News Article

H&M Group drives the agenda on collaborative financing solutions for impactful climate action

H&M Group is taking a leadership position in establishing collaborative financing solutions that enable the necessary decarbonisation of fashion supply chains. To realise this ambition, H&M Group, together with Southeast Asia’s largest bank, DBS, has initiated a collaborative finance tool – a first-of-its-kind green loan programme that facilitates supply chain decarbonisation in the apparel sector.

The 28th Conference of the Parties of the UNFCCC (COP 28), the world’s highest decision-making platform for climate issues, will bring together heads of state, climate experts, political leaders, youth delegates and civil society in Dubai this week. This time, the conference aims to build on previous successes and pave the way for future ambition to effectively tackle the global challenge of climate change. H&M Group’s and DBS’ representatives will be on site to engage on emerging policies and to discuss best practices and innovative solutions.

Accelerating net zero for supply chains requires the rapid scaling of low-carbon technologies and new, innovative financing models to drive adoption. The collaborative finance tool is a prime example of how we can create impact for suppliers. DBS is excited to be harnessing our extensive network in Asia, in partnership with H&M Group, to provide access to sustainable financing in a practical way – by directly funding factory upgrades to help suppliers improve their energy efficiency and decarbonise.

Tan Su Shan, Group Head of Institutional Banking, DBS

H&M Group has been engaged in climate mitigation for years and we continuously push ourselves to demonstrate climate leadership within our industry. We see that our industry is committed to tackle its negative climate impact. But we also see that impactful climate action requires collaborative financing. For us, sustainability investments are not only a responsible approach but a strategic necessity for future success.

Ulrika Leverenz, Head of Green Investment, H&M Group

In line with the group’s ambition to achieve net-zero CO2e emissions by 2040, H&M Group has for the past years set focus on making funding available to reduce greenhouse gas emissions across and beyond its own supply chain. Its Green Fashion Initiative enables supplying factories to invest in the technologies and processes needed to reduce energy demand and replace fossil fuels across the fashion industry.

To help accelerate the adoption of green initiatives across the supply chain, a collaborative finance tool was developed. Through the programme, suppliers get access to financing from DBS and technical support from sustainability consultant, Guidehouse, to embark on factory upgrades to decrease their climate impact. Unlike traditional banking solutions which seek to encourage such green activities indirectly, this programme directly provides financing with highly favourable terms to suppliers for specific GHG emission reduction activities, as approved by H&M Group.

Earlier this year, the collaborative finance tool completed the first successful transaction with a manufacturer in India to fund capital expenditures to reduce scope 3 greenhouse gas emissions. With the support of the loan, supplier Raj Woollen financed the installation of solar panels, energy-efficient motors, as well as water conservation technologies to conserve resources and reduce carbon emissions.

Raj Woollen is committed to its sustainability and environmental initiatives, and one key goal is to reduce the impact of our manufacturing processes on the environment. This joint project with H&M Group, Guidehouse, and DBS has been a successful combination of expert energy assessment, close support in selecting the most suitable technology solutions, and an attractive financing model. We are confident that this will ensure the highest possible results in our decarbonisation journey, and we are grateful for this partnership.

Sumeet Nath, Raj Woollen Industries

Recognising the complexity and scope of the climate challenge, H&M Group identifies collaboration as a cornerstone of its climate action framework and collaborative financing efforts as the only way to create rapid change at scale. Existing collaborative financing models and those currently under development have the potential to build an ecosystem of solutions. However, further commitment from brands and investors is needed to co-invest and share the financial responsibility of a project and give further alternatives to support suppliers in their decarbonization journey. H&M Group encourages other brands and financial institutions to join its initiative and the group’s COP28 delegation is looking forward to meeting involved stakeholders at the conference to continue the dialogue.


About H&M Group

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, & Other Stories, H&M HOME and ARKET as well as Afound. For further information, visit

About DBS

DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit

For more information, please contact:


Laura Katharina Engels
H&M Group Media Relations
Tel:  +46 8 796 53 00

Tania Tan
DBS Group Strategic Marketing & Communications
Tel: +65 96922887