Episode
Can H&M Prove Sustainability is a Growth Engine?
- Published
- Apr 8, 2026
- Duration seconds
- 1640
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- https://shows.acast.com/the-business-of-fashion-podcast/episodes/69d66ecd34b90cef2b99e1e1
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Summary
In March, H&M released financial results alongside its annual sustainability report, presenting two seemingly contrasting narratives. The company reported a 34.6 percent reduction in emissions from 2019 levels and also noted that 91 percent of its materials are now sustainably sourced. However, this environmental progress occurred alongside a 1 percent dip in sales, raising questions about the commercial viability of its green strategy. While many industry peers are backing away from environmental messaging to focus on the bottom line, H&M is arguing that sustainability is not in tension with profit, but is rather a "core driver of future growth". On The Debrief , we examine whether this decoupling of growth from environmental impact can truly resonate with consumers, or if it remains a purely internal metric. Key Insights: As a fast fashion brand, H&M understands that sustainability alone is not going to win back shoppers. Instead, Walid says the company is trying to translate its recent efforts into something more tangible at the point of purchase. The pitch is not that consumers care about emissions reporting in itself, but that sustainability can function as a marker of quality. As Leyla Ertur, H&M’s Head of Sustainability, told Walid during their conversation, “Our customers don’t care about our Scope 3 emissions going down. What they care about is what they’re buying.” Walid suggests that one of H&M’s biggest challenges is the disconnect between how the company sees itself and how customers perceive it. “When we say H&M, I think people are thinking of H&M, the brand … But when H&M talks about itself, they’re talking [about] the whole conglomerate,” she says, pointing to brands like COS and Weekday, which occupy a more…