decarbonise
not yet been defined by the SBTi. Therefore we are taking a conservative energy access supply chain
approach and only focus on those that have a durability of over 1,000 years.
PPAs Green Fashion
Initiative

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technical support through in-house energy experts and financing on favour- Examples of activities included in the spend are: Internal carbon pricing scheme Actions beyond value chain mitigation
able terms, made possible by our financial position and wide network of Our internal carbon pricing supports our work to reduce GHG emissions In 2022 we joined the Lowering Emissions by Accelerating
banking partners. We have identified a range of technical and financial solu- • Recycled and sustainably sourced materials. By replacing conventional from raw materials, production processes and transports, covering about Forest Finance (LEAF) Coalition as a corporate partner.
tions that support our suppliers to reduce emissions in a cost-­effective way, materials with recycled or sustainably sourced alternatives, this helps us 66 percent of our total scope 3 emissions in 2024. Our scope 1 and 2 emis- The coalition brings together public and private sector
adapting to their different needs. This involves for example renewable elec- reduce our GHG emissions. sions are not covered by the carbon price. As a tool for driving behavioral buyers to purchase high-quality carbon credits from
tricity, energy efficiency measures and switching to sustain­ably sourced • Collaborative finance. Our collaborative financing initiatives, including change, it applies a shadow price on emissions, influencing decision-making ­forest governments (national and subnational) that have
materials and logistics. Our decarbonisation investment strategy includes: the Climate Fund by the Apparel Impact Institute, drive collective action within the company. The specific price is set as a function of the H&M implemented jurisdictional REDD+ programmes to reduce
to reduce GHG emissions in the fashion industry’s supply chain, with Group’s emissions and cost of sold goods to result in an increase in price as deforestation. REDD+ stands for Reducing emissions
• Risk evaluation and alternative cost. Using an alternative cost analysis to H&M as one of the lead partners. Additionally, we are a key driver of the emissions decrease, enabling additional actions to be taken. Carbon price from deforestation and forest degradation in developing
identify the economic impact of transformational investments, enables Future Supplier Initiative, which enables brands to collectively finance used in ­climate risk analysis is based on expected carbon taxes and border countries, and is a process moderated by the UUNFCCC.
informed decision-making by assessing the long-term risks and benefits decarbonisation projects with shared suppliers that produce fabric and adjustment mechanisms, and is not the same as the internal carbon price This financing provides a viable economic alternative to
of climate action. finished ­garments. described here. clearing ­forests for uses such as agriculture and can
encourage governments to introduce public policies to
• Bridging the gap. Investments help bridge the gap between aspirational • Supply chain projects. Financing projects that enable factories to invest in
Preparing for net zero protect forests, enforce laws to stop illegal deforestation,
goals and concrete achievements, accelerating sustainability progress. technologies and processes to reduce energy demand and replace fossil
Permanent carbon dioxide removal methods are designed to remove and and provide economic incentives to landowners to pre-
• Unlocking new revenue streams. As the market evolves and customers fuel as well as support suppliers in getting access to renewable electricity.
store carbon dioxide durably. To achieve global net zero emissions by mid- serve forests. The Amazon rainforest is identified as one
expectations increase, innovative climate solutions can ­create competitive Providing factory energy audits to identify energy efficiency initiatives.
century, this technology must be expanded. We need carbon dioxide removal of the ecosystems that are critical to stabilise in the near-
advantages and new business opportunities. • Renewable electricity and energy efficiency within own operations. to achieve our 2040 net zero target to balance out any GHG emissions that term to avoid a tipping point which could further acceler-
• Driving innovation. Driving innovation to enhance resource efficiency Investing in energy efficiency improvements in our facilities, which remain after we have achieved at least 90 percent absolute reductions. ate climate changes. We were among the first companies
and reduce costs. reduces our energy consumption and in turn helps us reduce our By supporting this emerging sector now, we can help drive its growth, secure to support the fight against deforestation in the Amazon
GHG emissions. supply in a market expected to face supply constraints and inspire others to rainforest with the LEAF Coalition and the deal with the
Collaborative finance become early adopters of carbon removal. Brazilian state Pará. Under the agreement, LEAF Coalition
Like many other fashion retailers, we cooperate with suppliers around the Advocating for systemic change In 2022, we signed our first contract for permanent carbon dioxide buyers, including H&M Group, have committed to pur-
world. Often, we share their manufacturing capacity with other companies, We engage directly with national and regional policymakers across our main removal using direct air capture and storage via a multi-year agreement chasing over 4 million emissions reduction credits. H&M
and we only purchase a small share of the total volume they produce. To retail and production markets, and indirectly through participation in stake- with Climeworks. In 2023, we joined Frontier and made an advance market Group makes no claims of GHG neutrality based on the
achieve our emission reduction goals, we must support the full upgrade of holder platforms and partnerships, including the UN Framework Convention commitment for carbon removal along with other members. Since joining, purchase of these carbon credits.
our suppliers’ facilities and machinery. Our scope 3 emissions decrease only on Climate Change Fashion Charter, WWF, World Economic Forum (WEF) we have entered eight offtake agreements, which are contracts to buy
in proportion to our share of a facility’s production. By sharing the costs, we and RE100. Our primary objective is to support a public policy shift in key ­permanent carbon removals once they are delivered. The numerous offtake
believe the industry can achieve more significant reductions than individual ­production markets to improve the availability and accessibility of renewable agreements we have entered into to date are an important step ­forwards,
brands could on their own. For example, when we invest in factories that pro- energy. This involves collaboration with local governments in Bangladesh, and we hope they will encourage further growth in the market by signalling
duce garments for multiple brands, it allows others to benefit from our initial Cambodia, mainland China, India, Indonesia, Türkiye and Vietnam, as well as clear demand and attracting investment.
investment, reducing their GHG emissions at no additional cost. This high- engaging with EU institutions and member states to gain further support for
lights the need for collaborative financing to accelerate the transition decarbonisation in our production markets. Also, in our production markets,
towards net zero. we engage with governments and industry ­organisations to advance legisla-
Collaborative financing between industry peers, banks, NGOs and finan- tion, for example:
cial bodies is vital to amplify and accelerate the transition. We are a lead
­partner of the Apparel Impact Institute’s (Aii) Fashion Climate Fund and one • In Bangladesh, we are working actively to develop a Corporate Power
of the driving forces behind the Future Supplier Initiative, which brings ­Purchasing Agreements (CPPA) framework that will mark a pivotal step
together brands to collectively finance decarbonisation projects for shared to facilitate direct access to renewable energy for corporate users and
suppliers. It limits the cost of borrowing for factories and enables access to support the country’s commitment to reduce GHG emissions.
technical support, as well as offering the potential to build long-term, resilient • In Vietnam, we advocated for public policy and regulations to support the
business relationships with brands. ­transition to renewable energy, and welcomed the successful launch of
Decarbonising our entire value chain will require collective effort and inno- Vietnam’s Direct Power Purchase Agreements (DPPA) in July 2024.
vative financial solutions. To address this, we have partnered with the consul- • In mainland China, we engaged with the National Energy Administration
tancy firm Guidehouse, to create a collaborative financing tool. This tool to support the development of public policies around green power trading GHG EMISSIONS
allows brands that share suppliers to form a cohort, supporting their suppliers and welcome the introduction of several policies to enhance the trading
with technical assistance and financing through banks, with the backing of Progress towards targets in 2024
­mechanism to boost renewable energy access for our supply chain.
the brands. In 2024, the first cohort of the Future Supplier Initiative was Our absolute scope 1 and 2 emissions decreased by 41 percent com- share of inbound transports, up from a very low share historically and
• In Indonesia, together with other organisations, we successfully advocated pared with our 2019 baseline. Compared to last year, this is a decrease still below the 2019 figure.
launched, facilitated by Fashion Pact and Aii. We firmly believe that joint
for removing the cap on installed capacity for rooftop PV systems, paving of 25 percent or 13,607 tonnes CO2e. This reduction is primarily driven Our ongoing efforts to shift to cleaner energy in our supply chain
action is the most effective way to drive rapid industry-wide transformation.
the way for greater adoption of solar energy across the country. by an increase in our procurement of renewable electricity, through is showing results as emissions from fabric production increased less
Therefore, we want to encourage fellow brands to engage in collaborative
financing initiatives. PPAs and unbundled renewable energy certificates. During 2024, (3 percent) than the total garment material weight (8 percent) all com-
At a global level we continued to engage with influential stakeholders and we added the Philippines and Colombia to the countries we source pared to 2023. Reductions since the base year have primarily been
policy makers to advocate for legislation which will enable the decarbonisa- renewable electricity for, bringing the total to 96 percent. driven by an increased share of recycled and sustainably sourced
Sustainable financing for H&M Group
tion of our value chain, for example: Our absolute scope 3 emissions (excluding use-phase emissions) ­materials for garments and packaging, and the shift to cleaner energy
We issue sustainable financing in the form of green and sustainability-linked
bonds to align our sustainability priorities with our financial strategy, and to decreased by 23.7 percent compared with our 2019 baseline, a reduc- and energy efficiency improvements in our supply chain. In addition,
• We became signatories of the WEF COP 29 Open Letter calling for tion of 2,160,000 tonnes CO2e. Compared to 2023, emissions increased while emissions are still linked to resource use, total scope 3 emissions
provide investors with trans­parency on our investments and performance
enhanced collaboration between the public and the private sector to by 201,000 tonnes CO2e, or about 3 percent.This can be attributed per revenue (tonnes of CO2e/ SEK million) has decreased by 24 percent
towards key sustainability targets.
deliver on the Paris Agreement. largely to two factors. Firstly, an increase in total material weight during compared to 2019 and increased by 4 percent compared to 2023.
In 2024, our total spend on decarbonisation activities across the value
chain was approximately SEK 1.7 billion. This includes various initiatives • We joined the Corporate Leaders Group Europe, one of the founders of the the year. Secondly, a small increase in air freight, to just below 3 percent
aimed at phasing out fossil fuels, supporting energy efficiency, and replacing We Mean Business coalition and an ambitious and influential player at
conventional materials with recycled or sustainably sourced alternatives. European and global level. With CLG Europe we had the opportunity to
meet the Executive Vice President of the European Commission to discuss
setting an EU climate target of at least a 90 percent reduction by 2040.

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GHG emission reduction targets1, 2, 3

% change % change
Total GHG emissions (tonnes CO2e)
2019 Target (year ­ ompared
c ­compared with
2024 2023 2022 (Baseline) and value) with 2023 baseline

Total scope 1 emissions (tonnes CO2e) 15,102 15,754 18,048 21,564 2030, –56% –4% –30% The charts show scope 3 emissions split by category as Scope 3 data 2024
share of total scope 3 emissions (on the right) and our pro-
Total location based scope 2 emissions (tonnes CO2e) 364,693 377,573 443,099 658,646 No target –3% –45%
gress in reducing scope 1, 2 and 3 emissions in the different
Total market based scope 2 emissions (tonnes CO2e) 26,553 39,508 46,806 48,735 2030, –56% –33% –46% End-of-life sold products, 1% Fabric production, 44%
areas of our value chain against a 2019 baseline (below).
Total scope 1 and scope 2 market based emissions 41,655 55,262 64,854 70,299 2030, –56% –25% –41% Packaging, 1%
(tonnes CO2e) Other, 2%
Total scope 3 emissions (tonnes CO2e) under our ­ 6,955,000 6,754,000 7,591,000 9,115,000 2030, –56% 3% –24% Garment manufacturing, 3%
science based target (excluding use-phase emissions)
Non-garment goods, 4%
Total scope 3 emissions including use-phase emissions 8,729,000 8,413,000 9,442,000 11,613,000 No target 4% –25%
(tonnes CO2e) Transport, 5%
Total GHG Emissions (tonnes CO2e) 8,770,000 8,469,000 9,507,000 11,684,000 2030, –56% 4% –25% Other expenditure, 6%

Total scope 1 emissions intensity value 0.06 0.07 0.08 0.09 No target –4% –30%
(tonnes CO2e/MSEK) Raw materials, 14%
Total market based scope 2 emissions intensity value 0.11 0.17 0.21 0.21 No target –32% –46%
(tonnes CO2e/MSEK)
Total scope 3 emissions intensity value 37.2 35.6 42.2 49.9 No target 4% –25%
(tonnes CO2e/MSEK) Use of sold products, 20%
Total scope 3 emissions including use-phase emissions 29.7 28.6 34.0 39.2 No target 4% –24%
intensity value (tonnes CO2e/MSEK)
Total GHG Emissions intensity value (tonnes CO2e/MSEK) 37.4 35.9 42.5 50.2 No target 4% –25%

4,826,000
1. In 2024, we have made some updates in how we calculate emissions compared with 2023, please see page 66 on the progress and updated methods for more details of these
changes. Read more about our data and calculation methods at hmgroup.com/sustainability/sustainability-reporting/how-we-report.
2. S cope 1 emissions are all direct emissions from our own operations; scope 2 represents indirect GHG emissions from consumption of purchased electricity, heat or steam used in our

4,280,000
own operations; scope 3 includes other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned
or controlled by us, energy-related activities not covered in scope 2, outsourced activities, and waste disposal. Scope 1 and 2 limitations and comments: only stores open for the full
quarter are included; electricity consumption includes both actual data and estimates, where estimates are made if actual data is not received or not available within the reporting

2,499,000
deadline. Electricity consumption data for HVACs operated by landlords is estimated.

3,872,000
3. Scope 3 emissions data are rounded to the nearest thousand.

3,757,000

1,851,000

1,849,000
Scope 3 emission split by category1, 2

1,774,000
1,659,000
% change % change
Scope 3 2019 ­ ompared
c ­compared
Tonnes ­category 2024 2023 2022 (Baseline) with 2023 with baseline

706,000
1,222,000

672,000
1,180,000
Raw materials3 1 1,180,000 1,131,000 1,222,000 1,849,000 4% –36%

601,000
1,131,000

561,000

453,000
Fabric production3 1 3,872,000 3,757,000 4,280,000 4,826,000 3% –20%

405,000
335,000

306,000
Garment manufacturing3 1 280,000 252,000 305,000 360,000 11% –22%
Non-garment goods3 1 334,000 336,000 393,000 454,000 0% –26%

64,854
70,299

55,262

41,655
Packaging 1 110,000 145,000 152,000 235,000 –24% –53%
Other expenditures3 1 561,000 601,000 672,000 706,000 –7% –20%
19 22 23 24 19 22 23 24 19 22 23 24 19 22 23 24
Transport3 4 405,000 306,000 335,000 453,000 32% –11%
19 22 23 24
End-of-life sold products3 12 65,000 62,000 66,000 73,000 5% –11% Use of sold products Raw materials Other expenditure Transport
Total scope 1 and 2
Other market based emissions
Fuel & energy related emissions 3 28,000 25,000 31,000 33,000 13% –25%

454,000

393,000

360,000
336,000

334,000

305,000
Waste in own operations 5 3,000 4,000 3,000 4,000 –25% –18%

280,000
252,000

235,000

166,000

165,000
160,000
152,000
Business travel 6 26,000 18,000 8,000 23,000 47% 15%

148,000
145,000

110,000

73,000

66,000

65,000
62,000
Employee commuting 7 25,000 28,000 30,000 44,000 –10% –43%
Franchise 14 32,000 50,000 59,000 50,000 –35% –36%
Investments 15 34,000 40,000 35,000 6,000 –14% 434%
19 22 23 24 19 22 23 24 19 22 23 24 19 22 23 24 19 22 23 24 19 22 23 24
Not included in Science based targets
Fabric production Non-garment goods Garment manufacturing Packaging Other End-of-life sold products
Use of sold products 11 1,774,000 1,659,000 1,851,000 2,499,000 7% –29%

1.  For categories 2 capital goods, 8 & 13 leased assets, and 10 processing of sold products, no activities with relevant climate impact has been identified,
therefore these are excluded from disclosure. We periodically evaluate if any relevant emissions occur from these sources.
2. Emissions data are rounded to the nearest thousand.
3. Emissions have been recalculated in the area since the 2023 report, please see page 66 on the progress and updated methods for more details of these changes.

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Chemicals and water pollution

Chemicals are essential to our everyday lives and are used during the produc- ment System. Beyond these industry standards, our H&M Group chemical
tion process and manufacturing of clothes when, for example, washing and restriction lists include additional limitations on potentially harmful sub-
ENERGY dyeing fabrics and textiles. One of our largest environmental impacts origi- stances. To ensure that we choose safe chemical alternatives, we also priori-
nates from chemical use during textile production and processing, and from tise third-party hazard-assessed chemicals, such as screened chemistry-
Progress towards targets in 2024 the farming of cotton, where there is a risk that hazardous substances end up certified options, wherever feasible. For chemical pollution in wastewater,
We have achieved a 32 percent reduction in electricity intensity in a total of 27 units. This has decreased from 118 units in 2022. This
in water discharges or reside in materials and finished products. we follow the ZDHC wastewater guidelines, which in most cases are stricter
our stores (measured per square metre and opening hour) compared decrease is a result of our continued efforts in phasing out on-site coal,
than local regulations. The wastewater testing is conducted annually for all
with our 2016 baseline. Additionally, we have raised our 2030 target, changes in our supplier base, local legislation, and H&M Group pushing
Strategy and governance units included in the chemical scope and the results are publicly disclosed
increasing it from 25 percent to 36 percent. for increased electrification of steam production.
We are committed to ensuring our products are produced and used in a way on Powering Sustainability with Transparency. We also encourage our textile
96 percent of the electricity purchased for our operations was During 2024 we have increased traceability and energy reporting
that prioritises the health and safety of people and ecosystems. This includes and leather suppliers to implement the ZDHC wastewater guidelines and
­re­­newable (94 percent in 2023), including 20 percent from power ­coverage, to also include tier 3 in the garment supply chain. With this
minimising pollution and eliminating hazardous discharge into water or soil ZDHC chemical management system.
­purchase agreements with new renewable electricity generation, increased scope we have identified 12 tier 3 facilities using coal, in­­
during the sourcing, processing and production of input materials. Guided Our policies and procedures are available at hmgroup.com and the supplier
which supply us with long-term renewable energy at a fixed price and creasing the total number of units to 39. We will include these in the
by our chemical roadmap, we work to continuously improve the safe manage- portal for all our business partners. Read more about H&M Group’s policies
increase the amount of renewable electricity on electrical grids. reporting scope in the future, as well as in our target to phase out on-site
ment of chemicals in our value chain and we focus our efforts on tracing, and commitments on page 108.
coal entirely from all garment suppliers, in tiers 1, 2 and 3. The current
engaging, being transparent, using the best available chemistries, avoiding
Phasing out on-site coal dataset covers all tier 1 and most tier 2 and 3 suppliers, meaning we do
discharge into water, and collaborating across our value chain to ensure good Targets and actions
The number of garment supplier factories in tier 1 and 2 reporting not expect to find significant number of additional units using on-site
chemical management. In our product safety work, we take account of the sensitivity of our most
the use of on-site coal boilers decreased by 19 units in 2024, to coal across tiers.
­vulnerable customer group, with stricter product chemical requirements for
Identification and management of material matters babies and children. This includes the proactive elimination of hazardous
We continuously measure the levels of pollutants in the wastewater in our chemicals, such as PFAS and DMF, which we have already phased out ahead
supply chain to identify negative impacts from the use of chemicals during of regulatory mandates.
manufacturing processes. Our chemical requirements for suppliers usually
Energy consumption and mix in own operations exceed existing regulations and we promote progressive chemical manage- Safe products free from harmful chemicals
2019 ment. Hazardous ­chemicals should not be used in production or found in We aim for 100 percent compliance with ZDHC MRSL across all chemical
2024 2023 2022 (Baseline)
any of our products. We were one of the first in the industry to establish a inputs and wastewater. This target is measured annually to ensure no
Share of renewable electricity in own operations, % 96 94 92 96 chemical restrictions list in 1995, which has been constantly updated, and ­hazardous chemicals are used in production processes by our suppliers.
our suppliers are contrac­tually bound to comply with the list. We actively collaborate with industry partners to influence and drive
Share of electricity from power purchase agreements with new renewable electricity generation 20 10 – – ­progress on product safety. We do this by sharing insights, best practices,
Total energy consumption in own operations (in Mwh) 1,157,665 1,208,450 1,383,746 1,816,827
Policies and procedures and supporting international product safety standards through stakeholder
Our work is guided by our environmental policy, which states that we take a dialogues.
– District heating 22,346 22,704 25,018 52,005
progressive approach to chemical management that goes beyond legal com-
– Electricity 1,065,678 1,112,659 1,273,118 1,660,055 pliance, to ensure the safety of the chemicals being used. The policy includes Testing of wastewater discharge
– Building diesel, natural gas, oil and others1 69,642 73,087 85,610 104,767 commitments to industry standards, and actions to ensure the safe use of our We conduct unannounced quality tests at on-site Effluent Treatment Plants
Total energy consumption in own operations from non-renewable sources (in Mwh) 139,874 167,430 212,478 223,174 products and safe manufacturing processes. We also aim to develop a holis- (ETP), focusing on key conventional parameters. In cases of non-compliance,
tic pollution strategy covering water and chemical pollution throughout our corrective actions are required, followed by immediate retesting and ongoing
Share of total energy consumption in own operations from non-renewable sources, % 12 14 15 12
value chain. This will include addressing substances of concern and of very monthly tests to ensure continuous compliance and water safety. Monthly
Total energy consumption in own operations from renewable sources (in Mwh) 1,017,791 1,041,020 1,171,268 1,593,653 high concern in end products, as well as fibre fragmentation during produc- chemical usage reports from suppliers are submitted to the ZDHC Gateway
Share of total energy consumption in own operations from renewable sources, % 88 86 85 88 tion and in the customer use phase. In addition, H&M Group’s Sustainability Chemical Module, which tracks chemical usage, provides a database of safer
Change in electricity intensity (in kWh/m2 per opening hour compared with 2016 baseline), % –32 –29 –22 –18 Commitment, which applies to all our business partners and suppliers, alternatives, and offers performance insights through the InCheck report.
includes requirements concerning the safety of chemical handling and This platform helps suppliers evaluate and transition to safer chemical prod-
1. Energy data related to building diesel, natural gas, oil, and others includes energy data for company cars and has been retroactively adjusted for previous years. ­storage, as well as environmental requirements such as the treatment of ucts, ensuring MRSL compliance. Suppliers share wastewater test results in
waste­water and the handling of hazardous waste. the ZDHC Gateway Water Module to meet ZDHC wastewater guidelines. This
H&M Group follows the Apparel and Footwear International RSL Manage- module’s ClearStream report benchmarks wastewater management perfor-
Improved data quality and calculations • Updates in the emission factor database MSI, used for non-garment ment (AFIRM) Restricted Substances List (RSL) and the Zero Discharge of mance, supporting continuous improvements in safe wastewater handling
We continually work to improve our data availability and quality, so we can ­products and raw-materials, most notably the addition of a specific Hazardous Chemicals (ZDHC) Manufacturing Restricted Substances List and reducing harmful discharges.
capture our emissions as accurately as possible. Here, we share details ­emission factor for BCI cotton, led to a decrease in emissions within (MRSL), as well as the ZDHC Wastewater Guidelines and Chemical Manage-
of specific changes and their impact on our previously reported figures these areas by 1,7 percent or 26,011 tonnes CO2e for 2023, compared to
­(specifically 2023 figures and baseline 2019 figures), to provide trans­ what was reported in our 2023 Sustainability Disclosure.
parency and continuity. In 2024:
• In addition to these, some minor changes were made within transports,
• We have used sales-country level waste statistics for domestic waste franchise and employee commuting emission calculations. Read more
treatment, as well as exports and the end-point country waste treatments, about these on our climate reporting webpage hmgroup.com/­
which helped us to better estimate how products are moved and treated sustainability/circularity-and-climate/climate/climate-reporting.
once they reach their end-of-life. These changes led to a decrease in emis-
sions from end-of-life treatment by 30 percent or 26,613 tonnes CO2e for
Our chemical roadmap
For our full scope 3 emissions, including the use-phase all these changes
2023, compared to what was reported in our 2023 sustainability disclosure. corresponds to a decrease of 1 percent or 119,159 tonnes CO2e for 2023 and
• For other expenditures, we have updated the data set for emission factors a 2 percent or 275,732 tonnes CO2e increase for 2019, and an additional • Traceability of the input of chemicals used in H&M Group’s
to include annual development of emissions. We also improved the overall absolute decrease between 2019 and 2023 of 394,890 tonnes CO2e com- ­production for ­commercial goods.
calculation method for emissions of other expenditures and resolved an pared to what was reported in our 2023 sustainability disclosure. All these • Engagement to push legislation and support public policies
issue with over-estimating the emission of some packaging. These changes changes have been applied to historical results. to promote ­progressive chemical management.
led to a combined increase in emissions within other expenditures by 25 Within scope 1 & 2, we have updated the 2023 figures, replacing some esti-
• Transparency in sharing information about chemicals with
percent or 119,792 tonnes CO2e for 2023, compared to what was reported mates with actual data and including a distribution center in Poland mainly
­customers, including full public disclosure of wastewater
in our last year report. used by Sellpy. This update results in an increase in scope 1 & 2 emissions
­discharge test data.
• We improved the emissions calculation model for fabric production and by 1 percent or 457 tonnes CO2e for 2023 compared to what was reported in
our 2023 sustainability disclosure. For the baseline year, we have adjusted • Zero discharge of prioritised hazardous chemicals in the
garment manufacturing, to better capture placement of production pro- ­supply chain.
cesses. This led to a decrease in emissions from these activities of 5 per- refrigerants data due to incorrect square meter data used for stores in 2019,
cent or 188,290 tonnes of CO2e for 2023. An error was found where some resulting in a decrease of 2 percent or 1,458 tonnes CO2e in scope 1 and 2 for • Collaboration ensuring clean factories that use common
upstream emissions from energy used in production were not included. that year compared to what was reported in 2023. tools such as the MRSL.
This led to an increase of emissions from these activities by 1 percent or • Best available chemistries promoting innovation and
by 42,546 tonnes CO2e for 2023, ­compared to what was reported in our development of better chemicals and ­technologies
2023 sustainability disclosure. ­throughout the supply chain.

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Water
The fashion industry is one of the largest consumers of water and our main Our policies and procedures are available at hmgroup.com and the supplier
impact related to water use occurs in our upstream value chain during the portal for all our business partners. Read more about H&M Group’s policies
CHEMICALS AND WATER POLLUTION production and processing of fabrics and textiles. Water shortages and poor and commitments on page 108.
water management are critical global issues that affect communities and
Progress towards targets in 2024 ecosystems across our value chain and pose a risk to our business if there Targets and actions
We made continued progress in reducing water pollution in our supply Our 2024 MRSL compliance score is 97.1 percent compared with is a lack of access to clean water. To address water scarcity risks, we have set ambitious, context-specific
chain. In addition, we have maintained steady progress toward our 96.6 percent in 2023. water reduction targets for high-risk basins, alignining with our commitment
target of 100 percent MRSL compliance for chemical inputs and Similarly to last year, the share of production factories enrolled Strategy and governance to sustainable water management as stated in our environmental policy.
wastewater in tier 1 and 2 production factories, where we have similar in the ZDHC programme was 97.6 percent in 2024. Our ambition is to reduce absolute water consumption and use water in an
results as last year. efficient way to minimise our environmental negative impact and contribute Reduce absolute freshwater consumption
to the preservation of freshwater resources globally. To achieve this ambition, We have set a target to reduce absolute freshwater consumption by 30 per-
we focus on recycling water and improving water efficiency in our supply cent by 2030, against a 2022 baseline, and a milestone target to reduce
chain and supporting innovative technologies that have the potential to absolute absolute freshwater consumption by 10 percent by 2025.
­significantly reduce the need for water in production processes. We are focused on improving water efficiency through optimised pro­
duction processes, advancing recycling and reuse of treated wastewater,
Identification and management of material matters and piloting innovative technologies aimed at reducing water usage.
Chemicals and water pollution
We regularly update our water risk assessments to ensure that our actions to By ­setting and pursuing absolute reductions in freshwater consumption,
Target 2024 2023 2022 ­mitigate water-related risks, such as water scarcity, are relevant and effec- we strive towards meeting our broader goal of sustainable water usage,
tive. H&M Group uses WWF’s Water Risk Filter to assess water-related enhancing water efficiency while minimising overall negative impacts on
Number of textile and leather tier 1 and tier 2 production factories enrolled in ZDHC programme No target 590 577 619
impacts across the supply chain, setting contextual water targets based on ­people and the planet throughout our operations.
Share of textile and leather tier 1 and tier 2 production factories enrolled in ZDHC programme, % 100% 97.6 97.8 99.0 identified risks. This tool helps us understand water scarcity and other rele-
Share of MRSL compliance for chemical input used by tier 1 and tier 2 production factories, % 100% 97.1 96.6 97.0 vant risks in key regions. In addition to using this tool, we also collaborate with Key actions to reduce water consumption
Share of MRSL compliance for wastewater for tier 1 and tier 2 supplier factories, % 100% 99.5 99.5 100.0 key business partners, sharing our water risk assessments and encouraging Through these diverse actions, H&M Group advances its commitment to
partners to assess their own supply chain risks. This joint effort enhances reducing freshwater consumption and improving water efficiency, driving
Share of chemicals used by tier 1 and tier 2 production factories that were assured to meet No target 92.0 89.9 88.0
ZDHC requirements via the ZDHC Gateway, % water stewardship across the value chain, fostering collective action to progress towards sustainable water management in the supply chain:
address water challenges. Together with stakeholders, partners and tech­
Share of tier 1 and 2 production factories achieving green grade ETP functionality assessment1, % No target 84.4 89.0 90.0
nology providers, we actively engage in driving innovation in water steward- • Supplier engagement. H&M Group collaborates with tier 1 and 2 ­suppliers
Share of tier 1 and 2 production factories with functional ETP assessments1, % 100% 99.4 New in 2024 New in 2024 ship and invest in and test new technologies aimed at reducing freshwater involved in wet processes to implement best practices for water manage-
Share of tier 1 and tier 2 production factories with ETP discharged water quality that is 100% 92.0 93.0 74.0 consumption. ment. Leveraging our scale, we focus on advancing water recycling and
Zero Discharge of Hazardous Chemicals wastewater compliant (Foundation Level), % by 2025 efficiency improvements, supporting suppliers to adopt sustainable water
Policies and procedures practices.
­1 . Scope is including facilities with either on-site ETP or zero liquid discharge water treatment process.
We are committed to growing our business in a way that does not increase • Regional water expertise. Our team of local water experts in key sourcing
our water consumption, while also contributing to sustainable water manage- regions, including Bangladesh, Mainland China, India, Türkiye and Vietnam,
ment and resilience in the communities and ecosystems we impact. Our work provides tailored support to facilities. By offering region-specific guidance,
is guided by our ­environmental policy, stating that we acknowledge the sig­ we help facilities to set realistic, context-driven water targets that align
nificance of water as a limited resource which is essential for survival. The with local production needs and address unique regional challenges.
policy is complemented by the water management instruction, which outlines
• Development of roadmaps. We assist our key suppliers in creating cus­
requirements for our business partners. For example, there are requirements
tomised water roadmaps that identify actions for improving water effi-
on installation of water meters in production facilities as well as treatment of
ciency and recycling. These roadmaps provide step-by-step guidance,
wastewater with functional ETPs. The water management instruction lays
helping suppliers evaluate and implement optimal water-efficiency
the foundation of our work with tracking water c ­ onsumption, meeting waste-
­opportunities.
water quality and reporting water related data. In addition, H&M Group’s
­sustainability commitment, which applies to all our business partners and
­suppliers, includes expectations on their water management.

Our focus areas for water

We continue to work towards our contextual targets, addressing water issues on a local level as well as ­engaging
Circularity
in water stewardship with partners and stakeholders.

To inspire our business partners and peers, we share benchmarks and create internal targets to incentivise better
Leadership
water performance.

We invest in innovations to improve water management, introduce new recycled materials and regenerative land-
Investment
scape projects. In addition, we support supply chain actors to adopt water efficient practices and technologies.

We need to ensure our organisation understands and values water better. To facilitate this shift in mindset,
Change mindsets
we visualise and create measurements for water use and impact when for example designing collections.

To enable collaboration with stakeholders and partners, we are committed to disclose our water related actions,
Ecosystem innovation
our dependencies and performance.

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Biodiversity, ecosystems and land-use

• Investment in waterless technology. In 2024, we invested in innovative • Water recycling projects. To reduce freshwater dependency, H&M Group One of the main drivers of biodiversity loss are land-use changes. As a global H&M Group’s sustainability commitment, which applies to all our business
waterless dyeing technology at our suppliers Arvind in India and Chorka and Primark, alongside consortium partners, are implementing a water fashion company, our largest impact on biodiversity and ecosystems occurs partners and suppliers, also includes requirements to ensure the protection
Textile in ­Bangladesh. At Arvind, the SUPRAUNO technology enables recycling project at Fakir Knitwear Ltd. under the Sustainable Manu­fac­ in our upstream value chain related to the use of resources such as land and of biodiversity and ecosystems in the sourcing of raw materials.
waterless ­dyeing of textiles, cutting down water, energy and chemical use. turing and Environmental Pollution Programme (SMEP). Set to complete in water for farming, production and processing of cotton and wool. The nega- Our policies and procedures are available at hmgroup.com and the supplier
At Chorka, Plan Zero, a cluster of advanced technologies, is being 2025, this initiative will offer key insights into the business case for water tive effects of land-use changes on biodiversity can be further intensified by portal for all our business partners. Read more about H&M Group’s policies
deployed to minimise waste and emissions, with the potential to halve recycling in high freshwater consumption regions such as B ­ angladesh. climate change, habitat destruction and pollution threatening communities and commitments on page 108.
GHG emissions and water use. • Reducing water use in our own operations. Although the majority of our who rely on healthy ecosystems for their livelihood.
water consumption occurs in our supply chain, it is important we make Targets and actions
Key activities in Bangladesh improvements in our own operations to reach our water reduction targets. Strategy and governance H&M Group is exploring the possibility to set science-based targets related
• Training initiatives. In Bangladesh, H&M Group, in collaboration with the For example, to reduce freshwater consumption in our distribution centres, Our ambition is to contribute towards the global goals for biodiversity by to nature and biodiversity. The SBTN pilot study has helped us to establish a
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), provided we have started harvesting rainwater, using rainwater in our toilet flushing ­following the ARRRT-framework (Avoid, Reduce, Restore, Regenerate, and science-based foundation for nature action. As part of this study we mapped
efficiency training to 50 factories. Experts conducted on-site visits systems, and installing fixtures to reduce freshwater water usage. Transform). To avoid contributing to biodiversity loss and land-use changes our ongoing actions towards three key land targets: no conversion of natural
to ­validate improvements and share best practices, fostering a culture we are also focusing on building a responsive, responsible and resilient value ecosystems, land footprint reduction and landscape engagement in priori-
of continuous improvement in water management. chain that operates in harmony with nature and is informed by the Kunming- tised regions. During 2024 we have also taken action to reduce the conver-
Montreal Global Biodiversity Framework. Furthermore, we are investing in sion of natural ecosystems and promote regenerative agriculture practices.
restoration efforts through our projects in collaboration with the WWF,
BKB and the LEAF-coalition. No conversion of natural ecosystems
Reducing the conversion of ecosystems away from their natural state is one
Identification and management of material matters of our key priorities to halt biodiversity loss and protect natural ecosystems.
In 2023, H&M Group joined the Science Based Targets for Nature (SBTN) We are committed to sourcing materials that does not deplete and degrade
pilot study alongside 16 other companies, which aims to reduce negative natural resources or convert natural ecosystems. Our actions related to
WATER impacts and enhance positive outcomes for nature and people across ­minimising land conversion therefore include efforts to increase the use of
Progress towards targets in 2024 As before, this calculation method will be applied to production pro- ­companies. In the first phase of the study, we evaluated key nature impacts sustainably sourced and recycled materials when planning our collections.
We are committed to continually improving our data availability and cesses with intensive water usage, such as material dyeing, material across our value chain, with a focus on land and water. We consider the
quality to capture our progress accurately and transparently towards ­finishing, material all-over printing, and product washing. We would also SBTN pilot study to be an important mean of driving greater standardisation Landscape engagement and regenerative agriculture practices
reducing absolute freshwater consumption. During the year, we identi- like to reiterate that we have always reported based on our share of water of approaches to identify and assess impacts related to biodiversity and We are investing in regenerative agriculture practices and production
fied opportunities to enhance our water reporting methods. As a result, consumption from a facility to accurately capture our contribution. land-use changes. ­processes to secure the availability of the input materials we need to pro-
in 2024, we will transition from a facility self-reporting method used in This new calculation method will be applied to water results from 2022 duce our products in the future. Therefore, we are supporting the transition
2022 and 2023 to a product-based model for calculating freshwater onwards to maintain consistency when reporting our progress compared Policies and procedures towards regenerative agriculture practices in our supply chain to minimise
consumption. with the baseline year of 2022. With this change, our 2023 results have Our work is guided by our environmental policy, which states that we are our negative impact on biodiversity loss and create a more resilient farming
This new calculation method considers product placement, and the been updated and now show a 9.1 percent reduction compared with the committed to contributing to reversing nature loss and the global goals of landscape. Through our partnership with WWF, we have also gained valuable
processing steps each product undergoes as the basis for calculation. 2022 baseline. biodiversity. Our environmental policy also includes a commitment to pre- insights into priority conservation landscapes in India, South Africa and
This information is then combined with facility-specific data on fresh- H&M Group’s freshwater consumption decreased by 9.5 percent in 2024 venting and reducing our overall impact on biodiversity and natural eco­ ­Indonesia. These projects also included stakeholders holding indigenous
water share and water intensity compared with benchmarks as set by against the baseline. Compared to 2023, freshwater consumption de­­ systems affected by activities in our value chain, supporting the protection and local knowledge and two of the projects were submitted to SBTN as
us according to material and process type. With this change, we can creased by 0.4 percentage points even as total material weight increased and restoration of biodiversity and natural ecosystems. In addition, we aim ­landscape engagement projects.
account for freshwater consumption even when facility-specific water during the year. This positive result is primarily the outcome of increased to develop a supply chain that is deforestation free and does not contribute In addition, we are also monitoring the development of biodiversity credits,
performance parameters are unavailable. recycling of water during the year. Water recycling in our supply chain to land ­conversion. which companies can use to support long-term nature protection and resto-
ramped up to 19.6 percent in 2024, compared to 12.2 percent in 2022. ration, as a potential tool for further investment in thriving ecosystems.

Water consumption1

Target 2024 2023 2022

Share of recycled water consumed in tier 1 and tier 2 production factories, % No target 19.6 16.0 12.2
Share of absolute reduction in freshwater consumption in tier 1 and tier 2 production –10% by 2025 –9.5 –9.1 Baseline
factories from 2022 baseline, % –30% by 2030
Our biodiversity focus areas and the ARRRT framework
1. By water consumption, we refer to the total volume of water used during production.
We will continue to align our definitions with Reporting requirements and Science Based Target for Nature.
Recirculating existing products through circular business models and using artificial intelligence to match
Avoid
­supply to demand help us avoid negative impacts on biodiversity.

We are reducing our impact by increasing the recycled content of our products and using greater amounts
Reduce
of certified materials such as responsible wool and wood from FSC certified forests.

Regenerative agriculture and conservation projects help to restore natural habitats and increase the resilience
Restore & ­Regenerate
of nature.

Through collaborating with others, we bring about transformational change to the fashion industry.
Transform

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Resource use and circularity

We rely on large quantities of natural resources and raw materials for the pro- value, and regenerating nature. H&M Group is also guided by the EU Waste
duction and processing of our products and packaging. Our use of resources Framework Directive and Waste Hierarchy.
has a negative impact on the environment, from the sourcing of raw materials In addition, H&M Group’s sustainability commitment, which applies to
to the disposal of our products and packaging. Increasing our resource effi- all our business partners, includes requirements regarding the management
ciency and reducing our dependence on material resource use and extraction of materials, circularity and waste. In accordance with our sustainability
will not only reduce our negative impact on people and the planet, but also ­commitment, all our business partners agree to be monitored and evaluated
improve the resilience of our business model. on their sustainability performance within these areas.
Our policies and procedures are available at hmgroup.com and the supplier
Strategy and governance portal for all our business partners. Read more about H&M Group’s policies
At H&M Group, our ambition is to grow our business decoupled from resource and commitments on page 108.
use and extraction with products and materials circulating at their highest
value. We aim to achieve this by shifting towards recycled or sustainably Targets and actions
sourced materials, and by optimising our production and resource use, and We work together with our partners, industry networks and other external
scaling circular business models and solutions across our value chain. In stakeholders, such as the Ellen MacArthur Foundation, Textile Exchange,
addition, we develop and contribute to innovations, ventures and projects and Canopy, to identify actions and targets related to material use, product
across our value chain – often in collaboration with others – that we believe and packaging design, extending customer use, and waste prevention and
will accelerate our progress and enable a circular economy for fashion. management, both in our upstream and downstream value chain. We have
Therefore, we focus our efforts on five areas: materials, business optimisa- set relevant targets where possible and are continuing to develop additional
tion, product and packaging design, extending customer use, and waste targets in parallel.
­prevention and management.
Increase the share of recycled or sustainably sourced materials
Identification and management of material matters Our material targets are set by evaluating the risk, impact and availability
To identify impacts, risks and opportunities related to our use of raw m
­ aterials, of recycled or sustainably sourced material alternatives and by consider-
products and services, and the generation of waste across our value chain, ing the sustainability criteria set by external organisations such as Textile
we consult with our partners, industry networks and other external stake- Exchange. Some of our detailed material targets are also part of an exter-
holders. For raw materials, our risk-based approach identifies and assesses nal commitment, for example the 2025 Recycled Polyester Challenge
our impact on people and the planet, connected, or potentially connected, ­(Textile Exchange). Reaching our ambition starts with how we design our
to our raw material production. It then determines appropriate measures products and choose materials to work with when planning our collections.
to prevent or mitigate these impacts, based on their likelihood and severity. Our target is to use 100 percent recycled or sustainably sourced materials
In 2024, we strengthened our due diligence procedures in raw material in our commercial products by 2030, ideally with at least half coming from
­sourcing and partnered with standard owners and other stakeholders on ­recycled sources.
due diligence. We have also applied these learnings to how we work with Our products also need to be protected when travelling between our
other standards and partners. ­suppliers, distribution centres, stores and customers. We have set targets
to reduce our plastic packaging volume by 25 percent by 2025, against a 2018
Policies and procedures baseline, and use 100 percent recycled or sustainably sourced packaging
H&M Group’s commitment to reduce its dependence on materials and de­­ materials by 2030.
couple its growth from resource use and extraction is set out in our environ- To reach these targets, we use materials for our products and packaging
mental policy, which applies to all entities within the H&M Group. The ­policy that are recycled or sustainably sourced. We also invest in innovative mate­
adress matters related to the use of material resources, circularity, waste rials and processes, such as dyeing, printing and finishing, and recycling
prevention and management in our own operations and supply chain. infrastructure. Additionally, we support scaling regenerative agricultural
To further guide our sustainability work, we align with the Ellen MacArthur practices and enhance technology to improve impact data and material
Foundation and its definition of a circular economy which includes eliminat- traceability. Finally, we collaborate with our suppliers and the wider fashion
ing waste and pollution, circulating products and materials at their highest industry to promote the production and sourcing of recycled and sustainably
sourced materials.

Our focus areas for resource use and circularity

We focus on increasing the use of recycled or sustainably sourced materials across our value chain.
Materials Through investment and industry collaboration, we help to scale innovative and alternative materials
and reduce the impact of the materials we use.

By optimising our assortment planning and aligning production with demand, we reduce waste and improve
Business
resource efficiency across our supply chain.
optimisation

We strive to maximise the value of resources and products by keeping them in use for longer. We do this by
Product and
­ mbedding circular principles into the design of our products and packaging, ensuring they are used for longer
e
packaging design
and easier to reuse and recycle.

Through customer-facing circular business models we aim to offer customers ways to prolong the life of our
Extending
­products, keeping them in use for longer and reducing waste.
customer use

We focus on reducing waste where possible and ensuring that our waste is properly handled in line with the
Re-Down (recycled down and Waste prevention
waste hierarchy. We aim for zero waste to end up in landfills, and that we recirculate products and materials
feathers) collection from ARKET. and ­management
at their highest value.

