H&M's New Sustainable Finance Framework

H&M Group has published a new Sustainable Finance Framework that combines a Green Finance Framework and an updated Sustainability-Linked Finance Framework.

The new framework aligns H&M Group's financing strategy with its sustainability roadmap, which includes ambitious goals for recycled materials and GHG emissions reduction.

The Green Finance Framework specifies eligible green projects under the ICMA categories Circular Economy, Green Buildings, Renewable Energy, Energy Efficiency and Sustainable Water Management and Wastewater Management.

The Sustainability-Linked Finance Framework includes a 2030 target for recycled materials in commercial goods and H&M Group's ambitious Science-Based Targets for GHG emissions reductions.

This is a positive step by H&M Group, as it shows the company's commitment to sustainability. The framework will help ensure that the company's financing is used to support its sustainability goals.

Here are some of the key benefits of the Sustainable Finance Framework:

It aligns H&M Group's financing strategy with its sustainability roadmap.
It provides transparency to investors about the company's sustainability goals and how their investments will support these goals.
It can help attract investors who are looking to invest in sustainable companies.
It can help reduce the company's cost of capital.

Here are some additional details about the Green Finance Framework and the Sustainability-Linked Finance Framework:

The Green Finance Framework is designed to support projects that have a positive environmental impact. Eligible projects include those that reduce greenhouse gas emissions, conserve water, or promote renewable energy.
The Sustainability-Linked Finance Framework is designed to encourage companies to make progress on their sustainability goals. Eligible companies must set ambitious sustainability targets and commit to taking action to achieve them.

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Source: H&M Group