The fast fashion industry generates around 92 million tons of waste every year. H&M is one of the companies that pursues the goal of constantly improving their sustainability (Chan, 2019). Sustainability is one of the biggest and at the same time most important challenges nowadays. The requirement of sustainability is to balance the economic, the social and the environmental dimension (Altmaier, 2014). The concept of corporate social responsibility (CSR) is inseparable from corporate sustainability (CS). The fundamental basis of this concept is the three-pillar model. This model is built on the three pillars economy, ecology, and social responsibility (Enquete-Kommission, 1997). The purpose of this report is to improve H&M's sustainability as best as possible based on the three-pillar model of sustainability to achieve the corporate sustainability goals that H&M set out to achieve.
Table of Contents
1 Purpose and structure of the report
1.1 Purpose of the report
1.2 Structure of the report
2 H&M
2.1 About the Company
2.2 How sustainable is H&M?
3 Corporate Sustainability and the three-pillar Model
3.1 Corporate Social Responsibility and Corporate Sustainability
3.2 The three-pillar model of Sustainability
4 Analysis of Sustainability improvement of H&M
4.1 Social Sustainability
4.2 Environmental Sustainability
5 Recommendations and Conclusion
Objectives and Core Themes
This report aims to analyze how the fashion retailer H&M can enhance its sustainability performance despite the inherent challenges of the fast fashion industry. By applying the theoretical framework of the three-pillar model, the study evaluates current corporate practices and provides actionable recommendations to align economic, social, and environmental goals.
- The role of the three-pillar model in corporate sustainability.
- Challenges of social responsibility within global textile supply chains.
- Environmental impact of textile finishing, dyeing, and distribution.
- Strategies for waste reduction and circular production methods.
- Practical improvements for H&M to foster ethical and sustainable growth.
Excerpt from the Book
4.2 Environmental Sustainability
As explained in chapter 2.2, H&M aims to use only recycled or sustainably sourced materials in its collections by 2030. The company always sets itself aspirational environmental sustainability targets. By the year 2040, materials are also expected to be circular and climate positive (Group, 2021). Nevertheless, the improvement process is progressing slowly, and the question arises of how the fashion concern intends to fully optimize production of its mass of three billion items of clothing yearly.
An improbable aspect arises during the textile finishing process. During this operation, the textiles are dyed. This requires 250,000 tons of dyes and 4 million textile auxiliaries, lies and salts per year in the industry. 20 percent of the dyes and around 80 percent of the chemicals end up in the sewage disposal system, causing tremendous ground water and environmental pollution. In addition, the soil is also contaminated, and people are becoming increasingly ill with breathing and skin diseases. (Diekamp & Koch, 2010, p. 94)
Over 90 percent of textile finishing is outsourced to countries like China and India. Therefore, environmental regulations according to EU standards unfortunately do not apply. Furthermore, not all European textile companies are willing to pay attention to "Cleaner Production" with their suppliers demand limited compliance with chemicals and the installation of wastewater treatment facilities, and thus simply abdicate product responsibility. Meanwhile, there are more and more companies that are aware of their CSR and support their suppliers in installing a water recycling plant or a salt removal plant, such as the Swiss textile group Switcher in Tirupur. Water consumption could consequently be reduced from 700,000 liters to 45,000 liters per day, and salt consumption by 90 percent (Diekamp & Koch, 2010, pp. 92-94).
Summary of Chapters
1 Purpose and structure of the report: Defines the research intent regarding H&M's sustainability and outlines the methodological approach of the analysis.
2 H&M: Provides a company profile and discusses current sustainability initiatives, including recycling programs and climate goals.
3 Corporate Sustainability and the three-pillar Model: Explores the theoretical foundation of Corporate Social Responsibility and the interconnectedness of the three-pillar model.
4 Analysis of Sustainability improvement of H&M: Evaluates H&M's social and environmental performance, focusing on supply chain challenges and manufacturing impacts.
5 Recommendations and Conclusion: Summarizes key findings and proposes strategic shifts, such as better supplier engagement and revised production logistics.
Keywords
H&M, Sustainability, Three-pillar model, Fast fashion, Corporate Social Responsibility, CSR, Environmental impact, Social responsibility, Supply chain, Circular economy, Textile industry, Waste reduction, Climate-positive, Ethical production, Sustainable design.
Frequently Asked Questions
What is the core focus of this case study?
The report examines how H&M can improve its sustainability standards while operating within the fast fashion business model, specifically utilizing the three-pillar framework.
What are the primary themes discussed in the paper?
Key themes include corporate social responsibility, the environmental footprint of textile production, supply chain ethics, and strategies for achieving a circular economy.
What is the main research objective?
The goal is to determine how H&M can achieve its sustainability targets by balancing economic success with social and environmental responsibility.
Which scientific framework is used for the analysis?
The analysis is grounded in the three-pillar model, which encompasses economic, social, and ecological dimensions of sustainability.
What topics are covered in the main section of the report?
The main section investigates H&M’s specific sustainability efforts, the social consequences of outsourcing production, environmental hazards in textile finishing, and potential improvements for these areas.
Which keywords best characterize this work?
Essential keywords include H&M, sustainability, three-pillar model, fast fashion, CSR, supply chain management, and textile industry impact.
How does H&M currently address environmental challenges in its supply chain?
H&M focuses on using recycled materials, implementing technologies like the "Looop" and "Green-Machine" for fiber recycling, and setting goals to become climate-positive by 2040.
What social issues are identified regarding H&M’s suppliers?
The report highlights concerns such as inadequate living wages, inhumane working conditions, extreme overtime, and instances of bullying or lack of safety in production countries like India and Bangladesh.
What recommendations does the author provide for environmental improvement?
The author suggests closer collaboration between design and manufacturing to minimize waste, supporting suppliers in installing wastewater treatment facilities, and potentially relocating production sites closer to European markets.
- Quote paper
- Anonym (Author), 2021, An Analysis of How H&M Can Improve Their Sustainability Despite the Fast Fashion Trend by Following the Three-Pillar Model, Munich, GRIN Verlag, https://www.grin.com/document/1585888
