How we report

How we report

We are committed to transparent reporting on the progress we make towards meeting our seven commit­ments.

H&M's Conscious Actions Sustainability Report, which is produced annually, covers material sus­tainability strategies, activities, goals and performance for the global Group operations of H & M Hennes & Mauritz AB (also called H&M in this report), including all its brands (H&M, COS, Week­day, Monki, Cheap Monday, & Other Stories) as well as its wholly or partially-owned subsidiaries globally during our financial year 1 December 2014 to 30 November 2015, unless stated otherwise (for a full list of entities, please see our Annual Report 2015). We aim to tackle impacts wherever they occur in our value chain, and this is reflected in our reporting wherever possible. Information limited in scope to only one of these brands or any other limitations or deviations in scope are clearly stated in the respective section of this report. Unless stated, franchise operations are not included.

The report was reviewed by the highest executive management and external assurance has been per­formed for selected indicators (clearly marked and where applicable as well as in regards to materiality and stakeholder engagement). Additional stake­holder comments and interviews have been included throughout this report. All data is collected by our sustain­ability team from the relevant func­tions within our organisation and from external parties such as suppli­ers or implementing partners. It is always reviewed by our internal con­trolling team in addition to relevant experts in our sustainability team as well as expert functions following a two-tier quality control principle. Any extrapolations or estimations are clearly indicated. The same goes for any changes in data methodologies or scope that may have an effect on data comparability.

All data is based on the best possible systems that are currently available to us and where applicable aligned with recognised standards. However, this needs to be seen in the light of con­tinued improvements of data systems, methodologies and scientific uncer­tainties. For example, while our GHG emissions accounting and reporting is aligned with the GHG Protocol and the emission factors we use are from publicly available sources such as the International Energy Agency (IEA), the Network for Transport Measures (NTM), Reliable disclosure system for Europe (RE-DISS) and supplier speci­fied emission factors. GHG emission data is subject to inherent uncer­tainties due to incomplete scientific knowledge used to determine emis­sion factors and resulting effects on measurements and estimations. The reported energy usage is based on invoiced data and data as reported by transport providers. Conversion between fuel usage and energy content has been done using energy values specified by the supplier or by using tabled values provided by national bodies.

Unless otherwise specified, all data concerning suppliers and supplier factories includes all suppliers and factories that were active and approved for production during the reporting period. Factories included in our scope are 1st tier manufacturing or processing (i.e. washing or dyeing), factories that are owned or subcontracted by our sup­pliers as well as (where stated) selected second-tier suppliers and suppliers for non-commercial goods (such as store interior suppliers).

Monetary amounts are reported mainly in the currency of transaction (usually SEK). Additional currency values are conversions as approximate figures based on the conversion rate on 30 November 2015, unless stated otherwise.

Additional information is provided at hm.com/conscious as well as in our financial and corporate governance reporting. Our most recent sustainabil­ity report was published in April 2014. We are signatories to the UN Global Compact and our annual Conscious Actions Sustainability Report also serves as our Communication on Progress (COP) for the UN Global Compact as well as the CEO Water Mandate. 

Global Reporting Initiative (GRI)

This report is prepared in accordance with the GRI G4 Sustainability Reporting Guidelines (Core). We have additionally included material indicators from the pilot of the Apparel and Footwear Sector Supplement. You can find the detailed GRI index at hm.com/gri.

UN Guiding Principles Reporting Framework

We are one of the first companies in the world to report on our human rights in line with the UN Guiding Principles Reporting Framework, the first comprehensive guidelines for companies to report on human rights issues in line with its responsibility to respect human rights set out in the UN Guiding Principles on Business and Human Rights. The detailed references to the UN Guiding Principles Reporting Framework can be found at hm.com/gri.

Process for identifying the most mate­rial aspects and their boundaries

In 2015, we reviewed the material aspects identified and published with our Conscious Actions Sustainability Report 2014. The process for defin­ing the report content and the aspect boundaries in our 2015 Report has been based on the following main steps:

Identification: Mapping aspects and creating a gross list

During 2013, we identified a gross list of aspects through an analysis of external standards such as the GRI G4 Aspect list, legis lation, investor and NGO questionnaires, peer reviews, business intelligence, life-cycle assessment results, stakeholder dialogues and stakeholder reports as well as media coverage. The gross list has been checked against GRI’s Sustainability Context and Stakeholder Inclusiveness tests.

Prioritisation: Scoring and prioritising aspects

To prioritise the most material aspects from this gross list, we scored the different aspects in regards to their influence on stakeholder assessment and decisions and their significance for economic, environmental and social impacts. Both categories were broken down into a number of differ­ent categories such as frequency raised by key stakeholders (weighted x3), frequency featured in media (weighted x1) and frequency raised in key sus­tainability benchmarks, rankings and indices (weighted x1) (to determine the influence on stakeholder assessment and decisions) as well as social and environmental impacts (weighted x1) and importance to business strategy (weighted x2) (to determine the signifi­cance of economic, environmental and social impacts). Scores were given by at least two internal experts per category as well as based on lifecycle assess­ment (LCA) data and existing strategy documents. This way, about 60 aspects could be identified as material. For the sake of user friendliness, these were thematically clustered into 25 focus areas and gathered in a materiality matrix. The impact scoring as well as the boundary descriptions were checked against GRI’s reasonability tests.

Validation of materiality matrix with key stakeholders

To validate the matrix, we selected at least one representative from each of our key stakeholder groups (including customers, colleagues, communities, suppliers and their employees, indus­try peers, NGOs, IGOs, policymakers and investors). Eleven stakeholder repre­sentatives were asked to provide feed­back on this materiality matrix. These organisations were chosen based on their know-how, their ability to make professional and critical judgements, and the coverage of aspects potentially material. Their comments were gathered systematically and are incorporated in the materiality matrix published in this report. The feedback from our external stake-holder representatives at large con­firmed this materiality analysis. No aspect was considered missing, but based on their feedback we moved the positioning of four aspects in the matrix. Throughout this process, we have used the principles of defining report content in order to secure a robust process. 

Review of materiality matrix in 2015

In 2015, we reviewed the outcomes of this process based on stakeholder feedback gathered with the release of our 2014 report as well as stakeholder engagement processes throughout the year and feedback from internal stake­holders. As a result, we found that our materiality matrix was still widely valid but performed a few minor adjustments to the scaling of some focus areas. We also updated our materiality assessment taking the UN Guiding Principles on Business and Human Rights and a new assessment of our salient human rights issues, as well as the new UN Sustainable Development Goals into account. Following this, we added a number of different aspects to our focus areas, namely land rights, access to clean water and harassment.

Process of defining our salient human rights issues

An important part of reporting our human rights work in line with the UN Guiding Principles Reporting Framework, is to determine the salient human rights issues associated with our business activities and business relationships. This thorough process took place during 2015. The starting point was to define who we impact through our business activities throughout our value chain, especially recognising those who have greater challenges in fulfilling their human rights, such as migrant workers, children and in some places women. The result of this mapping included both potential and actual human rights impacts. Amongst these we identified those which were salient by applying the criteria severity of the potential impact and the likelihood that this impact will occur. Our sustainability program continues to aim to address all our potential human rights impacts, including both salient and others. Consultations regarding the method and input to the identified salient human rights issues were conducted both internally and externally with close to one hundred people. Internally consultations were undertaken through workshops and dialogues on all levels of the

 

Sustainability Reports

GRI Index

We are committed to transparent reporting and want to provide information in a way that is most valuable to our diverse stakeholders.

Supplier compliance in detail

We dedicate major resources to monitor our suppliers` sustainability performance and support them in making improvements.

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