Our respOnsibility - H&M.com

Our
responsibility
About H&M and
social responsibility

Our responsibility
H&M’s business concept is to offer our customers fashion and quality
at the best price. At H&M, quality is about more than making sure that
our products meet or exceed our customers’ expectations. It also
means that they have to be manufactured under good conditions and
that our customers must be satisfied with us as a company. Taking
responsibility for how our operations affect people and the environment
is also an essential prerequisite for H&M’s continued profitability and
growth. Here we explain how we do this.

Contents
PAGE 6
Follow Tobias Fischer and Payal Jain, two of around 40 H&M
auditors, during a typical working day in New Delhi.
PAGE 8
The code of conduct is an agreement that all H&M’s
suppliers have to comply with. It sets out the company’s requirements
concerning aspects such as good working conditions.
PAGE 12
MeeT MUHAMMED AKHTARUZZAMAN, factory manager in Dhaka,
Bangladesh. He tells us all about working with H&M and what
effect this has had on his factory.
PAGE 14
Rokeya Rafique and Shirin Akter are two representatives of
the Karmojibi Nari organisation in Bangladesh. Read about what
they think of the co-operation with H&M.
PAGE 16
H&M’s world: this shows where our goods are produced and
where they are sold, and what development projects we support.
PAGE 20
H&M’s code of conduct suppliers to comply with the
environmental legislation applicable in their own country. We
also encourage them to take more environmental responsibility
than the law requires.
A shared
responsibility
During a recent trip to Asia I had the
opportunity to visit several of our suppliers,
including some in China. I also met some of
H&M’s auditors, whose job it is to monitor
compliance with our code of conduct, and
gained an insight into the extensive work that
goes into improving the working conditions in
our suppliers’ factories. It was reassuring to
see for myself how effectively this part of our
organisation functions.
I am in no doubt that long-term profitability
and good relations with our customers and
other stakeholders depends upon us taking
responsibility for how people and the
environment are affected by what we do. We
are continually receiving input from the world
around us, not least from customers and
employees, indicating that the environment
and social responsibility are issues that
engage people.
H&M has signed up to the UN’s Global
Compact and supports its ten principles. We
want to send out the message that we are
prepared to act in accordance with Kofi
Annan’s appeal to companies to respect
human rights and to contribute to sustainable
development within the areas we can affect.
H&M also supports the OECD guidelines for
multinational enterprises and is a member
of the Amnesty Business Group.
The CSR department* reports directly to me,
so I have been able to follow this important
work closely. This means I can assure H&M’s
customers, staff, shareholders and other
stakeholders that we are devoting our
expertise and our commitment to pressing
ahead with this work. We have already made
good progress, but to be successful in our
quest for a better society we also have to
continue working closely in partnership with
others.
Rolf Eriksen, CEO, H&M
“ It is important for
us to accept our
responsibility and
to press ahead
with this work.”
ROLF ERIKSEN
DANISH
STOCKHOLM, SWEDEN
WIFE AND TWO CHILDREN
CEO, H&M
* CSR stands for corporate social responsibility, and means that the company voluntarily takes account of social and
environmental issues in the way it operates, to help contribute towards sustainable development.
NAME
NATIONALITY
LIVES IN
FAMILY
PROFESSION

Did you know that... Around 750 people work at H&M’s offices in the
manufacturing countries. Most of them are locals.
A day in the life of an auditor
Payal Jain and Tobias Fischer are two of around 40 auditors
working for H&M. Their job is to inspect working conditions at
H&M’s suppliers and to check that the ILO core conventions and
H&M’s Code of Conduct are being respected. Payal and Tobias
work together, visiting suppliers in and around New Delhi.
Outside New Delhi. It is early in the morning
when Tobias Fischer and Payal Jain arrive at
the factory gates in their car. No one knows
they are coming today. Tobias and Payal wear
H&M ID badges so that the guards and the
factory staff know who they are. Six months
ago, auditors carried out a comprehensive
inspection of the working conditions at the
factory and Payal and Tobias are here today
to find out whether the supplier has achieved
the short-term goals set during that visit.
