Monday, June 16, 2008

H&M - Scorecard

Indicator

Commitments/Comments

SOI Rank

Environment – Operations

GHG Emissions

Tracks emissions from Energy Use, Goods Transport, Business Travel and Company Cars

6

Energy Efficiency

H&M monitors energy use.

5

Air & Water Pollution

Use a requirement for the quality of discharged water using guidelines developed by a Business for Social Responsibility task force. Monitor waste water by asking suppliers to submit test results.

7

Promoting Employee Enviro. Awareness

Training for employees is part of environmental policy. Nominated as one of “Top 10 Companies with The Most Innovative Internal Sustainability Initiatives” by Ethical Corporation Magazine.

8

Waste Reduction (Haz & Non)

H&M monitor toxics use and wastewater in production. Trains store employees on proper disposal of waste and hazardous materials.

6

Environment – Materials

Use of Toxics in Products

Chemical restrictions policy, last updated 2005. 170 chemicals or categories of chem. are restricted. Examples: cadmium, lead and mercury, certain dyes, PVC, formaldehyde and brominated flame retardants. Regular testing is carried out at external laboratories to ensure that suppliers comply with the chemical restrictions.

4

Use and Promotion Of Sustainable Materials (i.e. organic cotton)

Uses and promotes the use of organic cotton; works to reduce impact of conventional cotton. The goal for 2007 is to use at least 100 tons of organic cotton. Member of Organic Exchange and Better Cotton Initiative.

6

Social

Workplace Diversity

H&M currently formulating policies on diversity and equality. Statement on website: “We aim to be a responsible employer in all countries even where the laws and regulations do not match our own requirements.”

3

Unions

No official statement on Unions. The company has been accused of anti-union actions by the AFL-CIO. but has also been praised by labor leaders for its handling of a unionization effort by employees in Manhattan.

3

Workplace Safety

Included in Supplier Code of Conduct.

4

Community Relations

Very active locally and internationally.

7

Strategic Partnerships with NGOs

Many training initiatives with local NGOS; Also partners with large organizations like UNICEF, Make a Wish Foundation.

7

Animal Welfare

No specific policy; However, recently committed to stop buying merino wool taken from sheep in Australia that had been subjected to what it considered the unacceptable process of "mulesing."

3

Human Rights

Operating in Countries of Conflict

Do not source or operate in countries of conflict.

4

Child Labor

Strong policy for dealing with infractions (but one that does not immediately abandon the factor/children in question).

5

Forced Overtime

Not allowed under Code of Conduct. H&M is very cognizant of the impact is has on manufacturer’s with its ordering cycles, Works not to submit last-minute orders or changes to orders.

4

Indentured Servitude

Not allowed under Code of Conduct.

4

Compliance with ILO Standards?

H&M’s Code of Conduct for Suppliers is based on the ILO Conventions (and is based on the UN Convention on the Rights of the Child).

n/a

UN Global Compact?

Yes, supports the Compact.

n/a

Supplier Management Issues

Code of Conduct

Yes; Enforced; H&M provides limited training to suppliers.

5

Fair Wages

No policy stated specifically. Works with suppliers to make sure an appropriate wage is paid. Has been criticized for allowing suppliers to pay very low wages.

3

Training

Focuses on Training to improve working conditions and livelihoods for employees.

4

Environmental Management

Environmental management targets are included in Supplied Code of Conduct; require wastewater testing from suppliers; work with suppliers that work with dyes to reduce impacts on the environment.

5

External Verification

Member of FLA?

Yes, as of 2005.

n/a

CSR Reporting Standard?

Yes. Starting with the 2007 CSR report, will be reported in accordance with the Global Reporting Initiative’s updated guidelines for sustainability reporting.

n/a

Other

Included in a no. of sustainability indices, including the Dow Jones Sustainability World (DJSE World), FTSE4Good and the Ethical Sustainability Index. Clear performance targets - with responsible parties noted- available publicly.

n/a

Demonstrated CSR Leadership Among Peers?

Yes. (Bonus Point)

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