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Investing in new sourcing and recycling technologies we plan our assortments, and how we engage with our customers. We use Scaling customer-facing circular business models tions and supply chain that were identified as having the largest negative
To increase the availability of recycled or sustainably sourced materials customer insights, AI and digital product creation to better align production We continue scaling customer-facing circular business models to reach our impacts and risk. These are product waste1 and packaging waste in own
and make them more affordable, we support the development, testing and with demand and optimise the distribution of our products across our stores, ambition. By giving customers access to services and guidance that helps to ­operations, textile cutting waste in supply chain, and textiles collected from
scaling of alternative materials and recycling infrastructure at various stages. ­distribution centres and sales markets. This shortens lead times, optimises extend the use of products, we contribute to new, more resource-efficient, customers through our garment collecting programme. To manage waste
We also collaborate with industry partners to drive wider adoption. size availability, and achieves higher sell-through and stock turnover. revenue streams, reduce waste and maximise the value of the materials we effectively, we track data from our collection, sorting and waste management
In 2024, H&M Group spent SEK 1.7 billion on decarbonisation activities use. Today, we offer a range of resell, repair and rental services across the partners. We have strengthened our governance structures for priority waste
across the value chain, for example replacing conventional materials with Design of products and packaging group and we have increased access to resell services across our brands in streams, ensuring robust reporting in line with upcoming legislation. All part-
recycled or sustainably sourced materials which stand for the bigger part of We take action to reduce our use of materials, increase our resource 2024. Sellpy, our online ­platform for customers to sell and buy used products ners receive training to report accurately and provide accurate control docu-
the spend, as well as phasing out fossil fuels and supporting energy effi- ­efficiency, and scale circular solutions – starting with how we design our and clothes, continued to expand. In 2024, sales from resell increased, repre- ments. To increase operational efficiency and visibility connected to our
ciency initiatives. Read more about our energy initiatives on pages 60–63. products. The lack of industry definitions and standards is a ­significant senting 0.6 percent of H&M Group’s total turnover. We have also joined Ellen product waste and garment collecting programme in Europe, we partnered
In addition, together with Vargas Holding, we launched Syre, a venture to ­challenge in the scale-up of circular design practices for commercial MacArthur Foundation’s Re-model Initiative – a project involving leading with Looper Textile Co.
scale textile-to-textile recycled polyester. We also invested in Galy, a sustain- ­products. We still remain committed to design products and packaging brands that aims to identify solutions and remove barriers to scale customer- To increase the recycling of textile cutting waste we build networks of
able agriculture startup, that aims to make lab-grown cotton a reality. The fit for a circular economy. We intend to set design targets for commercial facing circular business models. recyclers and provide guidelines to our suppliers to optimise and recirculate
company has developed a minimum-viable product and is working to both products once the relevant legislation becomes clear. post-industrial, pre-consumer textile waste.
enhance the product’s quality parameters and scale up production. We con- For packaging, we have already made significant progress towards our Increase share of waste directed to reuse and recycling We prevent and reduce waste by designing for durability and recyclability,
tribute to projects to fill industry gaps in current GHG emission factors and ­target to design all our plastic packaging for reuse and recycling by 2025. Waste is a significant global issue which requires systemic solutions. Scaling through business optimisation, and by extending material and product use.
other crucial impact data for key fibres and raw materials. For instance, for In the meantime for commercial goods, we continue to increase the share systems which enables the recirculation of materials and infrastructure to We continue to increase the share of packaging made of paper and cardboard,
cotton, our largest fibre by volume, we support a life cycle assessment (LCA) of products and collections designed according to circular design principles, better manage resource outflows is critical to ultimately decreasing our replacing packaging made of plastic materials. This improves re­­cyclability of
baseline study with Textile Exchange and other brands, as well as an OCA and the expected, incoming requirements on for example durability and re­­ dependence on the extraction of raw materials and reducing our environmen- packaging materials and therefore helps to increase the share of packaging
LCA study on environmental impacts of OCA’s cotton cultivation in India. cycled content. We also analyse and improve physical durability parameters tal footprint. Guided by the Ellen MacArthur Foundation’s ­circular economy waste going to recycling.
We are piloting Better Cotton traceability in 2024 together with our based on potential eco-design requirements to increase physical perfor- principles and the EU Waste Hierarchy, we aim to circulate products and
­suppliers to secure learnings for future scale up. We have also increased mance and extend the life­cycle of our textile products. materials at their highest value, and ultimately, for zero waste to end up in
the volume of traceable material using the Textile Genesis platform for We work with brands and experts such as the Circular Design Consortium landfills. This means preventing and reducing waste and increasing the share
­man-made cellulosic fibres and polyester. and Ellen MacArthur Foundation, to explore circular design strategies, scale of waste being effectively handled and reintroduced into supply chains for 1 . Products discarded in our own operation (in stores or in distribution centres) are
circular product design, share insights, and tackle shared challenges. As a reuse and recycling, in line with our environmental policy. included in the scope. The majority of these are damaged products returned ­in-store
or online, or products damaged during transport or with a production fault. This
Increased use of circular design principles and access to resell voting-member of the PEFCR Apparel & Footwear technical secretariat, we To mitigate our negative impacts on the environment, our waste manage- includes but is not limited to textile products – garment and home, accessories,
Resource efficiency and optimisation starts with how we plan, design help shape a harmonised EU methodology to communicate product-level ment strategy focuses primarily on three waste streams in our own opera- hardware products, beauty and chemical products (e.g. candles).
and develop our products and packaging. This is closely linked to how impact and use the framework to enhance transparency.

Our product materials The way our strategy aligns with the EU waste hierarchy

We use a broad range of materials to produce our Product material basket 1

goods such as cotton, polyester and man-made Business optimisation Materials Product and packaging design
cellulosic fibres. Our material basket shows the Optimise assortment Increase use of Embed circular principles
Leather, 0.1%
proportion of different materials used in our planning and align recycled materials into design of products
Wool, 1% Cotton, 55% Prevention – No waste generated ¹ production with demand and packaging
products. Cotton represents the largest share of
our materials basket followed by polyester and Polyamide, 4%
man-made cellulosic fibres. We pri­oritise finding Extending customer use
alternatives for the materials with the largest Other materials², 10% Offer customers ways
negative impact on the environment such as to prolong the life of
Wood and man-made their garments
­cotton, polyester, wood-based and animal-­
cellulosic fibres, 8% Reuse
derived materials and wool.
Here we share the breakdown of materials
included in our c
­ ommercial products. This does Polyester, 22%
not include materials for packaging.
Recycling
Waste management
Ensure our waste is
properly handled in line
with the waste hierarchy
Recovery
1. This includes commercial products shell fabric materials, hence
does not include materials used as filling, lining or trims on garments.
Figures do not add up to 100 percent due to rounding.
2. Includes commercial products shell fabric materials such as acrylic,
linen, jute and elastane. Waste We prioritise actions towards the top of the pyramid following the criteria
disposal set out in the EU waste hierarchy, which prioritises prevention and reuse
before recycling – circulating products and material at their highest value.

1. Waste prevention is addressed at the top tier of the pyramid.

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Shares of recycled or sustainably sourced materials in commercial products and packaging

% Target 2024 2023 2022

RESOURCE INFLOWS
Share of recycled or sustainably sourced materials1 in commercial products2 3 ,
Progress towards targets in 2024 For sustainably sourced materials we continued to increase the
We continued to increase the share of recycled and sustainably share of wool certified to the Responsible Wool Standard (RWS) Recycled or sustainably sourced materials1 100% by 2030 89 83 82
sourced materials. In 2024, 89 percent of the materials used for our as well as the share of sustainably sourced man-made cellulosic Recycled materials 30% by 2025 29.5 27 24
commercial products were recycled or sustainably sourced, which is fibres and FSC certified wood and wood-based materials, for both 50% by 2030
well on track towards our 2030 goal. commercial products and for packaging. Sustainably sourced materials1 – 59 57 58
For packaging most of the materials used are paper and cardboard. The increase in total material weight for commercial products Cotton that is recycled, organic, or other sustainably sourced4 (total) Maintain 100% 100 100 100
We continued to increase the shares of recycled or sustainably sourced ­during 2024 is an effect of change in assortment mix and our
Cotton that is recycled – 12 11 10
materials and plastic packaging designed for reuse and ­recycling. ­customer offer.
In 2024, 29.5 percent of materials used in our commercial products We reduced the volume of packaging from the previous year, Cotton that is organic – 12 12 13
came from recycled sources, almost reaching our 30 percent target a mainly by streamlining retail and transport packaging. Plastic Other sustainably sourced cotton4 – 76 77 77
year early. This success was mainly due to an increase in the share of ­packaging decreased by 54 percent compared with 2018, sur­ Recycled polyester 100% by 2025 94 79 75
recycled polyester. In 2024, 94 percent of all polyester used was re­­ passing our 25 percent reduction target for 2025 ahead of Mohair that is certified to the Responsible Mohair Standard (RMS) or coming Maintain 100% 100 100 100
cycled, showing significant progress towards our 2025 target of using ­schedule. The slight increase in plastic use compared with 2023 from recycled sources
100 percent recycled materials. For packaging, we increased the share was driven by an increased share of online shipments in 2024. Virgin wool that is certified to the Responsible Wool Standard (RWS) 100% by 2025 87 67 62
of recycled materials to 52 percent. This increase was mainly driven
Virgin cashmere that is certified to the Good Cashmere Standard (GCS) 100% by 2025 100 99 99
by our continued priority to use recycled plastic.
Down sourced that is recycled5 100% by end of 2025 94 N/A N/A
Leather products produced with chrome-free tanned leather, 100% by 2025 89 83 75
including vegetable tanned leather and metal-free leather
Virgin MMCF that is certified to the FSC or PEFC standards 100% by 2025 91 77 73
Virgin wood based materials that is certified to the FSC 100% by 2025 92 78 73

Weight of material in commercial products and packaging Share of recycled or sustainably sourced material in packaging
Recycled or sustainably sourced packaging material 100% by 2030 84 79 71
Tonnes 2024 2023 2022
Recycled packaging material – 52 49 33
Total weight of material in commercial products1, 2 and packaging materials 619,004 608,805 673,856 Recycled paper and cardboard packaging material – 51 50 28
Weight of material in commercial products Recycled plastic packaging material – 76 69 62
Total weight of commercial products3 384,742 375,642 411,292 Sustainably sourced virgin paper and cardboard​packaging material1 100% by 2025 83 76 69
(from FSC certified sources)
Total weight of material in commercial products2 524,739 512,486 561,087
Total weight of recycled material in commercial products 154,914 135,721 135,133 1. The definition of recycled and sustainably sourced is available at hmgroup.com/sustainability/circularity-and-climate/materials.
Total weight of recycled and sustainably sourced material used in commercial products 465,008 427,651 461,378 2. C ommercial materials KPIs (except the KPI for down) include commercial goods shell fabric materials, hence does not include materials used as filling, lining or trims
on garments. Not all sustainably sourced materials can be naturally grown or cultivated, i.e. minerals or stones. In these instances, we set up material-specific requirements
Weight of material in packaging4 to secure sustainable sourcing.
3. Due to an update of waste weight factors for all major materials during 2024, there is a change in historical data for material KPIs.
Total weight of packaging material 94,265 96,319 112,769
4. Other sustainably sourced cotton: Sustainably sourced cotton includes cotton sourced through Better Cotton (BC), in-conversion, organic cotton, regenerative cotton,
Total weight of recycled packaging material 49,054 47,625 37,077 and cotton from other innovative sources.
Total weight of recycled or sustainably sourced packaging material 79,508 76,076 80,275 5. New KPI set in 2024.

1. This includes commercial products shell fabric materials, hence does not include materials used as filling, lining or trims on garments.
2. Material weight = including waste generated during production.
3. Product weight = excluding waste generated during production, including filling, lining or trims on garments. Plastic packaging
4. This includes material in weight used to produce all our packaging used. Historic comparable packaging data is available from 2022,
due to a change in our data scope – previously some packaging within our value chain was unreported. % Target 2024 2023 2022

Share of material in plastic packaging

Plastic packaging designed1 for reuse or recycling 100% by 2025 89 87 78
Change in overall plastic packaging volume compared with baseline (2018) – 25% by 2025 –54 –55 –40
Change in overall plastic packaging volume compared with previous year 1 –24 –14

1. The methodology used in previous years to measure the percentage of plastic packaging designed for recycling has been corrected in accordance with the Ellen MacArthur
­Foundation’s ­Recyclability Assessment Tool, to include all products designed to be technically recyclable if a recycling system exists.

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<<Contents Sustainability report/Environment/Resource use and circularity

RESOURCE OUTFLOW
Progress towards targets in 2024 We increased the share of packaging waste handled in distribution
We continue to increase resell in both markets and stores. Resell is ­centres going to reuse or recycling. Accurate waste data is crucial for
now offered in 26 markets and in 38 stores, available through Sellpy, effective waste management. During 2024 we have further worked to
H&M, ARKET, COS and Weekday (including Monki). In 2024 0.6 percent improve the data collection process with our partners enhancing data
of our turnover came from resell. Although this represents a small accuracy and granularity. In 2023 we changed partners for garment
share of our total business, we believe it is on par with or above the collecting which enabled further improvement in data granularity and
industry average for companies offering resell alongside their con­ accuracy affecting comparability with 2022 and 2023 data. Despite
ventional assortments. Additionally, this share has doubled since 2022, challenges with data comparability, we believe the reported increase in
and we aim to increase resell across H&M Group. disposal is mainly due to this improved data accuracy and the improved
For product waste we changed to new KPIs during 2024 to align with processes to collect, track and follow up data. We will continue improv-
reporting requirements, which means that there is no com­parability ing our systems and operations to handle waste more efficiently.
with data from previous years.

Resell
2024 2023 2022

Number of selling markets where we offer resell 26 25 24

Share of selling markets where we offer resell, % 30 29 28
Number of stores where we offer resell 38 24 12
Share of stores where we offer resell, % 0.9 0.6 0.3
Share of H&M Group turnover coming from resell, % 0.6 0.4 0.3

Waste generated in own operations1

2024 2023 2022

Share of product waste2 as share of total weight of commercial products3, % 0.7 N/A N/A
Share of product waste2 directed for reuse or recycling3, % 95 N/A N/A
Share of product waste2 directed to incineration, landfill or other disposal3, 4, % 5 N/A N/A
Share of packaging waste5 directed for reuse or recycling, % 93 90 92
Share of packaging waste5 directed to incineration, landfill or other disposal, % 7 10 8

Garment collect
2024 2023 2022

Total weight of garments collected through in-store6 garment collect programme (in tonnes) 17,100 16,855 14,768
Share of garments collected directed for reuse7, % 66 688 55
Share of garments collected directed for recycling7, % 24 24 37
Share of garments collected that, as a last resort, had to be disposed of another way, 10 8 8
prioritising incineration for energy recovery before other disposal methodsl7, 9, 10, %

1. Generated in own operations = product waste and packaging waste.

2. Product waste = products discarded in our own operation (in stores or in distribution centres) are included in the scope. The majority of these are damaged products
returned ­in-store or online, or products damaged during transport or with a production fault. This includes but is not limited to textile products – garment and home,
accessories, hardware ­products, beauty and chemical products (e.g. candles).
3. New KPIs compared with previous years, hence data not comparable.
4. Items are only destroyed if considered hazardous waste, if contaminated, or if there is no viable recycling or downcycling solution. The lack of solutions may be due to
the absence of technology to recycle certain product types, for example certain beauty products or hard goods such as ceramics or infrastructure gaps in specific locations.
5. Packaging waste = We report on all packaging waste handled in our distribution centres; transport packaging, online return packaging, product packaging and pallets.
It is mainly paper, cardboard, wood and plastic packaging material.
6. The data covers all in-store garment collect excluding franchise.
7. The share of garments redirected to each end destination is based on an average for each sorting facility excluding garments collected in Japan and Mainland China.
8. Due to a change in collection partner in 2023, we have not been able to disaggregate reuse as a product from reuse as a material.
9. If all options in the waste hierarchy have been explored and none of them, including incineration, are possible, then the products will be disposed of other means
of responsible d ­ isposal as permitted by law at an official site for waste disposal.
10. We have improved data collection and data accuracy from our partners. In 2023, we changed our collection partner and during 2024 we increased data accuracy for disposal.
Both factors affect data comparability with previous years reporting.

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<<Contents Sustainability report/Environment/EU Taxonomy reporting

Reporting in line with Article 8

of the EU Taxonomy Regulation
In 2024, as in past years, H&M Group performed an inventory of its economic Alignment assessment Pollution prevention sections of the annual and sustainability report to read how H&M Group
activities according to Article 8 of the EU Taxonomy Regulation. In particular, Based on the analysis carried out, H&M Group has assessed the economic The energy-efficient light sources and materials used in the project to tran­ addresses each area set by the EU Taxonomy minimum safeguards:
H&M Group´s activities to mitigate climate change and towards a circular activities CE 5.4 and CCM 7.3 to be aligned. sition to LED lighting conform to the requirements in Appendix C ‘Generic
economy have been analysed for eligibility and alignment based on Turnover, ­criteria for DNSH to pollution prevention and control regarding use and • Human rights policy – see policies and commitments guiding our
CapEx and OpEx. CE 5.4 ­presence of chemicals’. LED luminaires contain no mercury, which not only ­operations (page 108)
Compliance with the technical screening criteria of substantial eliminates the risk of environmental damage during waste disposal but also • Human rights due diligence and risk assessment – see management of
Accounting principles ­contribution to circular economy minimises the potential risks for those who handle the lighting products. sustainability matters (page 54)
Turnover The economic activity consists of selling a second-hand product that has
• Addressing human rights impacts – see targets and actions in each social
Total turnover corresponds to net sales in the consolidated income state- been used for its intended purpose by a customer. The packaging used by Compliance with the minimum safeguards
chapter (pages 94–95, 97–99, 102, 103)
ment in the financial report. For further information about turnover, please Sellpy meets the requirement of at least 65 percent of recycled material. For any economic activity to be considered as aligned, it must be carried out
see the H&M Group income statement on page 120. A waste management plan is not required since the product is not repaired, in accordance with OECD Guidelines for Multinational Enterprises and the • Human rights communication – see salient human rights issues
refurbished or remanufactured before reselling. UN Guiding Principles on Business and Human Rights. In 2023, H&M Group ­assessment (pages 92–93)
CapEx conducted a requirement mapping that resulted in the alignment with the • Grievance mechanisms – see policies and commitments guiding our
Total CapEx corresponds to additions to balance sheet items including CE 5.4 minimum safeguards. In 2024, H&M Group ensured that each requirement ­operations (page 108)
­property, plant and equipment and intangible assets, before depreciation, Compliance with the technical screening criteria of not causing was fulfilled. H&M Group applies robust due diligence to its operations and • Consumer interests – see consumers and end-users chapter (page 103)
amortisation or impairment and excluding any translation effects, as speci- ­significant harm (DNSH) business decisions, making it possible to identify, prevent, mitigate and rem-
fied in note 14 and 15 to the consolidated balance sheet, complemented by Climate change mitigation • Anti-corruption – see business conduct chapter (pages 105–106)
edy, where necessary, any impact on the economy, the environment and the
additions/changes in IFRS16 classified right of use assets as specified in In line with the criteria, the direct GHG emissions coming from on-site people (including any impact on human rights). Please refer to the following • Competition and tax policy – see corporate governance report (page 50)
note 17 to the consolidated balance sheet. For further information about ­generation of heat/cool or co-generation including power (i.e., from the
CapEx, please see the H&M Group balance report on page 122. warehouses that handle Sellpy´s operations) are lower than 270 gCO₂e/kWh.
As part of the efforts to reduce emissions, the H&M Group climate strategy
OpEx covers scope 1 and 2 of Sellpy´s emissions.
In H&M Group’s reporting, total OpEx includes repair and maintenance, as
Nuclear energy and fossil gas
well as R&D expenses. For further information about OpEx, please see the Climate change adaptation
H&M Group income statement on page 120. H&M Group performed its first risk analysis following the Task Force on
­Climate-related Disclosures (TCFD) recommendations in 2019. This analysis Row Nuclear energy related activities
Eligibility assessment has since been updated annually. The outcome of this risk analysis is reported 1. The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative No
Based on the analysis carried out, H&M Group considers the following eco- in our TCFD report, pages 85–89. The TCFD risk analysis and our materiality electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
nomic activities to be eligible according to EU Taxonomy regulation in 2024: assessment cover also our aligned activities. 2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce No
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production,
• Circular Economy (CE) 5.4 Sale of second-hand goods The turnover of Water and marine resources as well as their safety upgrades, using best available technologies.
Sellpy, which is a digital platform for second-hand fashion and other There is no relevant use of water and chemicals in the processes 3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity No
second-hand items, consists of the sale of second-hand goods. As a result, owned by Sellpy. or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
its turnover falls under economic activity 5.4. The description of economic
activity 5.4 under the circular economy delegated act states that only Pollution prevention
Fossil gas related activities
second-­hand goods used for intended purpose by customers shall be There is no relevant use of chemicals in the processes owned by Sellpy.
4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that No
included. Therefore, only products that are considered second-hand ­produce electricity using fossil gaseous fuels.
and supplied by ­customers have been considered and included in our CCM 7.3
Compliance with the technical screening criteria of substantial 5. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of combined heat/cool No
­taxonomy report. and power generation facilities using fossil gaseous fuels.
­contribution to climate change mitigation
• Climate Change Mitigation (CCM) 7.3 Installation, maintenance and repair 6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities No
The economic activity related to the transition to energy efficient LED
of energy efficient equipment H&M Group is undertaking various energy that produce heat/cool using fossil gaseous fuels.
sources aligns with the installation and replacement of energy-efficient
efficiency projects, many of which are immaterial or of a financial support,
light sources and complies with the minimum requirements set for individual
rather than of an investment, nature. H&M Group has, however, continued
components and systems in the applicable national measures implementing
to invest in changing all store lights to energy-efficient LED sources in all
Directive 2010/31/EU and rated in the highest two populated classes of
H&M Group stores. This ­project falls under the EU Taxonomy economic
energy efficiency in accordance with Regulation (EU) 2017/1369 and dele-
activity 7.3 installation, maintenance and repair of energy efficient equip-
gated acts adopted under that regulation.
ment under climate change mitigation delegated act and is therefore
included in our taxonomy reporting. Since 2020, we have undertaken
CCM 7.3
as­ ignificant initiative to transition to LED lighting in all our stores.
Compliance with the technical screening criteria of not causing
• Climate Change Mitigation (CCM) 7.7 Acquisition and ownership of build- ­significant harm (DNSH)
ings H&M Group owns a limited number of buildings and no new buildings Climate change adaptation
have been acquired during 2024. Any eligible activities related to new and H&M Group performed its first risk analysis following the Task Force on
acquired buildings have therefore been deemed immaterial. H&M Group ­Climate-related Disclosures (TCFD) recommendations in 2019. This analysis
does, however, have an extensive amount of right of use assets, as all H&M has since been updated annually. The outcome of this risk analysis is reported
Group’s store locations are leased. All of H&M Group’s new or renegotiated in the TCFD report, pages 85–89. The TCFD risk analysis and our materiality
right of use assets fall under the EU Taxonomy economic activity 7.7 acqui- assessment cover also our aligned activities.
sition and ownership of building under climate change mitigation delegated
act and are therefore included in our taxonomy reporting.

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<<Contents Sustainability report/Environment/EU Taxonomy reporting

TURNOVER DNSH criteria CAPEX DNSH criteria

Financial year 2024 Year Substantial contribution criteria (‘Does Not Significantly Harm’) Financial year 2024 Year Substantial contribution criteria (‘Does Not Significantly Harm’)

Economic Activities (1) Economic Activities (1)

Code1 (2)

Turnover (3)

year N (4)
Proportion of turnover,

mitigation (5)
Climate change

adaptation (6
Climate change

Water (7)

Pollution (8)

Circular e

Biodiversity (10)

mitigation (11)
Climate change

adaptation (12)
Climate change

Water (13)

Pollution (14)

Circular e

Biodiversity (16)

Minimum s

(A.2.) turnover, year N-1 (18)

aligned (A.1.) or -eligible
Proportion of Taxonomy-­

activity (19)
Category enabling

­ ctivity (20)
a
Category ­transitional

Code1 (2)

CapEx (3)

year N (4)
Proportion of CapEx,

mitigation (5)
Climate change

adaptation (6)
Climate change

Water (7)

Pollution (8)

Circular e

Biodiversity (10)

mitigation (11)
Climate change

adaptation (12)
Climate change

Water (13)

Pollution (14)

Circular e

Biodiversity (16)

Minimum s

(A.2.) CapEx, year N-1 (18)

aligned (A.1.) or -eligible
Proportion of Taxonomy-­

activity (19)
Category enabling

­ ctivity (20)
a
Category ­transitional
­ conomy (9)

­ conomy (15)

­ conomy (9)

­ conomy (15)
­ afeguards (17)

­ afeguards (17)
Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; Y; N;
SEK m % N/EL2 N/EL2 N/EL2 N/EL2 N/EL2 N/EL2 Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T SEK m % N/EL2 N/EL2 N/EL2 N/EL2 N/EL2 N/EL2 Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T

A. TAXONOMY-ELIGIBLE ACTIVITIES A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy-aligned) A.1. Environmentally sustainable activities (Taxonomy-aligned)

Sale of second-hand goods CE 5.4 1,449 0.6% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y – Y Y – – – Installation, maintenance
and repair of energy
Turnover of environmentally ­efficient equipment CCM 7.3 145 1.0% Y N/EL N/EL N/EL N/EL N/EL – Y – Y – – Y 2.5% E –
­sustainable activities 1,449 0.6% – – – – 0.6% – – – – – – – – –
(Taxonomy-aligned) (A.1) CapEx of environmentally
sustainable activities 145 1.0% 1.0% – – – – – – Y – Y – – Y 2.5%
Of which enabling – – – – – – – – – – – – – – – – E (Taxonomy-aligned) (A.1)

Of which transitional – – – – – – – – – – – T Of which enabling 145 1.0% 1.0% – – – – – – Y – Y – – Y 2.5% E

A.2. Taxonomy–eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Of which transitional – – – – – – – – – – – T

EL; EL; EL; EL; EL; EL; A.2. Taxonomy–eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
N/EL3 N/EL3 N/EL3 N/EL3 N/EL3 N/EL3
EL; EL; EL; EL; EL; EL;
Sale of second-hand N/EL3 N/EL3 N/EL3 N/EL3 N/EL3 N/EL3
– – N/EL N/EL N/EL N/EL N/EL N/EL 0.4%
goods
Acquisition and ownership
Turnover of Taxonomy- of buildings CCM 7.7 2,453 17.6% EL N/EL N/EL N/EL N/EL N/EL 16.3%
eligible but not environ‑
mentally sustainable – – – – – – – – 0.4% CapEx of Taxonomy-­eligible but
activities (not Taxonomy- not environmentally sustainable
2,453 17.6% 17.6% – – – – – 16.3%
aligned activities) (A.2) ­activities (not Taxonomy-
aligned activities) (A.2)
A. Turnover of Taxonomy-
1,449 0.6% – – – – 0.6% – 0.4% A. CapEx of Taxonomy-
eligible activities (A.1+A.2) 2,598 18.6% 18.6% – – – – – 18.8%
eligible activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-
non-eligible activities 233,029 99.4% CapEx of Taxonomy-
non-eligible activities 11,381 81.4%
TOTAL 234,478 100.0%
TOTAL 13,979 100.0%

Proportion of turnover 1. The code constitutes the abbreviation of the relevant objective Proportion of CapEX 1. The code constitutes the abbreviation of the relevant objective
/Total turnover to which the economic activity is eligible to make a substantial /Total CapEx to which the economic activity is eligible to make a substantial
Taxonomy-aligned Taxonomy-eligible contri­bution, as well as the section number of the activity in the Taxonomy-aligned Taxonomy-eligible contri­bution, as well as the section number of the activity in the
per objective per objective relevant Annex covering the objective, i.e.: per objective per objective relevant Annex covering the objective, i.e.:
• Climate change mitigation: CCM • Climate change mitigation: CCM
CCM 0.0% 0.0% • Climate change adaptation: CCA CCM 1.0% 18.6% • Climate ahange adaptation: CCA
• Water and marine resources: WTR • Water and marine resources: WTR
CCA 0.0% 0.0% • Circular economy: CE CCA 0.0% 0.0% • Circular economy: CE
WTR 0.0% 0.0% • Pollution prevention and control: PPC WTR 0.0% 0.0% • Pollution prevention and control: PPC
• Biodiversity and ecosystems: BIO • Biodiversity and ecosystems: BIO
CE 0.6% 0.6% CE 0.0% 0.0%
PPC 0.0% 0.0% 2. Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with PPC 0.0% 0.0% 2. Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with
the ­relevant environmental objective. the ­relevant environmental objective.
BIO 0.0% 0.0% N – No, Taxonomy-eligible but not Taxonomy-aligned activity BIO 0.0% 0.0% N – No, Taxonomy-eligible but not Taxonomy-aligned activity
with the relevant environmental objective. with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the N/EL – Not eligible, Taxonomy-non-eligible activity for the
­relevant environmental objective. ­relevant environmental objective.

3. EL, Taxonomy-eligible activity for the relevant objective. 3. EL, Taxonomy-eligible activity for the relevant objective.
N/EL, Taxonomy-non-eligible activity for the relevant objective. N/EL, Taxonomy-non-eligible activity for the relevant objective.

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<<Contents Sustainability report/Environment/EU Taxonomy reporting

TCFD climate risk analysis

Governance Following this screening, a refined list of key risks underwent a high-level
OPEX DNSH criteria Climate is one of H&M Group’s key impact areas which is also included in financial assessment to identify those with material financial impacts. Six
Financial year 2024 Year Substantial contribution criteria (‘Does Not Significantly Harm’)
our corporate risk review process. The global sustainability department risks and one opportunity were further assessed and modelled in detail, pro-
Economic Activities (1) drives the group’s climate and sustainability strategy, integrating it into viding a clear picture of the potential financial risks across different climate
Code1 (2)

OpEx (3)

year N (4)
Proportion of OpEx,

mnitigation (5)
Climate change

adaptation (6)
Climate change

Water (7)

Pollution (8)

Circular e

Biodiversity (10)

mitigation (11)
Climate change

adaptation (12)
Climate change

Water (13)

Pollution (14)

Circular e

Biodiversity (16)

Minimum s

(A.2.) OpEx, year N-1 (18)

aligned (A.1.) or -eligible
Proportion of Taxonomy-­

activity (19)
Category enabling

­ ctivity (20)
a
Category ­transitional
daily operations. This analysis follows the TCFD recommendations, cover- scenarios and time horizons. Based on this process, we believe these poten-
ing ­different climate scenarios and time horizons. For more information tial events cover the plausible financial risks and uncertainties that we are

­ conomy (9)

­ conomy (15)
about H&M Group’s risk management process, see pages 49–51. exposed to in the short to long-term.

­ afeguards (17)
Strategy Climate scenarios
H&M Group has conducted its climate risk analysis following the TCFD Three climate scenarios were analysed to capture possible future outcomes,
­recommendations since 2019, which has been updated annually. During including an optimistic, low temperature increase and a pessimistic, high
2024, H&M Group has made an in-depth revision of the previous climate temperature increase:
Y; N; Y; N; Y; N; Y; N; Y; N; Y; N; risk analysis and related assessments to include relevant considerations
SEK m % N/EL2 N/EL2 N/EL2 N/EL2 N/EL2 N/EL2 Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T • Net zero 2050, in line with 1.5°C (SSP1-2.6): Low emissions, fewer physical
connected to CSRD. This updated analysis uses the growing set of tools, events but more transition risks such as carbon taxes.
A. TAXONOMY-ELIGIBLE ACTIVITIES data and practices available for these types of assessments and is based
• Delayed transition, less than 3°C (SSP2-4.5): Moderate emissions with
on an evaluation of our full value chain, across three climate scenarios for:
­balanced risks.
A.1. Environmentally sustainable activities (Taxonomy-aligned) • Potential financial impacts of climate risks and opportunities.
• Hot house, more than 3°C (SSP5-8.5): High emissions, more severe
• Effects on the business model and financial planning. ­physical risks but fewer immediate transition impacts.
Sale of second-hand goods CE 5.4 914 0.7% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y – Y Y – – –
• Resilience of the company’s strategy.
OpEx of environmentally
Transition risks were also assessed using scenarios from Network for
sustainable activities 914 0.7% – – – – 0.7% – – – – – – – – –
(Taxonomy-aligned) (A.1) Process of identifying and assessing potential financial effects ­Greening the Financial System (NGFS), e.g. NiGEM NGFS v1.23.2
We assessed climate-related physical risks and climate-related transition [GCAM 6.0 NGFS].
Of which enabling – – – – – – – – – – – – – – – – E
risks and opportunities across three different time horizons: short, medium
Of which transitional – – – – – – – – – – – T and long-term. Time horizons
Physical events including flooding, extreme temperatures, extreme rain- The assessment considered three different time horizons:
A.2. Taxonomy–eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
fall, drought, wildfires, cyclones, and water stress were evaluated alongside • Short term (within 1 year): Aligns with short-term financial planning.
EL; EL; EL; EL; EL; EL; transitional events including changes to legislation, market shifts,
N/EL3 N/EL3 N/EL3 N/EL3 N/EL3 N/EL3 • Medium term (within 1 to 5 years): When most risks are expected to
reputational effects and technological events. These risks were assessed
emerge.
Sale of second-hand goods CE 5.4 – – N/EL N/EL N/EL N/EL EL N/EL 0.6% across stores, warehouses, logistics, supplier sites and sourcing regions.
• Long term (in around 15 years): Aligns with H&M Group’s long-term
OpEx of Taxonomy-­ ­net zero targets.
eligible but not environ-
mentally sustainable – – – – – – – – 0.6%
activities (not Taxonomy-
aligned activities) (A.2)

A. OpEx of Taxonomy
914 0.7% – – – – 0.7% – 0.6%
­eligible activities (A.1+A.2)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES RISK AND OPPORTUNITY SUMMARY

OpEx of Taxonomy- Below is a summary of the most significant financial effects. These include four climate-related physical risks,
non-eligible activities 128,534 99.3%
two climate-related transition risks and one financial opportunity.
TOTAL 129,448 100.0%
Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years)
Delayed Delayed Delayed
Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House
Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C)

Physical risk
Increased price
Low Low Low High High High High High Critical
Proportion of OpEX 1. The Code constitutes the abbreviation of the relevant objective of cotton
/Total OpEX to which the economic activity is eligible to make a substantial
Disturbances to key ports
Taxonomy-aligned Taxonomy-eligible contri­bution, as well as the section number of the activity in the Low Low Low Low Low High Low High High
relevant Annex covering the objective, i.e.: impacting sales negatively
per objective per objective
• Climate change mitigation: CCM Multiple climate events
• Climate change adaptation: CCA Low Low Low Low Low Low High High High
CCM 0.0% 0.0% increasing sourcing costs
• Water and marine resources: WTR
CCA 0.0% 0.0% • Circular economy: CE Water scarcity increasing
• Pollution prevention and control: PPC Low Low Low Low Medium Medium Low Medium Medium
WTR 0.0% 0.0% sourcing costs
• Biodiversity and ecosystems: BIO
CE 0.7% 0.7%
Transition risks
PPC 0.0% 0.0% 2. Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with
the ­relevant environmental objective. Carbon taxes or tolls
BIO 0.0% 0.0% Low Low Low Low Low Low High High High
N – No, Taxonomy-eligible but not Taxonomy-aligned activity ­increasing sourcing costs
with the relevant environmental objective.
N/EL – Not eligible, Taxonomy-non-eligible activity for the Reputational risks ­impacting
Low Low Low Medium Medium Medium Medium Medium Medium
­relevant environmental objective. sales negatively
3. EL, Taxonomy-eligible activity for the relevant objective. Opportunities
N/EL, Taxonomy-non-eligible activity for the relevant objective.
Resell Low Low Low Medium Medium Medium High High High

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<<Contents Sustainability report/Environment/TCFD climate risk analysis

PHYSICAL RISK 1 – INCREASED PRICE OF COTTON PHYSICAL RISK 3 – MULTIPLE CLIMATE EVENTS INCREASING SOURCING COSTS

Droughts, flooding and other climate-related impacts could influence cotton farming negatively, causing increased price of cotton leading to increasing A range of acute and chronic climate-related events occurring simultaneously could lead to national or local societal disruption in key production markets.
sourcing costs. This could impact both suppliers’ production and people in the supply chain.

Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years) Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years)
Delayed Delayed Delayed Delayed Delayed Delayed
Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House
Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C)

Financial risk Low Low Low High High High High High Critical Financial risk Low Low Low Low Low Low High High High

Potential effects Potential effects

A large proportion of H&M’s raw materials sourcing costs are attributed to cotton, and virgin cotton is a critical resource for the business. The majority Exposure to multiple climate events simultaneously can contribute to the destabilisation of regional, national or local economies and communities.
of cotton used is sourced in regions which are at high risk of disruption from climate change from a variety of events such as water stress, extreme heat, A multitude of diverse physical climate events are anticipated to materialise across H&M Group’s production regions, creating a potential risk in
and flooding, which could increase H&M Group’s sourcing costs. the a­ bility of those regions to remain tenable for manufacturing temporarily, or permanently.
In the short term, there are some limited forecasted fluctuations in cotton price outside of historical price dynamics, but the risk is deemed to be low. The security of H&M Group’s production supply relies on a degree of stability in the regions where garments are manufactured. These regions
As physical climate impacts begin to materialise in the medium term, cotton production is expected to be increasingly impacted. This is visible in all are ­anticipated to experience exposure to multiple hazards which could disrupt production and affect worker welfare.
­scenarios, with a somewhat larger impact in the Hot House scenario. The flexibility in H&M Group’s existing supply chain means the company should be able to absorb the effects of most of these events, meaning
In the long-term Hot House scenario, cotton prices are expected to be significantly higher than at present as widespread climate impacts reduce that the financial impact is expected to be low in the short and medium time horizons. In the longer term, the increasing impacts of a changing
­material availability, yields, and some regions could become unsuitable for farming. Less severe climate impacts within the net zero and delayed ­transition ­climate and lower resilience could lead to larger and more frequent disruptions, and thereby larger financial impacts.
scenarios, coupled with improved resilience, mean that cotton prices are less severely impacted in these scenarios, but overall risks are still judged to There is a high degree of uncertainty how multiple events will cumulatively affect the business so this is a risk that the group will continue to
be high. The impact across time-horizons is increasingly mitigated by a reduced dependency on virgin cotton over time. ­analyse closely.

Risk Mitigation Risk Mitigation

• Using alternatives to virgin cotton, such as lab-grown cotton, next-generation cellulosics, and increasing the share of recycled cotton can reduce • The flexibility of H&M Group’s supply chain means many sites would have to face prolonged issues before relocation is needed. H&M Group
H&M Group’s exposure to higher cotton prices. has ­production facilities across a number of regions and markets, meaning that disruption in one area can likely be offset by moving production
• Development of regenerative and more resilient farming programmes to support adaptation of the cotton producers to a changing climate can also ­volume ­elsewhere.
­mitigate this risk to some extent. • H&M Group is planning to expand the work on adoptive measures to mitigate the risk of increased heat stress to people in affected manufacturing
­markets and regions.

PHYSICAL RISK 2 – DISTURBANCES TO KEY PORTS IMPACTING SALES NEGATIVELY

PHYSICAL RISK 4 – WATER SCARCITY INCREASING SOURCING COSTS
Disturbances to key ports coming from acute physical climate events such as cyclones, storms and heavy rainfall causing product shortages and
­consequently lost sales. Water-scarcity in key sourcing regions could limit H&M Group’s suppliers’ access to water and increase cost of production.

Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years) Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years)
Delayed Delayed Delayed Delayed Delayed Delayed
Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House
Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C)

Financial risk Low Low Low Low Low High Low High High Financial risk Low Low Low Low Medium Medium Low Medium Medium

Potential effects Potential effects

H&M Group relies on a few key seaports to export large volumes of products. Disruptions at different ports could lead to delays in these products reaching H&M Group’s production facilities are concentrated in six key production markets, all of which are expected to face some degree of water stress across
stores, which in turn could influence sales. Some ports are in regions expected to be increasingly exposed to physical climate events that create long-term all timeframes.
(>4 weeks) delays and disruptions. Most notably these events include high winds and storms from cyclones, flash flooding from extreme rain, sea level rise, Based on the expected levels of water stress, H&M Group’s supply chain’s ability to absorb a degree of disruption at water-stressed supplier sites means
and storm surges associated with coastal flooding. that significant relocation is not likely. Financial impact is primarily due to increased cost to access or recycle water, rather than relocating production.
Extended port disruptions could delay restocking global stores, impacting revenue. Time-sensitive campaigns and promotions may also suffer. In the short term, the impact from additional climate related water stress is expected to be low. Over the medium and long term, effects begin to materi­alise,
Short-term impacts of climate change are unlikely to create significant disturbances across the climate scenarios. In the medium-term hot house and the financial impact is highest in the Hot House scenario, where there is a larger increase in water stress across supplier production sites.
­scenario, changes in the severity and frequency of cyclones around key ports may result in a more substantial impact. In the long term, the severity
of cyclones across both the delayed transition and hot house scenarios exposes H&M Group to the potential of increased delays, with the risk of Risk Mitigation
­impacting sales negatively, with a medium-high impact. This can be mitigated to some degree by using air freight, the higher shipping costs being • The H&M group 2030 water strategy includes a goal of 30 percent absolute reduction in freshwater consumption by 2030, with milestone targets based
offset by recouped sales. on water basin vulnerability. This will mitigate the dependency on freshwater and limit risk exposure.
• Focusing on water efficiency measures at supplier production sites, implementing low water production processes and water recycling solutions
Risk Mitigation
help reduce the supply chain’s vulnerability to water stress.
• H&M Group can temporarily switch to air freight or a combination of sea and air freight to mitigate some disruption, though this would temporarily
• The flexibility of H&M Group’s supply chain means many sites would have to face prolonged issues before relocation is needed.
increase transport GHG emissions.
• If disturbances are longer term, H&M Group’s diversified supply chain has flexibility that allows for sourcing from alternative suppliers in other regions,
bypassing disrupted transport routes.

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TRANSITION RISK 1 – CARBON TAXES OR TOLLS INCREASING SOURCING COSTS OPPORTUNITY 1 – INCREASING REVENUE THROUGH CIRCULAR BUSINESS MODELS

Introduction of climate import tolls such as the EU CBAM regulation and various national carbon taxes in key sourcing markets could impact H&M Group’s Climate-related concerns from customers impacting consumption patterns and creating new possible revenue streams for H&M Group.
sourcing costs.
Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years)
Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years) Delayed Delayed Delayed
Delayed Delayed Delayed Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House
Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C)
Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C)
Financial opportunity Low Low Low Medium Medium Medium High High High
Financial risk Low Low Low Low Low Low High High High
Potential effects
Potential effects With increasing signs of climate change, its associated financial impacts on consumers and potential disruption in traditional textile supply chains,
H&M Group is unlikely to be directly exposed to carbon pricing mechanisms across a majority of the product assortment in the short and medium term. ­consumer purchasing patterns are likely to change. Price sensitivity in combination with climate change awareness is likely leading to further growth
Key production markets such as Mainland China and India have nascent emissions trading schemes with limited emissions coverage that do not currently of the second-hand segment – catering for consumer needs and expectations of value for money and a more local supply. This shift would decouple
extend to include H&M Group’s main activities. The EU CBAM will almost certainly not cover textile emissions in the short and medium term. new revenue streams from production and global transport, reducing H&M Group’s climate impact while complementing the traditional business model.
In the long-term it is likely that H&M Group could be faced with increased sourcing costs due to pricing of production emissions, both in the EU and other This effect is predicted to be more significant in the hot house and delayed transition scenarios as consumers are increasingly faced with the impacts
markets who are adopting carbon pricing or import tolls. By 2040, many of H&M Group’s major production markets may have developed their emission of a changing climate.
­trading schemes further. In this time-horizon, carbon pricing materialises most significantly in a Net Zero scenario, with later and lower carbon prices in
the delayed transition, and hot house scenarios. The scale and nature of the exposure to carbon pricing is unpredictable but is likely to be announced Actions to capture the opportunity
well in advance with lead-in times of at least 1–3 years. • Continue to scale Sellpy across markets, leveraging H&M Group presence for competitive reach in new markets.

Risk Mitigation
• H&M Group has set targets to reduce absolute GHG emissions by 56 percent by 2030, and a target to reach net zero by 2040, reducing absolute
­emissions by at least 90 percent – compared with 2019. It is very likely that H&M Group’s exposure to carbon pricing will materialise prior to reaching
the net zero 2040 target, but by reducing emissions the impact of any pricing schemes would be mitigated, and earlier decarbonisation leads to less Impact on our business strategy and financial planning The resilience of our business model and strategy
­exposure to any pricing scheme. Climate-related risks and opportunities are affecting H&M Group’s business We are confident that our climate strategy and action framework will help us
• H&M Group’s sourcing strategy is flexible and the company is constantly evaluating the direct and indirect costs in each region to allocate its production strategy and financial planning, including: develop a resilient business model and strategy alongside these measures:
in the most efficient way.
• H&M Group is closely monitoring the development of national-, and border- carbon pricing mechanisms. • Our business model. Reducing H&M Group’s climate impact in line with the • Reaching our climate targets. We have set targets to reduce our absolute
­science and reaching our approved science-based targets requires adap- GHG emissions by 56 percent by 2030, and a target to reach net zero by
tation and development of our current business model and considerations 2040, with a minimum absolute GHG emission reduction of 90 percent.
related to how and where raw material is sourced, and production occurs. The group is making good progress towards these targets, having re­­duced
TRANSITION RISK 2 – REPUTATIONAL RISKS IMPACTING SALES NEGATIVELY It also requires scaling of circular business models, such as resell, remake, scope 3 emissions by 24 percent in 2024, against a 2019 baseline. This means
care and repair solutions enabling customers to extend the use of prod- we will be well prepared for developments such as strengthened climate-­
Climate-related concerns from customers, affecting consumption patterns and brand preferences and impacting sales negatively. ucts, helping to decouple the company’s financial growth from resource related legislation and/or the introduction of ­carbon taxes or duties.
use and climate impact. • Reducing climate-related business risks. Climate change may influence
Short-term (in 1 year) Medium-term (in 1–5 years) Long-term (in around 15 years) • Customer demand and sales. Current and future expectations from the availability and price of cotton and we are working towards limiting the
Delayed Delayed Delayed ­potential customers impact both how H&M Group needs to produce our associated risks to our business by reducing our dependence on cotton
Net Zero Transition Hot House Net Zero Transition Hot House Net Zero Transition Hot House
products (with lower climate impact) and how we should communicate and other virgin raw materials. H&M Group is ­making good progress
Scenario (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C) (1.5°C) (<3°C) (>3°C)
the sustainability performance of the products to customers. towards increasing the share of recycled materials, reaching a total share
Financial risk Low Low Low Medium Medium Medium Medium Medium Medium • Sourcing of raw materials. The choice of raw materials for H&M Group’s of 29.5 percent in 2024 for the full material basket, and 12 percent for
garments is influenced by the materials’ climate impact, and prices of raw ­cotton specifically.
Potential effects materials are expected to rise as a result of climate change. Climate legis- • Creating business contingency plans. The group’s efforts towards creating
As society becomes more aware of climate change and its associated impacts, consumer attitudes are anticipated to trend towards an increased expecta- lation and introduction of climate-related taxes or duties are expected to business contingency plans for all parts of its supply chain will help it miti-
tion of companies to operate in a sustainable way. The gap between consumers expectations on corporate responsibility and the perceptions of different increase the importance of reducing emissions from all stages of H&M gate risks and prevent potential negative business impacts resulting from
brands may become an increasingly relevant factor in purchasing decisions. This risk could therefore result in a loss of revenue for H&M Group in the case Group’s ­production supply chain. The impacts of physical climate events extreme weather events or other disruptions. As H&M Group has a limited
where its perceived actions around sustainability fall short of consumer expectations. on communities, production sites and ports in key production regions high- amount of company-owned assets (production is at external ­suppliers and
The sentiment of H&M Group’s customers in terms of its brand reputation indicates that H&M Group is currently (and historically) positively associated light the importance of having flexibility in the production and distribution warehouses and stores are normally leased), the expected financial impact
with characteristics relating to sustainability, when compared with industry-wide expectations. In the short-term the financial risk is low, with a slight supply chains. on company-owned assets related to either scenario is minimal.
increase over the medium- and long-term time horizon. Across scenarios, consumer expectations are set to increase, somewhat more significantly • New solutions and innovations. Climate change increases the need for • Realising business opportunities. H&M Group is also growing its resell
in the Hot House scenario, as the effects of climate change materialise. This means that H&M Group needs to improve its climate related perception H&M Group to focus on innovation. This involves the exploration of alterna- business, mainly through Sellpy, reducing its dependence on the produc-
to ­continue to attract increasingly aware and conscious consumers. tive raw materials that are less susceptible to climate change. It includes tion of new materials and products. As a result, the group reduces its expo-
regenerative agriculture and innovative processes that improve soil quality sure to climate-related business risks within the supply chain and ­enables
Risk Mitigation and biodiversity associated with the company’s current raw materials bas- to seise the business opportunities related to a growing resell market.
• To mitigate the impact of reputational damage, H&M Group will need to continue to deliver on its sustainability goals and invest ket. In the longer term, innovative production processes that use less
in circular business models, while navigating green claims legislation to deliver marketing to improve public perception. energy and are fully electrified will reduce dependency on thermal energy. We believe our climate strategy will not only enable us to mitigate our nega-
• By continuing the shift towards a more sustainable business model, H&M Group can remain ahead of consumer expectations in terms Furthermore, the company focuses on innovative solutions aimed at tive climate impact and climate-related risks, but also improve our customer
of its brand perception. increasing use of recycled materials. offerings and bring new revenue streams to our business. Read more about
• Financing sustainable investments. Reducing climate impact requires our climate strategy on page 59.
financing. In 2023, H&M Group issued an eight-year EUR 500 million green
bond. The net proceeds from the bond will be allocated to eligible projects
in five categories: circular economy, green buildings, renewable energy,
energy efficiency and sustainable water management & wastewater man-
agement. The first four categories have a direct connection to our climate
risk mitigation. H&M Group also has a EUR 500 million sustainability-linked
bond outstanding since 2021 focused on increasing recycled material in
commercial goods and GHG emission reduction. Read more about how we
support our suppliers in their transitions on pages 59–63.