“ We want the suppliers to
strive for lasting improvements
because they can see the
benefits for themselves.”
Code of conduct is the starting point
Like all of H&M’s suppliers, the factory has
signed up to a cooperation agreement –
H&M’s Code of Conduct – promising to comply
with local legislation and H&M’s requirements
regarding the working environment. The
agreement also contains a provision stipulating
that H&M’s auditors can make unannounced
visits.
“We carry out an extensive audit whenever
we start working with a new supplier. This
takes between two and seven days. We work
with the factory managers to identify key areas
for improvement, and decide on a plan of
action. The plan contains both long-term and
short-term goals and sets out how the goals
should be achieved, who will be responsible
and when the work should be completed,”
explains Tobias.
Unannounced visits
Payal and Tobias enter the factory and ask for
the manager. He greets them and accompanies
them on a tour of the factory. Since H&M first
introduced the code of conduct in India in
1998, the auditors have made repeated visits
to the factories.
“To begin with the factory owners were a
little unused to the idea of being inspected like
this. Now they understand that unannounced
visits are part and parcel of the way we work,
and few are surprised when we turn up out of
the blue,” says Payal.
Improvements implemented
The auditors check the fire escapes and
discuss safety routines with a factory
representative. These include the provision
of fire alarms, emergency exits and fire
extinguishers, but also cover aspects such as
making sure the factory is always clean and
tidy and that there are a sufficient number of
good, clean toilets. The working environment
is important, both for the workers’ wellbeing
and for the quality of the clothing produced.
Payal notes that the working environment has
improved considerably since the last visit.
In the past there had been problems with
material remnants from the cutting machines
and thread from the production area being left
lying around. Now the factory has employed
more cleaners, supplied suitable tools and
equipment and introduced better routines.
The factory is clean and is now a safer and
more pleasant place for the employees to
work.
Overtime a problem
When Payal and Tobias have finished the
factory inspection they go to the supplier’s
office to examine the paperwork relating to the
employees. They check payroll information
and employee records, and see how much
overtime has been worked. Recently, some
departments at the factory were understaffed.
This hampered production and led to
excessive amounts of overtime being worked.
Having inspected the time cards, payroll
information and production records, Tobias
and Payal can confirm that the overtime has
been reduced, but it is still above the legal
limit. The supplier will have to continue
following the action plan.
Then it’s time to drive back to H&M’s offices
in New Delhi to document the visit and to
report back to the CSR department at head
office in Sweden.
Influencing attitudes
The auditor’s job is far from simple because
it involves influencing other people’s attitudes
and behaviour. Payal explains:
“It can be quite a tough challenge to persuade
suppliers that they have a lot to gain from
H&M’s Code of Conduct and the cooperation
with us. I try and get them to see that it can
make their employees more motivated and may
well even increase productivity. We want the
suppliers to strive for lasting improvements
because they can see the benefits for themselves,
not just because the buyer says they
have to. Their task, as I see it, is to put us out
of a job.
Tobias Fischer and Payal Jain are two of around 40
employees who check that suppliers are complying
with H&M’s Code of Conduct.

Did you know that... H&M signed up to the UN Global Compact in 2001.
Our code of conduct
– a long-term commitment
We are all dependent upon sustainable development. Polluting water
and spoiling other natural resources is not sustainable, nor is violating
human rights. That’s why more and more companies are drawing up
special regulations, so-called codes of conduct, for their suppliers.
H&M’s code of conduct was drawn up in
1997 and is based on the UN Convention on the
Rights of the Child and the ILO’s conventions
on working conditions and employment rights.
It exists because we want our products to be
manufactured under good working conditions.
A code of conduct must be more than just
fine words; it has to be rooted in reality.
Factories that don’t meet the requirements of
H&M’s Code of Conduct receive assistance to
help them improve and to develop. That’s why
we have around 40 auditors working full time,
checking that suppliers comply with our code
and giving the factories advice and assistance.
