Progress on water

As well as being needed for growing cotton, water plays a part in other stages of our products’ lives, including processing fabrics and washing finished products. We want to improve the way we manage water throughout our product life cycles. In June 2008 we signed the CEO Water Mandate, a voluntary initiative from the UN Global Compact. The mandate commits H&M to improve both our own and our suppliers’ water efficiency, improve wastewater quality and report transparently on our progress.

Our direct operations

Although the retail sector is a relatively low user of water, we still aim to minimise usage in our own operations. When building a new store or distribution centre we follow guidelines aimed at reducing water use. This includes low-flow taps, low water-use toilets and showers with automatic stop functions.

Our newly-built distribution centres also have rainwater utilisation systems for toilet flushing and maintaining lawn and garden areas. At our largest distribution centre in Hamburg, this generates about 75 percent of the non-drinking water used each year. We will incorporate the same system into a new distribution centre currently being built in Belgium.

Value chain and watershed management

The garment value chain impacts on water supply in two key ways. Firstly, the production of raw materials and the manufacturing process can both have a negative effect on water sources through their use of pesticides and fertilisers or their production of polluted wastewater. Secondly, some of our supply chain is located in areas facing water stress, such as China and India, yet our suppliers’ operations depend directly on the availability of water. This challenging combination of factors means that improving water use practices throughout our value chain is of huge importance to us.

Cotton

Cotton is the raw material we use the most and it is a thirsty crop. H&M is very active in promoting more sustainable cotton cultivation. We work towards reducing water use in cotton cultivation through our affiliation with the Better Cotton Initiative.

75% of the water used for toilet flushing and irrigation at our largest distribution centre comes from rainwater.

Supplier water efficiency

We monitor the water efficiency of supplier factories. In 2011 we collected data from 305 factories. We prioritise work to improve supplier water efficiency with those suppliers located in areas where water is considered scarce, as defined by the World Business Council for Sustainable Development.

Supplier wastewater quality

Since 2006 we have required suppliers who have wet processes such as dyeing to avoid environmental damage by treating their wastewater. Wastewater quality in our supply chain has to meet quality levels defined by Business for Social Responsibility (BSR) or relevant local laws, depending on which is stricter. These requirements form part of our supplier audit programme.

We focus on key water quality measures such as organic and chemical pollution levels and suspended solids within the wastewater – TSS (total suspended solids), BOD (biological oxygen demand) and COD (chemical oxygen demand). The graph below shows the share of suppliers achieving the lowest threshold for each of these indicators, as measured by the BSR standard. We are happy to see further progress for both TSS and COD, with almost all our suppliers now achieving the lowest threshold. There has been a slight decrease in BOD and we will monitor developments for this indicator.

Collective action

Consistent with our approach towards sustainability, actions taken collectively with other companies and organisations can help us to address issues that we cannot influence strongly enough on our own. Collective actions can promote better practice not just in our own supply chain operations, but also throughout the industry.

Water Disclosure Working Group

During 2010 H&M joined the Water Disclosure Working Group (WDWG), set up within the UN CEO Water Mandate. This new group will drive the harmonisation of existing and emerging corporate water disclosure initiatives. It aims to provide clear guidance and to establish common metrics for water footprint. This will improve corporate reporting on water use and supply, thereby highlighting best practice. H&M is committed to adding our own experience and knowledge to this process.

Cleaner Production Programme

The production of fabric can also be very water intensive and involve the use of chemicals. Fabric mills are second-tier suppliers with which H&M has no direct business relations. We therefore address environmental issues through programmes in Bangladesh and China. Read more about our Cleaner Production Programme.

Mill Development Programme

Our Mill Development Programme, which we started working on in 2008, targets fabric suppliers in China and Bangladesh that are key to our production and with which we have the closest indirect business relationship. The programme is run in close co-operation with our quality team and aims to improve compliance at this second-tier stage of our value chain. Improvements are targeted at both our Chemical Restrictions and the environmental and safety requirements in our Code of Conduct.
Read more about the Mill Development Programme