H&M sustainability progress in 2025 and what it means for packaging

What H&M sustainability means now

The question around H&M sustainability is not whether the company can be labelled sustainable in a simple yes-or-no way. H&M Group’s latest reporting shows measurable progress in lower greenhouse gas emissions, greater use of recycled materials, reduced plastic packaging and a growing resale business. At the same time, H&M remains a high-volume fashion retailer. Its sustainability performance therefore depends on whether absolute impacts continue to fall while products are still designed, shipped, sold, returned and sometimes discarded at scale.

Packaging is a useful place to test those commitments because it is more measurable than broad brand language. It can be weighed, specified, certified, redesigned and audited through procurement systems. H&M’s 2025 figures indicate a move toward less plastic, more certified paper and cardboard, and higher recycled content. They also show why circular packaging requires more than replacing one material with another.

This article reviews H&M Group’s 2025 sustainability data, its packaging targets, the regulatory pressure behind those targets, and what packaging professionals can realistically learn from the company’s approach. For more industry updates on packaging and environmental strategy, see our sustainability insights.

The latest reported H&M sustainability numbers

H&M Group’s Annual and Sustainability Report 2025 covers the financial year from 1 December 2024 to 30 November 2025 and was published on 26 March 2026. The report presents performance across climate, materials, packaging, water, chemicals, labour and circular business models. The important point is that the company reports against dated targets, not only general sustainability commitments.

On climate, H&M Group has a 2030 target to reduce absolute Scope 1, 2 and 3 greenhouse gas emissions by 56 percent against a 2019 baseline. Its longer-term target is to reach net zero by 2040 by reducing Scope 1, 2 and 3 emissions by at least 90 percent and balancing remaining emissions with permanent carbon removals. H&M states that these goals have been verified by the Science Based Targets initiative.

For 2025, H&M reported a 41 percent reduction in Scope 1 and 2 emissions and a 35 percent reduction in Scope 3 emissions against the 2019 baseline. The distinction matters. Scope 1 and 2 cover the company’s own operations and purchased energy, while Scope 3 covers the broader value chain, including raw materials, supplier manufacturing, transport and end-of-life treatment. For a fashion business, Scope 3 is usually the harder and more material area because most impact sits outside stores and offices.

Materials are another central part of the company’s sustainability reporting. H&M said 91 percent of materials sourced for commercial goods were recycled or sustainably sourced in 2025, including 32 percent recycled materials. The 32 percent figure is particularly useful because recycled content is usually easier to measure than broad preferred-material language. Even then, the environmental result still depends on feedstock, durability, recyclability and whether recycled inputs actually displace virgin resources.

Packaging is a practical test of circularity

H&M’s packaging targets are relevant for brands, converters and packaging buyers because they translate circularity into procurement rules. H&M’s 2025 packaging target was a 25 percent reduction in plastic packaging against a 2018 baseline. The company reported 60 percent progress against that baseline in 2025, meaning it exceeded the original reduction target. It has also set a 2030 target for 100 percent of packaging to come from recycled or sustainably sourced materials, with preference for post-consumer recycled materials.

In 2025, H&M reported 89,165 tonnes of packaging material, down from 92,038 tonnes in 2024. The company attributed the decrease mainly to streamlining retail and transport packaging. That reduction is more meaningful than a simple material swap because it addresses total packaging volume. For circular packaging, the first question is not only whether a material is paper, plastic or recycled. It is whether the pack is necessary, right-sized and compatible with available collection and recycling systems.

The table also shows a tension packaging teams know well. If a company reduces plastic and shifts more weight into paper or cardboard, the recycled-content percentage may not automatically rise. H&M reported that recycled packaging materials reached 51 percent in 2025 and noted that reductions in plastic and cardboard packaging affected categories where recycled-content shares were already high. In practice, circularity metrics can move in different directions at the same time: less total packaging, less plastic, more certified paper and a stable recycled-content share.

Climate progress depends on suppliers, transport and energy

H&M’s climate plan is not limited to stores and offices. The company’s reporting points to supplier energy, production processes, renewable electricity and transport as major levers. In its 2025 report, H&M said it aims for suppliers in tiers 1 to 3 to source 100 percent renewable electricity for garment production by 2030, from spinning to finished product. It also aims to phase out on-site coal in the garment supply chain by 2026.

For packaging and logistics teams, the lesson is that emissions reduction depends heavily on supplier capability. A packaging material may look better on a specification sheet, but its actual impact depends on energy sources, manufacturing efficiency, transport distances, damage rates and end-of-life infrastructure. A lighter mailer that causes more product damage may not be better overall. A certified paper solution may reduce plastic use, but it can still add fibre demand if reuse or right-sizing is ignored.

H&M also reported that its Green Fashion Initiative has supported supplier projects since 2023, with operational projects reducing emissions during 2025. The broader point is transferable: brands cannot usually decarbonize supply chains by issuing requirements alone. They need supplier data, capital access, technical support and credible verification. Packaging suppliers should expect more requests for energy data, recycled-content documentation, chain-of-custody certificates and design-for-recycling evidence.