The aim is to get them to see for themselves the
long-term benefits that improved conditions
can bring. H&M also has a 150-strong team of
inspectors whose job is to control the quality of
the clothes. They can also report any breach of
the code of conduct they may spot during their
factory visits.
Read more about the background to H&M’s Code of
Conduct on page 10 or at www.hm.com/csr.
H&M’s Code of Conduct exists because we want our
products to be manufactured under good conditions.
H&M’s code of conduct includes
the following stipulations:
Ban on child labour
Fortunately, child labour is not a common
occurrence at the factories that manufacture
H&M products. If H&M were to find a child who
was below the statutory minimum age working
at one of our suppliers, we would work to find
a solution that was in that individual’s best
interests. Co-operation would end if the
supplier repeatedly breached H&M’s ban on
child labour.
Good working environment and fire safety
The factories where H&M’s clothes are made
have to provide a clean and safe working
environment. There must be a high level of fire
safety, and regular fire drills must be held.
Emergency exits must be clearly marked and
must not be blocked. The lighting must work
properly and all areas must be kept clean.
Reasonable working hours and wages
Wages must be paid regularly and should be
in proportion to the work carried out. Overtime
must be voluntary and properly compensated.
Female employees must have a right to
maternity leave.
Right to organise and ban on
discrimination
All employees have a right to an employment
contract and the right to organise. There must
not be any discrimination on the grounds of
gender, religion or ethnic background.
ILO conventions
The International Labour Organisation (ILO) is a UN
body consisting of representatives of government,
employer organisations and trade unions. It works
to improve working and living conditions by
drawing up conventions and recommendations
concerning wages, working hours, employment
conditions and social systems.
Read more at www.ilo.org.
UN Convention on the Rights of the Child
The UN Convention on the Rights of the Child
applies to children and young people throughout
the world. Most countries have signed up to the
Convention, whose principles state that all children
are of equal worth, that all children have the right to
an education, care and security and that persons or
bodies who make decisions that affect children
must do so based on the child’s best interests.
Read more at www.unicef.org/crc.
Environmental and chemical restrictions
H&M requires its suppliers to take responsibility
for the impact they have on the environment.
This means that in addition to complying with
the legislation applicable in their own country,
they also have to sign an agreement promising
to comply with H&M’s chemical restrictions.
These safeguard our customers’ health and
safety, as well as the environment.
The full text of the code of conduct can be found at
www.hm.com/csr.
Talking to factory employees provides an insight into the
situation at their workplaces.

10 Did you know that... H&M has carried out more than 15,000 factory inspections since 1998.
11
Active co-operation
H&M does not accept
child labour
H&M does not own or operate any factories
of its own. Our clothes and other products are
manufactured at around 700 supplier factories,
with most of the production taking place in
Asia and Europe.
Stipulating standards of production, both in
terms of the quality of the clothes and the
working environment in the factories, is nothing
new for H&M. We have long held the view that
as a company, we have a responsibility for
everyone who contributes to H&M’s success.
“We have learned to take one
small step at a time, always
making sure we’re moving
in the right direction.”
H&M drew up its own code of conduct in 1997
to combat substandard working conditions.
Child labour was very much in the news at the
time, and was a pressing issue, so we also got
the Save the Children organisation involved in
the drafting of the code of conduct. H&M’s own
experience was also an important influence on the
final shape of the document. Ingrid Schullström,
who is responsible for the environment and
social responsibility at H&M, was one of those
who helped get the project off the ground.
“More concrete effort and pro-active work was
needed from H&M,” says Ingrid Schullström.
“These are important issues and we want to take
our responsibility. We have already come an
unbelievably long way, and work is still ongoing.
We’re now at the stage where we’re focusing on
more specific and complicated issues such as
trade union rights. We have learned to take one
small step at a time, always making sure we’re
moving in the right direction.”
Textile worker in Cambodia, where H&M works with ILO’s
Better Factories Cambodia.
H&M takes the issue of child labour
extremely seriously. The code of conduct
states very clearly that child labour is not
permitted in the suppliers’ factories.
