H&M Group secures the business for future challenges and continues to create long-term value for customers and shareholders by having integrated and systematic risk management. Entrepreneurial thinking combined with a strong risk awareness and clear risk management frameworks creates the conditions for driving profitable growth over time. Investing in expertise, technology and robust processes strengthens H&M Group’s resilience and its protection of assets, interests and brands as well as customers and employees. Within H&M Group, risk management is used as a strategic method to identify needs and opportunities for innovation and expansion. Through a group-wide framework and clear processes, risks are identified and managed proactively in all parts of the business.
During 2025 a number of external risks and uncertainties were identified and handled within the company’s risk management processes. Most risks during the year related to external events, such as geopolitical uncertainty, decisions on tariffs, increased regulatory demands, and macroeconomic factors affecting the company’s costs. Given the nature of the business, exposure to external risks is still high and will remain high as geopolitical and global events represent a risk to the global supply chain and retail setup.
Read more about H&M Group risk management on page 40 in the annual and sustainability report.