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<<Contents Sustainability report/Social

Human rights
As a global fashion company, we engage millions of people across our value The identification process is based on qualitative and quantitative
chain, and we are committed to respecting the human rights of all the people i­nformation such as independent reports and information gathered from
we impact through our business activities. internal procedures and documentation. We have carried out consulta-
tions with potentially affected groups including workers and other relevant
Our approach to human rights stake­holders to gather information on actual or potential adverse human
We believe all people deserves to be treated equally, with respect and dignity. rights impacts.
By proactively working on addressing and minimising potential adverse human To help us focus on the most important issues first, we have carried out
rights impacts, we avoid infringing on the rights of the people we engage a salience assessment to prioritise our human rights impacts. We have
through our operations and business activities. At H&M Group, respecting engaged internal and external stakeholders to identify our salient human
human rights is also about leading with our values and empowering people rights issues, and we perform an annual review to assess their continued
to be who they want to be, and we provide basic and specific human rights ­significance.
trainings, tailoring the content of these trainings to different functions, roles External dynamics and internal business development continuously
and business partners. change a company’s risk exposure over time. For H&M Group, internal shifts
include a transition towards a more digital and circular business model. In line
Our human rights due diligence process with this transformation, we place increased focus on safeguarding the right
In order to fulfill our commitment to respecting human rights across our value to privacy through efforts in data privacy, personal data management and
chain, we have established a human rights due d ­ iligence process to continu- secure storage, robust data security practices, and ensuring the ethical use
ously identify, prevent, mitigate, track and account for actual and potential of Artificial Intelligence (AI) and data-driven digital technology.
adverse impacts on human rights arising in our own operations, supply chain, From an external perspective, the trend of political instability could lead
and from other business relationships. Our RBC policy outlines our sustaina- to challenges to uphold human rights, calling for special consideration in
bility due diligence process. due diligence.
We base our approach to human rights and due diligence on the interna- In addition to our annual review, different functions, markets and geo­
tionally recognised guidance set out in the UN Guiding Principles on Business graphies carry out human rights risk and impact assessments, the out-
and Human Rights and the OECD Guidelines for Multinational Enterprises. comes of which inform the review of our salient human rights issues and
Our work is aligned with fundamental human rights as stated in the Inter­ due diligence process.
national Bill of Human Rights and International Labour Organization’s (ILO)
­Declaration on Fundamental Principles and Rights at Work, as well as various Ongoing human rights risk analyses and assessments
other UN Conventions such as the United Nations Convention on the Rights • Risk assessment in production markets. Selected production markets
of the Child and the United Nations Convention on the Elimination of Discrim- have established heat maps of human rights-related issues based on
ination against Women. Regardless of where we operate, we do it with respect severity and likelihood, to indicate where extra attention is needed. This
for human rights and ensure compliance with national law and international informs our market strategies and goal-setting process.
labour standards.
• Risk assessment by business functions. Business functions include Retail
(Construction and Facility Management) and Logistics (Warehouses and
Salient human rights issues
Transport) which assess their sustainability risks, including risks to human
The UN Guiding Principles on Business and Human Rights and the OECD
rights, on a regular basis through assessments at their partner facilities to
Due Diligence Guidance for Responsible Business Conduct refer to the
inform the existence and adequacy of prevention and mitigation plans.
severity and likelihood of adverse human rights impacts on people that
a company can cause, contribute to, or to which they are linked. In other • Risk assessment of materials. Risk analysis is done for new materials and
words, it is an outward-facing approach focused on risk to people connec­ on a regular basis for our highest volume materials. As the extraction and
ted to a company’s operations and value chain, as well as the products or production of raw materials takes place several steps back in our supply
­services it sells. chain, our main strategies to preventing and mitigating risks are focused
Salient human rights risks are those human rights at risk of the most on engagement in certification schemes, standards and various industry
severe or likely actual or potential adverse impacts on people across the collaborations.
value chain. It is recognised that we may need to prioritise our due dili-
gence efforts, based on our identified salient issues. This does not intend To make sure we focus our efforts on the most important issues first, we

Social
to dis­regard other issues that may occur, but it helps us focus on the most review our salient human rights issues on a yearly basis and whenever
important issues first. changes in our operations occur, to ensure the issues remain relevant
and are aligned with our priorities. In the yearly review of our salient human
Process for identifying our salient human rights issues rights issues in 2024, we have gained an increased granular view across
Identifying the human rights risks associated with business activities is the ­geo­graphies and different parts of our value chain through internal assess-
first critical step in preventing and mitigating harm to people. We have identi- ments, which has informed our impact materiality.
fied and assessed actual and potential adverse human rights impacts arising Based on this we will work towards enhanced integration of human rights
from our global operations and value chain as part of our ongoing human management across our operations and business relationships through
We are committed to delivering prod- rights due diligence process. ­adequate steering and governance.
ucts and collections that inspire and
empower today’s concious consumer.
Our efforts are focused on supporting
the people working in our own operations
and value chain to design, manufacture
and sell our products, as well as engaging
with our customers and people living in the
communities where we operate to ensure
we meet their needs. We aim to be a part
of a fashion industry that respects human
rights and promotes the fair and equal
­treatment of everyone.

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<<Contents Sustainability report/Social/Human rights

H&M Group’s salient human rights issues

The following salient human rights issues have informed our impact materiality assessment. Read more about the actions we have taken or plan to take
to address these human rights issues on pages 94–103.

Issue Definition Own operations and/or part of value chain Vulnerable groups Issue Definition Own operations and/or part of value chain Vulnerable groups

Health, safety Health, safety and wellbeing of employees, Own operations, primarily in our Vulnerable groups include young Discrimination and Discrimination or unequal treatment on Own operations, related to our ware- Vulnerable groups include women,
& wellbeing workers and customers across the value ­warehouses and stores, related to our ­workers, children, female and pregnant equal treatment the grounds of gender, sexual orientation, house operations. Various supply indigenous women, migrant workers,
ILO Conventions chain, such as safe and healthy working customers, investments and in various workers, ­temporary workers, informal ILO Conventions race, colour, age, pregnancy, ­marital or chains, notably in our manufacturing temporary workers, the LGBTQIA+
155, 183 187 and 190 conditions, store safety and product ­supply chains, such as manufacturing, workers, homeworkers and migrant 100, 111 and 159 social status, religion, political opinion, supply chains, linked to a large share ­community, minority groups, people
ICCPR Article 6 safety. This includes protection from international freight and transportation, workers. ICCPR Article 2 nationality, ethnic origin, disease or dis­ of female workers. with disabilities, trade union member-
ICESCR Article 1 ­gender-based violence (GBV) and any construction and facility management, ICESCR Article 2, ability. This includes equal remuneration Unintentionally entrenching dis­ ship, teenagers and children, and
other form of physical, sexual, psycho­­ upstream material and fibre supply CEDAW General for equal work and other aspects of equal crimination against certain groups varies by market.
logical, or verbal harassment or violence chains and downstream end-of-life Recommendation treatment at work including discrimination of consumers through marketing by
occurring during, linked with, or arising value chain. No.35. in the form of ­gender-based violence exclusively focus on certain types of
from work. and harassment (GBVH) against women, skin colours, body types, age or hair
directed towards a woman because texture.
she is a woman or that affects women
Freedom of associ- A person’s right to join, and/or form trade In various supply chains related to Vulnerable groups include union ­dis­proportionately.
ation & collective unions of his or her own choosing and to ­ anufacturing of our goods.
m ­members, worker representatives,
bargaining bargain collectively. An enabling right for migrant workers, outsourced staff
ILO Conventions 87, other labour rights. and self-employed ­workers. Communities Industries can be a contributor to water Primarily within our production supply Vulnerable groups include potential
98, 135 and 154 access to water pollution and water scarcity, which is why chain, and in our material supply chains ­indigenous populations and children
ICESCR Articles 11 safeguarding wastewater treatment and and related to our investments. Also in in neighbouring local communities.
and 12 reducing water use are essential to ensure our international freight and transport
Child labour Work that deprives children of their Primarily within our production supply Vulnerable groups include children, access to clean water and sanitation in supply chains and in our ­construction
­childhood, their potential and their dignity, chain, with higher risk in our material young workers, migrant workers, neighbouring communities. and facility management supply chain.
ILO Conventions
138 and 182 United and that is harmful to physical and mental supply chains, for example linked to ­religious and ethnic minority groups.
Nations Convention development – i.e., is mentally, physically, farming and informal sectors. Also
socially or morally harmful to children; ­prevalent in our international freight Communities A safe environment will focus on the Primarily within our production supply Vulnerable groups include potential
on the Rights of access to clean ­ rotection of the environment as a non-
p chain, in our international freight and ­indigenous populations and children
the Child interferes with their schooling by depriving and transport supply chain and in our
them of the opportunity to attend school; construction and facility management and healthy harming environment for human beings. transport supply chains and in our in local communities.
obliges them to leave school prematurely; supply chain. Children of working ­environment Causing air pollution will impact both ­construction and facility management
or requires them to attempt to combine ­parents are also indirectly affected by UN GA Resolution workers’ and local communities’ health. supply chain.
school attendance with excessively long the working conditions of parents. A/RES/76/300 Air pollution reduces quality of health
and heavy work. (28 July 2022) and lowers life expectancy.

Forced labour All work or service that is exacted from any Own operations, investments and Vulnerable groups include migrant Land rights Access to land, forest and water can be Primarily within our material supply Vulnerable groups include potential
ILO Conventions person under the threat of a penalty or for ­various supply chains, for example in workers, agency workers, temporary & livelihoods a source of livelihood and sometimes chains, mostly connected to farming ­indigenous groups and minority groups.
29, 97 and 105 which the person has not offered himself manufacturing, warehouse operations, workers, religious and ethnic minority ILO Conventions important for the enjoyment of social and and forestry.
ICCPR Article 8 or herself voluntarily. Indicators of forced transportation, construction and facility groups. 107 and 169 cultural rights. Operations and the use of
labour include unreasonable fees leading management, material and fibre supply ICESCR Articles 1 ­natural resources should not contribute
to debt bondage, deception, restriction chains and downstream end-of-life and 15 to destruction and/or degradation of
of movement, isolation, abuse of vulnera- value chain. ICCPR Articles 1 the resources and income base for com-
bility, physical and sexual violence, intimi- and 27 munities, nor should there be any illegal
dation and threats, abusive living and taking of land, forests or water or illegal
working conditions, wage withholding, eviction of groups of people for reasons of
excessive overtime, and retention of development or use of these resources.
­personal documents.

Privacy & Integrity The right to privacy is the right to keep Own operations, related to employees’
Compensation Wage levels for a regular work week to be Primarily within our production ­supply Vulnerable groups include women, UDHR Article 12 one’s personal matters and information and customers’ data handling, and
& benefits sufficient to meet basic needs for the chain, facility management and trans- migrant workers, temporary workers ICCPR Article 17 out of the public domain and government ­connected to investments.
ILO Conventions worker and their families and provide some portation (last mile delivery) supply and self-employed workers. interference. The right to privacy is essen-
95 and 131 discretionary income. Minimum wage in chains as the issue is largely market tial to human dignity and the ­pro­tection
some countries where we have operations specific. of our autonomy, dignity and ­personal
might not be equivalent to a sufficient identity.
wage level. Workers could therefore be
­living off a salary not sufficient for a basic
living standard. These circumstances
could also increase the risk of excessive
overtime work which connects to workers’
rights to health, rest and family life.

Social security Access to healthcare, insurance and Own operations and various supply Vulnerable groups include migrant
& protection income security, particularly in cases chains. The issue is largely market workers, agency workers, temporary
ILO Conventions of old age, unemployment, sickness, ­specific and present in some of our workers and self-employed workers,
121, 122, 158, 175 ­in­­validity, work injury, maternity or loss ­production markets where national as well as workers and communities
and 183 of income. A responsibility dependent frameworks offer less protection. in the informal economy.
to a large extent on legal frameworks
and institutional capacity of a market.
­Recognised employment is often a
­precondition for access to work-related
social security benefits and protection.

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<<Contents Sustainability report/Social/Own workforce

Own workforce
Through our own operations we have an impact on people working with the
design, marketing, sales, distribution and warehousing of our products. Our
business activitites could potentially impact the health, safety and wellbeing
and quality of life for all employees within our own operations. We believe all The salient human rights issues which have informed
our employees are entitled to a safe and fair working environment where the impact materiality assessment connected to our own
every individual is treated with respect. workforce are:
• Health, safety and wellbeing (including working hours
Strategy and governance
and secure employment)
At H&M Group we are guided by our shared values, and we believe that our
employees are a vital driving force to deliver on our business idea. Inclusion • Discrimination and equal treatments
and diversity are the cornerstones of our business strategy, fostering a work­ • Data privacy and integrity
place where every individual feels valued and included. Through our global • Forced labour
policies and processes we aim to make the employee experience consistent
across roles and geographies, while adapting to new technologies, antici­ • Compensation and benefits
pating shifting demands for skills, simplifying our organisational structure,
and establishing efficient ways of working. To enable our employees to thrive,
we actively work to create and maintain a respectful and welcoming work­
place for all.
We believe in the power of growth, both professional and personal. That is
why we offer diverse learning opportunities and set clear development goals Our policies and procedures are available at hmgroup.com and the supplier
to help our employees reach their full potential. We categorise our employees portal for all our business partners. Read more about H&M Group’s policies
into three different groups: Store personnel (colleagues working in stores), and commitments on page 108.
Office personnel (colleagues primarily in offices), and Warehouse personnel
(colleagues in logistics and warehouses). Non-employees include consultants Targets and actions
and contract workers in our stores, offices and warehouses. Our ambition is As we progress, it is essential to prevent and mitigate identified negative
to create an exceptional employee experience for all these groups across our impacts on our employees. We address and achieve this through our methods
brands and functions. of working and by focusing on several key areas and people processes. Our
overarching target for own workforce is to maintain our high level of internal
Identification and management of material matters engagement and satisfaction, which we measure bi-annually through our
We apply a risk-based approach and conduct human rights due diligence employee engagement survey.
across our organisation to identify and address potential negative impacts on
our employees. We work diligently to prevent and mitigate any harm, ensuring A safe and healthy working environment for all employees
there are grievance mechanisms for employees to raise concerns and access In our approach, we conduct risk assessments to identify potential risk areas.
support. H&M Group encourages an open-door practice, where work-related We aim to proactively pinpoint work environment issues that could lead to
issues, disagreements and misunderstandings should be solved through an ­ill-health or accidents, and to continuously improve providing an attractive
informal, open and straightforward dialogue at an early stage. Recognising workplace. By anticipating the possible outcomes of specific actions, we can
the associated business risk of not respecting the human rights of our own foresee and address potential challenges early on, which is a fundamental
employees is a crucial step in avoiding and reducing potential harm. As part aspect of our way of working.
of our continuous due diligence process, we have identified and evaluated A new case handling system for reporting is being implemented globally.
both actual and potential negative impact stemming from our global opera­ This will provide data on risk observations, near misses, accidents, work
tions and ways of working. related ill-health, commuting accidents, and damage to or on our properties.
These potential challenges highlight opportunities to better protect our Through training and activities, our employees are empowered and
employees, especially vulnerable groups such as ­temporary workers in stores encouraged to take care of themselves and others while at work. We arrange
and warehouses, as well as minority groups. By addressing these challenges a yearly global health and safety week with the aim to create awareness and
proactively, we continuously create a safer and more inclusive working promote safety, physical health and mental health in our workplaces around
environ­ment for everyone. Our employee engagement survey is the main tool the world while mitigating hazards and accidents to our colleagues.
for engaging with employees across the organisation. It covers our six pillars
of engagement: wellbeing, clarity, connection, empowerment, growth and Secure employment and fair working conditions for our employees The process includes supporting the hiring manager with identifying needs, inclusive work environment. The groups are voluntary and employee-led
purpose. The insights gained from the employee engagement survey are We respect our employees’ right to freedom of association and collective sourcing and screening of candidates, conducting competency-based and provide support and safe spaces where colleagues can connect, build
used at different levels and help teams to better understand how H&M Group bargaining, and support this through our labour relations policy and Global assessments, extending offers, and securing a smooth transition to pre- community, encourage each other, and share learning. They also contribute
can continue to improve and develop as an employer and deliver on our com­ Framework Agreement with Union Network International. Engagement with boarding. The standardised process will continue to be introduced through­ to the workplace by enhancing career development, professional networking,
mitment to respecting the rights of all our employees. our employees is crucial, and we assess the level of engagement by inviting out the organisation in 2025. and overall personal development.
our employees to share their thoughts and feedback through our regular
Policies and procedures internal engagement surveys. Our overall employee satisfaction score Inclusion and diversity Data privacy and integrity
H&M Group’s commitment to respect the rights of our own workforce is set slightly improved despite changes and challenges impacting people in Our inclusion and diversity (I&D) work includes clear messaging across all Process owners play a crucial role by integrating privacy considerations into
out in our human rights policy, data privacy policy and social policies. These our operations. In 2024 it was 76 out of 100, compared with 75 in 2023. channels, regular updates and mandatory training, global and regional all data-related work through a structured approach known as privacy by
include our equality, inclusion, diversity and non-discrimination policy, our no To ensure we are a fair, consistent and competitive employer worldwide, I&D awareness initiatives, colleague resource groups, improved diversity design. The data privacy community, coordinated by group legal, supports
harassment and no violence policy, our health and safety policy, our labour we continue to implement and explore additional H&M Group minimum data mechanisms, and applying a diversity lens to all colleague lifecycle compliance at all levels, while the data protection officer (DPO) oversees and
relations policy, our grievance policy, and our global compensation guide­ employment standard. ­processes. Accessibility, both physical and digital, remain a key priority, and reports on compliance.
lines. These social policies and guidelines cover the areas of grievance, we are looking into further ways of updating our guidelines and procedures
equality, inclusion, diversity, non-discrimination, no violence, no harassment, Talent and succession in this area. Fair and equal wages
health and safety and labour relations, and applies to all entities within the We have a global talent approach and believe that everyone has a talent. We boost our I&D awareness through ongoing learning initiatives and the Our total rewards philosophy is based on fairness, transparency and market
H&M Group. H&M Group complies with national laws and respects interna­ We empower self-driven development where everyone contributes to both expansion of our colleague resource groups (CRG). Additionally, establishing competitiveness. We have started taking measures to globally structure and
tionally recognised human rights wherever we operate, and our human rights individual success and the success of their teams. With business-critical inclusion and diversity metrics, with the ambition of setting group-wide harmonise employee data to ensure that we meet our reporting obligations
policy and social policies are aligned with internationally recognised instru­ competencies and skills needed now and tomorrow as a foundation, we ­targets, will provide a structured approach to our objectives onwards. This and deliver on our compensation philosophy. We have updated and digital­
ments such as the UN Guiding Principles on Business and Human Rights, the ­support global succession planning by providing processes and tools for year, we acknowledged and raised awareness around Pride and International ised our global job framework and have started defining our global pay trans­
OECD Guidelines for Multinational Enterprises, the Universal Declaration of ­talent ­planning, identification, development and retention. Women’s Day globally. parency approach. We have introduced adequate wages in our compensation
Human Rights and ILO Declaration on Fundamentals Principles and Rights at Our standardised recruitment process launched this year, focuses on We continue to expand our work with colleague resource groups to support benchmarks and core compensation processes. Insights from our global
Work. Our RBC policy outlines our sustainability due diligence process. ensuring consistent candidate experiences and maintaining transparency. the creation of a culture of inclusion, inclusive business practices and an compensation data and analysis will further guide our plans and actions.

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Workers in the value chain

Characteristics of employees1 Characteristics of employees – Employee turnover 1 We recognise that we have a responsibility to ensure that people working in
our value chain are treated equally, with respect and dignity. As a global com-
20242 2024 pany, we have an impact on the lives and wellbeing of millions of workers in The salient human rights issues which have informed
Female Male N/A or other3 Total our upstream and downstream value chain. The unfair treatment of our value the impact materiality assessment connected to workers
Number of employee turnover 52,063
chain workers can become a risk to our business and our commitment to in the value chain are:
Number of employees 101,139 31,923 5,504 138,566 Share of employee turnover, % 38 respecting their human rights is therefore deeply embedded in our culture,
Number of permanent 78,405 25,959 3,364 107,728 • Health, safety and wellbeing
as well as our global policies and procedures.
employees 1. Voluntary employee turnover includes all assignments terminated voluntary by the
• Forced labour
employees (including temporary contracts/assignments that have ended). Since a
Number of temporary 22,676 5,928 2,140 30,744 large portion of our total workforce are in stores where many contracts are temporary, Strategy and governance • Child labour
employees the H&M Group total will reflect that.
Our business activities may affect workers in the value chain differently • Freedom of association and collective bargaining
Number of full-time 44,070 17,674 1,398 63,142 depending on what stage of our value chain they are involved in. The workers
employees in our value chain include people employed via our direct suppliers engaged • Compensation and benefits
Number of part-time 57,069 14,249 4,106 75,424 in the manufacturing of our products, and workers employed by indirect • Social security and protection
Characteristics of employees – Number of employees by countries
employees ­suppliers engaged in the production and processing of fabrics, the yarn • Discrimination and equal treatment
­production, and in the sourcing and processing of raw materials. Workers in
1. 94 employees are reported as ‘unknown’ in terms of permanent/temporary contract Number of employees by countries
type. 58 people out of these are female and 36 are male. These 94 people are included (where we have more than 10% head count) 20241 our value chain also include people employed in the transportation industry,
in the full-time/part-time figures but not in permanent/temporary. workers in third-party logistics and temporary workers in warehouse opera-
2. Total employee headcount as of 30 November 2024. Germany 16,164 tions, workers in construction and facility management, and the landlords
3. The data is globally aggregated from our markets based on different legal require- USA 14,847 and workers involved in the production of our non-commercial goods. In addi-
ments and systems. This category summarises colleagues for whom gender data is tion, our downstream value chain include workers involved in the collection,
not available due to legal or technical reasons, as well as colleagues with a registered Sweden 10,690
other gender in line with relevant local legislation in applicable markets. We continue sorting, recycling and disposal of clothes and textiles. Our ambition is to
Other Countries 96,865
our work to further improve our systems for global data aggregation and with that data respect the human rights of all people across our value chain and ensure a
quality and scope. safe workplace for all. To achieve this, we have established a robust human H&M Group’s sustainability commitment covers forced labour, child labour,
1. Total employee headcount as of 30 November 2024.
rights due diligence process and grievance mechanisms. Raising awareness health and safety, discrimination, freedom of association and collective
about working conditions in our value chain, and ensuring that workers’ ­bargaining, wages and compensation, transparency, and collaboration.
human rights are respected, is embedded in our culture and values and forms Our policies are accompanied by topic-specific guidelines and require-
Diversity and inclusion1 Complaints a part of our business idea – to deliver fashion and quality at the best price, ments that clearly set out the basic principles, processes and tools to com-
in a sustainable way. ply with our policies as well as reaching our targets. These include our
2024 2024
case h
­ andling procedure, child labour case handling procedure, GBVH pro­
Number of employees under 30 years old 69,065 Number of complaints filed through channels for people in own 2,264 Identification and management of material matters cedure, procedure on responsible recruitment of migrant workers, home
Number of employees between 30 and 50 years old 58,286 workforce to raise concerns1 H&M Group applies a risk-based approach to the management of the rights worker procedure, prison labour procedure, remediation procedure, silicosis
and wellbeing of workers in the value chain and regularly conducts human procedure, health and safety guideline, and our procedure on responsible
Number of employees over 50 years old 11,209 1. 1,238 cases were logged through speak up, and 1,026 cases were reported through rights due diligence to identify potential negative impacts on people. Read raw material sourcing.
other channels (e.g. in person, emails).
Share of employees under 30 years old, % 50 more about our salience assessment and human rights due diligence process We also report in line with regulatory frameworks such as the UK Modern
Share of employees between 42 on pages 91–93. Slavery Act, Australian Modern Slavery Act, Canadian Fighting Against
30 and 50 years old, % We recognise our responsibility to remedy any potential negative impacts Forced Labour and Child Labour in Supply Chains Act, the German Supply
on people and workers in the value chain that are connected to H&M Group’s Chain Act (LKSG), the California Transparency in Supply Chains Act and the
Share of employees over 50 years old, % 8 Characteristics of non-employees
business activities and therefore we have established a clearly outlined pro- Norwegian Transparency Act.
1. 6 employees have been reported as unknown (blank) and do not show in above table. 2024 cess for handling confirmed cases of violations and enabling remedy. Our policies and procedures are available at hmgroup.com and the supplier
H&M Group continuously engages with affected stakeholders, including portal for all our business partners. Read more about H&M Group’s policies
Total number of non-employee workers in own workforce 9,885 workers in the value chain, as part of our due diligence process. For most of and commitments on page 108.
our sourcing markets we have teams on the ground to evaluate human rights
Training and skill development1 impact and engage with rightsholders or their representative. Through our Grievance Mechanism
Global Framework Agreement with IF Metall and IndustriALL Global Union, Everyone working at a business partner’s entity, including subsidiaries, sub-
2024
we consult with global trade unions and their local affiliates to identify and contractors or any other relevant stakeholder, is welcome to raise concerns
Female Male Other Total
assess risks and collaborate on mitigation plans and, in some cases, provide anonymously through our whistleblowing platform speak up. Read more
Share of employees and (or) non- 40.90 36.90 5.00 38.32 remedy. We also collaborate with the ILO’s Better Work on country pro- about our speak up channel on page 105. We do not tolerate retaliation for
employees that ­participated in grammes in Bangladesh, Cambodia (Better Factories Cambodia), Indonesia, reporting suspected misconduct in good faith. This is explicitly written in
regular performance and career Pakistan and Vietnam. These programmes include assessments, training, our speak Up guideline which also includes how to conduct potential anti-
development reviews, % advocacy and research in order to change policies, attitudes and behaviour. retaliation checks.
Average number of training hours 3.35 4.01 9.74 3.79 We have partnered with several organisations including the International In H&M Group’s sustainability commitment, all business partners commit
per employee and (or) non- Organization for Migration, the Mekong Club and the Centre for Child Rights to providing a grievance mechanism for their employees which allows them
employees2 to raise concerns without the risk of retaliation. We expect them to manage
and Business to guide us in identifying, mitigating and remediating child and
forced labour in our value chain. In addition, we consult on a regular basis grievances related to human rights, labour rights and environmental impact
1. Data on employees and non-employees working in Germany is not included.
with relevant local and global stakeholders, such as civil society organisa- and to engage in appropriate remediation of any harm to people or the environ­
2. The data is insufficient because our Learning system does not cover ‘On the Job
­Training’, which accounts for a significant number of hours in our organisation, tions, suppliers, researchers, peer groups and unions. ment that they have caused, contributed to or to which they are directly
and our Learning Experience Platform has so far only been launched for around linked, in close dialogue with those affected. For direct suppliers in produc-
30 percent of employees.
Policies and procedures tion, we track the existence of grievance mechanisms through facility social
H&M Group’s commitment to respect the human rights of workers in the labour module (FSLM), factory performance data and Industrial Relations
value chain is set out in our human rights policy, which applies to all entities impact according to UNGP framework and worker survey. This is an annual
within the H&M Group and our business partners, outlining our approach to assessment that considers FSLM, performance data, a management survey
Collective bargaining coverage and social dialogue
ensure fair and equal treatment for all workers. Our responsible business and a workers’ voice survey. The purpose is to evaluate the effectiveness of
Indicator 2024 2023
conduct (RBC) policy outlines our sustainability due diligence process. grievance mechanisms in line with the UNGP framework on effective griev-
H&M Group complies with national laws and respects internationally ance mechanisms. All these, including case logs, are logged into our platform
Share of total employees covered by collective 49.75 44.60 ­recognised human rights wherever we operate, and our Human rights policy called STEP (sustainable tracking & evaluation platform) to track issues
bargaining agreements/union representation, % is aligned with internationally recognised instruments such as the UN Guiding raised and to monitor if they are resolved. These results are complemented
Principles on Business and Human Rights, the OECD Guidelines for Multi­ by other sources, as we are also aware that workers may have been coached
national Enterprises, the Universal Declaration of Human Rights and ILO when responding to surveys.
Declaration on Fundamental Principles and Rights at Work. In addition,

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We also have a detailed grievance mechanism guideline for mechanisms in Work on programmes in Bangladesh, Cambodia (Better Factories Cambodia), Fair and equal wages
tier 1 production supplier factories. In addition, there are specific grievance Indonesia, Pakistan and Vietnam. These programmes include assessments, We want workers to receive wages earned during normal working hours
channels in some of the markets where we do business: training, advocacy and research in order to change policies, attitudes that meet the basic needs and discretionary income for workers and their
• Through our Global Framework Agreement with IndustriALL Global Union and behaviour. families. However, in many markets, including the ones we source from, the
and IF Metall we have established National Monitoring Committees (NMC) Our actions include the development of a new guideline for occupational legal minimum wage is not sufficient to ensure a decent standard of living.
in Bangladesh, Cambodia, India, Indonesia and Türkiye. These consist of health and safety that has been reviewed by Better Work, the ILO, Industri- The key components of our wage strategy in our production supply chain
IndustriALL Global Union affiliated unions and our own colleagues from ALL Global Union and IF Metall to support our business partners in main­ are our programmes to facilitate functional wage-management systems in
production offices and serve as additional grievance mechanisms where taining health and safety standards. We have also conducted training for suppliers’ factories, strengthening factory-level industrial relations and
workers can raise concerns directly with us and where conflicts that could National Monitoring Committees (NMC) and H&M Group’s production office ­following responsible purchasing practices. We address and advocate for
not be solved at the factory level can be elevated. and logistics staff in Türkiye, Indonesia, India, Bangladesh, Cambodia, China structural improvements in systemic issues including wage-setting mecha-
and Vietnam. We continue our commitment with the International ACCORD nisms, such as collective bargaining and statutory minimum wage at country
• In Bangladesh, the RMG Sustainability Council (RSC) has established
as well as the Readymade Sustainability Council (RSC) in Bangladesh. level, as well as improved social protection systems. We support efficiency
a hotline for workers to raise health and safety complaints.
improvements at factories, setting an efficiency roadmap together with our
• We expect supplier factories in Myanmar 1 to have a digital workers’ voice Freedom of association and collective bargaining suppliers, where we reward with volume allocation both seasonally and in the
tool or grievance mechanism in place where we can access the dashboard We want workers to feel safe at work and be treated with respect and dignity, long-term based on targets.
to see the grievances raised. and that their rights to freedom of association and collective bargaining are We have continued enrolment and support of implementation of the wage
• We have initiated a pilot in China where selected supplier factories respected. In 2024 we had an in-person global NMC meeting for the first time management system factory programmes together with our suppliers and
­producing for COS have established a digital grievance mechanism since 2019. Coming together in person is essential to build trust and increase factory management. We have signed a binding agreement with global union
where workers can raise complaints. knowledge of each other’s respective organisations. IndustriALL Global Union to support collectively bargained wages and
We renewed our Global Framework Agreement (GFA) with IndustriALL improved working conditions in the garment, textile, footwear and travel
Remediation Global Union and IF Metall. Key updates include a commitment to supply goods industry in ­Cambodia. During the year we have actively engaged with
H&M Group has a clearly outlined process for handling confirmed cases of chain due diligence, an updated governance structure and a shared budget to Cambodian stakeholders, including industry employers’ association TAFTAC
violations and enabling remedy. When we have identified, or where there is strengthen industrial relations, as well as a commitment from H&M Group to and trade unions, as well as ACT brands and IndustriALL Global Union, to
alleged suspicion or grievance, that people – colleagues, workers, communi- facilitiate trade union access to factories in cases of alleged violations. support the CBA process. Our agreement to facilitate the CBA process
ties or customers – have been negatively impacted due to actions by us or our Long-term improvements in working conditions and safeguarding human establishes a framework with commitments to signatory manufacturers
business partners, we have a responsibility to investigate and engage in a rights in our factories start with empowered workers who have a voice. We related to purchase volume, labour costing and efficiency, and financial
remediation process. expect supplier factories to strengthen dialogue between management and ­contribution to a joint skills training fund. The finalised collective bargaining
If we conclude that we have caused or contributed to the harm caused, we worker representatives, including trade union representatives when a trade agreement guarantees workers increased base wage, fixed duration con-
must also engage in enabling remedy to those impacted. Where we are linked, union is present. A major pillar to achieve the above is our GFA with Industri- tracts of a minimum of six months, an additional 10 maternity leave days and
we may choose to engage with peers, and local and international stakeholders. ALL Global Union and IF Metall (GFA). The GFA is implemented through introduces paternity leave with full pay for the first time in Cambodia.
In general, we use our leverage, to the extent possible and reasonable, to NMCs in Bangladesh, Cambodia, India, Indonesia and Türkiye. These consist We monitor access to social protection in our suppliers’ factories. Where
influence others to take their responsibility. In addition, we are guided by of IndustriALL Global Union affiliated unions and our own colleagues from necessary, we work with our business partners to strengthen workers’ aware-
a set of principles to remedy any negative impact: production offices and serve as an additional grievance mechanism where ness about their rights to social insurance and benefits related to retirement,
workers can raise concerns directly with us and conflicts that could not be medical treatment, maternity and unemployment. We have continued our
• Safeguarding of people who are victims of rights violations should be the
solved at the factory level. National Monitoring Committees also work pro­ financial contribution to and our efforts to further develop the Employment
first consideration in any remediation process.
actively to promote freedom of association and issues of joint concern. Injury Scheme (EIS) Pilot in Bangladesh. This initiative was launched together
• Extra care should be taken for vulnerable groups such as children, youth, with other brands in 2022 under the lead of ILO and Deutsche Gesellschaft
women or marginalised groups and when tackling sensitive topics such as Child labour für Internationale Zusammenarbeit (GIZ) and covers roughly 4 million workers
GBVH, abuse or forced labour. We do not accept any form of child labour in our supply chain. This is in the export-oriented RMG sector in Bangladesh. In case of work-related
• We strive to have the most positive impact possible within the appropriate clearly stated in our sustainability commitment. To underline the impor­ injuries it provides compensation payments for the affected. The monthly
level of responsibility and should always make the best possible effort tance of this requirement, we have specific child labour case handling pensions are financed by voluntary contributions from international brands.
to do so. ­guidelines stating our standards and remedial action if the use of child Within our own operations we focus on purchasing practices which enable In 2023 we introduced a GBVH guideline to our suppliers which provides
labour is ­discovered. suppliers to pay for the cost of labour. We have further strengthened our practical information on how to prevent, identify and remedy any case of
• Trade unions and/or worker representatives’ structures should have an
In tier 1 and tier 2 supplier factories, we manage the risk of child labour by re­sponsible purchasing practices and monitoring routines, integrating GBVH in the world of work. While developing this guideline, we have taken
official and well-understood role and responsibilities in the prevention and
monitoring working conditions through own and third-party assessments and standard procedures with our business teams in production. Measures C190 and R206 as our basis and we worked with IndustriALL Global Union
remediation of all issues.
improving grievance mechanisms. During minimum requirement assessments, and accompanying indicators connect to each of our purchasing practices and experts on the topic. Together with our NMCs and selected suppliers we
• We must make decisions and take actions based on well-documented a factory tour and worker interviews are conducted to detect potential child commitments and have been selected based on supplier priorities, identified are conducting a joint gap analysis of their existing systems to prevent and
facts and evidence. We must remain unbiased when approaching a case. labour. In addition, we see that our strategy to increase wages in tier 1 factories risks and reflect our ambition for constant improvement with consideration ensure remedy to GBVH.
can have indirect, preventive effects on child labour as higher wages in the to supply chain maturity and scopes. Gender based violence and harassment is a sensitive topic and we take
Targets and actions family reducing the need for children to work. the risk of it very seriously. To be able to identify and handle potential cases
We set targets for each of our material impact areas, including freedom of We recognise that the risk exists in our industry, with higher risks in our Discrimination and equal treatment in the best way and also to guide the suppliers towards correct preventive
association (FOA) and collective bargaining, health, safety and wellbeing, and remedial actions, our teams need to have enough knowledge and compe-
raw material supply chain. We continously strengthen our due diligence in We want all women to be empowered, healthy and safe in their everyday
discrimination, child labour and forced labour, compensation and benefits. tence on the topic. Therefore, we have provided refresher training on GBVH
raw material sourcing. We are participating in the multi-stakeholder collab­ working life. We want women to have equal participation, voice and leader-
These targets are communicated to all functions in our organisation to for sustainability teams. In addition, our suppliers have provided training on
orative project ‘Harvesting the Future – Cotton in India’ to improve the ship in social dialogue, including all worker representation forums. We want
be acted on. GBVH to their workers and supervisors. 472,664 female and male workers
­working and living conditions of cotton farmers and workers in two districts the number of women in leadership positions to reflect the proportion of
and supervisors have been trained during the year.
in Madhya Pradesh. women on staff. We want men and women to receive equal remuneration for Together with UN Women India, we are founding members of the Textile
A safe and healthy working environment for all value chain workers work of equal value. Industry Coalition (TiC). The multi-stakeholder initiative brings together
All workers have the right to a safe and healthy workplace. This is clearly out- Forced labour We have worked with women leadership programmes, to prepare women in ­various actors, such as brands, manufacturers, government agencies, service
lined in our Sustainability commitment and our Global Framework Agreement We do not accept any form of forced labour in our supply chain. This is clearly supply chain tier 1 factories in several countries including Bangladesh, India providers, industry associations, trade unions, civil society organisations,
with IndustriALL Global Union and IF Metall. We aim to have no fatalities and stated in our sustainability commitment. In tier 1 and tier 2 supplier factories, and Türkiye. Through these programmes, women were empowered through and research institutions, to work towards a common goal of creating a safe
no accidents in our value chain. To achieve this aim, we assess working condi- we manage the risk of forced labour by monitoring working conditions training on gender equality, gender-based violence and harassment (GBVH), and empowering work environment for women in the textile industry by pro-
tions in supplier factories using both our own and third-party assessments through own and third-party assessments and improving grievance mecha- leadership skills and technical skills and were given the fair opportunity to be moting zero tolerance for sexual harassment and violence in the women-
and monitor data from supplier factories. nisms. Specifically, our minimum requirements look at recruitment policies evaluated in the internal recruitment process, whenever there is a vacancy dominated textile sector of Tamil Nadu, India.
We also monitor the share of tier 1 and tier 2 factories that have health and and processes and we require a document check. for a supervisory position.
safety committees. In addition, we raise awareness on the topic internally As stated in H&M Group’s migrant workers fair recruitment and treatment
by continuously training colleagues in production offices. When health and guidelines, we have set a goal towards ‘No worker pays for their work or right
safety violations occur, we work with suppliers and, where possible, affected to work’ by 2025. To achieve this goal, we are constantly investigating any
stakeholders, to ensure that all rights are respected, and that corrective recruitment fees paid by workers at factories and developing improvement
action plans are implemented correctly. We also work with the ILO’s Better plans to remediate any cases identified.

1. We are in the process of phasing out our operations in the country gradually and in a responsible way,
setting detailed plans with our suppliers and following ACT Responsible Exit Policy and Checklist.

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Supply chain management data

2024 2023 2022

WORKERS IN THE VALUE CHAIN Share of workers in our tier 1 production factories that are female, plus total number 61% 63% 62%
of workers who are female and male, % (1,030,385) (1,007,070) (1,156,000)
Progress towards targets in 2024
We continued to see an increase in gross average wages for workers Myanmar 1 saw a major rise of the average gross wage from 2023 Share of supervisors in our tier 1 production factories that are female, plus total number 25% 27% 27%
of supervisors who are female and male, % (64,276) (65,310) (71,000)
in our production supply chain, with relative improvement of the to 2024, with a significant increase in the difference between average
­difference to minimum wages 2024 compared with 2023 in most of and minimum wages. Many suppliers in Myanmar 1 have raised wages Share of worker representatives in our tier 1 production factories that are female, 65% 65% 63%
plus total number of workers r­ epresentatives who are female and male, % (9,500) (9,701) (9,800)
our major production markets. by 20-30 percent to mitigate the current situation, in addition to
In Bangladesh, the difference still stood at 39 percent despite two g ­ overnment-announced wage increases of MMK 1,000/day Share of tier 1 production factories with Health & Safety Committees, %1 100 97 98
a ­statutory minimum wage increase of 47 percent in late 2023. ­during the year. Share of tier 2 production factories with Health & Safety Committees, %1 100 94.75 –
The difference is expected to continue to grow in the coming years. In 2024 we continued working with women leadership programmes. Share of tier 1 production factories with trade union representation, %1 39 37 42
Mainland China suppliers experienced a decrease in demand, Although factories have worked to develop succession pools and
Share of tier 2 production factories with trade union representation, %1 35 41 –
­coupled with the global economic downturn, resulting in a reduction made efforts to increase women workers’ skills to enable their
Share of tier 1 production factories with collective bargaining agreements, %1 33 29 34
of total working hours. At the same time, the government implemented advancement, we have seen that progress takes time as there needs
policies to raise the minimum wage to ensure a living wage for low- to be vacancies which might be rare and that there are many reasons Share of tier 2 production factories with collective bargaining agreements, %1 23 25 –
income workers as well as to keep pace with inflation. holding women back from wanting to become supervisors. Moving Share of tier 1 production supply chain factories that have grievance mechanisms in place, %1 100 99.88 –
In India, the government revised the national minimum wage in 2024, ­forward, we will focus more on the foundations that will enable an Share of tier 2 production supply chain factories that have grievance mechanisms in place, %1 99.61 99.30 –
with a 4–7 percent increase in minimum wages across the states. increase in female leadership.
Number of tier 1 production supply chain factories covered by workers’ voice survey 627 524 –
Number of tier 1 production supply chain factories workers responding to workers’ voice survey 164,818 141,453 –
Number of workers covered and markets impacted by our National Monitoring Committees (NMC) 1,027,936 823,656 984,000

1. Scope: factories participating to HIGG FSLM – read more on page 106.

Average monthly wages (excluding overtime) at tier 1 production supplier factories versus applicable minimum wages in key production markets2, 3

Difference Difference
between average between average Human rights issues raised with National Monitoring Committees (NMC)
Minimum Gross average and minimum Minimum Gross average and minimum Unresolved Raised Resolved Unresolved
Country Currency wages 2024 wages 2024 wages 2024 wages 2023 wages 2023 wages 2023 from 2023 in 2024 in 2024 into 2025

USD 108 150 81 124 Compensation & benefits and severance payment 3 13 16 0
Bangladesh 39% 53%
BDT 12,201 16,960 8,276 12,624 Discrimination & harassment 0 1 0 1
USD 204 294 200 283 Freedom of association & collective bargaining agreements 4 0 4 0
Cambodia 44% 42%
KHR 833,045 1,200,619 822,000 1,164,399 Working hours 0 0 0 0
USD 290 534 290 542 Forced labour and modern slavery 0 0 0 0
Mainland China 84% 87%
CNY 2,090 3,848 1,962 3,667 Social security 0 0 0 0
USD 124 159 120 154 Total 7 14 20 1
India 28% 29%
INR 10,339 13,259 9,786 12,598
USD 173 202 171 199
Indonesia 17% 16%
IDR 2,736,302 3,193,760 2,649,826 3,082,693
USD 42 87 70 111
Myanmar 1 107% 60%
MMK 145,996 308,790 146,049 233,655
USD 116 158 118 156
Pakistan 36% 33%
PKR 32,458 44,031 26,764 35,626
USD 624 736 622 725
Türkiye 18% 17%
TRY 20,002 23,611 11,684 13,616
USD 162 327 167 324
Vietnam 102% 94%
VND 4,046,776 8,162,677 3,908,216 7,584,086

See our website for detailed wage and worker data.

1. We are in the process of phasing out our operations in the country gradually and in a responsible way, setting detailed plans with our suppliers and following
ACT Responsible Exit Policy and Checklist.
2. 2024 data includes active and approved manufacturing (tier 1) suppliers for all commercial product types, and covers the time period 1 January–30 September 2024.
2023 data covers the time period 1 January–31 December 2023. As our supplier base changes over time, average wage data is not presented as a like-for-like analysis.
All average wage data reflects weighted averages, taking account of the size of each factory and the number of workers. Minimum wage data also reflects weighted
­averages, t­ aking account of any differences in minimum wage changes during the year, and between regions or states.
3. Currency conversions at turn of the month from UN Treasury Operational Rates of Exchange, based on weighted average of monthly result for 2024.