If any of H&M’s auditors discovers a person
who is still below the statutory minimum age
for work, we try and find the best possible
solution in consultation with the supplier and
the child’s family. We take account of the
child’s age, level of education and conditions
at home. The solution often involves some
form of education. It is very important that any
change leads to an improvement in the
situation of the individual person. If the child is
just forced out of the factory without any
follow-up, there is unfortunately a risk that he
or she may end up doing other, heavier work.
But if H&M discovers repeated breaches of
its ban on child labour at the same supplier or
one of its subsuppliers, the cooperation will be
ended for good.
How do we make sure there
is no child labour?
When inspecting the factories, H&M’s auditors
keep an eye out for any workers who look too
Training is an effective way of preventing child labour.
young. It is also the job of the auditors to check
employment papers and other documentation
concerning the employees. Any gaps in the
paperwork might indicate there is a problem.
The auditors can then provide advice on how
the employer can organise the hiring of new
staff to make sure no underage employees are
taken on, such as requiring a birth certificate.
What is the age limit?
H&M’s child labour policy is based on the UN
Convention on the Rights of the Child and ILO
convention 138, but also on the national
legislation of the country concerned. The basic
rule is that no one under the age of 15 should
be employed at the suppliers’ factories.
A better situation for children
We are aware of the vulnerable situation of
children in many parts of the world. That’s why
we work actively both with our suppliers and
with local organisations to improve children’s
future prospects. We support UNICEF’s work
with girls’ education.
Read more about UNICEF on page 19.

Did you know that... H&M is the largest European buyer of clothes from Bangladesh.
13
A factory manager reports
A large number of H&M garments are produced at the factory
FCI (Fashion Club International) in Dhaka, one of the better
factories in terms of compliance with H&M’s Code of Conduct.
Chief operating officer Muhammed Akhtaruzzaman’s philosophy
is to maintain a family atmosphere in the factory and involve the
workers in the company and its development.
“When the workers are part of the result and
get something out of it, they are motivated and
feel a sense of responsibility,” Muhammed
Akhtaruzzaman explains.
According to his philosophy, the workers at
FCI take part of the profit through additional
performance bonuses and attendance bonuses.
There is a policy for equal opportunity and
equal treatment and all sewing operators have
a chance to advance.
“We have 60 to 70 supervisors who were all
promoted from the floor. 90 per cent of the
office staff also started their career on the
factory floor.”
”Human resources play
a vital role in building up
a successful industry.”
Focus on the working environment
Almost 1,400 people work in the one-storey
building where FCI operates. A great deal of
effort has gone into creating the interior
environment. The sewing area is light and
clean, and an air-conditioning system keeps
the air cool. FCI provides the employees with
free transportation, group and life insurance,
75 per cent subsidized lunches and free
snacks. There are two separate praying areas
in the factory, as well as medical and childcare
facilities. And, in addition, a welfare fund has
been formed in order to support workers
financially when there is a special need.
“I believe the fund is quite unique,” says
Muhammed Akhtaruzzaman, who used to be
a legal advisor before he became garment
factory manager.
He explains that generally in Bangladesh,
garment workers are not organised, or they do
not benefit much from the trade unions. At FCI,
the workers’ representation welfare committee
(WRWC) is the workers’ voice. Once a month
the WRWC meets with the management to
exchange views and bring up issues.
Workers’ committees
“Our workers’ welfare committee was initially
formed at the request of H&M. They gave us
ideas about how to act and how to identify
code of conduct issues,” says Muhammed
Akhtaruzzaman. “I believe that everyone
should have a code of conduct and follow it
rigorously. It benefits not only the workers but
the production and the quality as well. Human
resources play a vital role in building up a
successful industry”.
Despite numerous good practices, FCI
still has a few issues to sort out. Excessive
overtime is one of them. H&M’s audits have
shown that some of the workers have worked
long hours and for too long without days off.
The factory is to address these issues, and the
progress will be followed up by H&M.
Muhammed Akhtaruzzaman runs FCI in Dhaka in
Bangladesh.

