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)