Swedish multinational fashion company H&M Group has published a Sustainable Finance Framework encompassing a new Green Finance Framework and an updated Sustainability-Linked Finance Framework.
The new framework combines H&M’s financing strategy with its sustainability roadmap and provides an overview of eligible green projects. It also includes a 2030 target for recycled materials in commercial goods and the company’s science-based goals for GHG emissions reductions.
In addition, the framework offers flexibility in the issue of financial instruments, including green finance and sustainability-linked finance instruments.
“Our combined Sustainable Finance Framework shows our high ambition and the decisive steps we are taking to contribute to a sustainable fashion industry,” said Adam Karlsson, CFO of H&M Group.
“With this framework, we further incorporate our sustainability journey into our financing strategy by providing investors with a transparent view into our roadmap, associated investments, and key goals towards becoming a circular and net-zero emissions company by 2040.”
S&P Global Ratings has reviewed the framework and provided a second-party opinion confirming alignment with the ICMA Green Bond Principles 2021 and Sustainability-Linked Bond Principles 2023 as well as the LMA Green Loan Principles 2023 and Sustainability-Linked Loan Principles 2023.