14
Did you know that... H&M has been dealing with Bangladeshi suppliers for more than 20 years.
“ The most important thing is
the change of attitudes”
“The garment sector has brought a silent
revolution for women in our society,” claims
Shirin Akter, a labour rights activist since 1970
in Bangladesh. She is a strong and well-known
voice for garment workers and president of the
women’s rights organisation Karmojibi Nari
(KN), meaning “working woman”. In August
2004, H&M and KN started a project with the
objective of increasing awareness among
garment workers of their rights. A training
programme was developed primarily for female
workers, focusing on gender equality and
workers’ relations with management in factories
producing for H&M.
“Our society is a patriarchy and the trade
unions are male dominated. Women have
always believed that it is a man’s job to speak
out. The female workers have little knowledge
of labour laws,” Shirin Akter explains.
Seeing things in a new light
Rokeya Rafique, a famous actress in Bangladesh,
is doing the training.
“Each and every session is an eye-opener
for the participants,” Rokeya says. “The most
important thing is the change of attitudes.
After the training, women know there are laws
for maternity leave, equal pay for equal work
and overtime. They become brave. They feel
equal, they can talk to the management or a
colleague about their problems.”
The training groups consist of randomly
selected participants at a number of factories.
The groups are 20 per cent male and 80 per
cent female workers – the same proportions as
in the garment sector in Bangladesh. Leaflets
are circulated at the factories and each
participant has the task of sharing the new
knowledge with five colleagues. Welfare
officers have also been trained by KN. Their
task is to educate employees and middle
management in workers’ rights, with the aim
of improving relations between workers and
management.
” Our society is a patriarchy
and the trade unions are
male dominated.”
Still plenty to do
The contradiction of manufacturing companies
which operate in poor, developing countries
implementing codes of conduct but squeezing
costs at the same time is not lost on Shirin
Akter. But she is convinced this kind of
cooperation will benefit both sides.
“If it is not only cosmetic but really for the
benefit of the workers and business, then we
have many things to do. H&M’s programme is
integrated and long term. We are very pleased
and proud of our co-operation and of the fact
that H&M is concerned about workers’ rights,”
concludes Shirin Akter.
Rokeya Rafique and Shirin Akter campaign for
workers’ rights in Bangladesh.

16
17
Global responsibility
H&M’s world is growing year by year. As we expand, our
area of responsibility also grows wider. The map shows
where we sell our products and where our products are made.
Cooperation and partnership
UN Global Compact
H&M supports the ten principles of the Global
Compact on human rights, working conditions,
environment and anti-corruption. Global
Compact is a co-operation between the UN
and industry. H&M also supports the OECD’s
guidelines for multinational enterprises.
Read more about Global Compact at
www.unglobalcompact.org and about the OECD
guidelines at www.oecd.org.
The UN’s Millennium Development Goals
H&M contributes to the Millennium Development
Goals through its active environmental work
with suppliers, including key measures such as
chemicals restrictions and water treatment.
The Millennium Goals are eight clear goals
for global development, all with target dates.
They are described in the UN Millennium
Declaration which was signed by the world’s
leaders during the so-called Millennium
Summit in New York in 2000. Today the
Millennium Development Goals are at the heart
of most of the development work around the
world. The goals cover areas such as fighting
poverty and hunger, reducing child mortality,
improving maternal health, environmental
sustainability, ending gender discrimination
and eradicating HIV/AIDS, malaria and other
diseases.
We also contribute to charity projects such
as those aimed at giving people access to clean
water, and giving children access to education
in various parts of the world. But as a buyer of
clothes in many developing countries, possibly
the greatest contribution we make towards
fightin g poverty is creating employment for
hundreds of thousands of factory workers.
Read more about the Millennium Development Goals
at www.un.org/millenniumgoals.
Amnesty Business Group
H&M is a member of the Business Forum, part
of the Amnesty Business Group. This is a
group of Swedish companies which operate
internationally and which are active in the area
of promoting human rights. ABG is part of the
Swedish section of Amnesty International, and
its mission is to teach Swedish companies to
respect, defend and promote human rights
wherever they operate.