100 101
<<Contents Sustainability report/Social/Affected communities

Affected communities Consumers and end-users

As a global fashion company we have an impact on local communities The continued success of our business depends on our ability to ­understand
throughout our value chain, where people and communities may be nega- and meet our customers’ needs and expectations. Our business activities
tively affected by the sourcing and processing of materials and the pro­ The salient human rights issues which have informed could potentially impact our customers’ or the users of our products nega- The salient human rights issues which have informed
duction of finished goods as well as the disposal of products and materials. the impact materiality assessment connected to affected tively if our products are not designed with the health and safety of people the impact materiality assessment connected to consumers
The use of land and natural resources during the production and disposal of communities are: in mind, or if our ­marketing practices do not consider the needs of the many. and end-users are:
clothes and textiles could potentially harm natural ecosystems and impact Every decision we make is therefore driven by our desire to create the best
• Access to a clean and healthy environment • Discrimination and equal treatment
communities’ access to a clean, healthy and toxic free environment. offering and experience for our ­customers and and with a fundamental
• Access to water respect for all people and their rights. • Product safety
Strategy and governance • Land rights and livelihoods • Customer data privacy
At H&M Group, we believe we have a responsibility to conduct our business Strategy and governance
in a way that respects the rights of people living in communities that could be H&M Group has an established culture of innovation and entrepreneurship,
affected by our operations or business activities across our value chain. and a tireless focus on our customers and our ability to scale great ideas to
We aim to build a responsive and responsible value chain where all people in the benefit of millions of people. Our aim is to offer qualitative products and
affected communities have a voice and the possibility to raise their concerns. Targets and actions liberating fashion for the many. We are for everyone, but everyone is unique. Targets and actions
Our ambition is for every rights holder, especially vulnerable groups such as H&M Group jointly develop feedback and communication tools to have the Our brands offer a broad range of styles for different personalities, prefer- To deliver on our business idea and liberate fashion for the many, we have
children and indigenous people, to feel assured that they are heard and that best possible overview of potential impacts as well as the needs and con- ences, body types, ages, gender identities, occasions and cultures. Our cus- taken action related to the marketing and saftey of our products as well as
their rights are respected. To achieve this ambition, we identify and drive initi- cerns of people living in affected communities. In addition, the group is tomers include women, men, youth, and children of all ages, that are consum- the data privacy of our customers. We have not yet set targets for consumers
atives that focus on preventing and mitigating potential negative impacts on ­currently looking into strengthening its current approach by setting quanti­ ers and users of apparel and lifestyle products. With great size comes great and end-users.
people in affected communities and their surrounding environment. tative targets for affected communities and is actively seeking contacts responsibility and we believe protecting our customers’ rights and safety is
and partnerships with organisations or other proxies that can more directly an important part of our sustainability work. Responsible marketing
Identification and management of material matters and effectively represent affected communities to set such targets. We have a responsibility to market our products in a sustainable way and be
In order to identify the salient human rights issues related to people in Identification and management of material matters accessible to all consumers and users of apparel and lifestyle products
affected communities, we have carried out a human rights assessment Access to a clean and healthy environment H&M Group is dedicated to addressing any material negative impacts on con- regardless of who they are. The brands within H&M group create campaigns
throughout our entire value chain. Operations in certain parts of our value We have taken action to secure the safety and wellbeing of people living in sumers and end-users promptly and effectively. To identify the salient human and communication assets that inspire a wide and diverse target group across
chain can have potential negative impacts on the quality of water and air as affected communities and their access to clean air, water and a healthy envi- rights issues related to our customers and the users of our products, we have our markets. Marketing by our brands has a major impact on consumers,
well as on land and the livelihoods of people. ronment. We recognise that our potential negative impact on the quality of air carried out a human rights assessment. Read more abour the results from therefore we need to plan and produce our marketing assets consciously
Identifying potential human rights violations associated with business and water is not only related to activities in our business partners’ factories our salience assessment on pages 91–93. and responsibly. This responsibility entails securing a diverse representation
activities is the first critical step in preventing and mitigating any potential but also in the surrounding communities where we operate. Therefore, our In addition, we regularily incorporate feedback from our customers to of people in our casting and promoting a positive and healthy lifestyle.
harm to people. Therefore, we have identified and assessed actual and work within this area is supported by our water and chemicals strategy, as inform our decisions and activities. This engagement occurs through various
potential adverse human rights impacts arising from our global operations well as our climate and materials strategy. Read more about our targets and channels, including customer service interactions. Insights gathered from Product safety
and value chain as part of our ongoing human rights due diligence process. actions related to climate, chemicals and water pollution, resource use and these interactions help us tailor our privacy practices to better meet the When making products for children, safety is paramount. It is a core focus
Read more about our approach to human rights and the results from our circularity on pages 61–63, 67, 69 and 73–75. needs and expectations of our customers and the users of our products. for all roles working with children’s products and vital in all stages of product
­salience assessment on pages 91–93. We welcome individuals to reach out with their concerns or feedback. We development – from the initial idea creation to the production floor. Our child
Access to water provide easily accessible contact information for our data protection officer safety experts set guidelines to educate our employees on the latest safety
Policies and procedures Wastewater discharge from factories in our supply chain is one of the material (DPO) on our websites as well as to our dedicated customer service team requirements and trends. We base our child safety work on legal require-
H&M Group’s commitment to respect the human rights of people living in matters related to chemicals and water pollution that also have an impact on respon­sible for managing data subject rights. Additionally, we have a speak ments and knowledge about how children behave, as well as the customer
affected communities is set out in our human rights policy, which applies to people living in affected communities. We require all our tier 1 and 2 suppliers up ­channel where customers and users of our products can raise concerns. feedback we receive. All cases concerning product safety incidents are
all entities within the H&M Group and our business partners. H&M Group to comply with national legislation and ZDHC standards for wastewater Read more about our speak up channel on page 105. ­carefully investigated and contribute to continuous product development.
complies with national laws and respects internationally recognised human ­treatment and discharge water quality. We also require all supplier units with All our processes involving our customers personal data are designed We perform thorough risk assessments to identify potential negative
rights wherever we operate, and our human rights policy is aligned with wet processes to have a functional Effluent Treatment Plant (ETP) in place. with the privacy perspective in mind. Our approach involves a continuous impacts including developing appropriate mitigation strategies. We continu-
internationally recognised instruments such as the UN Guiding Principles Although our relevant suppliers have made progress in improving wastewater monitoring and assessment of our operations and procedures to identify ously monitor key indicators linked to product safety, such as the number of
on Business and Human Rights, the OECD Guidelines for Multinational Enter- quality, we recognise the need for systemic change beyond individual factories. potential negative impacts on our customers and the users of our products. orders stopped before sales or product recalls due to health and safety
prises, the Universal Declaration of Human Rights and ILO Declaration on We are committed to our water stewardship work with WWF to progress When a significant issue arises, we act quickly to mitigate harm, implement- issues or child safety issues. Read more about our targets and actions
Fundamental Principles and Rights at Work. Our RBC policy outlines our towards improving water quality at a basin level. ing remediation plans that address root causes and prevent recurrence. related to safe products and chemical use on page 67.
­sustainability due diligence process. To prevent and mitigate material negative impacts on communities Additionally, we regularly review and refine our policies to improve our ability
In addition, H&M Group’s sustainability commitment, which applies to all related to their access to water, we have taken action to engage with affected to prevent and address any negative impacts effectively. When a material Customer data privacy
business partners, outlines that there should be no infringement on land ­stakeholders, although these actions are not linked to any specific targets. impact occurs, we take action to provide or enable remedy, such as informing Our dedicated team of data privacy professionals assesses all personal data
rights or on the civil and political rights of marginalised populations. Opera- We have, for example, performed roundtable discussions to engage with affected customers promptly about the breach and implementing corrective processes to ensure that the individuals’ right to privacy is always consid-
tions and the use of natural resources shall not contribute to the destruction affected communities and their proxies such as Save the Children, Water Aid measures to prevent future occurrences. Necessary actions are identified ered. Our approach focuses on proactive measures to prevent, mitigate and
or degradation of the resources and income base for communities, including and Bangladesh Rural Advancement Committee (BRAC) to discuss the best through our risk management processes performed by our legal compliance remediate any potential negative impacts, while fostering a culture of data
marginalised populations, such as in claiming large land areas, irresponsible possible approach to capture the needs and concerns of affected communi- team, and the data protection officer. protection awareness across the organisation. We have implemented robust
use of water or other natural resources on which these communities depend. ties in Bangladesh, which could for example be negatively impacted by pol- actions to safeguard our customers rights, including information security
Our policies and procedures are available at hmgroup.com and the supplier luted water being discharged from textile and garment factories in our supply Policies and procedures measures such as data encryption technology and regular data privacy
portal for all our business partners. Read more about H&M Group’s policies chain. We continue to screen which organisation that are best qualified to Our work is guided by our product safety guidelines, data privacy policy and reviews to identify and address potential vulnerabilities. We also provide
and commitments on page 108. develop a method for capturing the needs and concerns of people living in human rights policy, which applies to all entities within the H&M Group and ongoing training for employees on data privacy, best practices and compli-
communities we affect and depend upon. Once finalised, we believe this our business partners, and our RBC policy, which outlines our sustainability ance requirements.
Opportunities for affected communities to raise concerns method can also be applied to other production markets and communities. due diligence process. All concerns and complaints are logged in a centralised database,
Wherever possible, relevant stakeholders, including people living in affected Our plan is to identify mitigation actions together with partners to gain a We have also established comprehensive procedures to guide colleagues assigned a unique identifier, and tracked through to resolution. Regular
communities, are welcome to raise concerns anonymously through our deeper understanding of how to manage these issues in an efficient manner. in managing personal data responsibly. These procedures outline the key ele- reviews are conducted to ensure timely issue management. Our actions
Whistleblowing Mechanism, read more on page 105. When we have identified, Read more about our targets and actions related to chemicals and water ments of our data privacy policy and provide step-by-step instructions that are set to achieve privacy targets, strengthening our commitment to
or where there is alleged suspicion or grievance, that people – colleagues, ­pollution on page 67. translate legal and regulatory requirements into actionable guidance for daily accountability, and continuously improving our privacy safeguards.
workers, communities or customers – have been negatively impacted due to operations. To further support data privacy understanding across the organi- We ­handle personal data of our customers to provide the best customer
actions by us or our business partners, we have a responsibility to investigate Land rights and livelihoods sation, we offer a variety of training sessions tailored to enhance colleagues’ ­experience when visiting our websites or stores. We also process personal
and engage in a remediation process. If we conclude that we have caused or We have taken action to ensure that the rights of people living in affected data protection knowledge. For instance, all office-based employees are data on custome requests to be able to deliver services, fulfil orders, or
contributed to the harm caused, we must also engage in enabling remedy to communities are respected across our value chain. Our efforts related to required to complete an annual e-learning module on data privacy. This train- ­provide support through our customer service. We had six substantiated
those impacted. Where we are linked, we may choose to engage and in gen- the land-rights and livelihoods of people living in affected communities are ing equips participants with essential skills to recognise and properly handle complaints ­con­cerning breaches of customer privacy during 2024 (five in
eral we use our leverage, to the extent possible and reasonable, to influence focused on increasing the use of recycled and sustainably sourced materials personal data, helping to foster a culture of privacy awareness and ensuring 2023 and eight in 2022). All cases, except for one, have been closed with no
others to take their responsibility. Read more about how we engage with our and maximising the value of material resources and products by keeping adherence to our data protection standards at every level of the organisation. further action required by the supervising authorities. The remaining open
key stakeholders on page 55. them in use longer. These efforts are supported by our materials strategy, Our policies and procedures are available at hmgroup.com and the supplier case is being managed appropriately in coordination with the relevant
see pages 73–78. In addition, we are using our leverage as a global fashion portal for all our business partners. Read more about H&M Group’s policies ­super­vising authority.
company to strengthen the respect for human rights across our value and commitments on page 108.
chain through industry collaborations and partnerships, such as the Better
Cotton Initiative.

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<<Contents Sustainability report/Governance

Business conduct
H&M Group operates across multiple markets globally, each with their differ- supported when they raise a concern, and we make every effort to keep their
ent laws and regulations. We recognise that how and where we operate has identity strictly confidential. Reports may be made anonymously, except in
an impact on many stakeholders as well as our business long-term success. countries where this does not comply with local laws, and we do not tolerate
In many of the markets where we operate, unethical business practices and retaliation against anyone who raises a concern in good faith.
behaviours poses a risk to our business. Good procurement practices and
close cooperation with our business partners are therefore essential to Whistleblowing mechanism
ensure we deliver on our business idea and mitigate any potential negative The H&M group is subject to legal requirements for whistleblowing. Any
impacts on people or the planet. ­concerns or potential violations of H&M Group’s policies or relevant laws
can be reported through our externally available speak up channel, which
Strategy and governance is our whistleblowing mechanism. The speak up channel is available to our
It is of the utmost importance for H&M Group to always act ethically, trans- employees, business partners and their employees as well as third parties.
parently and responsibly across all parts of the business – from collaborating Read more about our whistleblowing policy and mechanism on page 108.
with our suppliers to engaging with our customers. This starts at board level
and runs throughout our brands and operations. Our ambition is to establish Our business partners and their employees
a corporate culture that promotes ethical and responsible business conduct. All suppliers must sign our sustainability commitment and code of ethics
H&M Group’s risk management and internal control processes assure that for business partners, which set out our expectations for the relationship,
we are compliant with relevant legislation and have control over our risk including that every employee is always treated with dignity and respect.
exposure. The executive management team, each brand, and every relevant We also expect our business partners to establish their own misconduct
group function reviews our business conduct risks on a quarterly basis. The reporting process, where their employees can report complaints and con-
board of directors and the audit ­committee receive regular feedback from cerns without fear of retaliation. However, if a business partner employee
the organisation concerning these processes. The responsibility for H&M cannot raise their concern within their own organisation or sees no action on
Group’s corporate culture and business conduct is stated in our corporate a concern that affects the H&M group, they may use our speak up channel.
governance report, pages 38–51. This is in line with OECD Due Diligence Guidance for Responsible Business
Conduct and local legislation where we operate. Read more about our
Identification and management of material matters ­sustainability commitment and RBC Policy on page 108.
We undertake risk assessment as part of the due diligence process for new
suppliers, based on the risk level by country, industry, type of business and Data privacy
delivery. We set short- and long-term goals to help ­mitigate identified risks, H&M Group has implemented a robust data privacy policy to ensure com­
and the prioritisation is risk-based. H&M Group continues to explore the use pliance with applicable legislation and uphold the highest standards of data
of third-party risk management tools that could automate our business con- security. We have also established comprehensive procedures to guide
duct risk identification process and due diligence process for business part- ­colleagues in managing personal data responsibly. These procedures out­
ners and other third parties. Read more about H&M Group’s risk management line the key elements of our data privacy policy and provide step-by-step
process on pages 49–51. instructions that translate legal and regulatory requirements into actionable
guidance for daily operations. Read more about our data privacy policy
Policies and procedures on page 108.
Fundamental respect for the individual and human rights sits at the heart of To further support the understanding of data privacy within the organisa-
our business and culture. This applies to everyone along our value chain and tion, we offer a variety of training sessions tailored to enhance colleagues’
includes aspects such as fair wages and working hours, a safe workplace, data protection knowledge. For instance, all office-based employees are
freedom of association, and the opportunity to develop and grow. Minimum required to complete an annual e-learning module on data privacy. This train-
employment standards and social policies are applied across our operations ing equips participants with essential skills to recognise and properly handle
and supply chain to support good working conditions in safe and healthy personal data, helping to foster a culture of privacy awareness and ensuring
environments for all. As a global company, we represent a rich variety of dif- adherence to our data protection standards at every level of the organisation.
ferent cultures and backgrounds. This is one of our key business strengths,
as it brings a wealth of diverse knowledge, experience and perspectives that Animal welfare
enable creativity and innovation. We actively work to cultivate an inclusive Our commitment to act ethically, transparently and responsibly extends

Governance
corporate culture where everyone is encouraged to be themselves and beyond people and the planet and includes animals. Our commitment
respect others for who they are. towards animal welfare is stated as part of our environmental policy and in
‘Our way’ summarises our values, policies and guidelines and how they our animal welfare policy. We have a long-standing commitment to improve
shape the way H&M Group operates to ensure business is carried out in animal welfare across our global supply chain and we are working to source
an ethical, responsible, sustainable and transparent way. ‘Our way’ applies all animal-derived materials that we use from farms with good animal welfare
to all employees within all brands and functions of H&M Group, as well as practices in place. Read more about our animal welfare policy on page 108.
external stakeholders. For further information about ‘Our way’, see
hmgroup.com/about-us. Targets and actions
At H&M Group, we consider the needs of present and To reach our ambition and establish a corporate culture that promotes ethical
future generations, and aim to conduct our business in Code of ethics and responsible business conduct, we have set targets related to preventing
a way that is economically, socially and environmentally At H&M Group, our commitment is to conduct business with a high standard corruption and bribery, and we take action to prevent unethical business
of honesty, integrity, transparency and fair play. Our code of ethics details the behaviour across our value chain.
sustainable. To be a successful business we believe
company’s expectations on employees and business partners. All business
we must act responsibly and this means sharing clear, carried out with or on behalf of H&M Group should always be conducted in Corruption and bribery
accurate and relevant information about our products accordance with our code of ethics, applicable laws and regulations in the We have zero tolerance for corruption and bribery. Our ethics and anti-­
and operations. Everything we do forms part of the country of business. The code of ethics includes details about our zero-­ corruption training programme is our main tool for mitigating the risk of
tolerance policy on bribery and corruption, which applies to all business deal- corrup­tion and bribery cases. We provide anti-corruption training during
social and environmental story of our products.
ings in all countries in which we operate. It is mandatory that all our business on­boarding to our employees, who are required to sign our code of ethics.
partners and employees comply with the code of ethics. We see education Employees can access the company’s code of ethics and our speak up
and building awareness as crucial tools to act ethically and in compliance ­channel through the H&M group ethics portal. Awareness programmes for
with applicable policies, laws and regulations. our speak up channel are held throughout the year. We make every effort
At H&M Group, we take any allegation of misconduct in our business to keep whistleblowers’ identities strictly confidential. Reports may be
­seriously. Misconduct can include discrimination, harassment, theft, fraud, made anonymously, except in countries where this does not comply with
corrup­tion, other violations of our policies and guidelines regarding ethical local laws, and we do not tolerate retaliation against anyone who raises
behaviour, or violation of laws. All reports are investigated, and appropriate a concern in good faith. The H&M group is subject to legal requirements
actions are taken against proven misconduct. People should feel safe and for whistle­blowing.

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<<Contents Sustainability report/Governance/Business conduct

We assess and investigate all reported code of ethics cases internally, A new supplier or production unit is onboarded only when they meet our Payment practices and performance1
tracking the number of violations annually and report these annually to the social and environ­mental minimum requirements. These are also included in 2024 2023 2022
CEO, CFO, audit committee of the board of directors and via our annual our sustainability commitment. We take a risk-based approach to monitoring
and sustainability report. These investigations may lead to terminations of our business partners’ compliance and apply different levels and methods Average number of days to pay invoice from date when contractual or statutory term of payment 32 days 29 days 30 days
business relationships or employment. We also conduct internal audits to of evaluation depending on the nature of the goods and services provided. starts to be calculated
ensure compliance. For our suppliers of commercial and non-commercial goods, we use a system Share of commercial supplier payments made on time, % 99 99 98
of risk-based audits and our sustainable impact partnership programme
Supplier relationships and purchasing practices (SIPP) to monitor compliance and performance. Through SIPP we ensure 1. Due to excessive data, the averages of one month per each year are used as a proxy for the full year. No significant variations occur between each month of the year.

We work continuously to develop responsible purchasing practices and strive all suppliers meet our minimum requirements. Read more about supplier
to ensure that our purchasing practices support sustainable development in ­relationships and how we deal with non-compliance at hmgroup.com/­
the textile and clothing industry. We do this by offering better capacity plan- sustainability/sustainability-reporting/how-we-report.
ning, respecting payment terms, making payroll a specified cost that is not Letters of concern issued to tier 1 and 2 production suppliers for non-compliance with minimum requirements
negotiated, educating our teams on the importance of sourcing practices, Payment practices
2024 2023 2022
and adhering to exit terms. Our supplier payment flow is highly automated, and execution of payments is
When evaluating a new business supplier, we communicate our social and based on purchase orders. Therefore no explicit payment approval is needed Legal licences, emergency planning, fire safety 0 4 10
environmental minimum requirements early in the process to create a com- to make payments to suppliers, eliminating a potential source of late payments. Child labour 0 0 0
mon understanding and shared ambition. The onboarding process includes Payment terms can have a big impact on suppliers’ financial resilience and
Compensation, minimum wage, overtime compensation 0 24 8
­informing business partners about the importance of these compliance ability to invest. Therefore, H&M Group has negotiated a factoring agreement
Worker involvement & communication 0 0 0
measures and H&M Group’s commitment to transparency and accountability. on behalf of all its suppliers that gives them faster access to invoice payments.
Recruitment & hiring 4 4 7
Worker treatment & development 0 3 0
Supply chain management Water use, wastewater 17 14 7
2024 2023 2022
Energy, chemicals 0 2 0
Share of suppliers regarding H&M Group as a fair business partner, % 92 90 89 Use of undeclared units, transparency 15 45 25
Number of colleagues in relevant roles assigned and completing training on our ACT commitments 524 (78%) 510 (73%) 498 (NA%)
and responsibilities to improve supply chain working conditions (and % completion)1
Number of our own and outsourced warehouses audited2. 48 55 34

1 . Relevant roles include production and country management, controllers, buying office management, merchandising teams, capacity teams, business governance teams and Confirmed cases of non-compliance with minimum requirements1
­sustainability teams. ACT (Action, Collaboration, Transformation) is a joint initiative between IndustriALL Global Union and 19 international brands and retailers to jointly develop
2024 2023 2022
­purchasing practices, establish collective bargaining agreements, and strengthen Freedom of Association for a future-proof industry and pave the way for living wages for workers.
2. Out of the 48 warehouses audited, 14 were in own operations and 34 were in third-party logistics. Number of minimum requirement non-compliance cases across tier 1 and 2
production supplier factories
Social 522 141 72
Supplier coverage of HIGG Indexes Environmental 280 21 12

FSLM (Higg Facility Social and Labor Module) 2024 2023 2022
Business Practice 15 50 25
Other 87 29 19
Number of tier 1 production factories participating in FSLM 739 (71%) 876 (68%) 843 (66%)
(and % of total number of tier 1 production factories) Number of Terminations of business relationships due to minimum requirement 8 12 4
non-compliance issues for tier 1 and 2 production supplier factories
Number of tier 2 production factories participating in FSLM 543 (56%) 442 (61%) 501 (52%)
(and % of total number of tier 2 production factories) 1. In 2024, we improved audit and validation methods to enhance visibility, ensure documentation, and secure access to remedy. We nearly doubled factory visits by third parties or H&M
Number of tier 1 production factories participating in FSLM with third-party verifications 690 (93%) 790 (90%) 843 (100%) teams, with most findings remediated within two weeks. For serious non-compliance, such as human rights issues, we issued 36 Letters of Concern (LoC), down 63% from 96 in 2023.
While overall findings increased, critical violations decreased, reflecting our continued commitment to compliance and reducing human rights violations in the supply chain.
(and % of those participating)
Number of tier 2 production factories participating in FSLM with third-party verifications 510 (94%) 415 (94%) 501 (100%)
(and % of those participating) Production supply chain data
2024 2023 2022

Corruption and bribery training Number of tier 1 production supplier factories (and % relevant production volume) 1,163 (99%) 1,005 (95%) 1,183 (99%)
disclosed in the H&M Group supplier list
Target 2024 2023 2022
Number of tier 2 production supplier factories (and % relevant production volume) 448 (77%) 344 (60%) 392 (73%)
Code of ethics e-learning completion rate for H&M Group employees, % 90% annually 79 75 67 disclosed in the H&M Group supplier list
Number of countries and workers in our tier 1 and tier 2 production supply chain factories 47 countries 42 countries 42 countries
1,447,903 1,409,820 1,400,000
workers workers workers
Incidents on corruption and bribery
Target 2024 2023 2022

Total reported incidents of potential non-compliance Monitor 35 incidents reported 34 incidents reported. 29 incidents reported.
with the code of ethics (including reported corruption 6 cases remain open 8 remain open into 2024 6 remain open into 2023
cases) – employees and business partners into 2025
Reported incidents of potential non-compliance with Monitor Sales and retail: 15 Sales and retail: 12 Sales and retail: 12
the code of ethics (including reported corruption Central offices: 4 Central offices: 11 Central offices: 8
cases) – by department Production: 11 Production: 10 Production: 8
Logistics: 5 Logistics: 1 Logistics: 1
Online: 0 Online: 0 Online: 0
Sanctions imposed following cases of potential non- Monitor Employees: 4 terminations Employees: 9 terminations Employees: 2 terminations
compliance with code of ethics (written warning, and 2 warnings and 8 warnings and 7 warnings
­termination) Business partners: Business partners: 0 Business partners:
3 warnings 1 warning
Number of substantiated code of ethics cases Monitor 9 16 10

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<<Contents Sustainability report/Governance/Our policies and commitments

Our policies and commitments

Our policies are a critical part of our strategy to ensure we achieve our sus- Our aim is to make sure all employees in our own workforce are covered by
tainability ambitions. Where applicable, we base our policies and commit- social protection, through public programmes or through benefits offered,
ments on international norms and recognised initiatives. This includes ILO against loss of income due to sickness, unemployment, injury, parental leave
Conventions and the UN Guiding Principles on Business and Human Rights. or retirement.

Environmental policy Compensation and benefits

Our environmental policy describes how we act on our responsibility to pro- Our employees’ contribution is key to our continuous growth, and we are
tect the environment and stay within the planetary boundaries. H&M Group committed to rewarding them accordingly. We outline our core compensation
has an ambition to lead the change towards achieving a circular fashion principles in our global compensation guidelines and always comply with
industry with net zero climate impact, while being a fair and equal company. local legislation and collective agreements. Employees working full-time or
We aim to grow our business in a way that decouples our financial growth and part-time, regardless of position, salary and country, benefit from the H&M
profitability from the use of finite natural resources and from GHG emissions. Incentive Program (HIP), designed on the principles of profit sharing.
Science is clear about climate change and resource depletion being two of
the greatest challenges facing our planet today. Both are contributing to bio- Internal grievance policy
diversity loss and endanger the livelihoods and human rights of millions of In case of breaches of our social policies, all our workplaces have local griev-
people. To tackle these critical issues, it is crucial to move from a linear model ance procedures based on our grievance policy. This aims to ensure that all
of consumption and production – where we take, make and waste – to a circular colleagues have access to a clear and effective procedure when it comes to
model that maximises product and resource value through reuse, repair and handling issues around employment, treatment at work or breaches of our
recycling of products and materials. social policies.

Human rights policy Whistleblowing policy and mechanism

Our human rights policy outlines our commitment to respect the fundamental Our whistleblowing policy states our commitment to handling misconduct in
human rights of all people across our value chain – in our own operations, our business and our speak up channel offers employees, suppliers and any
supply chain and in the communities where we operate. The board of direc- other stakeholders an option for reporting business misconduct and corrup-
tors has adopted our human rights policy. The responsibility for compliance is tion cases. We encourage all our employees, business partners and any third
delegated to senior operational executives that report to our CEO, while the parties to report any cases, concerns or potential violations of H&M Group’s
sustainability director and head of corporate governance oversee the overall policies and/or relevant law through our speak up channel. Cases can be
compliance and report on progress and impact to the board of directors and reported by anyone, inside or outside H&M Group, at speakup.hmgroup.com.
the leadership team on a regular basis.
Data privacy policy
Social policies Our data privacy policy aims at prioritising and respecting privacy in a lawful
In addition to our human rights policy we have implemented a set of social and ethical manner. The policy is guided by five key data privacy principles:
policies to ensure all our employees are treated with respect. ensuring data is used only for clear, legally justified purposes; communicating
our data handling practices transparently; maintaining data accuracy and
Non-discrimination policy ­relevance while limiting its use to necessary purposes; deleting or anonymis-
Our equality, inclusion, diversity and non-discrimination policy aims to ensure ing data once its purpose is fulfilled; and implementing robust measures to
that everyone receives equal treatment at work. Everything we do is based on protect data according to our information security policy. All colleagues are
the equal value of all people, and we expect all colleagues to actively partici- expected to follow these principles, stay informed through awareness
pate in building an inclusive work environment free from discrimination, preju­­ ­activities, and report any data breaches.
dice and unconscious bias. In this policy, discrimination includes distinction,
exclusion or preference based on, but not limited to: race, ethnicity, colour, Responsible business conduct policy
sex, sexual orientation, pregnancy and marital status, family responsibilities, Our responsible business conduct policy explains our approach to how we
religion, political opinion, national extraction, social origin, gender identity identify, prevent, mitigate and account for and address actual and potential
and expression, age, disability, trade union membership and activities, health impacts across our value chain, including in our own operations and through
status or any form of medical discrimination, both mental and physical. our upstream and downstream business relationships.

No violence policy Our sustainability commitment

Our no harassment and violence policy aims to ensure a work environment Through our sustainability commitment, we have set requirements on our
free from harassment, violence or other improper conduct that could lead to business partners related to sustainability due diligence. It is valid for all our
physical or psychological harm. Harassment, violence or other improper con- business partners, with whom we have contractual relations. It is guided by
duct refer to a range of unacceptable behaviour and practices. This includes globally acknowledged standards and covers impact on people and on the
but is not limited to threatening or attacking someone physically, verbally environment. It also emphasises mutual trust and dialogue as an essential
or in writing, deliberately excluding or ignoring someone, withholding work starting point in addressing sustainability challenges.
related information, sabotaging someone’s work, making sexual remarks,
and initiating unwanted close contact. Animal welfare policy
Our Animal Welfare Policy aims to ensure that no animals should be harmed
Health and safety policy as a result of the manufacturing and production of our goods. In line with our
Our health and safety policy aims to create and maintain healthy, safe and ambition to reduce our dependency on virgin resources, we aim to increase
sustainable work environments that promote physical, mental and social our share of recycled animal fibres and we are also exploring alternative
wellbeing throughout our operations. We strive to build a strong health and materials that can offer the same qualities. None of our beauty products are
safety culture by taking preventive measures and constantly working to tested on animals and we have strict requirements in place for materials of
secure and improve workplace conditions. All colleagues are encouraged animal origin, such as wool, leather or down. We say a big no to fur, and for
to take responsibility in their daily work to protect themselves and others, many years we have banned the use of exotic skin, as well as any material
and to report any incidents, accidents or unsafe working conditions. deriving from endangered species. All our suppliers involved in the produc-
tion and processing of animal derived materials or beauty products must
Labour relations policy comply with our animal welfare policy.
Our labour relations policy aims to achieve a good relationship between
employees, managers, employee representatives and relevant external
stakeholders. We expect all parties to be fair, respectful and constructive
when engaging in social dialogue, and to highly value everyone’s contribu- Read more about our policies and commitments on
tion when it comes to finding ways to continuously improve our workplace. hmgroup.com/sustainability/standards-and-policies

108 109
<<Contents Sustainability report/Auditor’s report

Auditor’s limited assurance report on

selected sustainability information in
H & M Hennes & Mauritz AB (publ)’s
Sustainability Report 2024

To H & M Hennes & Mauritz AB (publ),

corporate identity number 556042-7220
Own workforce
Characteristics of employees and number of employees by countries (part of
Auditor´s responsibility
Our responsibility is to express a conclusion on the selected sustainability The auditor’s opinion regarding
Introduction
GRI Disclosure 2-7 and 401-1) as reported on page 96. Diversity and inclusion
regarding age distribution amongst employees and number (part of GRI
information based on the limited assurance procedures we have performed.
The selection of sustainability information to be reviewed has been made
the statutory sustainability report
We have been engaged by the Board of Directors and the Chief Executive ­D isclosure 405-1) as reported on page 96. by the management of H & M Hennes & Mauritz AB (publ). Our engagement
Officer of H & M Hennes & Mauritz AB (publ) to perform a limited assurance is limited to the above selected sustainability information, which does not The board of directors is responsible for the statutory sustain­
engagement on selected sustainability information described below Workers in the value chain include web-links, and is limited to historical information presented and does ability report on pages 53–109, and that it is prepared in accord-
(“the selected sustainability information”) as presented in H & M Hennes Share of tier 1 supplier factories with a Health & Safety Committee, share of therefore not cover future-oriented information. ance with the older version of the Annual Accounts Act which
& Mauritz AB (publ)’s Sustainability Report 2024, outlined on pages 52–109 tier 2 production factories with Health & Safety Committees, share of tier 1 We conducted our limited assurance engagement in accordance with ISAE was applicable before July 1, 2024.
in this ­document. production factories with trade union representation, share of tier 2 produc- 3000 (revised) Assurance Engagements Other than Audits or Reviews of Our examination has been conducted in accordance with FAR’s
tion factories with trade union representation, share of tier 1 production Historical Financial Information. A limited assurance engagement consists of auditing standard RevR 12 The auditor’s opinion regarding the
General disclosures ­factories with collective bargaining agreements, share of tier 2 production making inquiries, primarily of persons responsible for the preparation of the statutory sustainability report. This means that our examination
Approach to stakeholder engagement (GRI Disclosure 2-29) as reported on factories with collective bargaining agreements, share of tier 1 production selected sustainability information, and applying analytical and other limited of the statutory sustainability report is different and substantially
pages 54–55. Process to determine material topics and list of material topics supply chain factories that have grievance mechanisms in place, and share assurance procedures. The procedures performed in a limited assurance less in scope than an audit conducted in accordance with Inter-
(GRI Disclosures 3-1, 3-2) as reported in on pages 56–57. Number of execu- of tier 2 production supply chain factories that have grievance mechanisms engagement vary in nature from, and are less in extent than for, a reasonable national Standards on Auditing and ­generally accepted auditing
tive members and non-executive members, percentage of members of in place (part of GRI Disclosure 3-3 and defined criteria in ‘How we report assurance engagement conducted in accordance with International Stand- standards in Sweden. We believe that the examination has
administrative, management and supervisory bodies by gender and other 2024’) as reported on page 101. ards on Auditing and other generally accepted auditing standards in Sweden. ­provided us with sufficient basis for our opinion.
aspects of diversity, and percentage of independent board members (part Number of tier 1 production factories participating in FSLM (Higg Facility The firm applies International Standard on Quality Management 1, which A statutory sustainability report has been prepared.
of GRI Disclosure 2-9) as reported on page 54. Social and Labor Module), number of tier 2 production factories participating requires the firm to design, implement and operate a system of quality man-
in FSLM, number of tier 1 production factories participating in FSLM with third agement including policies or procedures regarding compliance with ethical
Greenhouse gas (“GHG”) emissions party verifications, and number of tier 2 production factories partici­pating in requirements, professional standards and applicable legal and regulatory Stockholm, March 20, 2025
Gross scope 1 GHG emissions (GRI Disclosure 305-1) as reported on page 64 FSLM with third party verifications (part of GRI Disclosure 414-1) as reported requirements. We are independent of H & M Hennes & Mauritz AB (publ) in
in the Sustainability Report. Gross market-based and location-based scope 2 on page 106. accordance with professional ethics for accountants in Sweden and have Deloitte AB
GHG emissions (GRI Disclosure 305-2) as reported on page 64. Gross Scope Average monthly wages (excluding overtime) at H&M Group supplier fac­ otherwise fulfilled our ethical responsibilities in accordance with these
3 GHG emissions (GRI Disclosure 305-3), limited to category 1 including tories versus applicable minimum wages in key production markets (defined requirements. Didrik Roos
­fabric production, raw materials, and garment manufacturing, non-­garment criteria in ‘How we report 2024’) as reported on page 100. The procedures performed consequently do not enable us to obtain Authorized Public Accountant
goods, packaging and other expenditures, and category 4 regarding transpor- ­assurance that we would become aware of all significant matters that might
tation (upstream), as reported on page 64. Percentage of scope 1 and 2 GHG Ethics, anti-corruption and privacy be identified in a reasonable assurance engagement. Accordingly, the
emission reduction and intensity of scope 1 and 2 (GRI Disclosure 305-4 and Total reported incidents of potential non-compliance with the Code of Ethics ­conclusion of the procedures performed do not express a reasonable
305-5) as reported on page 64. (including reported corruption cases) employees and business partners, ­assurance conclusion.
sanctions imposed following cases of potential non-compliance with Code Our procedures are based on the criteria defined by the Board of Directors
Energy of Ethics, and number of substantiated corruption and bribery cases (part of and the Chief Executive Officer as described above. We consider these
Energy consumption within the organization and percentage of renewable GRI Disclosure 205-3) as reported on page 106. ­criteria suitable for the preparation of the above selected sustainability
energy (GRI Disclosure 302-1) as reported on page 66. Code of Ethics e-learning completion rate for H&M Group employees information presented in the Sustainability Report.
(part of GRI Disclosure 205-2) as reported on page 106. Substantiated com- We believe that the evidence we have obtained is sufficient and appropriate
Materials and packaging plaints concerning breaches of customer privacy and losses of customer to provide a basis for our conclusion below.
Share of recycled materials used in commercial products and packaging, data (GRI Disclosure 418-1) as reported on page 103.
and recycled and sustainably sourced materials used in commercial products Conclusion
and packaging (part of GRI Disclosure 301-2) as reported on page 77. Share Payment practices Based on the limited assurance procedures we have performed, nothing
of plastic packaging designed for recycling or reuse (defined criteria in Average number of days to pay invoice from date when contractual or statu- has come to our attention that causes us to believe that the selected sustain­
‘How we report 2024’) as reported on page 77. tory term of payment starts to be calculated and share of commercial sup- ability information, is not prepared, in all material respects, in accordance
plier payments made on time (defined criteria in ‘How we report 2024’) as with the criteria defined by the Board of Directors and Chief Executive Officer.
Water pollution reported on page 107.
Share of tier 1 and 2 production factories with functional Effluent Treatment
Plants (ETP) assessments, share of tier 1 and 2 production factories achiev- Responsibilities of the Board of Directors and
ing green grade ETP functionality assessment, and share of tier 1 and tier 2 the Chief Executive Officer Stockholm, March 20, 2025
production factories with ETP discharged water quality that is Zero Discharge The Board of Directors and the Chief Executive Officer are responsible for
of Hazardous Chemicals wastewater compliant (foundation) (defined criteria the preparation of the selected sustainability information in accordance with
Deloitte AB
in ‘How we report 2024’) as reported on page 68. the applicable criteria, as explained on page 54. The criteria include the parts
of the Sustainability Reporting Standards published by GRI (Global Report-
Resell ing Initiative) that are applicable to the selected sustainability information, Didrik Roos Lennart Nordqvist
Share and number of markets where H&M Group offer resell, share and as well as the accounting and calculation principles that H & M Hennes & Authorized Public Accountant Expert Member of FAR
­number of stores that offers resell, and share of turnover coming from resell Mauritz AB (publ) has developed as described in ‘How we report 2024’ ADD
(defined criteria in ‘How we report 2024’) as reported on page 78. LINK. The responsibility also includes the internal control relevant to the
preparation of a selected sustainability information that is free from material
misstatements, whether due to fraud or error.

110 111
<<Contents Financial information

Administration report

Administration report 113 The board of directors and the chief executive officer of H & M Hennes and administrative expenses had the same growth rate as sales in local
& Mauritz AB (publ), 556042-7220, domiciled in Stockholm, Sweden, hereby ­ urrencies. This despite inflationary pressures in the cost base, increased
c
Group income statement 120
submit their annual report and consolidated accounts for the financial year investments in marketing and winding-down costs.
Consolidated statement of 1 December 2023 to 30 November 2024, hereinafter referred to as the 2024
­comprehensive income 121 financial year. Any references made to ‘H&M’, ‘H&M Group’, ‘the H&M group’ Direction and targets
Group balance sheet 122 and ‘the company’ in this administration report refer hereinafter to H & M In 2024, H&M Group increased the pace of improvements in its product offer-
Hennes & Mauritz AB (publ). ing and experience. The focus was primarily on developing a strong assort-
Group changes in equity 124
ment that provides customers with the best value for money while upgrading
Group cash flow statement 126 Business both physical and digital store experiences. By strengthening the experience,
H&M Group is a customer-focused, creative, value-driven, responsible fashion the group continued to build long-term customer relationships across all
Parent company income statement 127 and design company. The business consists mainly of sales of clothing, brands through an omni-channel model. Meanwhile, initiatives that did not
Parent company statement of accessories, footwear, beauty products, home ­textiles and homeware to reinforce brand strength or contribute to sales and profitability were depriori-
customers. Sales take place through omni-channel via digital and physical tised. As a result, Afound was discontinued in 2024, and in 2025, Monki is set
­comprehensive income 127
stores as well as in digital marketplaces and social media. In some markets, to be integrated into Weekday, both in stores and online. The H&M group
Parent company balance sheet 128 the brands’ products are sold via franchise partners. accelerated the pace of improvements in an efficient and demand-driven
Parent company changes in equity 130 Each of the group’s brands has its own unique identity. Together they ­supply chain, increasing flexibility and product availability across all channels.
Parent company cash flow statement 131 ­complement each other and offer a variety of trends and styles at various In line with H&M Group’s goal of a strong capital structure with good liquidity
price points for fashion, beauty, accessories and homeware. H&M’s business and financial flexibility, the objectives are designed to support sound finances,
idea is to offer fashion and quality at the best price in a sustainable way. while enabling continued freedom of action for growth and investment. The
Notes to the financial statements 132 H&M also includes the interior brand H&M HOME, the sports brand H&M company is focused on unlocking the growth potential of the group’s brands,
Move and H&M Beauty. Portfolio brands include COS, Cheap Monday, with a particular focus on strengthening H&M. This means that non-organic
Signing of the annual report 155 Weekday, Monki, & Other Stories, ARKET and Singular Society. growth and growth through new business models are being given lower
Auditor’s report 156 The group also consists of new growth & ventures, which ­contributes to ­priority in the short to medium term.
H&M Group’s long-term growth by exploring new opportunities in the industry. The H&M group has three long-term targets: long-term sales growth of at
This includes investments in joint-ventures, potential acquisitions and H&M least 10 percent per year, an operating margin that exceeds 10 percent and
Group’s own startups. The aim is to engage with customers in new ways, a 56 percent reduction in greenhouse gas emissions1 no later than 2030, with

Financial
­create additional growth, contribute to sustain­able development and generate 2019 as a baseline.
new learning. Examples of ventures are Sellpy, Syre, A Retro Tale, Rondo,
Looper T ­ extile Co. and Creator Studio. Expansion through integrated channels
H&M Group makes fashion and design accessible to everyone in a way that H&M Group’s expansion is taking place with a focus on increased omni-channel
is good for the business, while minimising its negative impact on people and sales. Customers want to be able to shop and be inspired where, when and
the planet. The brands are working to shift to more ­circular business models how they choose – in the stores, on the brands’ own websites, on digital market-
for their products and services and are increasing the percentage of recycled places and on social media. H&M Group increased the pace of investment

­information
and sustainably sourced materials in their collections. in physical and digital stores during 2024 to provide an even more inspiring
Each brand has its own design and buying function consisting of people experience while also optimising the store portfolio for continued profitability
with diverse backgrounds, experiences and skills, which is key to producing and growth.
relevant and inspiring collections for their particular customer group. H&M’s In the 2024 financial year H&M opened its first store in the Dominican
central design and buying function creates its collections mainly in Stockholm, Republic via franchise. H&M also expanded its digital presence on Douyin and
while COS – for example – has its design and buying function in London. Pinduoduo, two of China’s biggest e-commerce platforms, as well as on Ajio.
For more infor­mation see pages 26–32. com in India and Trendyol.com in Türkiye and in Saudi Arabia. ARKET opened
its first stores in Latvia, Spain, Poland and Italy. Weekday and Monki launched
Comment on results on Boozt.com, while ARKET launched on ASOS.com in the second half of 2024.
Net sales for the full-year increased by 1 percent in local currencies in rela- & Other Stories opened on About You marketplace, which serves around
tion to the previous year. The sales development was strengthened during 25 markets in Europe.
the fourth quarter compared with the three first quarters. The strengthened In the 2024 financial year, H&M Group opened 88 (101) stores and closed
trend was driven by a well-received customer offering within womenswear, 204 (197) stores, making a net decrease of 116 (96) stores. The group had a
where the H&M group has increased trend responsiveness and overall total of 4,253 (4,369) stores as at 30 November 2024, of which 258 (282) were
assortment relevance, in combination with an enhanced digital experience. operated by franchise partners.
The improvement work in the supply chain and continued normalisation of The breakdown of the stores is as ­follows: 3,777 (3,872) H&M, 238 (245)
the external factors that influence purchasing costs resulted in a strength- COS, 48 (64) Monki, 70 (72) & Other Stories, 46 (53) Weekday, 40 (30) ARKET,
ened gross margin for the full year. As a result of the fully implemented cost and 34 (33) H&M HOME. 2
and efficiency programme along with good operational cost control, selling

1. Refers to science-based targets for own operations (scope 1 and 2) and for the
­company’s entire value chain (scope 3) and excludes the use of sold products.
2. Concept store H&M HOME is also available through shop-in-shop in 471 H&M stores.

