Amid the global push for sustainability, H&M takes the lead in emissions reduction, while Patagonia emphasizes cutting emissions across supply chain rather than simply pursuing carbon neutrality. (Image: Wikipedia Commons)
The global push for sustainability has reached the fashion industry, with Swedish fashion giant H&M leading emissions reduction rankings. The company has been particularly recognized for its transparency in data reporting. While some experts caution that H&M may face bottlenecks in its carbon reduction, its performance so far remains strong.
Meanwhile, American outdoor brand Patagonia, known for its environmental advocacy, argues that achieving carbon neutrality is not enough. It stresses the need to cut emissions throughout the supply chain to mitigate climate risks.
H&M leads the industry in net-zero through green energy procurement and supply chain emissions cuts
Starting with its emissions reduction targets, H&M outlined clear targets and action plans in its 2025 sustainability report, aligned with global ambition to limit warming to 1.5°C. The company aims to reduce absolute Scope 1 and Scope 2 emissions by 56% by 2030 compared to the 2019 levels, and to cut absolute Scope 3 emissions by 90% by 2040 while achieving net-zero commitment.
H&M aims to achieve its net-zero target by 2040, ten years ahead of the fashion industry’s general 2050 goal. According to a report by Fashion Revolution, a global fashion activism movement, H&M is among the few brands whose carbon reduction targets align with United Nations standards. Other brands recognized in the report include Patagonia, Japanese sportswear company ASICS, and UK retailer Market & Spencer.
To support its emissions targets, H&M has identified nine key strategies (see table below), of which the use of power purchase agreement (PPA) and unbundled renewable energy certificates (RECs) has significantly increased the company’s procurement of renewable energy, leading to a 41% reduction in absolute Scope 1 and Scope 2 emissions. As of 2024, renewable electricity accounts for 96% of the group’s total energy consumption.
In the fashion industry, the supply chain is typically divided into three tiers: Tier 1 refers to garment manufacturing, Tier 2 covers fabric production, and Tier 3 involves yarn suppliers. According to H&M, the majority of supply chain emissions come from Tier 1 and Tier 2, which together account for 49% of total Scope 3 emissions.
Coal-fired boilers are one of the major sources of carbon emissions in apparel manufacturing. To eliminate coal use by 2026, H&M has been actively supporting suppliers in their transition and seeking alternative partners. Over the past two years, the number of Tier 1 and Tier 2 suppliers using coal-fired boilers has dropped from 118 to 27. In 2024, H&M extended its decarbonization efforts to Tier 3 suppliers, identifying 12 companies still operating coal-fired boilers for the first time.
In addition, H&M has invested in the thermal energy storage technology developed by startup Rondo Energy and supports its suppliers in adopting the solution. The technology works by heating heat-resistant bricks to 1,500°C using renewable energy and storing them in insulated steel containers. When needed, the stored heat is converted into steam, helping reduce energy consumption and carbon emissions.
H&M’s detailed reports are open to public scrutiny, and the company publishes an updated list of over 6,000 global suppliers monthly. The list includes fabric producers, tanneries, dyeing facilities, and other key players in its garment manufacturing supply chain, offering full transparency.
The majority of H&M’s carbon emissions come from fabric and garment production, accounting for nearly half of its total Scope 3 emissions. (Image: H&M)
Experts call for stronger circular economy as H&M faces emissions reduction obstacles
However, H&M’ Scope 3 emissions rose by 3% in 2024 compared to the previous year, primarily due to an increase in material weight and a slight rise in air freight volume, highlighting the ongoing challenges in meeting its reduction targets.
Ken Pucker, a senior business lecturer at Tufts University and consultant at Berkshire Partners, noted that H&M’s target of reducing emissions by 56% by 2030 will be difficult to achieve. In addition to requiring an annual reduction of 10%, the goal could also undermine the company’s revenue growth.
H&M plans to ensure that all materials used are either recyclable or sustainably sourced by the end of 2030. As of 2024, it has achieved 89% of this target. However, some experts believe there is still room for improvement.
Chana Rosenthal, founder of consultancy ReDesign, pointed out that the data excludes materials such as lining, fillings, and pocket components. She suggests treating all components as part of the product’s overall material footprint to improve recyclability and potentially increase revenue from circular economy.
Seattle-based independent fashion advisor Lauren Fay has recommended creating a Chief Returns Officer role to help product team gather return data and use it to improve product design, thereby strengthening the foundation for a circular business model.
With over 90% of emissions coming from supply chain, Patagonia targets materials first
Patagonia, widely recognized as a leader in sustainability, has set a 2040 deadline for achieving net-zero emissions. The company aims to reduce absolute Scope 1 and Scope 2 emissions by 80%, and Scope 3 emissions by 55% by 2030 compared to the 2017 levels.
Patagonia emphasizes on its official website that achieving carbon neutrality through purchasing carbon credits does not truly eliminate its carbon footprint and is not a cost-effective strategy in the long run. The company stresses the need to take responsibility for reducing emissions, particularly those generated across the supply chain and in material production, which account for as high as 95% of its total corporate emissions.
To reduce emissions, Patagonia starts from using organic cottons and has committed to ensuring that 98% of its products are made from environmental-friendly materials by 2025. The company aims to fully transition away from petroleum-based synthetic fibers. It also actively incorporates recycled materials, such as regenerated nylon made from discarded fishing nets, and applies internal carbon pricing to improve product design and material choices.
Despite being a leader in ESG, Patagonia’s founder Yvon Chouinard said that the work of persuasion is never done. He believes it is essential to keep pushing companies and suppliers to adopt cleaner energy and more responsible materials.
While the two leading fashion brands share similar approaches to carbon reduction, both emphasize the importance of supply chain engagement. The rising awareness of sustainability among younger generations is putting increasingly pressure on companies to confront their carbon emissions. As fast fashion continues to shape global trends, sustainability is becoming a key factor in market competitiveness, opening new possibilities for the industry’s transition to net zero.
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