Case study
Background
To significantly reduce greenhouse gas emissions in our supply chain and achieve our net-zero target, we follow a two-pronged approach. Alongside supporting factories to switch to renewable energy, we are also helping them to cut the overall amount of energy they use.
Details
At H&M Group, we have an inhouse team of energy efficiency engineers based in our key production countries. They work with the factories we buy our products from to identify and help implement energy saving measures. For example, installing energy management systems, improving insulation of dying equipment and steam systems, and replacing outdated, inefficient equipment.
In addition, some factories have received financial support via our Green Fashion Initiative (GFI) to implement the actions identified as quickly as possible. These are two examples:
Meishida
At Meishida, a jersey fabric mill in China, we identified a series of energy efficiency and equipment upgrades. We supported the factory through GFI to replace outdated washing machines with modern, fully insulated versions. This cut both emissions and water usage.
LUGANG
At LUGANG, another jersey fabric mill in China, our energy efficiency engineers recommended replacing their fossil fuel driven dying equipment with an electric alternative that uses radio frequency technology, as well as upgrading all motors in the factory. Thanks to GFI the new equipment will be up and running before the end of 2024.
Outcomes
Since 2021 our team has worked with 200 of our supplier factories in Bangladesh, Cambodia, mainland China, India, Indonesia, Türkiye and Vietnam.
They have identified over 2,500 potential energy efficiency measures. If implemented, they will save energy approximately 1.5 million tonnes of CO2e each year, equal to around 10% of greenhouse gas emissions from our supply chain.
Our GFI investment at LUGANG is expected to save 3,000 tonnes of CO2e annually and at Meishida, 10,000 tonnes annually.