112 113
<<Contents Financial information/Administration report

Investment in physical and digital stores continues in 2025 at the same shares repurchased will be cancelled through a resolution at the 2025 annual based partly on the significance of the duties performed, i.e. the ability to Long-term variable remuneration
rate as in 2024 to provide an even more inspiring experience while also opti- general meeting. Per 30 November the number of shares outstanding, affect the overall development of the group, and partly on the employee’s The long-term variable remuneration shall be based on target ful­filment
mising the store portfolio for continued profitability and growth. excluding treasury shares, is 1,604,491,375. In the 2024 financial year competencies, experience and performance. Together these decide the level measured over five financial years starting from the current 2021 financial
The first H&M store in Brazil will open in São Paulo towards the end of ad ­ ividend of SEK 10,456 m was distributed. of remuneration for the individual concerned. Over time, the largest portion year and ending at the close of the 2025 financial year. This period, i.e.
2025. The store will open in Iguatemi, one of the most iconic and unique H&M’s largest shareholder is Stefan Persson and family, who via Ramsbury of the remuneration shall consist of the fixed basic salary. The forms of com- 1 December 2020–30 November 2025, is known as the measurement period.
­shopping centres in Brazil. ARKET will open its first store in Norway, Austria, Invest AB hold all the class A shares, which represent 57.9 percent of the pensation shall motivate senior executives to do their utmost to ensure the The long-term variable remuneration – which shall apply only to the executive
Greece and Ireland during 2025. votes, as well as 764,799,715 (708,744,122) class B shares, representing good financial and sustainable development of the H&M group. management team including the CEO, totalling 15 individuals – shall be based
H&M Group continuously renegotiates a large number of leases, which 22.8 (21.0) percent of the votes. In addition, the family privately own on fulfilment of targets within the following areas:
also involves rebuilds as well as adjustment of the number of stores and of 36,400,289 class B shares. This means that as of 30 November 2024, Types of remuneration • The H&M group’s total sales;
store space to ensure it has the best store portfolio in each market. The H&M ­Stefan Persson and family privately and via Ramsbury Invest AB represent The total remuneration may consist of the following components:
group’s contracts allow around a third of leases to be renegotiated or exited 81.9 (79.7) percent of the votes excluding treasury shares and 61.8 (57.7) • The H&M group’s total operating profit;
• fixed basic cash salary
each year. After reviewing priorities as regards things that do not strengthen ­percent of the total number of shares. Ramsbury Invest is thus formally • f ulfilment of the objectives in the various areas of the business plan in
• short-term variable remuneration total, which include sustainability; and
the H&M brand or contribute to each brand’s long-term sales and profitability, the parent company of H & M Hennes & Mauritz AB. Ramsbury Invest AB
additional stores have been identified for consolidation. For 2025 the plan is owned by Stefan Persson and family, and primarily by Stefan Persson. • long-term variable remuneration • assessment of leadership and compliance with values.
is to open around 80 new stores. Most of the openings will be in growth ­Karl-Johan Persson is also a shareholder in Ramsbury Invest AB. • pension benefits
­markets. Around 190 stores are scheduled for closure, mainly in established
• other benefits Each of these four predetermined performance parameters shall have equal
markets. The closures include a large number of Monki stores. At the end of Corporate governance report
weighting, i.e. each represents a quarter of the total target fulfilment. For the
November 2024 Monki had 48 stores. A few of these will be converted into H&M has elected to present its corporate governance report as a separate
Fixed basic cash salary long-term variable remuneration the assessment of the financial targets shall
Weekday stores and the remaining stores are planned to be closed. document to the annual and sustainability report in accordance with chapter
Senior executives shall have a fixed basic cash salary that is at a market level be based on a summing up of the past five financial years, with fulfilment of
The store portfolio is the area where the largest investments are being 6 § 8 of the Swedish Annual Accounts Act. The corporate governance report
based on each position’s significance for the company as a whole. The fixed the annual target levels in the short-term arrangement – i.e. within sales and
made and upgrades will continue at a fast pace in 2025 through openings, is available at hmgroup.com/investors/reports/ and on pages 38–51 of the
basic cash salary shall reflect the individual’s area of responsibility, compe- profit – forming the basis for target fulfilment in the long-term arrangement.
rebuilds, layout improvements and tech installations. annual and sustainability report.
tencies and experience and requires the individual to work in a committed For the other two performance parameters – i.e. fulfilment of the business
manner at a high professional level. plan, and leadership and compliance with values – an overall assessment is to
Employees Sustainability report
be made of the total for the H&M group for the entire measurement period.
H&M Group’s business is characterised by a fundamental respect for the H&M has elected to present its sustainability report as a separate document
Variable remuneration After the measurement period has ended the board is responsible for an
individual. The company is committed to treating all employees equally, with in accordance with chapter 6 § 11 of the Swedish Annual Accounts Act in
The variable remuneration may consist of a short-term and a long- overall assessment based on the four performance parameters and for
respect and dignity, and to empowering them to be who they want to be. Every­ accordance with the older wording that applied before 1 July 2024. The sus-
term ­portion. deciding the long-term variable remuneration that will be paid to the CEO.
one working at H&M Group should expect fair compensation and benefits, tainability report is available on pages 52–109 in this annual and sustainability
There shall be a clear link between the level of performance-based The long-term variable remuneration to be paid to other senior executives
to work in healthy, safe and inclusive workplaces free from discrimination, report 2024.
­variable remuneration paid and the H&M group’s financial and sustainable will be established by the board in consultation with the CEO.
and the right to freedom of association.
development. Senior executives’ variable remuneration shall therefore A precondition for receiving the long-term portion shall be that the partici-
H&M Group’s values have guided employees since the day the company Risk and risk management
depend on the fulfilment of targets. pants make an initial investment of their own in H&M shares, amounting to
was founded and continue to support the business today. The group’s culture, For information on the Group’s operational and financial risks, see note 2 and
The targets shall aim to promote the H&M group’s development in around 10 percent of their fixed basic annual cash salary after tax, close to
values and purpose-driven leadership are consistently and consciously inte- pages 49–51 in the corporate governance report.
both the short and the long term. the 2021 annual general meeting. These shares shall then be held for the
grated throughout the entire organisation. This inspires the mindsets and
entire measurement period. After three years, provided they remain employed
behaviours needed to offer the best products and experience to customers Guidelines for remuneration of senior ­executives
Short-term variable remuneration by the group, the initial investment will be matched by the receipt of a cash
and helps attract and develop passionate and talented colleagues who want The annual general meeting held on 6 May 2021 adopted the f­ ollowing guide-
Fulfilment of targets shall be measured over a period of one year. amount after tax equal to two times their own initial outlay. This sum is to be
to grow with the company. lines for remuneration of the senior executives.
The short-term variable remuneration shall be based on fulfilment invested in H&M shares as soon as possible. These shares are also to be held
H&M Group creates customer value by having a clear purpose and direc- The guidelines cover remuneration to the CEO, remuneration to board
of targets in the ­following areas: for the entire measurement period.
tion, adapting quickly to a constantly changing world. The company’s con­ members (aside from board fees) and remuneration to other senior execu-
• The H&M group’s total sales; The aim of the initial investment of their own in H&M shares as well as the
tinuous development includes securing the right competences, simplifying tives. Senior executives means members of the executive management
investment of the matching sum in H&M shares is to build up their own share-
the organisational structure, leveraging relevant technologies and adopting team apart from the CEO. The executive management team comprises the • The H&M group’s total operating profit;
holding in H&M in order thereby to further align the interests of the executive
efficient ways of working. individuals who report directly to the CEO.
• f ulfilment of the objectives in the various areas of the business plan, management team with the interests of the shareholders in the good, long-
The average number of employees in the group as at 30 November 2024, The long-term variable remuneration, which applies only to the executive
which include sustainability; and term development of the company.
converted into full-time positions, was 97,710 (101,103), of which 9,525 management team including the CEO, will be measured over a five-year
• assessment of leadership and compliance with values. The maximum total remuneration within the framework of the long-term
(10,281) were employed in Sweden. Of this average number of employees, period in order to reward long-term value creation for H&M.
variable remuneration arrangement for the entire measurement period,
around 26 percent were men. Of those in leadership positions within the
For the last two performance parameters it is the individual’s performance which includes both the matching amount in year 3 and the remuneration
company, such as store managers and regional managers, 67 percent How the guidelines contribute to the company’s business ­strategy,
within their own area of responsibility that is assessed. For the financial in year 5 after the measurement period has ended, may vary between
were women. long-term interests and sustainability
­targets, the assessment is to be based on the most recent financial year. SEK 1.75 million net after tax and SEK 7 million net after tax depending on
The H&M group’s business plan aims to deliver long-term, sustainable and
The board of directors is responsible for this assessment in the case of the individual’s duties and the extent to which their position affects the over-
Events after the closing date profitable growth. The business plan builds on the com­pany’s ongoing trans-
­short-term variable remuneration to the CEO. In the case of short-term all development of the group.
No significant events have occurred since the end of the reporting period. formation work and is illustrated by a number of objectives to which the com-
­variable remuneration to other ­senior executives, the CEO is responsible The H&M group’s total cost, including social security costs, for the long-
pany’s sustainability efforts and digital transformation contribute. These
for the assessment. term variable remuneration is expected to amount to a maximum of around
Articles of association, annual and general meeting objectives are to continue improving the customer offering for all the brands,
Each of these four predetermined performance parameters has equal SEK 150 million. A provision of SEK 30 million per year is expected to be made
Detailed information on H&M Group’s articles of association, the constitution to build long-term and value-creating customer relationships, to offer an
weighting, i.e. each represents a quarter of the total target f­ ulfilment. How- for a total of five years.
of the board of H & M Hennes & Mauritz AB and its annual general meeting inspiring experience with integrated digital and physical channels, to adapt
(AGM) can be found on pages 41–48. the supply chain so that it is faster and more flexible based on demand, and ever, there is a threshold value for the second parameter, i.e. operating profit,
to add more revenue streams based on new emerging business models and which means that if this value is not reached then no short-term variable Pension benefits
Number of shares and main shareholders innovations. Moving successfully towards these objectives is expected to remuneration will be paid regardless of target fulfilment for the other three In the case of the CEO, pension benefits – including sickness insurance – are
At the end of the 2024 financial year, H&M had 213,223 shareholders. The result in finances remaining sound and sustainable, in accordance with the parameters. The short-term variable remuneration, which at individual level to be on a defined contribution basis. Variable cash remuneration shall not be
total number of shares in H&M is 1,610,542,225, of which 194,400,000 are H&M group’s target of a strong capital structure with good liquidity and is based on the extent to which the person’s duties and position influence the pensionable. The pension premiums for the year must not exceed 30 percent
class A shares with 10 votes per share and 1,416,142,225 are class B shares financial ­flexibility, allowing continued freedom of action for growth and overall development of the group, may amount to 0–3 months’ salary, 0–6 of the CEO’s annual fixed basic salary.
with one vote per share. investments. months’ salary or 0–12 months’ salary. Monthly salary refers to fixed basic In the case of other senior executives, pension benefits – including sickness
Following implementation of the resolution passed by the annual general The board considers it important that senior executives are paid com­ cash salary. If the target levels set by the board are fulfilled, half of the maxi- insurance – are to be on a defined contribution basis unless the executive is
meeting on 3 May 2024 the 19,144,612 class B treasury shares repurchased petitive remuneration at a market level, as regards both fixed and variable mum remuneration in each range shall be paid. To receive a payment in covered by a defined benefit pension plan under the mandatory provisions
during 2023 as part of the H&M group’s buyback programme were cancelled. compensation, based on responsibilities and performance. To work success- the higher part of the range within the set framework, therefore, the pre­ of collective bargaining agreements. The pension premiums for the year must
The board of directors decided to utilise the authorisation granted by the fully according to the company’s business plan and safeguard the company’s determined ­target levels are required to be exceeded. not exceed 40 percent of the senior executive’s annual fixed basic salary.
2024 annual general meeting and in September 2024 began a SEK 1 billion long-term interests the company needs to be able to recruit, motivate and Half of the remuneration payment shall be invested in H&M shares that The cost of the present commitments is partly covered by separate
share buyback programme. As at 30 November 2024 a total of 6,050,850 retain talented, committed employees. Senior executives shall be compen- must be held for at least three years. Each year the board will set target levels ­insurance policies.
B shares in H&M had been repurchased for a sum of SEK 1 billion and the sated at what are considered by the company to be competitive market rates, for each of the four performance parameters for the coming year. The retirement age for the CEO is 65.
­programme was completed on 26 November 2024. It is intended that the based partly on industry comparisons. Levels of compensation shall be The retirement age for other senior executives varies between 62
and 65 years.

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Other benefits The board of directors’ proposal to the annual general meeting 2025 Extraordinary arrangements the proposal for decision by the annual general meeting. The guidelines shall
Senior executives may receive other benefits such as wellness subsidies, car for guidelines for remuneration of senior executives In specific cases, the company may offer one-time compensation, provided apply until new guidelines have been adopted by the annual general meeting.
allowances and medical insurance. The total annual costs associated with These guidelines cover remuneration to the CEO and other senior executives that such compensation is only given on an individual basis for the purpose The board of directors shall also monitor and evaluate programmes for
other benefits must not exceed 20 percent of the individual’s annual fixed (the group management) as well as remuneration to board members aside of recruiting or retaining senior executives and does not exceed an amount ­variable remuneration to the company’s management and the application
basic salary. from board fees. equivalent to 100 percent of the individual’s annual fixed basic cash salary, of the guidelines for remuneration to senior executives, as well as current
The guidelines shall apply to agreed remuneration, and to changes made to and is not paid more than once per year per individual. Decisions on such remuneration structures and levels in the company. The board of directors
Termination of employment already agreed remuneration, after the guidelines have been adopted by the remuneration shall be taken by the board of directors. shall further decide on the CEO’s salary in accordance with the guidelines in
The period of notice for senior executives may vary between three and annual general meeting 2025. effect and shall continually evaluate the work of the CEO. Once a year this
12 months. Variable remuneration is not to be paid if the individual has Pension benefits matter is to be discussed separately in conjunction with the setting of the
given notice to terminate their employment. How the guidelines contribute to the company’s business plan, In the case of the CEO, pension benefits, including sickness insurance, are to CEO’s remuneration for the coming year. For other senior executives, the
The CEO is entitled to 12 months’ notice. In the event that the company ­long-term interests and sustainability be on a defined contribution basis. Variable cash remuneration shall not be CEO is responsible for proposing remuneration, which is then approved by
­terminates the CEO’s employment contract, a year’s fixed basic cash salary The H&M group’s business plan aims to deliver long-term, sustainable and pensionable, unless otherwise provided by law or mandatory provisions of the chairman of the board. To avoid conflicts of interest, no member of the
may also be paid to the CEO as severance pay. No other severance pay profitable growth. The business plan is illustrated by a number of objectives collective bargaining agreements. The pension premiums for the year may company’s management is to be present when the board of directors dis-
is ­payable. to which the company’s sustainability efforts and digital transformation con- not exceed 30 percent of the CEO’s annual fixed basic cash salary. cusses remuneration matters, with the exception of the presence of the CEO
tribute. For more information about the company’s business plan, business In the case of other senior executives, pension benefits, including sickness when discussing the remuneration of other senior executives, which should
Salary and employment terms for other employees of the ­company idea and objectives, refer to hmgroup.com. insurance, are to be on a defined contribution basis unless the executive is be done in accordance with these guidelines.
When preparing the board’s proposed guidelines for remuneration to senior To work successfully according to the company’s business plan and safe- covered by a defined benefit pension plan under the mandatory provisions
executives consideration was given to the salary and employment terms guard the company’s long-term interests the company needs to be able to of collective bargaining agreements. The pension premiums for the year Deviations from the guidelines
of the company’s other employees by using information concerning the recruit, motivate and retain talented, committed employees. The board of may not exceed 40 percent of the senior executive’s annual fixed basic The board of directors may decide to temporarily deviate from the guidelines
employees’ total remuneration, the components of the remuneration and the directors considers it important that senior executives are paid competitive cash salary. adopted by the annual general meeting, in full or in part, if there is particular
increase in and rate of increase in the remuneration over time as part of the remuneration at a market level, as regards both fixed and variable compen­ The retirement age for the CEO shall be 65. The retirement age for other reason to do so in an individual case and this is necessary in order to provide
basis on which the board assessed whether the guidelines, and the resulting sation, based on responsibilities and performance. These guidelines enable senior executives may vary between 62 and 65 years. for the company’s long-term interests, including its sustainability, or to
limitations, are reasonable. the company to offer this to its senior executives. ensure the financial viability of the company. As stated above, the board
Other benefits of directors’ duties include preparing decisions on remuneration issues,
Consultancy fees Types of remuneration etc. Senior executives may receive other benefits such as wellness subsidies, including decisions on deviations from the guidelines.
Where a board member performs work for the company (including through Senior executives shall be compensated at what are considered by the car allowances and medical insurance. The total annual costs associated
a wholly owned company) in addition to their board work, a separate fee ­company to be competitive market rates, including in relation to industry with other benefits may not exceed 20 percent of the individual’s annual Other
may be paid for this (consultancy fee). Such fee shall not exceed the board comparisons. Levels of compensation shall also reflect the individual’s fixed basic cash salary. There are currently two outstanding incentive programmes in which certain
fee paid to the member concerned. The fee is to be based on the current ­competence, experience and performance. The total remuneration may For members of the group management stationed in a country other than senior executives participate. One of the outstanding incentive programmes
­market rate and be proportionate to the benefit for the company and the ­consist of fixed basic cash salary, short-term variable remuneration, their home country, additional remuneration and other benefits may be paid is the so-called LTI programme, which was implemented in 2021 and expires
extent to which such work contributes to the good financial and sustainable ­pension benefits and other benefits. considering the specific circumstances of such expatriation in accordance 30 November 2025. Under this programme, long-term variable cash remu-
development of the H&M group. The general meeting may also decide upon, for example, long-term with local practice and the group’s International Assignments Policy. neration may be paid out upon the achievement of predetermined long-term
­variable remuneration in the form of share and share price related pro- targets. Senior executives who wish to participate in the new LTI 2025 pro-
Decision process for establishment, review and ­implementation grammes. Remuneration decided by the general meeting is not covered Termination of employment gramme proposed by the board of directors to the annual general meeting
of the guidelines by these guidelines. Upon termination of employment, the notice period may not exceed 12 2025 are required to accept that their participation in the LTI 2021 programme
The company has no remuneration committee, since the board of directors months for the CEO and 6 months for other senior executives. will be shortened so that it ends already 30 November 2024, with reduced
deems it more appropriate for the entire board to carry out the tasks of Fixed basic cash salary If the company terminate a senior executive’s employment, a maximum costs for the company as a result. The other ongoing incentive programme
a remuneration committee. The board prepares proposed guidelines for Senior executives shall have a fixed basic cash salary that is at a market level of one year’s fixed basic cash salary may also be paid as severance pay. is the profit-sharing programme known as the H&M Incentive Program,
remuneration to senior executives and these proposals are presented at based on each position’s significance for the company as a whole. The fixed ­Severance pay shall not constitute a basis for vacation pay, pension or which is for all employees of the H&M group. The programme was adopted
the annual general meetings. The board is to prepare a proposal for new basic cash salary shall reflect the individual’s area of responsibility, compe- other benefits unless otherwise provided by law or mandatory collective by a previous annual general meeting and is not covered by these guidelines.
guidelines at least every four years and submit the proposal for decision by tencies and experience and requires the individual to work in a committed ­bargaining agreements. Regarding employment terms falling under rules other than Swedish rules,
the annual general meeting. The guidelines shall apply until new guidelines manner at a high professional level. in the case of pension benefits and other benefits the guidelines are to be
have been adopted by the annual general meeting. The board shall also Salary and employment terms for other employees of the company adapted as appropriate to comply with any such rules or established local
­monitor and evaluate programmes for variable remuneration to the company’s Short-term variable remuneration When preparing the board of directors’ proposed guidelines for remuneration practice, while fulfilling the general aim of the guidelines as far as possible.
management and the application of the guidelines for remuneration to senior Short-term variable remuneration shall be determined annually by the board to senior executives consideration was given to the salary and employment
executives, as well as current remuneration structures and levels in the com- of directors and shall aim to promote the H&M group’s development in both terms of the company’s other employees by using information concerning the Description of significant changes to the guidelines and how
pany. The board shall further decide on the CEO’s salary in accordance with the short and the long term. employees’ total remuneration, the components of the remuneration and the the shareholders’ views have been taken into account
the guidelines in effect and shall continually evaluate the work of the CEO. Fulfilment of short-term variable remuneration targets shall be measured increase in and rate of increase in the remuneration over time as part of the The proposed guidelines represent an update and streamlining compared
Once a year this matter is to be discussed separately in conjunction with the over a period of one year. The targets shall be based mainly on financial basis on which the board of directors assessed whether the guidelines, and with the guidelines previously in force and are adapted to H&M’s long-term
setting of the CEO’s remuneration for the coming year. To avoid conflicts of results, such as total sales and total operating profit. Financial performance the resulting limitations, are reasonable. interests. The provisions on long-term variable remuneration have been
interest, no member of the company’s management is to be present when may be the performance of the group or the business area for which the deleted as the board of directors intends to propose this as a separate reso-
the board discusses remuneration matters. executive is responsible. Objectives may also be linked to non-financial Consultancy fees lution to the general meeting instead. The provisions on short-term variable
measures, such as strategic, operational or individual targets to meet the If a board member performs work for the company (including through remuneration have been shortened and streamlined, with fewer provisions
Other various areas of the business plan, including sustainability, leadership and a wholly owned company) in addition to their board work, a separate fee and detailed restrictions. Some additions have been made to provide some
Senior executives are also entitled to the benefits accruing under the profit- adherence to values. Each year the board of directors will set target levels may be paid for this (consultancy fee). Such fee shall not exceed the board flexibility for extraordinary arrangements and to allow for adjustments for
sharing programme known as the H&M Incentive Program, which is for all for each of the performance parameters for the coming year. There shall fee paid to the member concerned. The fee is to be based on the current expatriate executives. The provision on termination of employment has been
employees of the H&M group. The programme was adopted by a previous always be a threshold for the achievement of financial performance targets, ­market rate and be proportionate to the benefit for the company and the updated. The changes mainly coincide with the views expressed by share-
annual general meeting and is not covered by these guidelines. with the implication that if this threshold is not reached, no short-term variable extent to which such work contributes to the good financial and sustainable holders. Some shareholders have also expressed a desire for greater trans-
Regarding employment terms falling under rules other than Swedish rules, remuneration will be paid regardless of the achievement of other targets. development of the H&M group. parency regarding the performance requirements for variable remuneration.
in the case of pension benefits and other benefits the guidelines are to be The board of directors is responsible for this assessment in the case of These views have been considered in the drafting of the board of directors’
adapted as appropriate to comply with any such mandatory rules or estab- short-term variable remuneration to the CEO. Regarding the assessment of Decision process for establishment, review and implementation proposal, but also in the board of directors’ considerations regarding the
lished local practice, while fulfilling the general aim of the guidelines as far short-term variable remuneration to other senior executives, the chair of the of the guidelines ­format of the disclosures in future remuneration reports.
as possible. board is responsible in consultation with the CEO. The company has no remuneration committee, since the board of directors
The board may decide to temporarily deviate from the guidelines in full The short-term variable remuneration, which at individual level shall be deems it more appropriate for the entire board of directors to carry out the Cash flow and liquidity
or in part if there is particular reason to do so in an individual case and this based on the importance of the person’s duties and position in terms of tasks of a remuneration committee. The board of directors prepares pro- Cash flow from operating activities before changes in working capital
is necessary in order to provide for the company’s long-term interests and ­influencing the overall performance of the group, may vary but shall not posed guidelines for remuneration to senior executives and these proposals increased by 26 percent to SEK 36,745 m (29,106). Cash flow for the period
sustain­ability or to ensure the financial viability of the company. exceed 80 percent of the fixed basic cash salary. are presented at the annual general meetings. The board of directors is to amounted to SEK –9,023 m (5,715) and was negatively impacted by increased
prepare a proposal for new guidelines at least every four years and submit stock-in-trade, increased investments and repayment of short-term debt.

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The H&M group’s liquidity remains very good. As at 30 November 2024 Proposed authorisation to allow share buybacks
cash and cash equivalents amounted to SEK 17,340 m (26,398). In addition, The board of directors will ask the 2025 annual general meeting for a general
the group has undrawn credit facilities of SEK 18,416 m (18,172). The total authorisation allowing the board to buy back the group’s own B shares in the
liquidity buffer, i.e. cash and cash equivalents plus undrawn credit facilities, period up to the 2026 annual general meeting. This general authorisation is,
amounted to SEK 35,756 m (44,570). among other things, one of the tools for the board to use if surplus liquidity
is identified.
Working capital
Working capital amounted to SEK 21,562 m (19,632). The fact that Black Dividend policy
­Friday occurred later than in the previous year is the main reason for the The board of directors’ intention is for the H&M group to continue to provide
­year-on-year increase in accounts receivable. Moreover, the stock-in-trade shareholders with a good return while ensuring that growth and investments
continues to be affected by extended transport times associated with the in the business can proceed with a continued strong financial position and
­situation in the Red Sea. The increase in accounts payable was primarily freedom of action. Based on this, the board of directors has proposed a
driven by investments in store fittings and marketing. Changes in working ­dividend policy stating that the ordinary dividend over time is to exceed
capital during the full year amounted to SEK 1,930 m (–4,787). 50 percent of profit after tax and additionally that identified surplus liquidity
– taking into consideration the capital structure target and investment require-
Financing ments – can be distributed to shareholders through an extra dividend or a
Net debt including lease liabilities in relation to EBITDA amounted to 1.5 (1.4) buyback programme.
with a net cash position of SEK 3,223 m (9,316). Debt levels are well within the
target range of 1.0 – 2.0 for the capital structure target Net debt/EBITDA. Proposed distribution of earnings
Interest-bearing liabilities in the form of commercial papers, bonds and The funds at the disposal of the parent company are SEK 13,469 m. The board
loans from credit institutions amounted to SEK 14,117 m (17,082) as at of directors is proposing to the 2025 annual general meeting that a dividend
30 November 2024. The average maturity of interest-bearing liabilities of SEK 6.80 per share is paid, totalling SEK 10,910 m and that the remaining
amounted to 5.3 (5.1) years. earnings of H & M Hennes & Mauritz AB of SEK 2,558 m are carried forward.
A maturity analysis of outstanding interest-bearing liabilities and undrawn The dividend will be paid in cash, split into two instalments. The first payment
credit facilities as at 30 November 2024 is given in note 2. During the full year, of SEK 3.40 will be made in May and the second payment of SEK 3.40 will
net interest-bearing liabilities of around SEK 3 billion were repaid. be made in November. The board’s proposed record dates are 9 May 2025
and 7 November 2025. If the annual general meeting approves the board’s
Share buybacks proposal, the dividend is expected to be paid out on 14 May 2025 and
During the period 27 September 2023 – 1 March 2024, the group repurchased 12 November 2025.
shares as authorised by the 2023 annual general meeting. A total of The board’s assessment is that the proposed distribution of earnings is
19,144,612 B shares were repurchased for a total sum of SEK 3 billion, of justifiable taking into consideration the good cash flow, continued strong
which shares to a value of around SEK 2 billion were repurchased in 2024. financial position and ability to make future investments (capex). The pro-
The shares repurchased were cancelled through a resolution at the annual posal takes into consideration the financial position and continued freedom
general meeting in May 2024. of action of the group and the parent company, the capital structure target
During the period September–November 2024 the group repurchased shares and the requirements that the nature and extent of the business and its risks,
as authorised by the 2024 annual general meeting. A total of 6,050,850 expansion and development plans impose on the equity and liquidity of the
B shares in H&M were repurchased for a total sum of around SEK 1 billion. group and the parent company.
The board of directors proposes that the 2025 annual general meeting
resolve to cancel the repurchased shares.
In 2024 shares were repurchased for a total value of around SEK 3 billion.

Capital structure The following funds are at the disposal of the

annual general meeting 13,469,240,556
H&M Group advocates a conservative leverage ratio, aiming for a strong
­capital structure with strong liquidity and financial flexibility. It is essential The board proposes a dividend to the
­share­holders of SEK 6.80 per share1 10,910,541,350
that, as in the past, expansion and investments can proceed with continued
freedom of action. The capital structure is defined as Net debt in relation to To be carried forward as retained earnings 2,558,699,206
EBITDA. Including IFRS 16 effects it should be within the range 1.0–2.0 x Total 13,469,240,556
EBITDA over time. As at 30 November 2024, Net debt/EBITDA including
IFRS 16 effects was 1.5 (1.4) with a financial net cash of SEK 3,223 m (9,316). 1. Based on outstanding shares, excluding own shares, as per 30 November 2024.

Five-year summary

2024 2023 2022 2021 2020

Net sales, SEK m 234,478 236,035 223,553 198,967 187,031

Operating profit, SEK m 17,306 14,537 7,169 15,255 3,099
Operating margin, % 7.4 6.2 3.2 7.7 1.7
Profit after financial items, SEK m 15,443 13,010 6,216 14,300 2,052
Earnings per share, SEK1, 2 7.21 5.37 2.16 6.65 0.75
Cash flow from operating activities per share, SEK1 19.70 20.84 15.00 26.96 15.65
Return on equity, %2 24.7 17.8 6.4 19.2 2.2
Equity/assets ratio, %2 25.6 26.2 27.9 33.4 31.3
Average number of employees3 97,710 101,103 106,522 107,375 110,325

1. Before and after dilution, excluding own shares.

2. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in financial note 12.
3. The total average number of employees for 2024 and 2020 were incorrect in the full-year report 2024 and the correct figures are stated in the table above.

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Group income statement Consolidated statement of comprehensive income

SEK m Note 1 Dec 2023– 1 Dec 2022– SEK m Note 1 Dec 2023– 1 Dec 2022–
30 Nov 2024 30 Nov 2023 30 Nov 2024 30 Nov 2023

Net sales 3, 5 234,478 236,035 PROFIT FOR THE YEAR1 11,584 8,716
Cost of goods sold 7, 8, 10 –109,179 –115,139 Other comprehensive income
Gross profit 125,299 120,896 Items that are or may be reclassified to profit or loss
Selling expenses 7, 8, 10 –97,153 –96,435 Translation differences 717 12
Administrative expenses 7, 8, 10, 11 –10,762 –10,895 Change in hedging reserves 23 –589 413
Result from investments in associated companies and joint ventures1 16 –78 971 Tax attributable to change in hedging reserves 121 –85
Operating profit 17,306 14,537 Share of OCI related to associated companies and joint ventures 0 –

Interest income and similar items 890 616 Items that will not be reclassified to profit or loss
Interest expense and similar items –2,753 –2,143 Remeasurement of defined benefit pension plans 22 –73 –41
Profit after financial items 15,443 13,010 Tax related to the above remeasurement 18 10
Remeasurement of financial assets 24 299 –599
Tax 2
12 –3,859 –4,294
Other comprehensive income 493 –290
Profit for the year2 11,584 8,716
TOTAL COMPREHENSIVE INCOME FOR THE YEAR1 12,077 8,426
Attributable to:
Attributable to:
The shareholders of H & M Hennes & Mauritz AB2 11,621 8,745
The shareholders of H & M Hennes & Mauritz AB1 12,114 8,455
Non-controlling interest –37 –29
Non-controlling interest –37 –29
Earnings per share, SEK 2,3
7.21 5.37
Average number of shares outstanding, thousands 3 1,611,695 1,629,097 1. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in note 12.

1. Result from investments in associated companies and joint ventures for financial year 2023 include a one-time item of SEK 999 m for revaluation of associated companies
of which mainly the former associated company Sellpy.
2. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in note 12.
3. Before and after dilution, excluding own shares.

Net sales, Gross profit and Selling and Operating profit and Comments on the group income statement
SEK m gross margin, administrative operating margin, Net sales for financial year 2024 decreased by 1 percent to SEK 234,478 m increased by 1 percent compared with the same period the previous year.
–1% SEK m expenses, SEK m SEK m (236,035). In local currencies, sales increased by 1 percent. The sales As a result of the fully implemented cost and efficiency programme along

53.4%
+1% 7.4%
development was strengthened during the fourth quarter compared with the with good operational cost control, selling and administrative expenses had
51.2% three first quarters. The strengthened trend was driven by a well-received the same growth rate as sales in local currencies. This despite inflationary
customer offering within womenswear, where the H&M group has increased pressures in the cost base, increased investments in marketing and winding-
236,035

125,299

17,306
234,478

107,915

6.2%
107,330
120,896

trend responsiveness and overall assortment relevance, in combination with down costs.
an enhanced digital experience. During the year Afound was wound down Operating profit was SEK 17,306 m (14,537), corresponding to an operating
14,537

and preparations began for integrating Monki into Weekday’s stores and on margin of 7.4 percent (6.2). Operating profit excluding result from invest-
weekday.com in 2025. A few of the Monki stores are planned to be converted ments in associated companies and joint ventures increased by 28 percent
into Weekday stores, while the intention is to close the remaining stores. compared with the previous year, as operating profit previous year was
Excluding Monki and Afound, sales by portfolio brands in local currencies strengthened by, among other things, the revaluation of Sellpy. Result from
increased by 5 percent for full-year 2024. investments in associated companies and joint ventures for the full year
The improvement work in the supply chain and continued normalisation of amounted to SEK –78 m (971).
the external factors that influence purchasing costs resulted in a stronger The H&M group’s tax rate for financial year 2024 was 24.9 percent (35.7 1).
23 24 23 24 23 24 23 24
gross margin for the full year. Gross profit increased by 4 percent to SEK The final tax rate depends on, among other things, the results of the group’s
125,299 m (120,896). This corresponds to a gross margin of 53.4 percent various companies, the corporate tax rates in each country, non-deductible
(51.2). The gross profit and gross margin are a result of many different fac- costs and tax expense relating to previous years.
tors, internal as well as external, and are mostly affected by the decisions For the full year, the earnings per share increased by 34 percent to
that the H&M group takes in line with its strategy to always have the best SEK 7.21.
­customer offering in each individual market – based on the combination of
fashion, quality, price and sustainability.
Selling and administrative expenses increased by 1 percent to SEK 107,915 1. Regarding restated figures for financial year 2023 see information on restated
m (107,330). In local currencies the selling and administrative expenses ­figures attributable to amendments to IAS 12 in note 12.

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Group balance sheet

SEK m Note 30 Nov 2024 30 Nov 2023 SEK m Note 30 Nov 2024 30 Nov 2023

ASSETS EQUITY AND LIABILITES

NON-CURRENT ASSETS EQUITY
Intangible non-current assets Share capital 21 207 207
Brands 14 400 450 Reserves 6,445 6,196
Leasehold and similar rights 14 223 296 Retained earnings1 39,490 41,025
Capitalised development expenditure 14 7,094 7,966 Equity attributable to the ­shareholders of H & M Hennes & Mauritz AB 1
46,142 47,428
Goodwill 14 1,013 1,013 Non-controlling interest 13 69 82
8,730 9,725 TOTAL EQUITY1 46,211 47,510
Property, plant and equipment LIABILITIES
Buildings and land 15 665 689 Long-term liabilites
Equipment, tools, fixture and fittings 15 28,493 24,553 Provisions for pensions 22 471 379
Right-of-use assets 17 57,062 56,294 Other provisions 23 – 5
86,220 81,536 Deferred tax liabilities1 12 2,242 2,507
Non-current financial assets Liabilities to credit institutions 27 14,117 14,084
Interests in associates and joint ventures 16 259 209 Other long-term liabilities 162 132
Other shares and interests 24 3,029 2,363 Long-term leasing liabilities 17, 27 50,361 48,729
3,288 2,572 67,353 65,836
Other non-current assets Current liabilities
Long-term receivables 859 1,204 Account payable 24,417 21,027
Deferred tax assets 12 5,390 5,707 Tax liabilities 12 2,257 1,377
6,249 6,911 Liabilities to credit institutions 27 – 2,998
TOTAL NON-CURRENT ASSETS 104,487 100,744 Other provisions 23 540 304
CURRENT ASSETS Current leasing liabilities 17, 27 12,476 12,159
Stock-in-trade 18 40,348 37,358 Other liabilites 6,809 7,329
Current receivables Accrued expenses and deferred income 5, 25 20,151 22,733
Accounts receivable 24 5,631 3,301 66,650 67,927
Tax assets 12 2,831 3,830 TOTAL LIABILITIES 1
134,003 133,763
Other receivables 5,654 5,111
TOTAL EQUITY AND LIABILITES 180,214 181,273
Prepaid expenses 19 3,923 4,531
18,039 16,773 1. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in note 12.

Cash and cash equivalents 20 17,340 26,398

TOTAL CURRENT ASSETS 75,727 80,529

TOTAL ASSETS 180,214 181,273

Comments on the group balance sheet

The H&M group is in a strong financial position. The group’s equity/assets Financing Working capital from operating activities amounted to SEK 21,562 m Stock-in-trade,
ratio was 25.6 percent (26.2 1). The share of risk-bearing capital was 26.9 per- As of 30 November 2024 the group had interest-bearing liabilities, excluding (19,632). Black Friday occurred later than in the previous year is the main
cent (27.61). Equity apportioned on the outstanding 1,604,491 (1,622,548) lease liabilities and provisions for pensions, of SEK 14,117 m (17,082) in the form ­reason for the year-on-year increase in accounts receivable. Moreover, SEK m
thousand shares as of 30 November 2024 was SEK 28.80 (29.281) per share. of commercial papers, bonds and loans from credit institutions. In addition, the stock-in-trade continues to be affected by extended transport times +8%
See definitions of key financial performance measures on page 162. the group had undrawn credit facilities of SEK 18,416 m (18,172). The average associated with the situation in the Red Sea. The increase in accounts

40,348
­payable was primarily driven by investments in store fittings and marketing.

37,358
maturity of interest-bearing liabilities was 5.3 (5.1) years. During the full year,
Stock-in-trade net interest-bearing liabilities of around SEK 3 billion were repaid. A maturity The H&M group advocates a conservative leverage ratio, aiming for a
The stock-in-trade at the end of the financial year amounted to SEK 40,348 analysis of outstanding interest-bearing liabilities and undrawn credit facilities strong capital structure with strong liquidity and financial flexibility. It is
m (37,358) and increased by 8 percent in both SEK and local currencies com- is given in the table in note 2. essential that, as in the past, expansion and investments can proceed with
pared with the previous year. The book value of stock-in-trade in SEK repre- The H&M group’s liquidity is very good. As of 30 November 2024, cash and continued freedom of action. The capital structure is defined as Net debt in
sented 17.2 percent (15.8) of sales. Extended transport times associated with cash equivalents amounted to SEK 17,340 m (26,398). Together, cash and cash relation to EBITDA. Including IFRS 16 effects it should be within the range
the situation in the Red Sea and Black Friday that occurred later than in the equivalents and undrawn credit facilities totalled SEK 35,756 m (44,570). 1.0–2.0 x EBITDA over time. As at 30 November 2024 Net debt/EBITDA
previous year had a significant impact on inventory. Financial net cash amounted to SEK 3,223 m (9,316). Net debt including pro- including IFRS 16 effects was 1.5 (1.4).
visions for pensions and lease liabilities amounted to SEK 60,085 m (51,951). 23 24
1. Regarding restated figures for financial year 2023 see information on restated figures
attributable to amendments to IAS 12 in note 12.

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<<Contents Financial information/Group financial statements

Group changes in equity

Attributable to the shareholders of the parent company, H & M Hennes & Mauritz AB Attributable to the shareholders of the parent company, H & M Hennes & Mauritz AB
Translation ­ Hedging Retained Non-­controlling Translation ­ Hedging Retained Non-­controlling
SEK m Share capital reserves reserves earnings Total ­interest Total equity SEK m Share capital reserves reserves earnings Total ­interest Total equity

SHAREHOLDERS’ EQUITY SHAREHOLDERS’ EQUITY

1 DECEMBER 2023 207 6,069 127 41,025 47,428 82 47,510 1 DECEMBER 2022 207 6,057 –201 44,694 50,757 – 50,757
Profit for the year – – – 11,621 11,621 –37 11,584 Adjustment of opening balance1 – – – –84 –84 – –84

Other comprehensive income

ADJUSTED SHAREHOLDERS’
Translation differences – 717 – – 717 0 717 EQUITY 1 DECEMBER 2022 207 6,057 –201 44,610 50,673 – 50,673
Change in hedging reserves – – –589 – –589 – –589 Profit for the year1 – – – 8,745 8,745 –29 8,716
Tax attributable to hedging
Other comprehensive income
reserves – – 121 – 121 – 121
Translation differences – 12 – – 12 – 12
Share of other comprehensive
income related to joint ventures Change in hedging reserves – – 413 – 413 – 413
and associated companies – 0 – – 0 – 0 Tax attributable to hedging
Remeasurement of defined reserves – – –85 – –85 – –85
benefit pension plans – – – –73 –73 – –73 Remeasurement of defined
Tax related to the above benefit pension plans – – – –41 –41 – –41
­remeasurement – – – 18 18 – 18 Tax related to the above
Remeasurement of financial assets – – – 299 299 – 299 ­remeasurement – – – 10 10 – 10
Other comprehensive income – 717 –468 244 493 0 493 Remeasurement of financial assets – – – –599 –599 – –599
Other comprehensive income – 12 328 –630 –290 – –290
Total comprehensive income – 717 –468 11,865 12,114 –37 12,077

Dividend – – – –10,456 –10,456 – –10,456 Total comprehensive income1 – 12 328 8,115 8,455 –29 8,426

Repurchase of shares – – – –2,880 –2,880 – –2,880 Dividend – – – –10,577 –10,577 – –10,577

Redemption of shares –2 – – 2 – – – Repurchase of shares – – – –1,123 –1,123 – –1,123
Bonus issue 2 – – –2 – – – Redemption of shares –3 – – 3 – – –
Transactions with non-controlling Bonus issue 3 – – –3 – – –
interests – – – –64 –64 24 –40 Non-controlling interest that has
SHAREHOLDERS’ EQUITY arisen from acquisitions – – – – – 111 111
30 NOVEMBER 2024 207 6,786 –341 39,490 46,142 69 46,211 SHAREHOLDERS’ EQUITY
30 NOVEMBER 20231 207 6,069 127 41,025 47,428 82 47,510

1. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in note 12.

124 125
<<Contents Financial information/Group financial statements

Group cash flow statement Parent company income statement

SEK m Note 1 Dec 2023– 1 Dec 2022– SEK m Note 1 Dec 2023– 1 Dec 2022–
30 Nov 2024 30 Nov 2023 30 Nov 2024 30 Nov 2023

Operating activities Net sales 6 2,364 2,264

Profit after financial items 1 15,443 13,010 Gross profit 2,364 2,264

Adjustment for non-cash items Administrative expenses 7, 8, 10, 11 –170 –108

– Provisions for pensions 22 13 5 Operating profit 2,194 2,156
– Other provisions 23 676 –328 Revenue from interests in group companies 10,053 11,212
– Depreciation, amortisation and write-downs 10 22,252 22,955 Interest income and similar items 32 491 280
– Other non-cash items 78 –971 Interest expense and similar items 32 –484 –268
Taxes paid 12 –1,717 –5,565 Profit after financial items 12,254 13,380
Cash flow from operating activities before changes in working capital 36,745 29,106
Year-end appropriations 28 –1,287 –1,496
Changes in working capital Tax 12 –217 –117
Operating receivables –2,299 –594 PROFIT FOR THE YEAR 10,750 11,767
Stock-in-trade 18 –3,036 5,248
Operating liabilities 346 189
Cash flow from operating activities 31,756 33,949

Investing activities
Investments in leasehold and similar rights
Investments in other intangible assets
14
14
–19
–1,369
–11
–967 Parent company statement of comprehensive income
Investments in equipment 15 –10,060 –7,986
Other investments 24 –126 –655
Cash flow from investing activities –11,574 –9,619
SEK m Note 1 Dec 2023– 1 Dec 2022–
Financing activities 30 Nov 2024 30 Nov 2023
Short-term loans –2,966 –408
New long-term borrowing 27 – 6,312 PROFIT FOR THE YEAR 10,750 11,767

Repayment of long-term loans 27 –248 0 Other comprehensive income

Amortisation leases 17 –12,631 –12,867 Items that will not be reclassified to profit or loss
Capital contribution non-controlling interests 13 24 – Remeasurement of defined benefit pension plans 22 –14 –14
Dividend –10,456 –10,577 Tax related to the above remeasurement 3 3
Repurchase of shares 21 –2,928 –1,075 Other comprehensive income –11 –11
Cash flow from financing activities 27 –29,205 –18,615
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 10,739 11,756
CASH FLOW FOR THE YEAR –9,023 5,715

Cash and cash equivalents at the beginning of the financial year 26,398 21,707
Cash flow for the year –9,023 5,715
Exchange rate effect –35 –1,024
Cash and cash equivalents at year-end 20 17,340 26,398

1. Interest paid for the group amounts to SEK 760 m (399). Interest expense related to leases amounts to SEK 1,993 m (1,744) for the group.
Received interest for the group amounts to SEK 890 m (616).

126 127
<<Contents Financial information/Parent company financial statements

Parent company balance sheet

SEK m Note 30 Nov 2024 30 Nov 2023 SEK m Note 30 Nov 2024 30 Nov 2023

ASSETS EQUITY AND LIABILITES

NON-CURRENT ASSETS EQUITY
Property, plant and equipment Restricted equity
Buildings and land 15 111 116 Share capital 21 207 207
Equipment, tools, fixture and fittings 15 19 24 Restricted reserves 88 88
130 140 295 295
Non-current financial assets Non-restricted equity
Shares and interests 29 1,244 1,119 Retained earnings 2,729 4,309
Receivables from subsidiaries 78 78 Profit for the year 10,739 11,756
Other non-current receivables 76 328 13,468 16,065
Deferred tax assets 12 65 70 TOTAL EQUITY 13,763 16,360
1,463 1,595 Untaxed reserves 30 17 17
TOTAL NON-CURRENT ASSETS 1,593 1,735
LIABILITIES
CURRENT ASSETS Long-term liabilites
Current receivables Provisions for pensions 22 128 123
Accounts receivable – 17 Liabilities to credit institutions 27 13,048 13,072
Receivables from subsidiaries 26,757 29,694 13,176 13,195
Tax assets 12 899 Current liabilities
Other receivables 62 63 Account payable 6 8
Prepaid expenses 19 111 139 Liabilities to subsidiaries 1,288 –
26,942 30,812 Liabilities to credit institutions 27 – 2,693
Cash and bank balances 20 – 2 Other liabilites 95 141
TOTAL CURRENT ASSETS 26,942 30,814 Accrued expenses and
deferred income 25 190 135
TOTAL ASSETS 28,535 32,549
1,579 2,977
TOTAL LIABILITIES 14,772 16,172

TOTAL EQUITY AND LIABILITES 28,535 32,549

128 129
<<Contents Financial information/Parent company financial statements

Parent company changes in equity Parent company cash flow statement

SEK m Share capital Restricted reserves Retained earnings Total equity SEK m Note 1 Dec 2023– 1 Dec 2022–
30 Nov 2024 30 Nov 2023

SHAREHOLDERS’ EQUITY 1 DECEMBER 2023 207 88 16,065 16,360

Operating activities
Profit for the year – – 10,750 10,750
Profit after financial items 1 12,254 13,380
Other comprehensive income
Adjustment for non-cash items
Remeasurement of defined benefit pension plans – – –14 –14
– Provisions for pensions 22 –9 –7
Tax related to the above ­remeasurement – – 3 3
– Depreciation, amortisation and write-downs 10 10 17
Other comprehensive income – – –11 –11
– Other non-cash items 381 –126
Comprehensive income – – 10,739 10,739 Taxes paid 12 –678 –1,357
Dividend – – –10,456 –10,456 Cash flow from operating activities before changes in working capital 13,314 11,907
Repurchase of shares – – –2,880 –2,880 Changes in working capital
Redemption of shares –2 – 2 – Operating receivables –2,893 –3,819
Bonus issue 2 – –2 – Operating liabilities 56 –1,620
SHAREHOLDERS’ EQUITY 30 NOVEMBER 2024 207 88 13,468 13,763 Cash flow from operating activities 16,353 6,468

Investing activities
Investments in equipment 0 0
Investments in group companies –125 –300
Other investments 21 7
SEK m Share capital Restricted reserves Retained earnings Total equity
Cash flow from investing activities –104 –293

SHAREHOLDERS’ EQUITY 1 DECEMBER 2022 207 88 16,009 16,304 Financing activities

Profit for the year – – 11,767 11,767 Short-term loans 27 –2,867 –325
New long-term borrowing 27 – 5,802
Other comprehensive income
Dividend –10,456 –10,577
Remeasurement of defined benefit pension plans – – –14 –14
Repurchase of shares 21 –2,928 –1,075
Tax related to the above ­remeasurement – – 3 3
Cash flow from financing activities –16,251 –6,175
Other comprehensive income – – –11 –11
CASH FLOW FOR THE YEAR –2 0
Comprehensive income – – 11,756 11,756
Cash and cash equivalents at the beginning of the financial year 2 2
Dividend – – –10 577 –10 577
Cash flow for the year –2 0
Repurchase of shares – – –1,123 –1,123
Cash and cash equivalents at year-end 20 0 2
Redemption of shares –3 – 3 –
Bonus issue 3 – –3 – 1. Interest paid for the parent company amounts to SEK 484 m (268). Received interest for the parent company amounts to SEK 479 m (280), note 32.
SHAREHOLDERS’ EQUITY 30 NOVEMBER 2023 207 88 16,065 16,360

130 131
<<Contents Financial information/Notes to the ­financial statements

Notes to the
­financial statements
Corporate information 30 November. The annual report was approved for publication by the board
The parent company H & M Hennes & Mauritz AB (publ) is a limited company of directors on 20 March 2025 and will be submitted to the annual general
domiciled in Stockholm, Sweden. The parent company’s corporate identity meeting for approval on 7 May 2025.
number is 556042-7220. The company’s shares are listed on the Stockholm Ramsbury Invest AB’s holding of shares in H & M Hennes & Mauritz AB
stock exchange, Nasdaq Stockholm. The group’s business consists mainly of represents 59.56 percent of all shares and 80.76 percent of the total voting
sales of clothing, accessories, footwear, cosmetics, home textiles and home- power. Ramsbury Invest AB (556423-5769) is thus formally the parent com-
ware to consumers. The company’s financial year runs from 1 December to pany of H & M Hennes & Mauritz AB.

