H&M has issued a 500 million euro sustainability-linked bond which will encourage it to meet its previously announced 2025 sustainability targets. The targets that H&M Group has committed to achieving by 2025 are: Increase the share of recycled materials used to 30 percent. Reduce emissions from the Group’s own operations by 20 percent. Reduce absolute Scope 3 emissions from fabric production, garment manufacturing, raw materials, and upstream transport by 10 percent.
The bond will be listed on the regulated market Euronext Dublin and has been placed with the assistance of BNP Paribas, Commerzbank, Danske Bank, SEB, and Standard Chartered. H&M explicitly has two main strands to their ‘sustainability’ aims. The first is their Conscious collection of clothing, and the second is their clothing recycling service, allowing customers to take old clothing from any brand to their stores to be recycled.
Helena Helmersson, CEO of H&M, said, “Our customers are showing on a daily basis that they appreciate H&M Group’s offering with the best combination of fashion, quality, price and sustainability. Today’s successful bond issue is proof that the financial market also values our ambitious sustainability work and we look forward to working together for a sustainable industry.”