Regulation is making packaging claims more demanding

H&M’s packaging strategy should also be read against tighter regulation. In the European Union, the Packaging and Packaging Waste Regulation entered into force on 11 February 2025 and its rules began applying in phases from 12 August 2026. The regulation pushes packaging toward recyclability, recycled content, clearer labelling, waste prevention and reduced unnecessary empty space. For global retailers, EU requirements often influence worldwide packaging specifications because fragmented packaging systems are expensive to manage.

Textiles are also facing a broader circularity push. The EU Strategy for Sustainable and Circular Textiles points toward more durable, repairable and recyclable textile products, digital product information, extended producer responsibility and reduced destruction of unsold goods. Under the Ecodesign for Sustainable Products Regulation, large companies face restrictions on destroying unsold textiles and footwear from July 2026, with related transparency expectations growing across the sector.

These rules matter for H&M sustainability because they move the discussion from voluntary brand positioning to compliance, technical documentation and verifiable claims. Packaging claims such as recycled, recyclable, compostable, plastic-free or sustainably sourced must be supported by definitions, testing, supply-chain records and market-specific rules. The direction is clear: vague environmental language is becoming riskier, while specific measurable claims are becoming more valuable. See also: BOX DESIGN.

Where H&M sustainability still faces scrutiny

Progress data does not remove scrutiny. H&M has previously faced criticism over consumer-facing sustainability claims. In September 2022, the Netherlands Authority for Consumers and Markets announced commitments from H&M and Decathlon to provide clearer information after concerns about general terms such as Conscious that did not immediately specify the sustainability benefit. That episode remains relevant because sustainability communication is now judged not only by intent, but also by clarity, proximity and evidence.

Non-governmental organizations have also criticized the fashion industry’s reliance on synthetic fibres and questioned whether recycled polyester claims can distract from overproduction and fossil-based materials. Those criticisms do not cancel every improvement in recycled content, but they highlight a real limitation: using more recycled inputs is not the same as creating a fully circular system. A circular model also needs lower virgin demand, longer product life, repair, reuse, fibre-to-fibre recycling and responsible end-of-life management.

For H&M, resale is one attempt to address that issue. The company reported resale in 26 markets in 2025 through Sellpy and group brands, representing 0.8 percent of turnover, up from 0.6 percent in 2024. The increase is notable, but the share is still small relative to the core retail business. From an industry perspective, resale becomes strategically important only if it grows without simply adding another consumption channel on top of high-volume new production.

What packaging teams can learn from H&M’s approach

The first lesson is to track absolute tonnes as well as percentages. Percentages can improve while total material use rises, or they can stagnate while absolute use falls. H&M’s reporting includes both total packaging weight and material shares, giving packaging teams a more practical view of progress.

The second lesson is to separate recycled content from broader sustainable sourcing. A package can be FSC certified, recycled, recyclable, reusable or reduced in weight, but those are different claims. Combining them into one headline number may be useful for management reporting, yet procurement teams still need the underlying detail.

The third lesson is to simplify packaging systems before chasing complex substitutions. H&M attributed part of its packaging-weight reduction to streamlining retail and transport packaging. For many brands, eliminating unnecessary layers, reducing void space, standardizing formats and improving return packaging can deliver faster gains than switching to a novel material that lacks recycling access.

The fourth lesson is to prepare for documentation. Recycled-content claims need supplier declarations, certificates and calculation methods. Paper and cardboard claims need chain-of-custody evidence. Recyclability claims need market-specific design guidance. As regulation tightens, packaging sustainability will increasingly look like quality management: specifications, audits, records and continuous improvement.

Frequently asked questions

Is H&M a sustainable company?

H&M has published measurable sustainability targets and reported progress on climate, materials, water, packaging and resale. However, it is still a large fashion retailer, so its sustainability performance should be judged by absolute reductions, product longevity, supply-chain change and the scale of circular business models, not by selected claims alone.

What is H&M’s main climate target?

H&M Group targets a 56 percent reduction in absolute Scope 1, 2 and 3 greenhouse gas emissions by 2030 against a 2019 baseline. It also targets net zero by 2040 after reducing emissions by at least 90 percent and addressing remaining emissions with permanent carbon removals.

What has H&M reported on packaging sustainability?

In 2025, H&M reported 89,165 tonnes of packaging material, 86 percent recycled or sustainably sourced packaging, and 51 percent recycled packaging material. It also reported that plastic packaging had been reduced by 60 percent against a 2018 baseline.

Why is packaging important in fashion sustainability?

Packaging connects product protection, logistics, e-commerce returns, branding, waste and regulation. It is also highly measurable, which makes it a useful indicator of whether sustainability commitments are being translated into real procurement and design decisions.

What should brands avoid when discussing sustainable packaging?

Brands should avoid vague claims such as eco-friendly, conscious or green unless the benefit is clearly explained and supported. Stronger claims are specific: recycled-content percentage, certified fibre source, reduced packaging weight, tested recyclability or verified reuse system.