1 Accounting principles
Basis for preparation of the accounts Climate change
NOTE 1 Accounting principles 133
The consolidated accounts have been prepared in accordance with the Inter- The potential impact of climate change has been considered in preparing
NOTE 2 Financial risks 134 national Financial Reporting Standards (IFRS) issued by the International the financial statements, particularly in the context of the risks in the
NOTE 3 Segment reporting 136 Accounting Standards Board (IASB) and the interpretations provided by the Task Force on Climate-related Financial Disclosures (TCFD) climate risk
IFRS Interpretations Committee. Since the parent company is a company analysis (pages 85–89).
NOTE 4 Business combinations 137 within the EU, only IFRS approved by the EU are applied. The consolidated
NOTE 5 Net sales 137 accounts also contain disclosures in accordance with the Swedish Financial The following areas have been considered:
NOTE 6 Revenue from group companies 138 Reporting Board’s recommendation RFR 1, Supplementary Accounting Changes in customer attitudes and purchasing patterns
Rules for Groups. Climate-related matters could have an impact on customer behaviour and
NOTE 7 Costs by type 138 The parent company’s functional currency is Swedish kronor, which is also changes in consumption patterns, thus affecting the revenue of the group.
NOTE 8 Salaries, other remuneration and the reporting currency for the parent company and for the group. Unless The changes in customer attitudes and purchasing patterns could also
social ­security costs 138 other­wise indicated, all amounts are reported in millions of Swedish kronor impact the value of stock, as inventory could become obsolete as a result
(SEK m). of a decline in selling prices or demand.
NOTE 9 Average number of employees 139
Applicable accounting principles are described in connection with
NOTE 10 Depreciation, amortisation and write-downs 140 each note. Introduction of global or regional climate legislation
NOTE 11 Audit fees 140 The introduction of climate-related legislation, such as carbon taxes, could
Parent company cause higher production costs, thus affecting the cost of goods sold for the
NOTE 12 Tax 141 The parent company applies the Swedish Annual Accounts Act and the H&M group. Especially suppliers dependent of fossil fuels could be affected
NOTE 13 Non-controlling interests 142 ­Swedish Financial Reporting Board’s recommendation RFR 2, Accounting for by an increase in climate-related legislation.
Legal Entities, which essentially means that IFRS is applied. In accordance H&M Group has made efforts to help phase out onsite coal and fossil fuels
NOTE 14 Intangible assets 142
with RFR 2, the parent company does not apply IFRS 9 with the exception in the supply chain. In 2024, H&M Group spent SEK 1.7 billion on decarboni-
NOTE 15 Buildings, land and equipment 143 of the principles in IFRS 9 regarding the time of recognition and removal of sation activities across the value chain, for example phasing out fossil fuels,
NOTE 16 Interests in associates and joint ventures 143 financial instruments in the balance sheet and the principles for impairment supporting energy efficiency initiatives and replacing conventional materials
testing and recognition of expected credit losses. The parent company with re­­cycled and sustainably sourced materials. This has been categorised
NOTE 17 Leases 144 applies the exception in RFR 2 in respect of IFRS 16, which means that under inventory, cost of goods sold, equipment, tools, fixtures and fittings,
NOTE 18 Stock-in-trade 145 the principles of IFRS 16 are not applied in the legal entity. Due to the link long-term loans to suppliers, prepaid expenses, selling expenses, and
between reporting and taxation, year-end appropriations and untaxed adminis­trative expenses.
NOTE 19 Prepaid expenses 145
reserves are reported in the parent company’s financial statements.
NOTE 20 Cash and cash equivalents 145 Group contributions that the parent company receives from subsidiaries Increase in raw material, energy, and water costs
NOTE 21 Share capital 146 and provides to subsidiaries are reported under appropriations. Climate-related matters could impact the availability and price of raw
­materials as well as increase energy and water costs and may impact the
NOTE 22 Provisions for pensions 146
Changes in accounting principles and disclosure requirements production and logistic costs of suppliers causing an increase of the group’s
NOTE 23 Other provisions 147 As of 2024, the H&M group applies the amendments in accounting standard cost of goods sold. Climate change may also cause production and distribu-
NOTE 24 Financial assets and liabilities by category 148 IAS 12 Income Taxes regarding Deferred Tax related to Assets and Liabilities tion disruptions, also affecting the group’s purchasing costs.
arising from a Single Transaction. The amendment will entail that deferred tax
NOTE 25 Accrued expenses and deferred income 150 will be calculated on right-of-use assets and liabilities attributable to leases. Natural disasters
NOTE 26 Related party disclosures 150 The recoverable amount and useful life of assets could be impacted by
Future accounting principles and disclosure requirements climate-­related matters, such as natural disasters, and could cause costs
NOTE 27 Interest-bearing liabilities 151
As from January 1, 2024, IAS 7 and IFRS 7 is amended by adding disclosure for impairment and changes in amounts of depreciation.
NOTE 28 Appropriations 152 requirements, both qualitative and quantitative, regarding supplier finance In estimating future cash flows, such as for impairment testing purposes,
NOTE 29 Interests in group companies 152 arrangements, affecting the H&M group’s financial statements from 2025. estimates and assumptions are made that are not linked to the scenarios
The amendments are not expected to have any material impact on the financial described in the TCFD analysis, as the data that these scenarios are built
NOTE 30 Untaxed reserves 154 statements. IFRS 18 Presentation and Disclosure in Financial Statements will on are connected with a high degree of uncertainty.
NOTE 31 Contingent liabilities 154 apply from 1 January 2027, affecting the H&M group’s financial statements Funding is provided to supplier factories to enable investments to reduce
from 2028. energy demand and replace fossil fuels. For 2024, the funding consists of
NOTE 32 Interest income, interest expense and
No new or amended accounting standards that are not yet mandatory have loans to suppliers that are accounted for as long-term receivables, other
­similar items 154
been early adopted by the H&M group. receivables and prepaid expenses.
NOTE 33 Events after the closing date 154 According to OECD’s Pillar Two model rules, H&M group is required to pay The H&M group has entered into offtake agreements, contracts to buy
NOTE 34 Distribution of earnings 154 a minimum taxation of 15 percent in each of the jurisdictions where the H&M permanent carbon removals, after joining Frontier, an advanced market
group operates. The jurisdictions where the group operates are expected to ­commitment for permanent carbon removal. The contracts include making
meet the safe harbour thresholds, thereby mitigating potential exposure to payments in advance, which are accounted for as prepaid expenses. Once
top-up taxes under Pillar 2 rules. permanent carbon removals are delivered, the cost is reflected in the income
As part of the H&M group’s approach to the Pillar 2 model rules, certain statement. Prepaid expenses or costs related to carbon removals do not
positions reported in local statutory results for transfer pricing purposes amount to significant amounts for 2024. Commitments for additional pay-
have been adjusted in the calculations, aligning with the group’s qualified ments to the companies the group has binding agreements with do not
financial statements prepared under relevant accounting standards. The amount to significant amounts for each individual year up until 2030.
methodology is expected to support compliance with Pillar 2 requirements For 2024, climate change has not been assessed to have a significant
without materially impacting the financial report. impact on the financial statements nor on the estimates and assumptions
made when preparing the annual report and consolidated accounts.

132 133
<<Contents Financial information/Notes to the ­financial statements

1 cont. 2 cont.
Government assistance income. Exchange rate differences relating to loans in foreign currency taken Currency exposure associated with financial instruments Credit risk and counterparty risk
The H&M group accounts for government assistance in accordance with out to hedge net investments in foreign operations are also recognised in The H&M group’s currency risk associated with financial instruments is Credit risk is the risk that the H&M group’s counterparties will be unable to
IAS 20 Accounting for Government Grants and Disclosure of Government other comprehensive income. mainly related to financial investments, accounts payable and derivatives. meet their commitments and thus cause losses for the H&M group. Financial
Assistance. The grants are reported as a reduction in the cost of the items to The group’s accounts payable in foreign currencies are mainly handled in credit risk arises primarily as counterparty risk in the form of investments or
which the grants relate. The grants are reported in the income statement and Interest income Sweden and are largely hedged through forward contracts. Based on this, cash and cash equivalents in the bank accounts, and also as receivables
balance sheet when it is reasonably certain that the grants will be received Interest income is recognised as it is earned. a 10 percent change in the value of the Swedish krona in relation to other from banks attributable to surplus value in derivative instruments. The finan-
and potential conditions for receiving the grants are fulfilled. No significant ­currencies would have an insignificant momentary effect on profit related cial policy states maximum amounts and terms for investments and for cash
amounts of government assistance have been received during 2024. Cash flow statement to financial instrument holdings as of the closing date. A 10 percent strength- and cash equivalents in bank accounts with different ratings. Credit expo-
The cash flow statement is prepared according to the indirect method. ening of the Swedish krona would have an effect on the hedging reserve in sure as of 30 November 2024 equals the book value for cash and cash equiv-
Estimates and assessments The reported cash flow covers only transactions involving payments in or out. equity of around SEK –22 m (–80) before taking into account the tax effect, alents of SEK 17,340 m (26,398), accounts receivable of SEK 5,631 m (3,301),
In preparing the annual and consolidated financial statements in accordance of which SEK 907 m (812) relates to EUR and SEK –2,028 m (–1,800) to USD. derivative instruments of SEK 1,224 m (1,089), and other long-term receiva-
with IFRS, management has made estimates and assumptions that affect the The group’s exposure to outstanding derivative instruments is reported bles of SEK 858 m (1,204), totalling SEK 25,050 m (31,992). The group’s own
reported amounts of assets, liabilities, income and expenses. The estimates in note 24.
and assumptions are based on historical experience, other relevant factors 2 Financial risks The group’s operating result for the year was affected by net exchange
credit operations are phased out and are managed through collaboration
with an external party.
and expectations of the future, and are reviewed regularly. The actual out- rate differences relating to flows of goods in the amount of SEK –136 m (–168). The group aims to have master netting agreements (ISDA) with all coun-
come may therefore deviate from the estimates and assumptions made. The H&M group’s financing and management of financial risk is carried out terparties for transactions involving derivative instruments. Assets and lia-
The sources of estimation uncertainty, assessments and assumptions that centrally within the group’s finance department in accordance with a finan- Transaction exposure associated with commercial flows bilities related to derivative instruments are not netted in the balance sheet.
have been identified by the H&M group refers to the measurement of stock- cial policy established by the board of directors. The financial policy estab- Payment flows in the form of payments in foreign currencies for accounts
in-trade, capitalisation of development expenditures, impairment testing of lishes the framework, guidelines, mandate, and responsibilities for monitor- receivable and payable expose the group to currency risk. To manage Derivative Derivative
non-current assets, establishing the term of the lease and an interest rate for ing, reporting, and managing financial matters. The group treasurer shall ­currency risk relating to changes in exchange rates, the group hedges its 2024 assets liabilities
borrowing included in the calculations of the right-of-use assets and inter- report the group’s liquidity, funding need, and financial risks to the CFO and ­currency rate within the framework of the financial policy. Currency risk Gross amount 1,224 665
est-bearing liabilities attributable to leases, recognition of provisions, and board of directors on a monthly basis. The H&M group’s accounting princi- exposure is managed at a central level. The group’s most significant pur-
ples for financial instruments, including derivatives, are described in note 24. Effect of netting agreements –628 –628
the measurement of current and deferred tax; see notes 10, 12, 17, 18 and 23. chase currencies are the USD and EUR. Fluctuation in the USD/EUR
In the course of doing business the H&M group is exposed to risk associ- exchange rate is the single largest transaction exposure within the group. Net position 596 37
Consolidated accounts ated with financial instruments such as cash and cash equivalents, short- The estimated operational transaction exposure for the group’s main curren-
term investments, accounts receivable, accounts payable and loans. The Derivative Derivative
Basis of consolidation cies is shown in the table below. As an example, the net transaction exposure 2023 assets liabilities
The consolidated financial statements cover the parent company and its H&M group also executes transactions involving currency derivatives for the for incoming and outgoing payments in USD is a deficit. A strengthening of
subsidiaries. Subsidiaries are defined as all companies in which the group purpose of managing currency risk that arises in the course of the group’s Gross amount 1,089 1,205
the USD exchange rate against all other currencies by 10 percent would have
owns or controls more than 50 percent of the votes, or in which the group business. Effect of netting agreements –864 –864
a negative effect on cash flow and operating profit of SEK 6,329 m (5,402)
alone has a controlling interest through an agreement or such. Subsidiaries and a weakening would have a positive effect of SEK 6,329 m (5,402). Net position 225 341
are included in the consolidated accounts from the date of acquisition, which The risks relating to these instruments are primarily the following:
The analysis is based on the assumption that no currency flows have been
is the date on which the parent company gains a controlling interest and are • interest rate risk associated with liabilities to credit institutions, cash and hedged and is made before offsetting price adjustments and other similar Liquidity risk and financing risk
included in the consolidated accounts until such date as the controlling cash equivalents and short-term investments; measures. The group also has transaction exposure to a large number of Liquidity risk refers to the risk that the H&M group will be unable to meet its
interest ends. Intra-group income, expenses, receivables, and liabilities, as smaller currencies which together add up to the line “Other”. Besides that,
• currency risk associated with flows and with financial assets and financial payment commitments due to a lack of liquidity. Financing risk refers to the
well as unrealised gains and losses, are eliminated entirely in the preparation there are no material exposures from transaction type financial instruments.
liabilities in foreign currencies; risk that the financing of the group’s capital requirements and the refinanc-
of the consolidated accounts.
• credit risk and counterparty risk associated with financial assets and ing of outstanding loans becomes more difficult or more expensive.
The financial reports for the parent company and the subsidiaries included Currency 2024 2023
derivative positions; The strategy for the H&M group’s liquidity planning and financing is to
in the consolidated accounts cover the same period and have been prepared
EUR 38,671 26,752 maintain good payment capacity and to identify and cover liquidity needs
in accordance with the accounting principles that apply to the group. Associ- • liquidity risk and financing risk relating to liquidity and cash flow as well as
ates and joint ventures are accounted for using the equity method when the GBP 8,636 6,848 arising in the group through continuous forecasting of business needs.
financing and refinancing of the group’s capital requirements.
group has significant influence or joint control. Liquidity and financing risks are regulated in the H&M group’s financial
USD –63,291 –54,015
Interest rate risk ­policy, which states that loans are to have an evenly distributed maturity
Other 33,284 34,952 structure and that cash and undrawn credit facilities are to cover the com­
Associates and joint ventures Interest rate risk is the risk that earnings or the fair value of assets and liabili-
All companies in which the group has a significant interest (associates) ties will be adversely affected by changes in interest rates. The H&M group’s pany’s forecast short-term liquidity needs. Cash and cash equivalents and
or joint control (joint ventures) are accounted for according to the equity exposure to risk from changes in interest rates relates to cash and cash To hedge the flows of goods in foreign currencies and thereby reduce the short-term investments were SEK 17,340 m (26,398) as of 30 November
method, see note 16. equivalents, short-term investments and liabilities to credit institutions and effects of future exchange rate fluctuations, the group’s purchases of goods 2024. Cash and cash equivalents, short-term investments and undrawn
for finance leases. The original term of the investments is up to three months and the bulk of related forecast inflows from the sales companies are fully credit facilities totalled SEK 35,756 m (44,570). The group’s current assets,
Translation of foreign subsidiaries as of the closing date. The group’s cash and cash equivalents and short-term hedged under forward contracts on an ongoing basis. The average term of such as inventories and short-term receivables, closely match its current
The companies making up the group present their financial statements in investments as of the closing date amounted to SEK 17,340 m (26,398). As of outstanding forward contracts is around three months. All derivatives have ­liabilities in terms of maturity structure, and are assessed to cover the
the currency used in the economic environment in which the company con- the closing date, loans and leases amounted to SEK 76,954 m (77,970). An an original maturity of less than one year. group’s overall needs according to the following maturity analysis.
cerned mainly operates, known as the functional currency. These statements interest rate increase of 1 percentage point on these amounts would increase
form the basis of the consolidated accounts. The consolidated accounts interest income from cash and cash equivalents and short-term investments Translation exposure on consolidation of entities outside Sweden Maturity analysis of financial liabilities
are presented in Swedish kronor, which is the parent company’s functional by SEK 173 m (264) and would increase interest expense for external borrow- In addition to the effects of transaction exposure, profits are also affected
Financial liabilities <1 year 1–5 years >5 years Total
currency and reporting currency. Assets and liabilities in foreign subsidiaries ing and leases by SEK 701 m (685). A corresponding decrease in the interest by translation effects as a result of changes in exchange rates for the local
are translated at the exchange rate on the closing date, while the income rate would reduce interest income by the same amount and would decrease currencies of the various foreign subsidiaries against the Swedish krona, Liabilities to credit
statement is translated at the average exchange rate for the financial year. interest expense related to liabilities to credit institutions and for leases. compared to the same period the previous year. The underlying result in a ­institutions 0 8,000 6,117 14,117
The translation difference arising from this, and also as a result of the fact Changes in interest rates are expected to have limited effects on the book market may be unchanged in the local currency, but when converted into SEK Lease liability 12,476 29,386 20,975 62,837
that the net investment is translated at a different exchange rate at the end value of the group’s interest-bearing liabilities. The background is that may increase if the Swedish krona has weakened or decrease if the Swedish Accounts payable 24,417 – – 24,417
of the financial year than at the beginning of the financial year, is posted ­liabilities to credit institutions are valued at amortised cost. krona has strengthened. Translation effects also affect the group’s net
Other financial ­liabilities 1 – – 1
directly to equity as a translation reserve via the statement of comprehen- The group’s exposure to the reform of interbank offered rates (IBOR) is assets on consolidation of the foreign subsidiaries’ balance sheets (transla-
tion exposure in the balance sheet). Where the remeasurement of balance Total 36,894 37,386 27,092 101,372
sive income. On disposal of a foreign business the accumulated translation limited. As of 30 November 2024 there are no drawn credit facilities that
differences in the income statement are posted together with the profit or refer to IBOR. sheet items affects the group’s income statement, such as in the case of
loss on disposal. intragroup liabilities and short-term intragroup receivables, these are to be As of 30 November 2024 the group had interest-bearing liabilities of SEK
Currency risk fully hedged. Net investment in foreign currency may be hedged in full or in 14,117 m (17,082) in the form of commercial papers, bonds, and loans from
Foreign currency There is a risk that fluctuations in exchange rates will have an adverse effect part through a liability in the same currency, known as an equity hedge. As of credit institutions. In addition, the group has undrawn credit facilities of
Monetary assets and liabilities in foreign currencies are translated at the on the company’s financial position, profitability and cash flow. The H&M 30 November 2024 certain portions of net investments are hedged in this SEK 18,416 m (18,172). The average maturity of interest-bearing liabilities
exchange rate on the closing date. Exchange rate differences arising on group is affected by fluctuations in exchange rates via transaction exposure way. The purpose of the hedging is to protect – in the group’s consolidated and undrawn credit facilities was 5.3 (5.1) years. A maturity analysis for
translation are reported in the income statement except for exchange rate and translation exposure. Transaction exposure arises when sales and pur- accounts – the majority of the value of net investments in EUR from EUR/ ­outstanding interest-­bearing liabilities and undrawn credit facilities is
differences in respect of loans, which are to be regarded as net investment chases are made in currencies that differ from each company’s functional SEK exchange rate fluctuations. given below.
in a foreign operation. Exchange rate differences of this type are posted currency. The functional currency is in most cases the currency of the
to equity as translation differences via the statement of comprehensive ­country where the company is located. Translation exposure arises when
subsidiaries’ results, assets, liabilities, and equity are translated into SEK,
the group’s reporting currency.

134 135
<<Contents Financial information/Notes to the ­financial statements

2 cont. 3 cont. 4 Business combinations 5 cont.

Loans from credit Undrawn credit When reporting acquisitions for the group, IFRS 3 Business Combinations i.e. sales revenue less value-added tax, returns and discounts. Revenue from
Year Bonds (EMTN) institutions facilities 2024 2023 is applied. both store and online sales is reported in conjunction with sale to the cus-
All business combinations are reported according to the acquisition tomer and is based on the country in which the store is located, or the online
2024 – – – North and South America method, which means that acquired assets and assumed liabilities are rec- customer lives. In the case of store sales, therefore, the transaction price is
2025 – – – External net sales 51,799 53,786 ognised and measured at fair value at the acquisition date. If the transferred due for payment immediately when the customer makes the purchase and
2026 – 2,000 – Operating profit 2,045 2,224 consideration exceeds the estimated value of identifiable net assets in the receives the product in the store. In the case of online sales this principle
2027 – – 3,453 Operating margin, % 3.9 4.1 acquired company at the time of acquisition, the difference is recognised as means that revenue is reported when control of the goods is considered as
goodwill. If the transferred consideration is less than the finally determined transferred from the H&M group.
2028 – 245 – Assets excluding tax assets and internal
receivables 18,750 19,255 value of identifiable net assets, the difference is recognised directly in the In addition to the main sale of new goods, a smaller share of the total
2029 5,755 – 14,963 income statement. Non-controlling interests are determined for each trans- ­turnover also consists of the sale of services such as repair and rental,
2030 – – – Liabilities excluding tax liabilities and internal
liabilities 8,056 8,574 action either as a proportionate share of the fair value of identifiable net ­commission-based sales, second-hand online sales, a membership-based
2031 6,117 – – assets or at fair value. Transaction costs related to acquisitions are not business model and B2B sales of print-on-demand.
Investments 2,186 1,740
Total SEK m 11,872 2,245 18,416 included in the cost of the acquisition but are expensed. In a business combi- The right to return goods is, as a minimum, in accordance with the local
Depreciation, amortisation and write-downs 2,048 2,429 nation achieved in stages, the group’s previously held equity interest in the rules in the country concerned. Based on historical data and best estimates,
acquired entity is remeasured at its fair value on the acquisition date, with a returns reserve and a right of return asset are calculated which are
Supplier payment process Group Functions
any resulting gain or loss recognised in the income statement. reported gross under Other current liabilities and Stock-in-trade.
The H&M group payment terms to commercial goods suppliers are in line Net sales to other segments 79,071 79,667
The payment terms are the same for all customers paying in cash or by
with industry standard. Some suppliers choose to sell their receivables, Operating profit 8,667 7,140 Acquisitions in 2024 card and the amount of remuneration is not variable. In certain markets
and if requested, the H&M group can introduce banks to purchase these
Operating margin, % 11.0 9.0 No acquisitions have been made during 2024. (mainly online) the group collaborates with an external partner to offer pay-
receivables. This arrangement has together with the underlying trade agree-
Assets excluding tax assets and internal ment terms that allow later payment against invoice, usually after 30 days.
ments been analysed from a number of indicators of which all fulfil the
receivables 113,279 116,645 Acquisitions in 2023 Gift cards are offered in many countries and generally give rise to a liability
requirements for these transactions to be recognised as trade payables.
Liabilities excluding tax liabilities and Sellhelp AB in the country concerned with effect from the date of purchase. Revenue is
internal liabilities 97,821 99,163 As a result of contractual changes, without paying any additional purchase then recognised when the card is used or expires.
consideration, the H&M group obtained a controlling interest in its former Franchise sales have two components: sales of goods to franchisees,
3 Segment reporting
Investments
Depreciation, amortisation and write-downs
4,540
16,405
4,030
16,102
associate Sellhelp AB as of 9 December 2022. As of the contract date the which are reported on delivery of the goods, and franchise fees, which are
H&M group owned 79.84 percent of the shares in the company. Non-­ reported when the franchisee sells goods to the consumer.
When reporting operating segments for the group, IFRS 8 Operating Eliminations controlling interests amounted to SEK 108 m as of the contract date and The points that members of the H&M loyalty programme can earn and in
­Segments is applied. have been measured at the proportionate share of the recognised value of the future use in the form of discounts represent a right that they would not
Net sales to other segments –79,071 –79,667
The group’s business consists mainly of sales of clothing, accessories, acquired net assets. Sellhelp AB has developed a platform – Sellpy – for have without entering into this agreement. Points earned that have not been
footwear, cosmetics, home textiles and homeware to consumers. Internal Total ­second-hand products. The investment contributes to the group’s initiatives used are reported as a current liability as well as a reduction in revenue in
follow-up of the group’s business is carried out on a country-by-country External net sales 234,478 236,035 for sustainability and circular business models. Prior to the date of the order to correspond to the future reduction in revenue that arises when the
basis by the CEO, who is the group’s chief operating decision maker. Each ­contractual changes the book value of the group’s interest in Sellhelp AB points issued are used to obtain discounts. Revenue is recognised when the
Operating profit 17,306 14,537
country is thus an operating segment. However, the various countries sell amounted to SEK 269 m. Obtaining a controlling interest has resulted in a points are used or when they expire maximum 12 months after being earned.
Operating margin, % 7.4 6.2
similar products via similar sales channels to similar customers. Goods pur- reported gain of SEK 1,107 m based on a fair value for the group’s interest of The group applies the practical expedient not to disclose information about
chasing is carried out collectively for the group. Some countries have similar Net financial items –1,863 –1,527 SEK 1,376 m. The gain was reported on the line “Result from investments in remaining performance obligations since these are thus part of contracts
economic characteristics, such as comparable long-term economic results Profit after financial items 15,443 13,010 associated companies and joint ventures” in the consolidated income state- with an original expected duration of one year or less. The liability is based on
as well as comparable operational and financial risks. In view of this, coun- ment and had no effect on cash flow. The interest in Sellhelp AB has been fair value calculated per outstanding point.
Assets excluding tax assets and internal
tries which have these similar economic characteristics are combined in the valued using a combined estimate from two valuation methods: one in
receivables 171,994 171,736
segment reporting. The H&M group has combined countries to form the seg- which relevant multiples from similar companies have been applied to the
ments Asia and Oceania, Europe and Africa, and North and South America. Liabilities excluding tax liabilities and company’s key ratios and one based on historical majority transactions in SEK m 30 Nov 2024 30 Nov 2023
internal liabilities 129,504 129,879
The parent company and subsidiaries with no external sales are reported the same industry. Contract liabilities 944 1,031
separately under Group Functions. The same accounting principles are Investments 11,537 8,964 Sellhelp AB’s operations are consolidated into the H&M group’s accounts
applied to segment reporting as in the consolidated accounts. Transactions Depreciation, amortisation and write-downs 22,252 22,955 with effect from the first quarter of 2023. Obtaining a controlling interest The entire opening balance has been accounted for as income during the year.
between segments take place on normal commercial terms. gave rise to intangible assets in the form of brands amounting to SEK 500 m,
technical platform amounting to SEK 136 m and goodwill amounting to SEK
2024 2023 Operating profit for each segment is based on how the H&M group tracks
949 m. No other acquired assets or assumed liabilities amount to a material The group’s income exhibits seasonal variations. The first quarter of the
results internally within the group and may deviate from the fiscal result in
Asia and Oceania sum. Reported goodwill primarily refers to assets that cannot be recognised financial year is normally the weakest and the last quarter the strongest.
each market. Group Functions includes results that have been realised in
in the balance sheet, including but not limited to a circular business model
External net sales 28,619 29,941 multiple different geographical areas of the world and reflects the value
and future growth, and is not expected to be tax-deductible. Sellhelp AB’s
Operating profit 697 890 ­creation within the group. All effects of IFRS 16 are included under Group
operations contributed SEK 1,148 m and SEK –80 m respectively to the group’s Number of Number of
Functions, with the exception of impairment of non-current assets as a result Net sales stores Net sales stores
Operating margin, % 2.4 3.0 net sales and operating profit for financial year 2023. The operations are
of impairment testing for financial year 2023. Impairment of non-current 2024 30 Nov 2024 2023 30 Nov 2023
Assets excluding tax assets and internal included in the “Europe and Africa” segment. During financial year 2023 the
assets totalling SEK 307 m (298), as a result of impairment testing, is allo- Germany 35,716 407 35,255 420
receivables 11,006 10,973 group had incurred no transaction costs related to obtaining the controlling
cated to segments as follows: Asia and Oceania SEK 29 m (39), Europe and US 30,730 509 33,068 508
Liabilities excluding tax liabilities and internal interest in Sellhelp AB.
Africa SEK 3 m (150), and North and South America SEK 10 m (110), and Group
liabilities 3,620 3,488 UK 17,242 228 17,511 238
Functions 265 (0). For further information see note 10.
Investments 677 486 The group’s property, plant and equipment amounted to SEK 86,220 m France 11,085 188 11,274 197
Depreciation, amortisation and write-downs 850 1,092 (81,536) as of 30 November 2024. The property, plant and equipment are 5 Net sales Sweden 8,701 133 8,854 136
largely distributed between the countries in accordance with each country’s Poland 8,370 181 7,254 182
Europe and Africa 1
level of sales. Property, plant and equipment amounted to SEK 5,023 (4,014) Netherlands 7,634 100 7,360 107
When reporting revenue for the group, IFRS 15 Revenue from Contracts with
External net sales 154,060 152,308 in Sweden, to SEK 6,891 m (6,961) in the UK, to SEK 8,154 m (7,167) in
Customers is applied. Italy 7,390 157 7,475 160
Operating profit 5,897 4,283 ­Germany and to SEK 16,574 m (15,561) in the US as of 30 November 2024.
The group’s income is generated mainly by the sale of clothing, accessories,
Switzerland 6,879 90 6,831 91
Operating margin, % 3.8 2.8 footwear, cosmetics, home textiles and homeware to consumers. The cus-
Canada 6,590 96 6,724 94
Assets excluding tax assets and internal tomers are primarily private individuals, with the same prices applying to all
receivables 28,959 24,863 customers. Any price reductions are general and not directed to any specific Other 94,141 2,164 94,429 2,236
Liabilities excluding tax liabilities and internal individual. Sales revenues are reported as net sales in the income statement, Total 234,478 4,253 236,035 4,369
liabilities 20,005 18,654
Investments 4,134 2,708
Depreciation, amortisation and write-downs 2,949 3,332

1. South Africa

136 137
<<Contents Financial information/Notes to the ­financial statements

6 Revenue from group companies 8 cont. 8 cont. 9 cont.

The parent company’s internal sales consist of royalties of SEK 2,335 m Board member Lena Patriksson Keller is the majority shareholder in All employees of the H&M group, regardless of their position and salary 2024 2023
(2,184) and other income of SEK 23 m (35) from group companies. Patriksson Group AB, which had business dealings with H&M Group during level, are included in the programme according to the same basic principle Total % male Total % male
the year. The transactions took place on market terms and remuneration for – based on length of employment, either full-time or part-time. The number
Portugal 519 14 529 15
2024 amounted to SEK 27.0 m (6.9). Outstanding balances as of 30 Novem- of years that the employee has worked for the company previously is taken
Italy 3,114 25 3,267 26
7 Costs by type ber 2024 totalled SEK 3.4 m (0.6). The increase compared to the previous
year is mainly due to an increased amount of marketing activities related to
into account in the qualification period, which is five years unless local rules
require otherwise. As a general rule, funds will begin to be paid out no earlier Canada 2,128 14 2,026 31
the H&M brand in the fall of 2024. Approximately half of the increase has than the age of 62. However, it will also be possible for payments to be made Slovenia 169 5 168 5
Costs for the group are allocated to three functions: cost of goods sold, sell-
been invoiced to partners. after ten years of employment but no earlier than 2021. Ireland 369 19 361 18
ing expenses and administrative expenses. The cost of goods sold includes
The 2013 annual general meeting resolved to change the basis of future
all costs of designing, procuring and transporting goods. Examples of costs Hungary 864 15 876 15
Remuneration of senior executives contributions to HIP. The contribution is no longer linked to the increase
included in this, other than the pure sourcing cost of the products, are ship- Slovakia 335 12 319 13
Remuneration of senior executives is based on guidelines adopted annually in dividend; instead, contributions to HIP are based on 10 percent of the
ping, customs duties, environmental levies, payroll and the cost of premises
by the AGM; see the administration report on pages 113–117. increase in the company’s profit after tax between two consecutive financial Greece 948 16 959 16
for the buying department, IT costs related to buying and logistics as well as
years. The increase in profit is calculated on profit after tax before any con- Mainland China 4,782 20 5,232 21
handling costs in the distribution centres and shipping costs from ware-
Remuneration of the chief executive officer tribution to HIP. Thus, when calculating the contribution to HIP for year 2,
houses to stores. Selling expenses include store expenses such as salaries Hong Kong SAR 376 33 461 35
Remuneration paid to the CEO during financial year 2024 in the form of sal- the year’s profit after tax is compared with year 1’s profit after tax before any
and rents, marketing costs, handling costs in replenishment warehouses for Japan 1,521 18 1,849 26
ary and benefits amounted to SEK 15.1 m (15.1). In addition, the CEO received contribution to HIP. This ensures that the two years are compared on a like-
stores, shipping costs to online customers, IT costs related to stores and Russia1 5 20 249 39
variable remuneration of SEK 5.0 m (3.8) in respect of financial year 2024 for-like basis; in other words, profit after tax before any contribution to HIP.
sales, as well as central support functions related to sales. The item adminis-
that was paid and expensed in the first quarter of 2025. Pension benefits for The first contribution to HIP based on an increase in profit was made for the South Korea 1,232 25 1,127 24
trative expenses includes the costs of other central support functions, such
the CEO are covered by a defined contribution plan and by the ITP plan. The financial year which ended on 30 November 2013. Türkiye 1,521 38 1,435 37
as salaries, rents and IT costs for administrative systems.
combined pension expenses shall amount in total to 30 percent of the CEO’s The contribution to HIP for a financial year is expensed in the year to which
For information on payroll see note 8, and for depreciation, amortisation Romania 936 8 1,043 18
fixed salary. Pension expenses amounted to SEK 4.5 m (4.4). The retirement it relates. For example, if profit after tax in year 1 is 100 and profit after tax in
and write-downs see note 10. Croatia 276 6 274 6
age for the CEO is 65. year 2 is 130, then the contribution is 3 and will be expensed in year 2.
During the year Daniel Ervér (salary SEK 12.6 m, pension SEK 3.8 m) took There is a ceiling that limits the size of the contribution when the increase Singapore 403 34 389 34
over from Helena Helmersson (salary SEK 2.5 m, pension SEK 0.7 m). in profit between two years may be deemed disproportionately large. The Bulgaria 315 12 335 15
8 Salaries, other remuneration The CEO is entitled to a 12-month period of notice. In the event that the ceiling has been set at 2 percent of profit for the year after tax before any Latvia 107 13 121 20
and social security costs company cancels the CEO’s employment contract, the CEO will also receive contribution to HIP.
Malaysia 763 49 857 49
severance pay of a year’s salary. The CEO’s terms of employment are deter- The contributions to the foundation are to be invested in H&M Group
mined by the board of directors. shares. The H&M group has no other commitments beyond this. Mexico 2 309 45 2,100 47
When reporting benefits to employees for the group, IAS 19 Employee
­Benefits is applied. In the consolidated accounts the costs of the incentive programme are Chile 1 932 40 1,851 41
Pension for a former CEO recognised in accordance with the rules on short-term profit-sharing and Lithuania 208 9 216 9
Salary, Of which A former CEO retired on 1 September 2009. The total pension commitments bonus schemes set out in IAS 19. The expense is recognised when the Serbia 232 14 239 17
Board, CEO, Salary, Social Of which Board, CEO, recognised as liabilities, based on the fact that for the first three years of amount has been established and an obligation exists. The amount is trans-
Executive other ­security pension, Executive Estonia 207 5 197 6
2024 management employees costs, total total management retirement the person received a pension equivalent to 65 percent of fixed ferred to the foundation during the next financial year.
salary and thereafter receives a lifelong pension equivalent to 50 percent of For 2024 a contribution of SEK 236 m (177) was made to the incentive pro- Australia 979 27 1,036 27
Sweden, the same salary, amount to SEK 112.9 m (105.5). The change in the year’s pen- gramme, based on the principle for contributions to HIP adopted at the 2013 Philippines 666 29 743 47
­parent
sion commitments recognised as liabilities includes actuarial gains of SEK AGM and described above. Taiwan Region 306 36 280 29
­company 22 – 30 23 5
13.0 m (13.0). Pension costs for the former CEO are included under “of which Peru 664 43 713 45
Subsidaries 27 35,865 7,407 682 7 pensions to board, CEO, executive management”.
India 2 828 61 2,466 61
Group total 49 35,865 7,437 705 12
9 Average number of employees South Africa 969 35 1,043 36
Remuneration of the executive management team
Including the CEO, as of 30 November 2024 the executive management in Puerto Rico 60 30 58 34
2024 2023
Salary, Of which the group comprised of 3 (4) men and 4 (4) women, of which 1 (0) man and Cyprus 54 28 54 33
Board, CEO, Salary, Social Of which Board, CEO, Total % male Total % male
0 (1) women in the parent company. In addition to the CEO, the executive New Zealand 228 25 251 28
Executive other ­ ecurity
s pension, Executive
2023 management employees costs, total total management management team consists of the CFO, the person with responsibility for Sweden 9,525 28 10,281 27
Kazakhstan 312 44 359 30
portfolio brands, the person with responsibility for new growth & ventures, Norway 1,441 8 1,499 7
Sweden, and the heads of the following group functions: communications, sustain­ Colombia 1 089 42 1,214 47
­parent Denmark 1,303 9 1,374 9
ability, and people & organisational development/human resources. Iceland 100 16 77 17
­company 22 – 30 23 4 UK 6,188 26 6,814 25
Remuneration paid to members of the executive management team, other
Subsidaries 10 34,976 7,574 760 13 Switzerland 1,617 17 1,645 16 Vietnam 260 42 362 43
than the CEO, during financial year 2024 in the form of salary and benefits
Group total 62 34,976 7,605 784 17 amounted to SEK 27.1 m (39.6). In addition, members of the executive man- Germany 10,219 16 10,568 17 Georgia 92 10 91 11
agement team, other than the CEO, received variable remuneration of SEK Netherlands 2,083 17 2,192 17 Ukraine 371 23 336 23
6.5 m (9.7) in respect of financial year 2024 that was paid and expensed in
Belgium 1,831 30 1,973 29 Uruguay 231 27 250 30
Board fees the first quarter of 2025. Pension expenses relating to the executive man-
In accordance with the resolution passed at the 2023 AGM, board fees for agement team, other than the CEO, during the year amounted to SEK 7.4 m Austria 1,714 12 1,756 12
Bosnia-Herzegovina 40 8 41 10
the year amounted to SEK 7,950,000 (7,905,000) and were paid after the (13.3). There are rules in place for members of the executive management Luxembourg 195 15 198 12
Belarus1 0 – 21 24
2024 AGM. The fees were distributed as follows: SEK 1,850,000 (1,800,000) team with respect to supplements to retirement pension beyond the ITP Finland 677 5 705 5
North Macedonia 38 18 28 18
to the chair of the board, SEK 800,000 (775,000) to board members elected plan. The retirement age varies between 62 and 65. The cost of this commit-
France 4,276 21 4,442 22
by the AGM, an additional SEK 200,000 (200,000) to members of the audit ment is partially covered by separate insurance policies. Ecuador 462 58 508 42
US 9,979 32 10,245 32
committee and an additional SEK 300,000 (280,000) to the chair of the Kosovo 43 16 44 25
audit committee. The AGM passes a resolution on board fees for a one-year H&M Incentive Program (HIP) Spain 3,304 20 3,591 20
Albania 26 4 32 9
period until the next AGM. This means that fees for the period 3 May 2024 An extraordinary general meeting held on 20 October 2010 resolved to Poland 6,453 19 5,852 20
Other countries 423 76 512 74
to 7 May 2025 will be paid after the 2025 AGM, based on the resolution con- ­introduce an incentive programme for all employees of the H&M group. Czech Republic 1,093 13 969 13
Total2 97,710 26 101,103 26
cerning board fees passed at the 2024 AGM. In the period since 3 May 2024, The programme was initiated by Stefan Persson and family through the
the board of directors has comprised eight ordinary members elected by the donation of 4,040,404 H&M shares worth around SEK 1 billion to a Swedish
1. The business in Russia and Belarus were wound down during financial year 2022.
AGM. There are also three employee representatives and three deputies for foundation, Stiftelsen H&M Incentive Program. 2. The total average number of employees for 2024 was incorrect in the full-year report
these members. The board is made up of eight women and six men. Six of the 2024 and the correct figure is stated in the table above.
fourteen members are employees of the company.

