H&M plans debut green bond as fast fashion pushes sustainability
©H&M
Swedish retailer H&M is planning a debut green bond sale, the latest effort by a fast fashion company to improve the sustainability of its business. H&M already has debt tied to sustainability targets such as emissions cuts and recycling. The proceeds from the new bond offering will be used to finance and refinance projects including using recycled materials, renewable energy, and sustainable water use.
Fast fashion companies are looking to make their production more sustainable and protect their brands after criticism in recent years. Their business model, churning out new styles, has resulted in increased carbon emissions and generated enormous clothing waste.
H&M identified a potential negative impact on its business should consumers increasingly prefer “products and services with low climate impacts from trusted companies that are seen as leaders in sustainability” in its 2021 report. Other clothing brands including Burberry and Mango have tied their borrowing to green commitments.