As a member of the Business Forum, H&M
has access to Amnesty’s knowledge network
and can share experience with other international
member companies on a range of issues, from
a country risk analysis to human rights training.
Read more about ABG at www.amnesty.se/business.
WaterAid
H&M supports the work of the British aid
organisation WaterAid, to improve access to
and quality of water for people in Asia and
Africa. For more than a billion people, getting
water is a daily struggle. Women in these parts
of the world can walk up to six hours a day to
fetch water. H&M has been contributing to
WaterAid’s work since 2002, by donating part
of the revenue from selected swimwear.
Read more about WaterAid at www.wateraid.org.
H&M keeps its prices
competitive by:
having few middlemen
buying large volumes
having an efficient distribution system
being cost-conscious at every stage
Fair Labor Association
H&M has been involved in the Fair Labor
Association (FLA) since 2006. FLA is an
organisation that safeguards workers’ rights
and seeks to improve their working conditions.
FLA carries out independent checks on
member companies’ suppliers and publishes
the results annually on its website. For H&M,
this means another layer of quality assurance
in our own system for monitoring our suppliers’
factories.
Read more about FLA at www.fairlabor.org.
sales market
production offices
Clothes for charity
Disasters such as war and earthquake affect
people all over the world. Victims need aid,
including clothing. H&M works with recognised
aid organisations in every one of our sales
countries. We donate clothes which, for
various reasons, have failed to meet H&M’s
quality standards and have therefore been
rejected. Obviously we do not donate clothes
that fail to meet our safety standards.

18 Did you know that... More than 500 young people have received training since
19
H&M opened its sewing school in Bangladesh in 1999.
Our contribution to
social development
An important part of H&M’s responsibility is to contribute to local
development in countries where our projects are manufactured
or sold. It is also important that we can be involved in the various
projects and make sure that they are developing in the right
direction, and are sustainable in the long term.
H&M invests in young people in Bangladesh
Many young people in Bangladesh dream
about getting a job in a garment factory. But
many of them lack vocational education and
can only perform simple and monotonous
tasks at the factories. In 1999, H&M started a
training course in sewing for young people in
Dhaka, the capital. This has now grown into
two training centres where a total of 100 young
people a year receive vocational training in
sewing after finishing their basic education.
H&M pays wages during the training period,
and once students have completed their training
they are guaranteed a job as a machinist at one
of H&M’s suppliers.
“ I have had opportunities
that otherwise might not
be possible.”
Mohammad Ashraful is 20 years old and comes
from Kushtia in western Bangladesh. He lives in
Dhaka with his parents and four brothers and
sisters. Mohammad came to H&M’s training
centre via the organisation BRAC. He says he
enjoyed the training: instead of just learning
about an individual aspect of the job, he now
understands the whole manufacturing process.
He has also learned about issues such as health
and safety in the workplace. Mohammed believes
that the training has given him opportunities he
would not otherwise have had. After completing
the course he got a job at one of the factories
H&M buys from. He is currently undergoing
in-house training at the factory to become a
supervisor, and dreams of being a factory
manager one day.
H&M trains young people in sewing in Dhaka.
H&M helps to raise factory workers’ awareness of
HIV/Aids and health.
UNICEF’s education for girls
More than 120 million children all over the
world are denied the opportunity to go to
school, and the majority of them are girls.
This violates the convention on the rights of
the child, which states that all children have
the same human rights including the right to a
free basic education. The international “25 by
2005” campaign, which is supported by H&M,
aims to accelerate the development of girls’
education. One aspect of the work is aimed
at changing attitudes among authorities and
parents, to show them the benefits of
allowing girls to go to school. Another is to
make education more practically accessible.
The mobile school is one concept being
pursued by UNICEF, bringing classrooms to
places which traditional education cannot
normally reach. UNICEF also trains female
teachers and provides special grants for girls.
Read more on page 22.