138 139
<<Contents Financial information/Notes to the ­financial statements

10 Depreciation, amortisation and write-downs 12 Tax

When reporting impairment of assets for the group, IAS 36 Impairment of An annual impairment test is made of the capitalised development When reporting taxes for the group, IAS 12 Income Taxes is applied. the foreseeable future. Deferred tax assets for temporary differences and
Assets is applied. expenditures regarding IT-related investments projects that are not yet Income taxes in the income statement represent current and deferred tax loss carryforwards are recognised only to the extent it is likely that these will
Depreciation and amortisation have been calculated at 12.5 percent of ready for use and no impairment has been identified. Systems that are no payable by Swedish and foreign subsidiaries. Current tax is tax that will be be able to be utilised.
cost for equipment and leasehold rights, and 20 percent for computer equip- longer in use with an original cost of SEK 290 m (281) have been written paid or received in respect of the current year as well as adjustments to The carrying amounts of deferred tax assets are tested as of each closing
ment and vehicles. Capitalised development expenditure is amortised at off entirely. ­current tax attributable to previous periods. The income tax rate in force in date and reduced where it is no longer deemed likely that they will be able to
10–20 percent of cost. Buildings are depreciated at 3 percent of cost. No Intangible assets with an indefinite useful life, goodwill, are tested for each country is applied. be utilised.
depreciation is applied to land values. The group applies component depre- impairment annually or more often if there is an indication of a decline in Deferred tax is calculated according to the balance sheet method based Global companies such as the H&M group are sometimes involved in tax
ciation, which means that depreciation is based upon the estimated useful value to determine possible impairment. Goodwill is allocated to a cash-­ on temporary differences arising between reported and fiscal values of proceedings of varying extent and at different stages. The H&M group con-
lives of the components. Depreciation and amortisation for the year are generating unit consisting of the operations conducted within the brands assets and liabilities. Deferred tax is calculated using the tax rates that are tinually evaluates tax proceedings in progress. Where it is likely that addi-
reported in the income statement in accordance with the table below. that were part of the acquisition where the goodwill arose. The goodwill of expected to apply in the period when the receivables or liabilities are settled, tional tax will have to be paid and the outcome can be reasonably estimated,
the group is allocated to two cash-generating units. These consist of the based on the tax rates (and the tax legislation) in force on the closing date. the necessary reserve is made. As of the closing date, tax proceedings relat-
Group Parent company operations conducted within the brands that were part of the acquisitions of A deferred tax liability is recognised for all temporary differences unless it ing to internal pricing are in progress in some countries. The H&M group has
Fabric Scandinavien AB and Sellhelp AB respectively. The value in use for relates to goodwill or to an asset or a liability in a transaction that is not a made an assessment of the likely outcome and reserved the tax expense
2024 2023 2024 2023
goodwill has been calculated based on discounted cash flows. The value in business combination and that, at the time of acquisition, affects neither the concerned. As of the closing date, this reserve totalled SEK 250 m (322).
Cost of goods sold 2,307 2,111 – – use has been calculated based on discounted cash flows according to fore- reported nor taxable profit or loss for the period. Also, temporary differences In this assessment, account has been taken, among other things, of whether
casts for the next five years with an annual growth rate of 2 percent (2) in relating to investments in subsidiaries and associates are taken into account agreements on double taxation exist and whether there are differences
Selling expenses 19,112 19,974 – –
subsequent years. A discount rate of 12 percent (11.5) before tax was used. only to the extent it is likely that the temporary difference will be reversed in between the tax rates in different countries. The actual outcome may differ
Administrative expenses 833 870 10 14 The cash flows are based on the H&M group’s business plan. The growth rate from the expected outcome and affect future financial statements.
Total 1 22,252 22,955 10 14 is based on the H&M group’s assessment of the opportunities and risks asso-
ciated with the businesses. The discount rate is based on a weighted average
1. O
 f which write-downs and losses at disposals for the group of SEK 654 m (770) and cost of capital that is estimated to be on a par with the external requirements
SEK 0 m (0) for the parent company. Group Parent company Group Parent company
that the market imposes for similar companies. In 2023, the recoverable
2024 2023 2024 2023 2024 2023 2024 2023
amount for goodwill attributable to Sellhelp AB was calculated to fair value
Depreciation relating to right-of-use assets is included above in the amount where the price from the latest funding round per 29 September 2023 was Tax expense (–) / tax income (+): Recognised deferred tax assets
of SEK 13,014 m (13,117) for the group, which breaks down as follows: cost of used as the valuation method, with a transactional price corresponding to relate to:
Current tax
goods sold SEK 1,262 m (1,107), selling expenses SEK 11,322 m (11,599) and SEK 9,078 per share. Stock-in-trade 293 434 – –
Tax expense for the period –3,809 –3,706 –186 –112
administrative expenses SEK 430 m (411). Goodwill attributable to the operations conducted within the brands that
Adjusted tax expense for previous Loss carryforwards in subsidiaries 230 271 – –
The carrying amount of property, plant and equipment including right-­of- were part of the acquisition of Fabric Scandinavien AB amounts to 64 and
use assets is tested for impairment if there is an indicated need of impair- years 130 –799 –22 – Pension provisions 115 95 65 70
that were part of the acquisition of Sellhelp AB amounts to 949. No need for
ment. If the carrying amount of an asset or a cash-generating unit, for which impairment of goodwill has been identified for financial year 2024. Subtotal –3,679 –4,505 –208 –112 Intangible non-current assets 162 176 – –
there is an indication of possible impairment, exceeds the recoverable Property, plant and equipment 1,683 1,485 – –
Deferred tax receivable (+) /
amount (the higher of fair value less cost of disposal and the value in use) tax expense (–) in respect of: Lease liabilities 15,645 15,222 – –
the carrying amount is reduced to the recoverable amount of the asset or
Stock-in-trade –19 186 – – Rent-related provisions 1,232 1,493 – –
cash-generating unit. Any impairment is recognised in profit/loss, mainly as
selling expenses. The estimation of the recoverable amount is associated
11 Audit fees Loss carryforwards in subsidiaries –34 197 – – Hedging reserves 122 48 – –
with assumptions about future cash flows and therefore certain uncertainty. Pension provisions 8 5 –9 –5 Other temporary differences 1,461 1,705 – –
Group Parent company
The general approach is that a grouping of stores, based on a significant Intangible non-current assets 179 219 – – Total 20,943 20,929 65 70
2024 2023 2024 2023
degree of revenue substitution including an allocation of online sales, consti- Property, plant and equipment 15 405 – –
tute a cash-generating unit and is assessed for impairment indicators. The Deloitte Amounts offset against
Rent-related provisions1 –7 –330 – – deferred tax liabilities pursuant
approach to determining a cash-generating unit is based on the increasing Statutory audit 63.1 59.6 14.4 11.9
Other temporary differences –79 –558 – – to offsetting rules –15,553 –15,222
omni presence and experience offering to the same customer base and
Auditing other than Net deferred tax assets 5,390 5,707
resulting significant revenue substitution between the store and online sales Remeasurements of deferred tax
­statutory audit 8.1 7.9 – –
channels as well as within certain groupings of stores. assets/liabilities –243 87 – –
Tax consultancy 1.3 3.8 – – Recognised deferred tax liabilities
Impairment of non-current assets as a result of impairment testing due to Subtotal –180 211 –9 –5 relate to:
earnings performance amount to SEK 41 m (82) for equipment, tools, fixture Other consultancy 3.9 0.8 0.7 –
Total –3,859 –4,294 –217 –117 Stock-in-trade 179 183
and fittings and SEK 256 m (236) for right of use assets for 2024, excluding Other auditors
Deferred tax recognised in other Pension provisions 0 0
stores where a decision to close was taken prior to year-end, and is recog-
Statutory audit 1.0 0.3 – – com­prehensive income in Intangible non-current assets 566 888
nised mainly as selling expenses. The reversal of previous years impairment
Total 77.4 72.4 15.1 11.9 respect of:
losses amounted during the period to SEK 4 m (11) and was classified as sell- Property, plant and equipment 969 850
ing expenses. The primary factor affecting the outcome of the impairment Hedging reserves 121 –85 – –
Right-of-use assets 15,553 15,313
test is the underlying individual result of separate cash generating units. Defined benefit pension plans 18 10 – –
Rent-related provisions 18 16
A sensitivity analysis considering a 20 percent reduction in earnings perfor- Total 139 –75 – –
Hedging reserves 218 270
mance has been performed on both the assets that were impaired based on
the impairment test as well as on the result of the impairment indicator test. Reconciliation between current tax Other temporary differences 292 209
rate and effective tax rate:
The sensitivity analysis shows that no additional significant asset impair- Total 17,795 17,729
ment is required. Expected tax expense according to
the Swedish tax rate of 20.6% –3,181 –2,680 –2,259 –2,448 Amounts offset against
deferred tax assets pursuant
Difference in foreign tax rates –323 –658 – –
to offsetting rules –15,553 –15,222
Non-deductible/non-taxable –182 –191 –7 21
Net deferred tax liabilities 2,242 2,507
Other –60 –46 – –
Tax for previous years 130 –799 –22 – 1. Regarding restated figures for financial year 2023 see information below.
Tax-free dividend subsidiaries – – 2,071 2,310
As of the closing date, the group has no loss carryforwards that are not
Remeasurements of deferred tax
assets/liabilities –243 80 – – ­represented by recognised deferred tax assets. The portion of loss carry­
forwards with a limited utilisation period is not material.
Total –3,859 –4,294 –217 –117

140 141
<<Contents Financial information/Notes to the ­financial statements

12 cont. 14 cont. 15 Buildings, land and equipment 16 Interests in associates and joint ventures
The amendment in IAS 12 concerning deferred tax related to assets and Group When reporting tangible assets for the group, IAS 16 Property, Plant and When reporting shares in associated companies and joint ventures for the
­liabilities arising from a single transaction entail that deferred tax is calcu- 2024 2023
Equipment is applied. group, IAS 28 Investments in Associates and Joint Ventures is applied.
lated on right-of-use assets and lease liabilities. As a consequence of the Expenditure relating to property, plant and equipment are reported in Companies where the group has significant interest, generally companies
amendment, deferred tax on right-of-use assets and lease liabilities has Brands the balance sheet if it is likely that the company will derive future financial where the group holds between 20 and 50 percent of the votes, are consid-
­retrospectively been restated for financial year 2023, with the following Opening acquisition cost 500 – benefits associated with the asset and if the asset’s cost can be reliably cal- ered associated companies. Companies in which the group has joint con-
adjustments: culated. Other expenditure as well as expenditure relating to ongoing main- trolling interest together with one or more external parties are classified
Business combinations – 500
tenance and repair are reported as an expense in the period in which they as joint ventures. Shares in associated companies and joint ventures are
New restated Reported value Closing acquisition cost 500 500
arise. Property, plant and equipment are reported at cost less accumulated reported in accordance with the equity method, which means that the
value 2023 SEK m 2023 SEK m Change SEK m
Opening amortisation and write-downs –50 – depreciation and any accumulated impairment. Depreciation is distributed H&M group’s share of the companies’ profit/loss is reported as Result
Group income state- on a straight-line basis over the assets’ expected useful life. No depreciation from investments in associated companies and joint ventures in the group
Amortisation for the year –50 –50
ment and balance sheet is applied to land. income statement.
Closing accumulated amortisation
Tax –4,294 –4,287 –7 For further information on impairment, see note 10.
and write-downs –100 –50
For right-of-use assets relating to leases, see note 17.
Profit after tax/profit Closing book value 400 450
for the period 8,716 8,723 –7
Group Parent company Group
Total comprehensive Leasehold and similar rights
2024 2023 2024 2023 2024 2023
income 8,426 8,433 –7 Opening cost 1,057 1,040
Profit for the period Acquisitions during the year 71 90 Buildings Joint ventures
attributable to the Opening cost 1,241 1,238 185 235 Opening balance 50 –
shareholders of H & M Sales/disposals –15 –35
Hennes & Mauritz AB 8,745 8,752 –7 Translation effects 3 30 Acquisitions during the year – – – – New investments 0 59
Retained earnings 41,107 41,198 –91 Closing cost 1,116 1,125 Sales/disposals – –50 – –50 Reclassification –39 –
Deferred tax liabilities 2,507 2,416 91 Translation effects 27 53 – – Share of result 2 –9
Opening amortisation and write-downs –837 –753
Total equity 47,510 47,601 –91 Closing cost 1,268 1,241 185 185 Closing balance 13 50
Sales/disposals 14 32
Earnings per share, SEK 5.37 5.35 0.02 Opening depreciation
Amortisation and write-downs for the year –83 –95
and write-downs –683 –666 –76 –121 Group
Translation effects –4 –21 2024 2023
Sales/disposals 0 50 – 50
Closing accumulated amortisation
Depreciation for the year –36 –36 –5 –5
13 Non-controlling interests
and write-downs –910 –837 Associated companies
Closing book value 206 288 Translation effects –18 –31 – – Opening balance 159 503
Closing accumulated depreciation New investments 127 53
When reporting non-controlling interests for the group, IFRS 10 Consolidated Opening value, projects in progress 8 18 and write-downs –737 –683 –81 –76
Financial Statements is applied. Reclassification 39 –269
Change for the year 9 –11 Closing book value 531 558 104 109
Non-controlling interests consist of holdings representing a limited Sales/disposals – 0
Translation effects 0 1
­percentage of the shares and votes in a subsidiary, and the right to equity Land Write-downs – –106
in the group’s subsidiaries is consequently also limited. The portion of equity Closing value, projects in progress 17 8
Opening cost 131 125 7 7 Share of result –79 –21
attributable to such shareholders is reported separately from equity attri­ Closing book value incl. projects 223 296
Acquisitions during the year – – – – Closing balance 246 159
butable to the shareholders of H & M Hennes & Mauritz AB. Non-controlling
Capitalised development expenditure Sales/disposals – – – –
interests are determined for each transaction either as a proportionate
share of the fair value of identifiable net assets or at fair value. Opening cost 15,856 15,004 Translation effects 3 6 – – Corporate Share of
The H&M group has two non-wholly owned subsidiaries, with Sellhelp AB Business combinations – 166 Closing cost 134 131 7 7 2024 id number Domicile Share % Result, SEK m
being the largest; see note 29. In 2024 the profit attributable to non-controlling Acquisitions during the year 1,370 967
interests amounts to SEK –37 m (–29) and the accumulated amount attri­ Equipment Joint ventures
Write-downs –556 –281
butable to non-controlling interests within equity is SEK 69 m (82). Opening cost 69,610 65,219 181 178 Looper Textile Co.
Closing cost 16,670 15,856 Global AB 559417-7841 Stockholm 50.0 13
Business combinations – 29 – –
Opening amortisation and write-downs –7,890 –6,073 Acquisitions during the year 7,203 5,521 0 3 Associated
14 Intangible assets Business combinations – –6 Sales/disposals –2,436 –1,997 – –
­ ompanies
c
Amortisation for the year –2,094 –1,962 Syre Impact AB1 559421-7969 Stockholm 42.8 –54
Translation effects 1,656 837 – –
When reporting intangible assets for the group, IAS 38 Intangible Assets Write-downs 408 151 TreeToTextile AB 556989-2648 Stockholm 29.2 –25
Closing cost 76,033 69,610 181 181
is applied.
Closing accumulated amortisation
Intangible assets with a finite useful life are reported at cost less accumu- Opening depreciation Corporate Share of
and write-downs –9,576 –7,890 2023 id number Domicile Share % Result, SEK m
lated amortisation and any accumulated impairment. Amortisation is distrib- and write-downs –49,035 –43,048 –157 –145
Closing book value 7,094 7,966
uted on a straight-line basis over the assets’ expected useful life. Business combinations – –10 –157 – Joint ventures
Development expenditure is capitalised to the extent that it is judged Goodwill1 Sales/disposals –2,228 1,509 – – Looper Textile Co.
that the company will derive future financial benefits and if the cost can be Global AB 559417-7841 Stockholm 50.0 2
Opening book value 1,013 64 Write-downs for the year –40 –23 – –
reliably calculated. The carrying amount includes direct costs for acquired
Business combinations – 949 Depreciation for the year –6,296 –7,039 –5 –12 Syre Impact AB 559421-7969 Stockholm 49.7 –11
services, costs for payroll and materials as well as indirect costs attributable
to the asset. Other development costs, as well as maintenance and training Closing book value 1,013 1,013 Translation effects –1,260 –423 – – Associated
initiatives, are recognised as expenses in the income statement as they arise. Closing accumulated depreciation ­ ompanies
c
Capitalised development expenditure refers mainly to IT-related invest- 1. Goodwill arose partly through the acquisition of the company FaBric Scandinavien AB and write-downs –54,403 –49,035 –162 –157 TreeToTextile AB 556989-2648 Stockholm 29.2 –19
during the period 2008–2010 and partly as a result of contractual changes of a share-
ments. Amortisation has commenced for those parts that were taken into Closing book value –21,630 20,575 –19 24
holders’ agreement in Sellhelp AB during 2023. For more information regarding CALA Inc USA 0.0 –2
use during 2015–2024, corresponding to around 85 percent (98) of the cash-generating units pertaining to goodwill, see note 10.
­capitalised development expenditure. Opening value, projects in progress 3,978 1,564 – 3 1. Reclassification to associated company as of 31 May 2024.
Goodwill is the amount by which the cost of the subsidiary’s shares Business combinations – 0 – –
exceeds the estimated value of the subsidiary’s net identifiable assets Change for the year 2,952 2,380 – –3
upon acquisition. Goodwill on acquisition of subsidiaries is reported as an
Translation effects –67 33 – –
intangible asset. Any impairment is recognised in the income statement.
For information about impairment, see note 10. Closing value, projects in progress 6,863 3,978 – –
Total closing book value 28.493 24,553 19 24

142 143
<<Contents Financial information/Notes to the ­financial statements

17 Leases 18 Stock-in-trade
When reporting leasing contracts for the group, IFRS 16 Leases is applied. The group divides its leases into three classes of right-of-use assets: When reporting stock in trade for the group, IAS 2 Inventories is applied.
The leases are recognised as a right-of-use asset and a lease liability Stores, Warehouses and Offices. The following table presents the closing The stock-in-trade, which consists of merchandise, is valued at the lower
based on the present value of all future lease payments until the lease balances for right-of-use assets and lease liabilities along with changes of cost and net realisable value. Cost refers to the company’s expenses for
expires. The majority of the contracts that the H&M group classifies as ­during the year. acquiring the goods including customs duties and shipping. The net real­
leases relate to the leasing of retail premises where the H&M group conducts isable value is the estimated market value less calculated selling expenses.
its own operations. Offices and warehouses for the Group’s own use are also Right-of-use assets From the moment the goods are transferred from the supplier to the trans-
classified as leases. The lease liability is initially measured at the present Ware- Lease port service provider appointed by the H&M group, the goods are owned
SEK m Stores houses Offices Total ­liability
value of the future lease payments discounted by the implied interest rate according to civil law by the H&M group and become part of H&M Group’s
and the subsequent period by increasing the lease liability to reflect the Opening balance reported stock-in-trade. Goods that have not yet arrived at a store are valued
effect of interest and reducing it to reflect the effect of lease payments paid. 1 Dec 2023 49,120 4,826 2,762 56,708 60,888 at their actual purchase cost including the estimated cost of customs duties
The right-of-use asset is initially recognised at the value of the lease liability Gross increase during and shipping.
and in the subsequent period at cost less depreciation over the lease period the period 10,593 838 767 12,198 13,569 For the majority of the group’s goods, cost is calculated as weighted
and any impairment losses. In accordance with the standard the calculation Depreciation of right-of ­average prices. For the remaining stock accounting, the carrying amount is
of lease liabilities is based on fixed lease payments. Variable lease payments use-assets –11,322 –1,262 –430 –13,014 calculated as the selling price less the estimated gross margin (the retail
that are not due to an index or an interest rate, such as revenue-based rent method) or to cost for time spent and other cost for handling goods that are
Write-down of right-of-use
and property tax, are not included in the lease liability. The H&M group has assets –288 – – –288 or will be available for sale. The H&M group is continuing to gradually move
chosen to apply the possibility to exclude low-value leases and leases with a across to calculating cost as weighted average prices, but this change has
Translation ­differences 1,302 95 61 1,458 1,589
lease term of less than 12 months. This means that these will not be included no material impact on the consolidated financial statements.
in the lease liability but will continue to be recognised as rental expenses Interest expense for lease Stock-in-trade amounted to SEK 40,348 m (37,358), an 8 percent increase
liability 1,993
with straight-line expensing over the lease term. The company has no sale in SEK compared with the same point in time last year. In local currencies
and leaseback transaction. Some contracts contain conditions for the resto- Lease payments –15,202 there was an 8 percent increase.
ration of premises, this does not give any significant outcome for the group. Closing balance Estimations are made to valuate the stock-in-trade to net realisable value,
The H&M group has around 4,250 stores as well as multiple offices and 30 Nov 2024 49,405 4,497 3,160 57,062 62,837 to assess potential need of write-down. Significant write-downs are rare and
warehouses worldwide. The application of the standard has required assess- there were no material write-downs in the current financial year or the previous
ments and assumptions, such as the determination of the lease term and Right-of-use assets financial year. Only an insignificant part of the stock-in-trade is valued at net
interest rate. The assumption that has the greatest effect on the valuation of Ware- Lease realisable value. There is deemed to be no material obsolescence in the stock-­
lease liabilities and right-of-use assets is the assessment of the lease term. SEK m Stores houses Offices Total ­liability in-trade. Estimations and assumptions are made based on historical data to
The lease term includes the non-cancellable period. When a lease period Opening balance determine future value of returns. The group’s asset for rights of return does
expires, a contract can be entirely terminated, renegotiated, or extended 1 Dec 2022 51,065 4,532 2,708 58,305 61,857 not increase stock-in-trade by a material amount.
depending on the form of lease. The right to terminate contract early reduces The stock-in-trade amounted to 22.4 percent (20.6) of total assets and
Gross increase during
the lease term used in the calculation under certain conditions. The possibil- the period 8,725 1,179 897 10,801 11,947 17.2 percent (15.8) of net sales.
ity of extension is taken into account if the lessee is reasonably certain to
Depreciation of right-of
make use of that option. It is rare for contracts to be terminated before the use-assets –11,030 –984 –863 –12,877
end of lease period. In order to facilitate the assessment of the lease period
used to calculate the lease obligation, assumptions based on contract type
Write-down of right-of-use 19 Prepaid expenses
assets –276 – – –276
have been made. The assumptions for determining the lease term for each
Translation ­differences 636 100 20 755 797
contract type are based on the best possible assessment and are based on Group Parent company
historical data and the prevailing market situation. The lease term for stores Interest expense for lease SEK m 2024 2023 2024 2023
liability 1,744
is based on store class and location. Flagship stores in strategic locations
Lease payments –15,458 Prepaid rent 2,635 2,952 – –
have a lease term set on the end date of the lease contract regardless of
breakage clauses. For all other store classes, the H&M group uses the first Closing balance Other items 1,288 1,579 111 139
break right regardless of the contract length. Non-flagship stores have an 30 Nov 2023 49,120 4,826 2,762 56,708 60,888 Total 3,923 4,531 111 139
average lease term of 3.5 years. The calculation for the lease period of ware-
houses and offices is based on the contract length. The assumptions for A maturity analysis of the group’s lease liabilities included in IFRS 16 as of
the group are evaluated on an ongoing basis considering changes in the 30 November 2024 is presented below.
industry. The discount rate used in the calculation corresponds to H&M Group 20 Cash and cash equivalents
group’s marginal borrowing rate, considering aspects such as currency and SEK m 2024 2023
length of respective lease. The interest rate is updated annually and moni- Cash and cash equivalents consist of cash and bank balances as well as
tored continuously throughout the year. The marginal borrowing rate reflect Rental commitments short-term investments with a maximum term of three months from the date
H&M group’s credit risk. In next 12 months 12,476 12,159 of acquisition. These investments carry no significant risk of changes in
For further information on impairment, see note 10 and 14. In next one to three years 19,038 18,361 value.
The group is reporting a cash outflow for leases of SEK 12,631 m (12,867) The H&M group has made the assessment that the loss allowance for
In next three to five years 10,348 10,222
for financial year 2024. expected credit losses as of the closing day does not amount to a significant
The amounts attributable to leasing activities that were recognised in More than five years ahead 20,975 20,146 value and has therefore not been recognised.
the income statement during the year are presented below. Total 62,837 60,888

Group Parent company

Group 2024 2023 2024 2023
SEK m 2024 2023
Cash and bank balances 16,352 25,632 – 2
Depreciation of right-of-use assets 13,014 12,877
Short-term investments,
Write-down of right-of-use assets 288 276 0–3 months 988 766 – –
Interest expense for lease liabilities 1,993 1,744 Total 17,340 26,398 – 2
Expense for variable lease payments 7,107 7,158
Other miscellaneous lease related charges 1,032 1,218 Investments are made on market terms and the interest rates are between
Total expense attributable to leasing activities 23,434 23,273 0 and 47 percent. The difference in interest rate depends mainly on the
­currency in which the funds are invested.

144 145
<<Contents Financial information/Notes to the ­financial statements

21 Share capital 22 cont.

The share capital is per 30 November 2024 divided between 194,400,000 The group’s managed capital consists of shareholders’ equity. The board Group Parent company
class A shares (10 votes per share) and 1,416,142,225 class B shares (one vote of directors’ intention is for the H&M group to continue to provide share­
2024 2023 2024 2023
per share). There are no other differences between the rights associated holders with a good return while ensuring that growth and investments in
with the shares. The total number of shares is 1,610,542,225. the business can proceed with a continued strong financial position and The amounts recognised as pension expenses
Following implementation of the resolution passed by the annual general freedom of action. Based on this, the board of directors has proposed comprise the following items:
meeting on 3 May 2024 the 19,144,612 class B treasury shares repurchased a ­dividend policy stating that the ordinary dividend over time is to exceed Current service cost 66 59 – –
during 2023 as part of the H&M group’s buyback programme were cancelled. 50 percent of profit after tax and additionally that identified surplus liquidity Interest expense 36 37 4 5
The board of directors decided to utilise the authorisation granted by the – ­taking into consideration the capital structure target and investment
Interest income –27 –28 0 0
2024 annual general meeting and in September 2024 began a SEK 1 billion requirements – can be distributed to shareholders through an extra divi-
share buyback programme. As at 30 November 2024 a total of 6,050,850 B dend or a buyback programme. Reductions/adjustments gains (–) and losses (+) 3 0 – –
shares in H&M had been repurchased for a sum of SEK 1,000 m and the Past service cost –2 –4 – –
­programme was completed on 26 November 2024. It is intended that the Changes in foreign exchange rates for plans valued
shares repurchased will be cancelled through a resolution at the 2025 in a currency other than the reporting currency 10 13 – –
annual general meeting. Per 30 November the number of shares out­­ Pension expenses recognised in the income statement 86 77 4 5
standing, excluding own shares, is 1,604,491,375. In financial year 2024
a dividend of SEK 10,456 m was distributed. Pension expenses recognised in other comprehensive income
Return on plan assets –163 –44 0 0
Actuarial gains/losses demographic assumptions liability 0 2 – 2
22 Provisions for pensions Actuarial gains/losses financial assumptions liability 195 91 7 0
Actuarial gains/losses experience based a s s u m p t i o n s liability 43 –8 7 12
When reporting pensions for the group, IAS 19 Employee benefits is applied. f­ inancial ­assumptions, such as changes in the discount rate. Such gains or Actuarial gains (–) and losses (+) 75 41 14 14
The H&M group has several different plans for benefits after employment losses are recognised in other comprehensive income in the year they arise.
Total recognised pension expenses 161 118 18 19
has ended. The plans are either defined benefit or defined contribution For salaried employees in Sweden, the H&M group applies the ITP plan
plans. Defined contribution plans are reported as an expense in the period through insurance policies with Alecta and Collectum, i.e. ITP 2 and ITP 1.
when the employee performs the service to which the benefit relates. According to statement UFR 10 from the Swedish Financial Reporting Board, The cost of defined contribution pension plans amounts to SEK 543 m (659).
Defined benefit plans are assessed separately for each plan based on the the ITP 2 plan is a defined benefit plan that covers a number of employers. Next year’s expected payments for defined benefit pension plans amount to SEK 47 m (45).
benefits earned during the previous and current periods. The defined benefit The plan will be reported as a defined contribution plan until the company
obligations less the fair value of any managed assets are reported under the gains access to information that allows this plan to be reported according to Significant actuarial assumptions on the balance sheet date
heading Provisions for pensions. In the case of the Swedish entities, the the rules for defined benefit plans. The expected contributions to ITP 2 for (weighted average amounts)
actuarial calculations also cover future payments of special payroll tax. the next annual reporting period is estimated at SEK 190 m (189). The ITP 1
Discount rate 1.15% 1.93% 3.00% 3.75%
Defined benefit plans are found in Switzerland, Spain, Sweden and Germany. plan is a defined contribution plan. See also note 8 for information on
Pension obligations are assessed annually with the help of independent ­pension to a former CEO. Future salary increases 1.02% 2.01% 3.00% 3.00%
actuaries according to the Projected Unit Credit Method. The assessment Alecta’s surplus cannot be allocated to the insured employer and/or Future pensions increases (inflation) 0.14% 0.16% 2.00% 2.00%
is made using actuarial assumptions. These assumptions include such the insured employees. As of 30 September 2024, Alecta’s consolidation
things as the discount rate, mortality, anticipated salary increases and ratio was 163 percent (178). The consolidation ratio is calculated as the fair
The mortality assumptions for Sweden are based on the mortality table DUS23, which is the latest mortality review published by Insurance Sweden.
­pension increases (inflation). Changes in the actuarial assumptions and value of managed assets as a percentage of the obligations calculated in
For the other plans the representative mortality tables based on local market practice have been used.
­outcomes that deviate from the assumptions give rise to actuarial gains accordance with Alecta’s actuarial assumptions. This calculation is not in
A 0.5 percentage point reduction in the discount rate would increase the liability for the Swedish commitments by SEK 5.3 m (4.9).
or losses. The actuarial gains and losses arising are mainly due to the line with IAS 19.

Group
2024 2023
Parent company
2024 2023
23 Other provisions
Present value of defined benefit obligations 2,251 1,912 131 126 When reporting other provisions for the group, IAS 37 Provisions, Contingent Other provisions includes provisions for legal and tax cases and repre-
Fair value of managed assets –1,780 –1,533 –3 –3 Liabilities and Contingent Assets is applied. sents the present value of management’s best estimate of the amounts
Provisions are recognised in the balance sheet when there is a commit- required to settle the liabilities.
Provisions for pension obligations
ment resulting from a past event and it is likely that an outflow of resources The group has provisions as outlined below.
recognised in the balance sheet 471 379 128 123
will be required to settle the commitment, and a reliable estimate of the
Opening balance 1 December 1,912 1,736 125 119 amount can be made. Provisions for restructuring expenses are recognised 2024 2023

Recognised pension expenses, net 418 293 18 19 when a restructuring plan has been established and the restructuring has Re­struc- Restruc-
commenced or been announced. Group turing Other Total turing Total
Pensions paid out –16 –16 –12 –12
In calculating provisions, the H&M group makes estimates and judgments
Contributions by plan participants 44 41 – – Opening balance 309 – 309 836 836
of the amounts and timing of resource outflows based on conditions as of the
Disbursements from assets –107 –142 – – balance sheet date. Amounts and timing may vary depending on factors such New provisions 611 455 1 066 361 361
Carrying amount of defined benefit obligations, 30 November 2,251 1,912 131 126 as employee termination conditions and the actual outcome of negotiations Utilisation of provisions –523 –46 –569 –199 –199
with trade unions. The uncertainty in the group’s estimates means that the Reversal of provisions –50 –195 –245 –689 –689
Opening balance 1 December –1,533 –1,403 –3 –3 difference between expected and actual outcomes can have a material
Recognised pension income, net –257 –175 0 0 Exchange rate
impact on the financial statements. ­differences – –21 –21 – –
Premiums paid by employer –53 –57 – –
Closing balance 347 193 540 309 309
Contributions by plan participants –44 –41 – –
Disbursements 107 143 – –
Carrying amount of fair value of plan assets, 30 November –1,780 –1,533 –3 –3

Of the total recognised obligation, SEK 144 m (139) relates to defined benefit pensions plans in Sweden and SEK 276 m (202) to plans in Switzerland.
The weighted average maturity of these pension plans is 7.3 years for the Swedish plans and 14.7 years for the Swiss plans.

146 147
<<Contents Financial information/Notes to the ­financial statements

24 Financial assets and liabilities by category 24 cont.

When reporting financial instruments for the group, IFRS 7 Financial Instru- Financial instruments are measured based on inputs classified as below. The following valuation techniques and unobservable input have been used that the estimated change in value (the effective interest) is recognised
ments: Disclosures, IFRS 9 Financial Instruments, and IFRS 13 Fair Value • Level 1: Quoted prices in active markets for identical assets or liabilities, to determine fair value of investments in level 3. as interest income or interest expense in the income statement. Accounts
Measurement are applied. such as shares or bonds listed on a stock exchange. payable fall into this category. These have a short expected term and are
Financial instruments recognised in the balance sheet include cash and Range Range ­recognised at the nominal amount with no discounting. Liabilities to credit
• Level 2: Inputs other than quoted market prices included within Level 1 that 2024 2023 Valuation technique Input 2024 2023
cash equivalents, accounts receivable, short-term investments, non-current institutions are measured at amortised cost. All of the liabilities stated under
are observable for the asset or liability, either directly (such as quoted
receivables, and derivatives on the assets side. On the liabilities side are Price from latest financial liabilities are measured at amortised cost. A calculation at fair value
prices) or indirectly (obtained from quoted prices), such as currency
accounts payable, liabilities to credit institutions and derivatives. Financial 2,141 2,043 financing round – – – would reduce the group’s liabilities to credit institutions by approximately
­forwards or interest rate swaps.
instruments are reported in the balance sheet when the group becomes Comparable Sales SEK 200 m. The reduction is due to general increase in interest rates since
party to the contractual terms of the instrument. Financial assets are • Level 3: Inputs for the asset or liability that are not entirely based on 654 257 companies ­multiples 1.1–9.2 0.7–6.8 liabilities were issued.
removed from the balance sheet when the contractual rights to the cash observable market data. Discounted Market
flows from the asset cease. Financial liabilities are removed from the balance 234 29 cash flow ­interest rate – – Derivatives with hedge accounting
sheet when the obligation is met, cancelled, or ends. For lease liabilities All derivatives are reported initially and subsequently at fair value through
see note 17. other comprehensive income. The group’s policy is for derivatives to be held
A change of 10 percent of the multiples would have an impact on the invest-
for hedging purposes only. Derivatives comprise forward currency contracts
Financial assets held at ments of SEK 65.4 m (25.7).
fair value through other Financial assets held Financial liabilities held Derivatives with used to hedge the risk of exchange rate fluctuations for internal and external
The fair value of the remaining shares and interests amounts to SEK 3,029
­comprehensive income at amortised cost at amortised cost hedge accounting Total book value flows of goods. To meet the requirements of hedge accounting there must be
m (2,329) as of 30 November 2024, the largest investments being Klarna SEK
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 a clear link to the hedged item. In addition, the hedge must effectively pro-
964 m (548), Sheertex SEK 573 m (619), and Instabee SEK 188 m (168).
tect the hedged item, hedge documentation must have been prepared and
Other non-current receivables – – 859 1,204 – – 859 1,204
2024 2023 the effectiveness must be measurable.
Accounts receivable – – 5,631 3,301 – – 5,631 3,301 Currency derivatives are measured at fair value based on Level 2 inputs in
Currency forward contracts with Reconciliation of investments the fair value hierarchy. As of 30 November 2024, forward contracts with a
hedge accounting – – – – 1,224 1,089 1,224 1,089 based on level 3 input positive market value amount to SEK 1,224 m (1,089), which is reported under
Interest rate swap – hedging Opening balance 2,329 2,412 other current receivables. Forward contracts with a negative market value
of fair value through income Additions 396 285 amount to SEK 665 m (1,205), which is reported under other current liabili-
­statement – – – – – 232 – 232 ties. Of the outstanding forward contracts, losses of SEK 65 m (–115) were
Disposals 0 0
Other shares and interests 3,029 2,363 – – – – 3,029 2,363 transferred to the income statement when hedged transactions occurred for
Write-downs – –137
these contracts. The residual fair value of SEK 624 m (232) is included in the
Cash and cash equivalents – – 17,340 26,398 – 17,340 26,398 Gain or loss recognised in hedging reserve in equity. Other financial assets and liabilities have short
Total financial assets 3,029 2,363 23,830 30,903 1,224 1,321 28,083 34,587 Other comprehensive income 304 –231
terms. The fair values of these financial instruments are assessed to be
Closing balance 3,029 2,329 approximately equal to their book values.

Accounts payable 24,417 21,027 – – 24,417 21,027 Financial assets measured at amortised cost The fair value of forward exchange contracts is calculated by discounting
Liabilities to credit institutions 14,117 17,082 – – 14,117 17,082 Assets in this category are measured at amortised cost, with the effective the difference between the agreed forward rate and the forward rate that
interest rate being used to calculate the value. These assets are held under can be obtained on the closing date for the remaining contract term. Con-
Other long-term liabilities 162 132 – – 162 132
the business model for collection of contractual cash flows that represent tracts are discounted to a risk-free rate based on government bonds.
Currency forward contracts with solely payments of principal and interest. The carrying amount of assets
hedge accounting – – 665 1,205 665 1,205 Hedging of forecast currency flows – cash flow hedging
measured at amortised cost is adjusted by any expected credit loss allow-
Interest rate swap – hedging ance recognised. This category primarily covers cash and bank balances as Derivatives that hedge the forecast flow are reported as a hedging reserve at
of fair value through income well as accounts receivable. The group’s own credit operations were phased fair value through other comprehensive income until such time as the hedged
­statement – – – – – –
out and are now managed through collaboration with an external party. flow is recognised in operating profit, at which time the hedging instrument’s
Total financial liabilities 38,696 38,241 665 1,205 39,361 39,446 As of the closing date, all of the group’s short-term investments fell into accumulated changes in value are transferred to the income statement
this ­category. where they then correspond to the profit/loss effects of the hedged trans-
Financial assets held at action. The effectiveness of the cash flow hedging of the forecasted currency
fair value through other Financial assets held Financial liabilities held Derivatives with Recognition of expected credit losses flows are measured monthly by comparing the hedged item with the hedging
­comprehensive income at amortised cost at amortised cost hedge accounting Total book value
The group recognises a loss allowance for expected credit losses on finan- instrument.
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 cial assets measured at amortised cost. As of the closing day, an adjustment
Interest income and similar items – – 890 616 – – – – 890 616 of the loss allowance is recognised in profit or loss. The group will measure Hedging of net investments in foreign operations
the loss allowance at an amount equal to 12 months expected credit losses. Derivatives intended for hedging net investments in foreign operations
Interest expense and similar items – – – – 760 399 – – 760 399
If the credit risk of a financial asset has increased significantly since the are recognised at fair value through other comprehensive income. The
­initial recognition, the loss allowance will be measured at an amount equal to ­effectiveness of hedging of net investments in foreign operations is mea­
the lifetime expected credit losses. Cash and cash equivalents are assessed sured quarterly by comparing the hedged item with the hedging instrument.
At the date of acquisition the financial instruments are classified in the for a period of up to 12 months unless there is cause for a revaluation due to to have a low credit risk. For accounts receivables, the group will apply the As of the closing day, loans in EUR taken out to hedge net investments in
f­ ollowing categories. material changes in external market factors or company-specific factors. simplified approach which means that the loss allowance will be measured at ­foreign operations amount to EUR 700 m (700). A change of 10 percent in
When the most recent transaction in any holding exceeds 12 months, or an amount equal to lifetime expected credit losses. The loss allowance for the EUR/SEK exchange rate would have an impact on other comprehensive
Financial assets at fair value through other comprehensive income when there is cause for a revaluation due to material changes in external expected credit losses as of the closing day does not amount to a significant income of SEK 806 m (795).
In view of the strategic nature of the interests, assets in this category con- market factors or company-specific factors, the financial asset is measured amount and has therefore not been recognised.
sists of non-controlling interests that are revalued in other comprehensive through either: Hedging of interest rate exposure
income as well as in financial assets in the balance sheet. The valuation of Applying relevant valuation multiples from similar companies to the hold- Financial liabilities at fair value through profit or loss In 2023, the group entered into an interest rate swap in connection with the
the holding in Renewcell is based on the share price on the closing day (level ing’s key ratios, similar transactions in the industry, or the discounted cash Liabilities are included in this category if they are not measured at amortized issue of a green bond. The interest rate swap ended in 2024 with a positive
1). Renewcell declared bankruptcy in February 2024 and has thus been de­­ flow method (DCF) were there is significant company specific data to make cost or fair value through other comprehensive income. These financial cash flow effect. The positive effect in the income statement is spread over
listed, and the holding was subsequently written down in the first quarter of such an assessment. ­liabilities are initially and subsequently measured at fair value through the bond’s remaining term.
the financial year. The fair value of the investment amounts to SEK 0 m (34) In certain early-stage holdings, where there is no significant revenue or profit or loss. The following table shows the outstanding forward contracts for cash flow
as of 30 November 2024. sufficient financial data to base the valuation on, the fair value measurement hedging reported in the hedging reserve as of the closing date.
The valuation of the remaining other shares and interests is as a first is instead determined based on an assessment of the latest transaction price Financial liabilities measured at amortised cost
instance based on prices from prior transactions. The price from the latest and a milestone approach where developments in the company is evaluated This category includes financial liabilities that are not held for trading. These
financing round or transaction is assessed to represent fair value of invest- against budget or similar companies, at a similar stage, with a similar are initially recognised at fair value, net after transaction costs, and subse-
ments as transactions have been made between independent parties. risk-profile and transactions in such companies. quently at amortised cost using the effective interest method, which means
The fair value measurement based on prior transactions is kept unchanged

148 149
<<Contents Financial information/Notes to the ­financial statements

24 cont. 25 Accrued expenses and deferred income 27 Interest-bearing liabilities

Book value and Nominal When reporting financial instruments for the group, IFRS 9 Financial Instruments is applied.
fair value, SEK amount, SEK Group Parent company
Sell/buy 2024 2023 2024 2023 2024 2023 2024 2023 Group Parent company

Holiday pay liability 1,675 1,654 – – Loans Loans

NOK/SEK –11 19 765 495
Interest rate % Commercial from Credit Interest rate % Commercial from Credit
GBP/SEK –57 56 2,848 2,270 Social security costs 1,344 1,217 125 41 2024 30 Nov Papers Bonds (emtn) ­institutions 30 Nov Papers Bonds (emtn) ­institutions

DKK/SEK –3 18 573 606 Payroll liability 2,287 2,447 2 1

2024 0 – – – 0 – – –
CHF/SEK –8 18 692 610 Costs relating to premises 5,390 6,403 – –
2025 0 – – – 0 – – –
EUR/SEK –61 319 11,267 10,866 Other accrued over-heads 9,455 11,011 63 93
2026 1.7 – – 2,000 1.7 – – 2,000
PLN/SEK –17 –8 1,585 1,079 Total 20,151 22,733 190 135
2027 0 – – – 0 – – –
USD/SEK –250 233 6,302 5,758 2028 16.33 – – 245 0 – – –
CAD/SEK –14 36 815 818 2029 0.25 – 5,755 – 0.25 – 5,166 –
JPY/SEK –13 24 486 447 26 Related party disclosures 2030 0 – – – 0 – – –
HKD/SEK –4 3 92 74 2031 4.875 – 6,117 – 4.875 – 5,882 –
RON/SEK –4 12 492 426 When reporting related parties for the group, IAS 24 Related Party Disclo-
– 11,872 2,245 – 11,048 2,000
sures is applied.
CZK/SEK –1 6 289 255
The H&M group’s related parties are Ramsbury Invest AB, formally the
HUF/SEK 7 2 280 327 parent company of H & M Hennes & Mauritz AB, its associates and joint Group Parent company
AUD/SEK –5 7 325 315 ­ventures, as well as its board members and members of group management. Loans Loans
Interest rate % Commercial from Credit Interest rate % Commercial from Credit
CNH/SEK –12 9 583 335 For transactions with board members, see note 8. 2023 30 Nov Papers Bonds (emtn) ­institutions 30 Nov Papers Bonds (emtn) ­institutions
TRY/SEK – 0 – 3 Ramsbury Invest AB is owned by Stefan Persson and family. The H&M
group leases the following store premises in properties directly or indirectly 2023 4.507 – – 2,272 4.507 – – 2,068
MXN/SEK –5 27 962 1,200
owned by the Stefan Persson family and related companies: Drottninggatan 2024 4.363–12.25 625 – 339 4.363–4.389 625 – –
SEK/USD 1,066 –949 25,703 24,424 in Stockholm, Kungsgatan and Östra Hamngatan in Gothenburg, Stadt Ham- 2025 0 – – – 0 – – –
SEK/EUR 16 –63 2,254 2,484 burgsgatan in Malmö, Amagertorv in Copenhagen, Oxford Circus and Regent
2026 1.7 – – 2,000 1.7 – – 2,000
Subtotal 624 –232 56,313 52,792 Street in London, Kaufingerstrasse in Munich, Via del Corso/Via Tomacelli in
Rome, Wisconsin Avenue in Washington DC and, since January 2008, prem- 2027 0 – – – 0 – – –
ises for H&M’s head office in Stockholm. Rent is paid at market rates, and 2028 16.33 – – 260 0 – – –
rental costs and other property-related expenses totaled SEK 631 m (678) 2029 0.25 – 5,679 – 0.25 – 5,165 –
Maturity structure for hedging instruments:
for the financial year. Outstanding balances in the form of prepaid rent and 2030 0 – – – 0 – – –
Total compensation for administrative expenses amount to SEK 34 m (70) and
2031 4.875 – 5,907 – 4.875 – 5,907 –
nominal lease liabilities amount to SEK 2,522 m (2,246) as of 30 November 2024.
Stores 0–3 m 3–6 m 6–9 m 9–12 m 1–4 y 4–8 y amount
Transactions with associates took place on market terms and income 625 11,586 4,871 625 11,072 4,068

Currency deriva- amounted to SEK 6 m (0) for the financial year. Outstanding balances with
tives with hedge associates amount to SEK 0 m (0) as of 30 November 2024. Transactions In the group, loans in other currencies are remeasured at the exchange rate on the balance sheet date. In the parent company, these loans in respect
accounting with joint ventures took place on market terms and income amounted to SEK of net investments in foreign operations are reported at original book value.
– inflows 11,700 13,409 3,247 – – – 28,356 4 m (–1) for the financial year. Outstanding balances in the form of receiva-
Currency deriva- bles from joint ventures amount to SEK 31 m (–1) as of 30 November 2024. Cash flow Non cash flow
tives with hedge Ramsbury Invest AB, the principal shareholder in H & M Hennes & Mauritz New debt and
accounting AB, did in 2020 issue 300,000 call options to Helena Helmersson, the H&M 2023 Amortisation Foreign exchange 2024
– outflows 14,989 12,110 845 13 – – 27,957
group’s former CEO. The options were issued on market terms and were Loans from credit institutions 4,871 –2,589 –37 2,245
Hedging of net based on an independent third-party valuation using the Black & Scholes
investment Commercial papers 625 –625 – –
model. The options issued had no dilution effect for H&M shareholders and
– loans in foreign Bonds 11,586 – 286 11,872
currency – – – – – 8,057 8,057 no cost to the H&M group since the transaction was against Ramsbury Invest
AB’s existing shareholding. Each option provided the right to buy one class B Total liabilities from financing activities 17,082 –3,214 249 14,117
share in H&M at a strike price of SEK 202.48 per share and could be exer-
Converted to SEK m at the exchange rate on the balance sheet date.
cised during a 12 month period beginning three years after the agreement New debt and
date. Helena Helmersson was paying a premium of SEK 12.34 per option to 2022 Amortisation Foreign exchange 2023

the issuer Ramsbury Invest. The options expired in October 2024. Loans from credit institutions 4,369 427 75 4,871
Ramsbury Invest AB issued in 2024 450,000 call options to Daniel Ervér,
Commercial papers 950 –325 – 625
the H&M group’s CEO. The options are issued on market terms and are based
on an independent third-party valuation using the Black & Scholes model. Bonds 5,459 5,802 325 11,586
The options issued have no dilution effect for H&M shareholders and no cost Total liabilities from financing activities 10,778 5,904 400 17,082
to the H&M group since the transaction is against Ramsbury Invest AB’s
existing shareholding. Each option provides the right to buy one class B As of 30 November 2024 the group had non-current lease liabilities of SEK 50,361 m (48,729) and current lease liabilities of SEK 12,476 m (12,159),
share in H&M at a strike price of SEK 168.26 per share and may be exercised which are reported in note 17.
during a 12-month period beginning three years after the agreement date.
Daniel Ervér is paying a premium of SEK 11.63 per option to the issuer
­Ramsbury Invest.

150 151
<<Contents Financial information/Notes to the ­financial statements

28 Appropriations 29 cont.
Parent company 2024 Corporate id no Domicile
2024 2023
H & M Hennes & Mauritz sp. z o.o. Poland
Group contributions paid –1,287 –1,500 H & M Hennes & Mauritz Logistics sp. z o.o. Poland
Depreciation in excess of plan 0 4 H & M Hennes & Mauritz Logistics 1 sp. z o.o. Poland
Total –1,287 –1,496 H & M Hennes & Mauritz CZ, s.r.o. Czech Republic
H&M Services CZ s.r.o. Czech Republic
Hennes & Mauritz Lda Portugal

29 Interests in group companies H & M Hennes & Mauritz S.r.l. Italy

H & M Services S.r.l. Italy
Parent company shareholding H & M Hennes & Mauritz Inc. Canada
Corporate id No. of H & M Hennes & Mauritz d.o.o. Slovenia
2024 number shares Book value Domicile
H & M Hennes & Mauritz (Ireland) Ltd Ireland
H & M Hennes & Mauritz Sverige AB 556151-2376 1,250 200.1 Stockholm H & M Hennes & Mauritz Kft Hungary
All in Equestrian AIE AB 556023-1663 1,150 30.6 Stockholm H & M Hennes & Mauritz (Far East) Ltd Hong Kong SAR
H & M Hennes & Mauritz GBC AB 556070-1715 2,379 563.3 Stockholm Puls Trading Far East Ltd Hong Kong SAR
H & M Hennes & Mauritz International B.V. 40 0.1 Netherlands H & M Hennes & Mauritz Holding Asia Ltd Hong Kong SAR
H & M Hennes & Mauritz India Private Ltd 8,650,000 12.5 India H & M Hennes & Mauritz Ltd Hong Kong SAR
H & M Hennes & Mauritz Japan KK 99 11.7 Japan Hennes & Mauritz (Shanghai) Commercial Co Ltd Mainland China
H & M Hennes & Mauritz International AB 556782-4890 1,000 0.1 Stockholm H & M Hennes & Mauritz (Shanghai) Trading Co Ltd Mainland China
H & M Fashion AB 556922-7878 50,001 300.1 Stockholm H & M Hennes & Mauritz (Shanghai) Corporation Service Co.,Ltd Mainland China
H & M Finance AB 559159-7090 50,000 0.1 Stockholm H & M Hennes & Mauritz SK s.r.o. Slovakia
Store Lens AB 559274-6936 25,000 0.0 Stockholm H & M Hennes & Mauritz S.A Greece
H & M Finance BV 50,000 0.5 Netherlands H & M Hennes & Mauritz LLC Russia
Hennes Insurance Försäkringsaktiebolag 516406–1250 62,500 125.0 Stockholm H & M Hennes & Mauritz TR Tekstil Ltd Sirketi Türkiye
Total 1,244.1 H & M Hennes & Mauritz Ltd South Korea
H & M Hennes & Mauritz SRL Romania
Subsidiaries’ holdings
H & M Hennes & Mauritz RO Services S.R.L. Romania
Wholly owned companies.
H & M Hennes & Mauritz d.o.o. Croatia
2024 Corporate id no Domicile H & M Hennes & Mauritz PTE Ltd Singapore

H & M Hennes & Mauritz AS Norway H & M Hennes & Mauritz EOOD Bulgaria

H & M Hennes & Mauritz A/S Denmark Weekday Brands AB 556675-8438 Sweden

H & M Hennes & Mauritz UK Ltd UK Singular AB 559226-1647 Sweden

H & M Hennes & Mauritz UK Services Ltd UK WLC Holding AB 559429-2640 Sweden

H & M Hennes & Mauritz AG Switzerland H & M Hennes & Mauritz S.A. de C.V. Mexico

H & M Hennes & Mauritz B.V. & Co. KG Germany H & M Hennes & Mauritz Management S.A. de C.V. Mexico

Impuls GmbH Germany H & M Hennes & Mauritz Servicios S.A. de C.V. Mexico

H & M Hennes & Mauritz Logistik AB Co. KG Germany H & M Hennes & Mauritz Support S.A. de C.V. Mexico

& Other Stories AB & Co. KG Germany Germany H & M Hennes & Mauritz SIA Latvia

H & M New Business AB & Co. KG Germany Germany H & M Retail SDN BHD Malaysia

H & M Services Germany AB & Co. KG Germany H & M Hennes & Mauritz SpA Chile

Sellhelp GmbH Germany H & M Hennes & Mauritz OÜ Estonia

H & M Hennes & Mauritz Holding B.V. Netherlands H & M Hennes & Mauritz UAB Lithuania

H & M Hennes & Mauritz Netherlands B.V. Netherlands H & M Hennes & Mauritz d.o.o. Serbia

H & M Hennes & Mauritz Management B.V. Netherlands H and M Hennes and Mauritz PYT LTD South Africa

H & M Hennes & Mauritz Services B.V. Netherlands H & M Hennes & Mauritz Pty Ltd Australia

H & M Hennes & Mauritz Belgium NV Belgium H & M Hennes & Mauritz S.A.C. Peru

H & M Hennes & Mauritz Logistics NV Belgium H & M Hennes & Mauritz Retail Private Limited India

H & M NB Belgium NV Belgium COS Retail Private Limited India

H & M Hennes & Mauritz GesmbH Austria H & M Services Pvt Ltd India

H & M Hennes & Mauritz Oy Finland H & M Hennes & Mauritz India Pvt. Ltd. India

H & M Hennes & Mauritz SARL France H & M Hennes & Mauritz INC Philippines

H & M Hennes & Mauritz Logistics GBC France France H & M Hennes & Mauritz New Zealand Ltd New Zealand

H & M Fashion USA Inc. US H & M Hennes & Mauritz Cyprus Ltd Cyprus

H & M Services US Inc. US H & M Hennes & Mauritz Kazakhstan LLP Kazakhstan

Hennes & Mauritz SL Spain H & M Hennes & Mauritz Colombia S.A.S. Colombia

Hennes & Mauritz Services SL Spain H & M Hennes & Mauritz Iceland ehf Iceland
H & M Hennes & Mauritz Vietnam LLC Vietnam

152 153
<<Contents Financial information/Notes to the ­financial statements

Signing of the annual report

29 cont.
The undersigned hereby provide an assurance that the annual report and for the group and the parent company provides a true and fair view of the
2024 Corporate id no Domicile the consolidated accounts have been prepared in accordance with the inter- development of the group’s and the parent company’s business, position
national accounting standards referred to in Regulation (EC) No 1606/2002 and earnings, and describes the significant risks and uncertainties faced
H & M Hennes & Mauritz Georgia LLC Georgia of the European Parliament and of the Council of 19 July 2002 on the appli­ by the parent company and the companies making up the group.
Hennes & Mauritz Uruguay S.A. Uruguay cation of international accounting standards, and with generally accepted
H & M Hennes & Mauritz LLC Ukraine accounting practice, and that they provide a true and fair view of the group’s
and the parent company’s position and earnings. The administration report Stockholm, 20 March 2025
H & M Hennes & Mauritz B&H d.o.o. Bosnia-Herzegovina
H&M Hennes & Mauritz Kosovo SH.P.K. Kosovo
H&M Hennes & Mauritz Albania SH.P.K. Albania
H&M Hennes & Mauritz MK dooel Skopje North Macedonia
H&M Hennes & Mauritz EC S.A.S. Ecuador
H&M Hennes & Mauritz LLC Puerto Rico

Subsidiaries with non-controlling interests

2024 Percentage ownership Corporate id no Domicile

Sellhelp AB 82.3 556996-1260 Sweden Karl-Johan Persson Stina Bergfors Anders Dahlvig Lena Patriksson Keller
H&M Hennes & Mauritz Brazil Importacoes Ltda. 80.0 Brazil Chair of the Board Board member Board member Board member

30 Untaxed reserves 32 Interest income, interest expense

and similar items

Parent company The parent company’s interest income and similar items consist of SEK
Helena Saxon Christian Sievert Christina Synnergren Danica Kragic Jensfelt
2024 2023
479 m (280) in interest income and SEK 12 m (0) in translation effects on
Board member Board member Board member Board member
receivables and liabilities from group companies.
Depreciation in excess of plan 17 17 The parent company’s interest expense and similar items consist of
Total 17 17 SEK –484 m (–267) in interest expense and SEK 0 m (1) in translation
effects on receivables and liabilities from group companies.