Preventing the spread of HIV/Aids
in Cambodia
Cambodia has the fastest-growing rate of HIV/
Aids in south-east Asia. It is also a country
where H&M’s clothes are made, so it seems
only right that we should help to try and
prevent the spread of HIV/Aids there. This is
another project where H&M works in
partnership with UNICEF.
Around 290,000 people work in some 200
garment factories in Cambodia. The majority
of them are young women, a risk group that
UNICEF is making special efforts to reach.
H&M plays a key role here by encouraging the
factories to allow their employees to take part
in the preventative activities organised by
UNICEF during working hours. The aim is to
increase female factory workers’ awareness of
HIV/Aids and knowledge of other health
issues, to help them improve their healthcare
and to make it easier for them to make
informed choices.
Other resources have also been devoted to
the project. For example, a helpline has been
set up where anyone can ring and ask
questions about HIV/Aids. H&M is one of the
companies providing the funding for this. The
number of enquiries has risen recently, and the
line is now open six days a week.

Did you know that... H&M’s chemicals requirements are based on the sales country which has the strictest standards. 21
Environmental responsibility
Just as H&M takes responsibility for the working conditions in the
suppliers’ factories, we also accept responsibility for how our products
affect the local environment in the manufacturing countries.
Clean air, fresh water and unspoiled nature can
no longer be taken for granted anywhere in the
world. People and companies have to shoulder
responsibility for ensuring that development is
sustainable. For H&M, this means minimising
our impact on the environment. It also means
that anyone who comes into contact with H&M’s
products should be able to do so without fear of
dangerous chemicals. That’s why H&M pursues
an active environmental policy in countries
where our products are manufactured and sold.
Our code of conduct includes
environmental requirements
H&M’s environmental standards are described
in our code of conduct. One of the stipulations
is that all suppliers have to comply with their
own national legislation. Our auditors check
that the factories have all the approvals required
from the relevant authorities. They also check
that factories with processes such as dyeing or
washing are treating the waste water. They check
how the chemicals are handled and make sure
that hazardous waste is dealt with responsibly.
Reduced environmental impact
in production
Across the whole finishing chain from fibre to
finished garment, the dyeing and washing of
fabric are two of the processes that have the
greatest environmental impact. That’s why
H&M has extended its environmental work in
recent years to include production stages that
take place before the sewing of our garments
even begins, namely the production of the
fabrics. We have launched a programme,
Cleaner Production, which aims to make textile
production cleaner. By drawing attention to the
economic advantages of reducing energy, water
and chemicals in fabric production, we have tried
to encourage suppliers outside our direct supply
chain to make environmental improvements. In
countries where water and energy are in short
supply it is important for the environment that all
industry is operated as efficiently as possible,
using the fewest possible resources. Reduced
Respect for nature is one of H&M’s environmental goals.
volumes of input chemicals, including dyes,
lessen the strain on the environment by lowering
emissions. In an initial step, Cleaner Production
has been introduced at a number of textile
suppliers in India, China and Bangladesh, but
the aim is to extend the programme to as many
countries as possible.
H&M uses organic cotton
To further reduce the impact on the environment,
H&M has started using small quantities of
organically grown cotton from Turkey. The
annual global production of organic cotton is
still too small to be used for large volumes of
garments. Thanks to H&M and other companies
demanding greater quantities of organic cotton,
the amount of cotton grown without artificial
fertilisers and pesticides is increasing.
H&M’s chemicals restrictions
apply to all suppliers
Another important part of our environmental
work involves monitoring and limiting the use of
chemicals which are potentially harmful to
people and the environment. We have therefore
prohibited or limited the use of a number of
chemicals in production. All prohibitions and
limit values are set out in H&M’s Chemicals
Restrictions, which all our suppliers have to sign
and comply with. Examples of substances on
the restrictions list include lead, phthalates and
brominated flame retardants. Since 2002 H&M’s
products have also been completely PVC-free.
Eco-labelled clothes – the Flower
Since autumn 2005 H&M has been selling
basic babywear marked with EU’s eco-label,
the Flower. The Flower certifies that harmful
substances have been limited and water
pollution reduced across the whole
production chain, from the raw cotton to the
final product. The label’s quality criteria also
guarantee the garment’s ability to keep its
shape and colour. Babywear bearing the
Flower label also complies with H&M’s own
chemicals restrictions.
Read more about our environmental work at
www.hm.com/csr.

22 23
Children are our
shared responsibility
“ The workers must be given the opportunity
to influence their own situation”
Children at a nursery school in Prey Prang in Cambodia.
The nursery is run by UNICEF, with help from H&M.
We are proud of the progress already
achieved through the implementation of our
code of conduct, but we are also humbled by
the challenge still facing us, which is to bring
about a long-term improvement in the situation
of everyone involved in the manufacture of our
products.
There have been immense improvements in
the factories since we introduced our code of
conduct in 1997. But our work over the past
few years has also taught us how hard it is
to make the changes permanent. We want
to help and motivate our suppliers to take
on the responsibility for respecting human
rights and offering their employees good
working conditions. So our focus now is on
encouraging our suppliers to introduce better
management systems at the factories and
improve the dialogue between employers and
employees.
Training is important
Training for both management and workforce
is important to achieve long-term, sustainable
change. Cooperation with other companies,
voluntary organisations and trade unions is also
necessary if we are to achieve lasting results.
I am fortunate to be part of a fantastic team.
We have built up the broad expertise that is
required to be able to form a true picture of
the working conditions at a factory. We are
able to see through the attempts that sadly
are sometimes made to deceive our auditors.
In addition, our membership of the Fair Labor
Association allows independent experts to
assess the quality of our work.
We believe that working conditions at our
suppliers’ factories should not be dependent
upon us as buyers. Our aim is therefore to
ensure that workers are informed about their
rights and thus get the opportunity to influence
their own situation.
Ingrid Schullström,
CSR Manager, H&M
Almost 400,000 children are born each day
around the world. No matter where they are
born, they have the same right to survive and
to grow into healthy and independent
individuals. But many of them will need help
along the way. Otherwise almost 30,000 of
them will die before they reach the age of five.
That’s where UNICEF comes in.
Our work is very much about changing
attitudes. We work with governments and local
organisations in an attempt to establish contacts
everywhere, down to the smallest village. We
also try and get the business community to take
on a greater share of the responsibility - both
here at home and in the countries where we
work. Our collaboration with H&M is an
excellent example of this broad cooperation.
One of the areas H&M has chosen to focus on
is the right of girls to an education. This is one
of UNICEF’s top priorities. We know from
experience that investment in girls’ education
is critical, not just for the girls themselves and
their families but also for the country as a
whole. We also know that programmes that
help girls also help boys who don’t go to school.
Thanks to H&M’s contribution, thousands of
children’s lives will be changed for the better.
This benefit will be passed on to the families
and will start a positive spiral that benefits the
whole of society and future generations.
Lotta Linden, Corporate Project Manager at the
Swedish branch of UNICEF
NAME
NATIONALITY
LIVES IN
PROFESSION
INGRID SCHULLSTRÖM
Swedish
STOCKHOLM, Sweden
CSR manager, H&M

Read more ...
... about how H&M works with environmental and social responsibility
www.hm.com/csr
Read more about corporate responsibility
UN Global Compact
www.unglobalcompact.org
OECD guidelines for multinational enterprises
www.oecd.org
Fair Labor Association
www.fairlabor.org
Amnesty Business Group
www.amnesty.se/business
Read more about human rights and working conditions
Universal declaration of human rights
www.un.org/rights
Convention on the rights of the child
www.unicef.org/crc
ILO conventions and recommendations
www.ilo.org
Read more about environmental issues
United Nations Environment Programme
www.unep.org
European Environment Agency
www.eea.eu.int
U.S. Environmental Protection Agency
www.epa.gov
Greenpeace
www.greenpeace.org
If you have any questions, please contact us via our
website at www.hm.com.
AUGUST 2006
Printed on chlorine-free paper in a printing process with
reduced environmental impact.