31 Contingent liabilities 33 Events after the closing date Keith Barker Tim Gahnström Agneta Gustafsson Daniel Ervér
Board member Board member Board member Chief Executive Officer
When reporting contingent liabilities for the group, IAS 37 Provision, con­ No significant events have occurred since the end of the reporting period.
tingent liabilities and contingent assets is applied.
A contingent liability is reported where there is a possible obligation for
which it remains to be confirmed whether the company has an existing obli-
gation that could result in an outflow of resources. Alternatively, there may 34 Distribution of earnings
be an existing obligation that does not fulfil the criteria for reporting in the
balance sheet as a provision or other liability since it is not likely that an out- The board of directors proposes to the 2025 annual general meeting that an Our audit report was submitted on 20 March 2025
flow of financial resources will be required in order to settle the obligation or ordinary dividend of SEK 6.80 per share is paid and that the remaining earn-
the amount cannot be reliably estimated. ings at the disposal of the meeting are carried forward. See also information Deloitte AB
The group is involved in various types of disputes, but it is assessed that in the board’s dividend comment in the administration report on page 117.
no current disputes will have any significant impact on the group’s results.
For further information concerning tax disputes see note 12.
Neither the group nor the parent company has any pledged assets. The board’s proposal to the 2025 AGM regarding distribution of earnings

Parent company SEK

2024 2023 Didrik Roos
At the disposal of the annual general meeting 13,469,240,556 Authorised Public Accountant
Parent company’s lease guarantees 10,973 12,292 The board proposes a dividend to
Logistics 2,661 2,776 shareholders of SEK 6.80 per share1 10,910,541,350
Solar parks 574 520 To be carried forward as retained earnings 2,558,699,206
Total 14,208 15,588 13,469,240,556

1. Based on outstanding shares, excluding own shares, as per 30 November 2024.

154 155
<<Contents Financial information/Auditor’s report

Auditor’s report
To the general meeting of the shareholders of H & M Hennes & Mauritz AB derived from a discounted cash flow model. This requires management’s Valuation of stock-in-trade concern basis of accounting. The going concern basis of accounting is how-
(publ) corporate identity number 556042-7220 judgement and a number of key assumptions, such as future revenue growth, The Group carries a material level of stock-in-trade held by central ware- ever not applied if the Board of Directors and the Managing Director intends
changes in gross margin, long-term growth rates and applied discount rates. houses and stores, spread over a large number of countries globally. As of to liquidate the company, to cease operations, or has no realistic alternative
Report on the annual accounts and consolidated accounts A change in management’s judgements and estimates may have a material November 30, 2024, stock-in-trade amounts to SEK 40,348 million corre- but to do so.
Opinions effect on the financial statements and consequently impairment of store sponding to 22% of the Group’s total assets. Stock-in-trade is valued at the The audit committee shall, without prejudice to the Board of Director’s
We have audited the annual accounts and consolidated audited the annual assets is considered a key audit matter. lower of cost and net realisable value. Valuation of stock-in-trade requires responsibilities and tasks in general, among other things oversee the com­
accounts and consolidated accounts of H & M Hennes & Mauritz AB (publ) Accounting principles and disclosures related to accounting for impair- clear policies and is subject to management’s judgements and estimates, pany’s financial reporting process.
for the financial year 2023-12-01–2024-11-30. The annual accounts and ment of store assets can be found in note 1 (Accounting principles), note 15 such as calculating the cost of custom duties and freight as well as estimat-
­consolidated accounts of the company are included on pages 113–155 in (Buildings, land and equipment) and note 17 (Leases). ing a provision for obsolescence and sales returns. The current macro­ Auditor’s responsibility
this document. economic environment has increased the uncertainty and customer behav- Our objectives are to obtain reasonable assurance about whether the annual
In our opinion, the annual accounts have been prepared in accordance Our audit procedures iour is rapidly changing within the retail industry, impacting the need to accounts and consolidated accounts as a whole are free from material mis-
with the Annual Accounts Act and present fairly, in all material respects, the Our audit procedures included, but were not limited to: continuously revisit and evaluate the method used. Changes in judgements statement, whether due to fraud or error, and to issue an auditor’s report that
financial position of the parent company as of 30 November 2024 and its • Assessing the accounting principles for impairment of store assets in and assumptions made by management may have a material effect on the includes our opinions. Reasonable assurance is a high level of assurance, but
financial performance and cash flow for the year then ended in accordance compliance with IFRS, with the support of accounting specialists, financial statements and consequently valuation of stock-in-trade is consid- is not a guarantee that an audit conducted in accordance with ISAs and gen-
with the Annual Accounts Act. The consolidated accounts have been pre- ered a key audit matter. erally accepted auditing standards in Sweden will always detect a material
• Obtaining an understanding of the store impairment process as well as
pared in accordance with the Annual Accounts Act and present fairly, in all Accounting principles and disclosures related to stock-in-trade can be misstatement when it exists. Misstatements can arise from fraud or error
the forecasting process,
material respects, the financial position of the group as of 30 November found in note 1 (Accounting principles) and note 18 (Stock-in-trade). and are considered material if, individually or in the aggregate, they could
2024 and their financial performance and cash flow for the year then ended • Evaluating and challenging management’s range of impairment indicators, reasonably be expected to influence the economic decisions of users taken
in accordance with International Financial Reporting Standards (IFRS), as • Evaluating and challenging management’s identification of cash Our audit procedures on the basis of these annual accounts and consolidated accounts.
adopted by the EU, and the Annual Accounts Act. The statutory administra- ­generating units and the supporting documentation, Our audit procedures included, but were not limited to: As part of an audit in accordance with ISAs, we exercise professional judg-
tion report is consistent with the other parts of the annual accounts and • Evaluating and challenging key assumptions such as future revenue • Assessing the group’s accounting principles for inventory in compliance ment and maintain professional scepticism throughout the audit. We also:
­consolidated accounts. growth, changes in gross margin, long-term growth rates and applied with IFRS with the support of accounting specialists, • Identify and assess the risks of material misstatement of the annual
We therefore recommend that the general meeting of shareholders ­discount rates, accounts and consolidated accounts, whether due to fraud or error,
adopts the income statement and balance sheet for the parent company • Obtaining an understanding of the internal control environment regarding
• Reviewing the accuracy of past forecasts of growth rates and future cash valuation of inventory and test identified key controls for design and design and perform audit procedures responsive to those risks, and obtain
and the group. audit evidence that is sufficient and appropriate to provide a basis for our
flows to assess the level of accuracy of the forecasting process, implementation including related IT systems,
Our opinions in this report on the annual accounts and consolidated opinions. The risk of not detecting a material misstatement resulting from
accounts are consistent with the content of the additional report that has • Assessing the appropriateness of the discount rates applied with the • Observing a sample of physical inventory counts in stores and fraud is higher than for one resulting from error, as fraud may involve collu-
been submitted to the parent company’s audit committee in accordance involvement of our internal valuations specialists, ­warehouses, sion, forgery, intentional omissions, misrepresentations, or the override of
with the Audit Regulation (537/2014) Article 11. • Assessing the mechanical accuracy of the impairment models and the • On a sample basis testing valuation of inventory, internal control.
methodology applied by management for consistency with the require-
• Evaluating management’s estimates related to provisions for • Obtain an understanding of the company’s internal control relevant to
Basis for Opinions ments of IAS 36, Impairment of Assets, and
­obsolescence and sales return, and our audit in order to design audit procedures that are appropriate in the
We conducted our audit in accordance with International Standards on
• Evaluating the appropriateness of disclosures made in the financial circumstances, but not for the purpose of expressing an opinion on the
Auditing (ISA) and generally accepted auditing standards in Sweden. Our • Evaluating the appropriateness of disclosures made in the financial
­statements. effectiveness of the company’s internal control.
responsibilities under those standards are further described in the Auditor’s ­statements.
Responsibilities section. We are independent of the parent company and the Accounting for leases • Evaluate the appropriateness of accounting policies used and the reason-
group in accordance with professional ethics for accountants in Sweden and Other information than the annual accounts ableness of accounting estimates and related disclosures made by the
The Group has a large number of lease contracts including approximately
have otherwise fulfilled our ethical responsibilities in accordance with these and consolidated accounts Board of Directors and the Managing Director.
4,300 stores as well as multiple offices and warehouses globally. The right
requirements. This includes that, based on the best of our knowledge and This document also contains other information than the annual accounts and • Conclude on the appropriateness of the Board of Directors’ and the Man-
of use asset amounts to SEK 57,062 million as of November 30, 2024 and
belief, no prohibited services referred to in the Audit Regulation (537/2014) consolidated accounts. The other information consists of the renumeration aging Director’s use of the going concern basis of accounting in preparing
constitutes 32% of the Group’s total assets. IFRS 16 Leases is complex and
Article 5.1 have been provided to the audited company or, where applicable, report and the pages 4–37, 52–109 och 160–166. The Board of Directors and the annual accounts and consolidated accounts. We also draw a conclu-
requires a high level of management’s judgements and estimates, such as
its parent company or its controlled companies within the EU. the Managing Director are responsible for this other information. sion, based on the audit evidence obtained, as to whether any material
determining the term of the lease contracts and the interest rate of borrow-
We believe that the audit evidence we have obtained is sufficient and Our opinion on the annual accounts and consolidated accounts does not uncertainty exists related to events or conditions that may cast significant
ing. Management is working actively with the store portfolio meaning con-
appropriate to provide a basis for our opinions. cover this other information and we do not express any form of assurance doubt on the company’s and the group’s ability to continue as a going con-
tracts are changed, terminated, and renewed continuously. Accounting for
conclusion regarding this other information. cern. If we conclude that a material uncertainty exists, we are required to
leases requires a well-functioning process and a clear policy. Changes in
Key Audit Matters In connection with our audit of the annual accounts and consolidated draw attention in our auditor’s report to the related disclosures in the
judgements and assumptions made by management may have a material
Key audit matters of the audit are those matters that, in our professional accounts, our responsibility is to read the information identified above and annual accounts and consolidated accounts or, if such disclosures are
effect on the financial statements and consequently accounting for leases
judgment, were of most significance in our audit of the annual accounts and consider whether the information is materially inconsistent with the annual inadequate, to modify our opinion about the annual accounts and con­
is considered a key audit matter.
consolidated accounts of the current period. These matters were addressed accounts and consolidated accounts. In this procedure we also take into solidated accounts. Our conclusions are based on the audit evidence
Accounting principles and disclosures related to accounting for leases
in the context of our audit of, and in forming our opinion thereon, the annual account our knowledge otherwise obtained in the audit and assess whether obtained up to the date of our auditor’s report. However, future events or
can be found in note 1 (Accounting principles) and note 17 (Leases).
accounts and consolidated accounts as a whole, but we do not provide a the information otherwise appears to be materially misstated. conditions may cause a company and a group to cease to continue as a
separate opinion on these matters. Our audit procedures If we, based on the work performed concerning this information, conclude going concern.
Our audit procedures included, but were not limited to: that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard. • Evaluate the overall presentation, structure and content of the annual
Impairment of store assets • Assessing the group’s accounting principles for leases in compliance with accounts and consolidated accounts, including the disclosures, and
As of November 30, 2024, the Group held property, plant and equipment IFRS with the support of accounting specialists,
Responsibilities of the Board of Directors and the Managing Director whether the annual accounts and consolidated accounts represent
consisting mainly of equipment, tools, fixture and fittings (SEK 28,493 mil-
• Obtaining an understanding of the internal control environment regarding The Board of Directors and the Managing Director are responsible for the the underlying transactions and events in a manner that achieves
lion) and right of use assets (SEK 57,062 million). In accordance with IAS 36
leases and test identified key controls for design and implementation, preparation of the annual accounts and consolidated accounts and that fair presentation.
Impairment of Assets, management is required to complete an annual
assessment of indicators of impairment of its store portfolio. Impairment • Evaluating management’s assessment of lease terms including renewals they give a fair presentation in accordance with the Annual Accounts Act • Obtain sufficient and appropriate audit evidence regarding the financial
charges of equipment, tools, fixture and fittings and right of use assets have and extensions, and, concerning the consolidated accounts, in accordance with IFRS as information of the entities or business activities within the group to
been recognized amounting to SEK 41 million and SEK 256 million, excluding • Evaluating the methodology related to determining the incremental adopted by the EU. The Board of Directors and the Managing Director are express an opinion on the consolidated accounts. We are responsible for
stores where a decision to close was taken prior to year-end. ­borrowing rate and on a sample basis testing the rate applied, also responsible for such internal control as they determine is necessary to the direction, supervision and performance of the group audit. We remain
The Group generally considers that a grouping of stores, based on a sig- enable the preparation of annual accounts and consolidated accounts that solely responsible for our opinions.
• Assessing the right of use asset for impairment,
nificant degree of revenue substitution including allocation of online sales, are free from material misstatement, whether due to fraud or error.
• Testing the accuracy of the underlying lease data by agreeing a represent- In preparing the annual accounts and consolidated accounts, The Board We must inform the Board of Directors of, among other matters, the planned
constitute a cash generating unit and is assessed for impairment separately.
ative sample of leases to original contract or other supporting information, of Directors and the Managing Director are responsible for the assessment scope and timing of the audit. We must also inform of significant audit find-
The determination of the cash generating unit requires management judge-
ment and a high degree of estimation. • Testing the mechanical accuracy of the lease calculations, and of the company’s and the group’s ability to continue as a going concern. They ings during our audit, including any significant deficiencies in internal control
When an impairment test has been conducted, management has esti- • Evaluating the appropriateness of disclosures made in the financial disclose, as applicable, matters related to going concern and using the going that we identified.
mated the recoverable amount of store assets based on their value in use ­statements.

156 157
<<Contents Financial information/Auditor’s report

We must also provide the Board of Directors with a statement that we have Our objective concerning the audit of the proposed appropriations of the RevR 18 requires us to plan and execute procedures to achieve reasonable or error. In carrying out this risk assessment, and in order to design audit
complied with relevant ethical requirements regarding independence, and to company’s profit or loss, and thereby our opinion about this, is to assess with assurance that the Esef report is prepared in a format that meets these ­procedures that are appropriate in the circumstances, the auditor considers
communicate with them all relationships and other matters that may reason- reasonable degree of assurance whether the proposal is in accordance with requirements. those elements of internal control that are relevant to the preparation of the
ably be thought to bear on our independence, and where applicable, actions the Companies Act. Reasonable assurance is a high level of assurance, but it is not a guarantee Esef report by the Board of Directors and the Managing Director, but not for
taken to eliminate threats or safeguards applied. Reasonable assurance is a high level of assurance, but is not a guarantee that an engagement carried out according to RevR 18 and generally accepted the purpose of expressing an opinion on the effectiveness of those internal
From the matters communicated with the Board of Directors, we deter- that an audit conducted in accordance with generally accepted auditing auditing standards in Sweden will always detect a material misstatement controls. The examination also includes an evaluation of the appropriateness
mine those matters that were of most significance in the audit of the annual standards in Sweden will always detect actions or omissions that can give when it exists. Misstatements can arise from fraud or error and are consid- and reasonableness of assumptions made by the Board of Directors and the
accounts and consolidated accounts, including the most important rise to liability to the company, or that the proposed appropriations of the ered material if, individually or in aggregate, they could reasonably be Managing Director.
assessed risks for material misstatement, and are therefore the key audit company’s profit or loss are not in accordance with the Companies Act. expected to influence the economic decisions of users taken on the basis The procedures mainly include a validation that the Esef report has
matters. We describe these matters in the auditor’s report unless law or As part of an audit in accordance with generally accepted auditing stand- of the Esef report. been prepared in a valid XHTML format and a reconciliation of the Esef
­regulation precludes disclosure about the matter. ards in Sweden, we exercise professional judgment and maintain professional The audit firm applies International Standard on Quality Management 1, report with the audited annual accounts and consolidated accounts.
scepticism throughout the audit. The examination of the administration and which requires the firm to design, implement and operate a system of quality Furthermore, the procedures also include an assessment of whether
Report on other legal and regulatory requirements the proposed appropriations of the company’s profit or loss is based primarily management including policies and procedures regarding compliance with the consolidated statement of financial performance, financial position,
Opinions on the audit of the accounts. Additional audit procedures performed are ethical requirements, professional standards and applicable legal and regu- changes in equity, changes in cash flow and notes in the Esef report
In addition to our audit of the annual accounts and consolidated accounts, based on our professional judgment with starting point in risk and materiality. latory requirements. have been marked with iXBRL in accordance with what follows from the
we have also audited the administration of the Board of Directors and the This means that we focus the examination on such actions, areas and relation­ The examination involves obtaining evidence, through various procedures, Esef ­regulation.
Managing Director of H & M Hennes & Mauritz AB (publ) for the financial year ships that are material for the operations and where deviations and violations that the Esef report has been prepared in a format that enables uniform elec- Deloitte AB, was appointed auditor of H & M Hennes & Mauritz AB (publ)
2023-12-01 – 2024-11-30 and the proposed appropriations of the company’s would have particular importance for the company’s situation. We examine tronic reporting of the annual accounts and consolidated accounts. The pro- by the general meeting of the shareholders on the 2024-05-03 and has been
profit or loss. and test decisions undertaken, support for decisions, actions taken and cedures selected depend on the auditor’s judgment, including the assess- the company’s auditor since 2021-05-06.
We recommend to the general meeting of shareholders that the profit to other circumstances that are relevant to our opinion concerning discharge ment of the risks of material misstatement in the report, whether due to fraud
be appropriated in accordance with the proposal in the statutory administra- from liability. As a basis for our opinion on the Board of Directors’ proposed
tion report and that the members of the Board of Directors and the Managing appropriations of the company’s profit or loss we examined the Board of
Director be discharged from liability for the financial year. Directors’ reasoned statement and a selection of supporting evidence in
order to be able to assess whether the proposal is in accordance with the
Basis for Opinions Companies Act.
We conducted the audit in accordance with generally accepted auditing
standards in Sweden. Our responsibilities under those standards are further The auditor’s examination of the Esef report
Stockholm, March 20, 2025
described in the Auditor’s Responsibilities section. We are independent of Opinion
the parent company and the group in accordance with professional ethics In addition to our audit of the annual accounts and consolidated accounts,
Deloitte AB
for accountants in Sweden and have otherwise fulfilled our ethical responsi- we have also examined that the Board of Directors and the Managing Director
bilities in accordance with these requirements. have prepared the annual accounts and consolidated accounts in a ­format
We believe that the audit evidence we have obtained is sufficient and that enables uniform electronic reporting (the Esef report) pursuant to
Didrik Roos
appropriate to provide a basis for our opinions. Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528) for
Authorized Public Accountant
H & M Hennes & Mauritz AB (publ) for the financial year
Responsibilities of the Board of Directors and the Managing Director 2023-12-01–2024-11-30.
The Board of Directors is responsible for the proposal for appropriations of Our examination and our opinion relate only to the statutory requirements.
the company’s profit or loss. At the proposal of a dividend, this includes an In our opinion, the Esef report has been prepared in a format that, in all
assessment of whether the dividend is justifiable considering the require- material respects, enables uniform electronic reporting.
ments which the company’s and the group’s type of operations, size and risks
place on the size of the parent company’s and the group’s equity, consolida- Basis for opinion
tion requirements, liquidity and position in general. We have performed the examination in accordance with FAR’s recommenda-
The Board of Directors is responsible for the company’s organization and tion RevR 18 Examination of the Esef report. Our responsibility under this
the administration of the company’s affairs. This includes among other recommendation is described in more detail in the Auditors’ responsibility
things continuous assessment of the company’s and the group’s financial section. We are independent of H & M Hennes & Mauritz AB (publ) in accord-
­situation and ensuring that the company’s organization is designed so that ance with professional ethics for accountants in Sweden and have otherwise
the accounting, management of assets and the company’s financial affairs fulfilled our ethical responsibilities in accordance with these requirements.
otherwise are controlled in a reassuring manner. The Managing Director shall We believe that the evidence we have obtained is sufficient and appropri-
manage the ongoing administration according to the Board of Directors’ ate to provide a basis for our opinion.
guidelines and instructions and among other matters take measures that
are necessary to fulfill the company’s accounting in accordance with law Responsibilities of the Board of Directors and the Managing Director
and handle the management of assets in a reassuring manner. The Board of Directors and the Managing Director are responsible for the
preparation of the Esef report in accordance with the Chapter 16, Section 4 a
Auditor’s responsibility of the Swedish Securities Market Act (2007:528), and for such internal con-
Our objective concerning the audit of the administration, and thereby our trol that the Board of Directors and the Managing Director determine is nec-
opinion about discharge from liability, is to obtain audit evidence to assess essary to prepare the Esef report without material misstatements, whether
with a reasonable degree of assurance whether any member of the Board of due to fraud or error.
Directors or the Managing Director in any material respect:
• has undertaken any action or been guilty of any omission which can give Auditor’s responsibility
rise to liability to the company, or Our responsibility is to obtain reasonable assurance whether the Esef report
is in all material respects prepared in a format that meets the requirements
• in any other way has acted in contravention of the Companies Act,
of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528),
the Annual Accounts Act or the Articles of Association.
based on the procedures performed.

158 159
<<Contents Financial information/The share

The share and ownership structure

Listing Nasdaq Stockholm, Large Cap Key ratios per share
Symbol HM B 2024 2023 2022 2021 2020
Capitalisation at financial year-end SEK 244 billion
Shareholders’ equity per share, SEK1, 2 28.76 29.23 31.15 36.26 33.00
ISIN SE0000106270
Earnings per share, SEK1, 2 7.21 5.37 2.16 6.65 0.75
Change from previous year, %2 +34 +149 –68 +787 –91
H&M Group’s class B share is primarily traded on Nasdaq Stockholm, with As at 30 November 2024, a total of 6,050,850 class B shares had been repur-
an average daily trading volume of 2.87 (3.14) million shares during the 2024 chased for a total sum of SEK 1 billion. The repurchased shares are intended Dividend per share excluding own shares, SEK1, 3 6.50 6.50 6.50 6.50 –
financial year. The total number of shares, as at 30 November 2024 was to be cancelled through a resolution at the 2025 annual general meeting. Share price on 30 November, SEK 151.25 167.90 116.66 160.00 181.60
1,610,542,225 of which 194,400,000 were class A shares, each with 10 votes, The board of directors will ask the 2025 annual general meeting for a gen- P/E ratio2 21 31 54 24 242
and 1,416,142,225 were class B shares, each with one vote. All the shares eral authorisation allowing the board to buy back the group’s own B shares in
have the same dividend entitlement and share in the company’s assets. the period up to the 2026 annual general meeting. 1. Before and after dilution, excluding own shares.
2. Regarding restated figures for financial year 2023 see information on restated figures attributable to amendments to IAS 12 in financial note 12.
Ownership structure 3. Dividend which was decided and paid during the year.
At the close of the 2024 financial year, H&M had 213,223 shareholders
(225,326). The largest shareholder is Stefan Persson and family, who
through Ramsbury Invest AB, hold all the class A shares and 764,799,715
class B shares. In addition, the family privately owns 36,400,289 class B Major shareholders, 30 November 2024
No. of % of % of
shares. As at 30 November 2024, Stefan Persson and family, both privately
and via Ramsbury Invest AB, represented 81.9 (79.7) percent of the votes
Share price and trading volume, 2024 shares total shares voting rights

excluding treasury shares and 61.8 (57.7) percent of the total number of The Stefan Persson family and related companies 995,600,004 61.82 81.85
shares. The second-largest shareholder is Lottie Tham and family, including SEK Million shares The Lottie Tham family and related companies 88,680,401 5.51 2.64
related companies, holding 2.6 percent of the votes and 5.5 percent of
200 100 AMF Fonder & Pension 39,497,604 2.45 1.18
the total shares. As at 30 November 2024, the 10 largest shareholders
together accounted for 89.8 percent of the votes and 78.4 percent of the Vanguard Funds 23,992,377 1.49 0.72
total number of shares. Blackrock 21,444,172 1.33 0.64
180 80
Swedbank Robur Fonder AB 21,207,758 1.32 0.63
Dividend and share repurchase
Handelsbanken Fonder AB 20,659,470 1.28 0.62
The board of directors has resolved to propose to the annual general meeting 160 60
(AGM) on 7 May 2025 that a dividend of SEK 6.80 (6.50) per share be paid in Fjärde AP-fonden 20,364,941 1.26 0.61
two instalments over the year. H&M Group’s dividend policy states that the Nordea Funds AB 17,835,540 1.11 0.53
ordinary dividend over time is to exceed 50 percent of profit after tax and 140 40 Alecta Tjänstepension Ömsesidigt 13,423,000 0.83 0.40
additionally that identified surplus liquidity – taking into consideration the
capital structure target and investment requirements – can be distributed
to shareholders through an extra dividend or a buyback programme. 120 20
During the period 27 September 2023–1 March 2024 the group repur- Distribution of shares, 30 November 2024
chased shares as authorised by the 2023 annual general meeting. A total Average
100 0 No. of No. of shares per
of 19,144,612 B shares were repurchased for a total sum of SEK 3 billion, of
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Shareholding shareholders % shares % ­shareholder
which shares to a value of around SEK 2 billion were repurchased in 2024.
The shares repurchased were cancelled through a resolution at the annual 23 24 1–500 176,470 82.7 19,709,614 1.2 112
general meeting in May 2024.
501–1,000 17,009 8.0 13,259,606 0.8 780
A buyback programme, authorised by the 2024 annual general meeting, Number of shares traded
was initiated on 26 September 2024 and completed on 26 November 2024. 1,001–5,000 15,695 7.3 34,915,044 2.2 2,225
HM B
5,001–10,000 2,093 1.0 15,245,213 0.9 7,284
10,001–15,000 641 0.3 8,030,461 0.5 12,528
15,001–20,000 339 0.2 6,022,189 0.4 17,765
20,001– 976 0.5 1,513,360,098 94.0 1,550,574
Total return and trading volume, 5 years Total 213,223 100.0 1,610,542,225 100.0 7,553

% Million shares

30 200
Geographic distribution of shareholder
20 175
ownership, 30 November 2024
10 150

0 125 Rest of the world, 0.5% Sweden, 90.4%

–10 100 Rest of the Nordics, 0.9%

USA, 3.2%
–20 75 Europe (excluding Sweden
and the Nordics), 5%
–30 50

–40 25

–50 0
2020 2021 2022 2023 2024

Number of shares traded

HM B

160 161
<<Contents Financial information/Key financial performance measures

Key financial performance measures

This report contains key financial performance measures in accordance with targets. A combination of continual growth, high profitability, stable cash Capital performance measures
the framework for financial reporting applied by the H&M group, which is flow and using capital in the right way is intended to generate a high overall
based on IFRS. Other performance measures and indicators are also used to return for the H&M group’s shareholders. It is therefore relevant to present Group Group
follow up, analyse and govern the business and to provide the H&M group’s performance measures relating to growth, profitability and capital, per-share
Share of risk-bearing capital 2024 2023 Total working capital 2024 2023
stakeholders with financial information concerning the group’s financial measures and terms relating to capital on a continuous basis.
position, results and performance in a consistent way. The performance measures and indicators used, referred to and presented Shareholders’ equity 1 46,211 47,510 Operating working capital 21,562 19,632
These other performance measures and indicators are considered neces- in the reporting are defined as shown in the list below. Deferred tax liability 1 2,242 2,507 Tax assets 2,831 3,830
sary in order to be able to monitor performance against the group’s financial
Balance sheet total 180,214 181,273 Other receivables 5,654 5,111
Share of risk-bearing capital1 26.9% 27.6% Prepaid expenses 3,923 4,531
Tax liabilities –2,257 –1,377
Measures of profit and return Definition Equity plus deferred tax liability in relation to the balance Other liabilities –6,809 –7,329
sheet total. Accrued expenses and deferred income –20,151 –22,733
Group Group
Reason for use Shows financial potential and independence to develop Total working capital 4,753 1,665
Return on equity 2024 2023 Operating profit 2024 2023
the business.
Profit for the year 1 11,584 8,7 16 Net sales 234,478 236,035
Definition Operating working capital plus tax assets, other receivables and
Average shareholders’ equity 1 46,861 49,092 Cost of goods sold –109,179 –115,139 prepaid expenses minus tax liabilities, other liabilities and accrued expenses
Group
Return on equity 1 24.7% 17.8% Selling expenses –97,153 –96,435 and deferred income.
Equity/assets ratio 2024 2023
Administrative expenses –10,762 –10,895 Reason for use Assesses a company’s liquidity and operating efficiency by
Definition Profit for the year in relation to average equity. Shareholders’ equity 1 46,211 47,510 looking at current assets and current liabilities that are essential to business
Result from investments in associated
Reason for use Return on equity is used as it measures the company’s return ­companies and joint ventures –78 971 Balance sheet total 180,214 181,273 operations.
on the shareholders’ investments. Operating profit 17,306 14,537 Equity/assets ratio 1 25.6% 26.2%

Group
Definition Net sales minus all costs attributable to operations but excluding Definition Equity in relation to the balance sheet total.
Group Net debt 2024 2023
net financial items and tax. Reason for use Shows financial potential and independence to develop
Return on capital employed 2024 2023
Reason for use An indicator of the result of operating activities. the business. Provisions for pensions 471 379
Profit after financial items 15,443 13,010 Interest-bearing leasing liabilities 62,837 60,888
Interest expense 2,753 2,143 Liabilities to credit institutions 14,117 17,082
Group Group
Average shareholders’ equity 1 46,861 49,092 Cash and cash equivalents –17,340 –26,398
Operating margin 2024 2023 Capital employed 2024 2023
Average interest-bearing liabilities 77,887 75,658 Net debt 60,085 51,951
Net sales 234,478 236,035 Shareholders’ equity 1
46,211 47,510
Return on capital employed1 14.6% 12.1%
Operating profit 17,306 14,537 Interest-bearing liabilities 77,425 78,348 Definition Interest-bearing liabilities incl. IFRS 16 respectively including
Definition Profit after financial items plus interest expense in relation to Operating margin 7.4% 6.2% Capital employed1 123,636 125,858 ­pension liabilities less cash and cash equivalents as well as short-term
average equity plus average interest-bearing liabilities. investments.

Reason for use A measure of profitability after taking into consideration the Definition Operating profit as a percentage of net sales for the year. Definition Equity plus interest-bearing liabilities. Reason for use Used to show the net value of interest-bearing assets and
amount of capital employed. A higher return on capital employed indicates Reason for use Shows the company’s ability to meet current capital interest-bearing liabilities.
Reason for use An indicator of operational profitability.
that the capital is being used more effectively. ­commitments.

Group
Group
Group Group Financial net debt (+) / net cash (–) 2024 2023
EBITDA 2024 2023
Gross profit 2024 2023 Operating working capital 2024 2023
Interest-bearing liabilities excluding lease
Operating profit 17,306 14,537 ­liabilities and provisions for pensions 14,117 17,082
Net sales 234,478 236,035 Accounts receivable 5,631 3,301
Depreciation, amortisation and write-downs 22,252 22,955 Cash and cash equivalents and short-term
Cost of goods sold –109,179 –115,139 Stock-in-trade 40,348 37,358
EBITDA 39,558 37,492 investments –17,340 –26,398
Gross profit 125,299 120,896 Accounts payable –24,417 –21,027
Financial net debt (+) / net cash (–) –3,223 –9,316
Operating working capital 21,562 19,632
Definition EBITDA (Earnings Before Interest, Taxes, Depreciation and
Definition Net sales minus cost of goods sold. ­Amortisation). Operating profit before interest, taxes, depreciation, Definition Interest-bearing liabilities excluding lease liabilities and
Reason for use This is one of the ways in which the group measures Definition Accounts receivable plus stock-in-trade minus accounts payable. ­ rovisions for pensions less cash and cash equivalents and short-term
p
­amortisation, write-downs and impairment incl. IFRS 16.
­profitability. Gross profit is affected by a number of factors such as the Reason for use Assesses a company’s liquidity and operating efficiency by investments.
Reason for use A measure that complements operating profit, since it shows
­product assortment, price development and cost changes. looking at current assets and current liabilities that are held for trading and Reason for use Used to show the net of the company’s borrowing, cash and
the cash surplus from operations.
are essential to business operations. cash equivalents and short-term investments.
1. Regarding restated figures for financial year 2023 see information on restated figures
Group attributable to amendments to IAS 12 in note 12.
Gross margin 2024 2023 Group
Operating cash flow / EBITDA 2024 2023
Net sales 234,478 236,035
Gross profit 125,299 120,896 Cash flow from operating activities 31,756 33,949
Gross margin 53.4% 51.2% EBITDA 39,558 37,492
Operating cash flow / EBITDA 80.3% 90.5%
Definition Gross profit in relation to net sales.
Definition Cash flow from operating activities in relation to EBITDA.
Reason for use This is one of the ways in which the group measures profita-
bility. Gross profit is affected by a number of factors such as the product Reason for use Measure of how much cash flow is generated by operating
assortment, price development and cost changes. activities in relation to the profit shown in the income statement.

1. Regarding restated figures for financial year 2023 see information on restated figures
attributable to amendments to IAS 12 in note 12.

162 163
<<Contents Financial information/Key financial performance measures

Per-share performance measures Fair and equal treatment Discrimination or unequal treatment on the Recyclability The ease with which a material can be recycled in practice
grounds of gender, sexual orientation, race, colour, age, pregnancy, marital and at scale.1
Group Group or social status, religion, political opinion, nationality, ethnic origin, disease
or disability. Fair and equal treatment includes equal remuneration for Raw materials or materials Or feedstocks used by the textile industry can
Equity per share 2024 2023 P/E ratio 2024 2023
equal work and other aspects of equal treatment at work including avoiding be either primary (virgin) materials (cultivated or extracted from the earth)
Shareholders’ equity 1 46,211 47,510 Price per share at year-end 151.25 167.90 discrimination in the form of gender­-based violence (GBV) against women, or secondary feedstocks (reclaimed and recycled from pre-consumer or
Number of shares outstanding as of Earnings per share1 7.19 5.35 directed towards a woman because she is a woman or that affects women post-consumer waste streams and fed back into the production cycle).
the ­closing day, thousands 1,604,491 1,622,548 disproportionately, based on ILO Conventions. ­Materials can be either renewable or non-renewable. 2
P/E ratio 1 21 31
Equity per share 1 28.80 29.28 • Renewable raw materials are typically not depleted when used. ‘Rapidly’
Fair wage A compensation rate, excluding variable components such as renewable materials are usually harvested from fast-growing sources
Definition Price per share divided by earnings per share. overtime and incentive pay, and any non-guaranteed allowances, that allows
Definition Equity divided by the number of shares. and take 10 or fewer years to grow or raise and harvest in an ongoing and
Reason for use This indicator shows how the profit for the period relates to employees to meet their basic needs, including housing, food, healthcare, ‘sustainable’ way. Examples include cotton, wool and certain types of
Reason for use This indicator can show over time whether the company is the price of the shares. education and other essentials, and provide some discretionary income. wood (for man-made cellulosic fibres).
increasing the share-holders’ capital. As a minimum, the wage should meet legal levels or applicable collective
• Non-renewable raw materials, also called finite resources, are natural
1. Regarding restated figures for financial year 2023 see information on restated figures ­bargaining agreement levels – whichever is higher.
attributable to amendments to IAS 12 in note 12. resources that cannot be readily replaced by natural means quickly
Group enough to keep up with consumption. An example is carbon-based
Natural resources Natural assets (raw materials) occurring in nature that
Cash flow from operating activities per share 2024 2023 ­fossil fuel (the building blocks of virgin conventional synthetic fibres and
can be used for economic production or consumption.
materials). Earth minerals, metal ores are other examples of non-­
Cash flow from operating activities 31,756 33,949 renewable resources.
Own operations The activities carried out by H&M Group’s employees
Average number of shares outstanding, • Recycled raw materials can originate from renewable or non-renewable
and non-employees across our offices, stores, warehouses and
­thousands 1,611,695 1,629,097
­distribution centres. feedstocks. They are materials that would otherwise have become waste,
Cash flow from operating activities per share 19.70 20.84 which can be collected, separated, processed and returned to the eco-
Preferred transport options refer to lower-impact modes of transport, nomic mainstream in the form of raw materials or products.
Definition Cash flow from operating activities for the period divided by the including 100 percent biofuel, electric and zero-emission vehicles. 3
number of shares. Supply chain The full range of activities or processes carried out by entities
Reason for use This indicator shows cash flow from operating activities per Reverse logistics or reverse supply chains Supply chains dedicated to in the upstream value chain, which provide products or services that are
share, which is significant for how the company can finance its investments. the reverse flow of products and materials for the purpose of maintenance, used in the development and production of H&M Group’s own products or
repair, reuse, refurbishment, remanufacture, recycling or regenerating services. This includes upstream entities which H&M Group has a direct and
­natural systems.1 indirect business relationship with.

Responsible is one of the three pillars of our long-term materials sourcing Sustainable water management The practice of managing water resources
vision. In this context, it means sourcing materials with the overall aim to in a way that ensures the long-term availability of water while protecting the
respect human rights and reduce environmental impact while contributing environment. This means that water is used in a way that is equitable, efficient
to sustainable development in the countries where we source.4 This is the and sustainable. Included in sustainable water management practices are
foundation of all our sourcing decisions. The broader definition of what water conservation, pollution prevention, water reuse, and ecosystem

Definitions
­constitutes a responsible company is defined by international frameworks. ­protection.
For H&M Group it means having a risk-based approach to understanding and
taking action to address our impacts on people and the planet, supported by Sustainable choice We aim to manufacture products in a more responsible
robust systems of governance and transparent internal and external commu- way while minimising negative impact on people and the planet.
nications. We are aligned with the Organisation for Economic Co-operation
and Development (OECD) definition of Responsible Business Conduct, Safe and fair working environment and conditions A workplace which
Throughout this report we use certain words and phrases to describe our Circular economy for fashion Building an industry that designs products to which sets out an expectation that all businesses – regardless of their legal respects workers’ physical and psychological health, safety and dignity,
approach to addressing specific social and environmental issues. Here, we be used more, made to be made again, and made from safe and recycled or status, size, ownership or sector – avoid and address negative impacts of ­limiting the maximum number of working hours, and ensuring daily and
explain what we mean by these terms: renewable inputs.1 their operations, while contributing to sustainable development in the weekly rest periods and with an annual period of paid leave, based on the
­countries where they operate. Charter of Fundamental Rights of the European Union.
Circularity The alignment with circular economy principles of products, Circular design principles and practices Designing products and packaging
­materials, resource use and the definition of a circular economy and circular fit for a circular economy, enabling products and packaging to be used more, Regenerative agriculture is a concept we refer to in the context of raw Value chain The full range of activities, resources and relationships
economy for fashion. reused, repaired and recycled. ­material production. It is a holistic approach to farming that emphasises related to H&M Group’s business model and the external environment
the interconnection between agricultural systems and nature. Regenerative in which it operates.
Circulate and recirculate The circulation and recirculation of materials, Circular business models Business models based on circular economy farming practices aim to improve soil health, strengthen farmers’ resilience,
components and products in practice after first use employing the following ­principles that could support the transition to a more resource efficient and and enhance livelihoods, all while restoring natural habitats.
strategies: maintenance or prolonged use, reuse or redistribution, refurbish- circular economy. Occurring anywhere across the value chain, they typically
ment or remanufacturing, recycling, composting or anaerobic digestion, modify how product and material flows through the economy. By doing so, Resources Refers to natural resources (including primary raw materials)
based on the ESRS definition. they have the potential to reduce the environmental pressures that result as well as secondary raw materials.
from current systems of production and consumption.
Circular economy A systems solution framework that tackles global chal- Recycled and sustainably sourced materials These are materials that meet
lenges such as climate change, biodiversity loss, waste and pollution. It is Customer-facing circular business models Services that support our our sustainability-related sourcing requirements. We work to align with
based on three principles, driven by design: eliminate waste and pollution, ­customers to extend the use and/or life of their products, such as resell ­Textile Exchange’s definition of preferred fibre and materials: A fiber or raw
circulate products and materials (at their highest value), and regenerate and repair. material that delivers consistently reduced impacts and increased benefits
nature. It is underpinned by a transition to renewable energy and materials. for climate, nature and people compared with the conventional equivalent. 2
Transitioning to a circular economy entails decoupling economic activity Durability The ability of a product, component or material to remain func- Read more about our definition of recycled and sustainably sourced materials
from the consumption of finite resources, based on the definition made by tional and relevant when used as intended. Durability often applies to the at hmgroup.com/sustainability/circularity-and-climate/materials.
the Ellen MacArthur Foundation. physical attributes of a product (its ability to resist damage and wear),
though with some products durability can be technological (for example
the ability of software to be upgraded many times), and it can be emotional
(for example the ability of certain clothes to stay desirable over time).1

1. Definitions by Ellen MacArthur Foundation.

2. D efinitions by Textile Exchange Materials-Terminology-Guide.pdf
3. A zero-emissions vehicle is one that does not emit exhaust gas or other pollutants when operational.
1. Definitions by Ellen MacArthur Foundation. 4. Our definition of responsible sourcing is based on the OECD Guidelines for ­Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights.

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<<Contents

Annual general meeting Contact details

Date and venue Head office
H&M’s annual general meeting 2025 will be held on Wednes- H & M Hennes & Mauritz AB,
day 7 May 2025 at 3 p.m. (CEST) in the Erling Persson Hall, Mäster Samuelsgatan 46A,
Aula Medica, Karolinska Institutet in Solna. There is a possi­ SE-106 38 Stockholm, Sweden
bility of postal voting. Telephone: +46 (0)8 796 55 00
For more information about the annual general meeting,
see the notice of the meeting at hmgroup.com/agm. Contacts
Investor Relations Joseph Ahlberg
Dividend Communications Hendrik Alpen
The board of directors has resolved to propose to the annual Corporate Governance Cigdem Günes
general meeting on 7 May 2025 that a dividend of SEK 6.80
per share is paid. The board proposes that the dividend is Distribution of annual and sustainability report 2024
paid in two instalments during the year – one in May and one The H&M group sends out the printed version of the
in November. annual and sustainability report to shareholders who have
The proposed record date for the first dividend payment of specifically requested a printed version. The annual and
SEK 3.40 per share is 9 May 2025. With this record date, the sustainability report is also available to read and download
dividend is expected to be paid out by Euroclear Sweden AB at hmgroup.com.
on 14 May 2025.
For information about the H&M group’s various brands
To be entitled to receive the dividend H&M shares must have
and ventures see:
been purchased no later than 7 May 2025. The ex-dividend
date is 8 May 2025. hm.com
The record date proposed for the second dividend payment cos.com
of SEK 3.40 per share is 7 November 2025. With this record weekday.com
date, the dividend is expected to be paid out by Euroclear stories.com
­Sweden AB on 12 November 2025. arket.com
To be entitled to receive the second dividend instalment singular-society.com
H&M shares must have been purchased no later than creatorstudio.com
7 ­November 2025. The ex-dividend date is 8 November 2025. sellpy.com

Calendar
H & M Hennes & Mauritz AB will provide the
f­ ollowing information:

27 March 2025 Three-month report

7 May 2025 Annual general meeting
2025 at 3 p.m. (CEST)
26 June 2025 Six-month report
25 September 2025 Nine-month report
29 January 2026 Full-year report

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