
H&M Foundation visits Panipat to promote circular textile economy
A delegation from the H&M Foundation and Global Fashion Agenda recently visited a key textile recycling hub in Panipat to explore collaborative strategies for a circular and inclusive textile economy. The visit was hosted by the Global Alliance for Textile Sustainability Council and aimed to advance global efforts toward sustainable fashion.
The delegation included Lennart Bernhoft, chief operating officer of GFA, alongside Carola Tembe, Jodith Tesfai, and Elin Hallerby from the H&M Foundation, Apparel Resources India reported. The team was welcomed by GATS chairman Parvinder Singh and his team, who showcased Panipat's comprehensive waste-to-product supply chain.
The visit centred on three priority areas: scaling textile waste recycling, increasing the economic value of recycled materials, and improving social protections for workers, particularly those in the unorganised sector. These themes reflect the broader goals of building a resilient, circular economy with equitable labour standards.
GATS also outlined its ambition to transform Panipat from a home furnishings recycling hub into a garment sourcing destination, supported by local skill development and circular design practices. The H&M Foundation's ongoing involvement in the region through GFA's 'Green Threads & Weaves' initiative with the Foundation for MSME Clusters was highlighted as a platform for enabling sustainable business models in local enterprises.

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Fashion Network
3 days ago
- Fashion Network
H&M founding family moves closer to full control of retailer
Hennes Mauritz AB, the fast-fashion retailer that's been listed on the Swedish stock market since 1974, is steadily moving back toward private ownership. The founding family has stepped up purchases of H&M shares, spending more than 63 billion kronor ($6.6 billion) since 2016 and fueling speculation it could take the Stockholm-based company back into private hands — despite denials from family members. The Perssons, one of Sweden's wealthiest families, have amassed a growing stake through the holding company Ramsbury Invest, saying little about their intentions other than that they 'believe' in H&M, which was founded in 1947 by Erling Persson. The media-shy clan is now getting within striking distance of full control of the retailer, which in recent years has been losing ground among shoppers to its main rival, Zara, and ultra-fast fashion upstarts like Shein. 'This is something we've been talking about for years, and few would doubt that's the direction things are headed,' said Sverre Linton, chief legal officer and spokesperson for the Swedish Shareholders' Association, which represents small stock investors. He added that if the family doesn't plan to take H&M private, it should communicate that more clearly and stop buying shares. The family has ramped up insider buying by reinvesting dividends, boosting its H&M stake to almost 64% from 35.5% over the past nine years via Ramsbury, a vehicle named after billionaire Stefan Persson's sprawling estate. Including extended family holdings, the Perssons now control roughly 70% of the capital and about 85% of voting rights, according to H&M's website. In an interview last year with Bloomberg, H&M Chairman Karl-Johan Persson — grandson of the founder — dismissed talk that the family intended to take the company private. 'There are no plans,' he said. 'We just buy because we believe in the company.' Representatives at Ramsbury Invest and H&M declined to comment. Analysts, including Niklas Ekman at DNB Carnegie, say the family's regular share purchases could signal more than just confidence in the retailer. In a note to clients last month, Ekman estimated that if the family continues acquiring shares at the same pace, a buyout could come as early as two years from now. If its holdings reach 90%, the family could request a delisting of the shares. A take-private would be 'based on emotional rather than financial motives,' Ekman wrote, given that the family already has a controlling stake and has long managed the company with little regard for minority shareholders. He attributed the push to patriarch Stefan Persson, 77, who built H&M into one of the world's largest fast-fashion retailers during his 16 years as chief executive officer and over two decades as chairman. He remains deeply invested in the company's future. His son Karl-Johan, who took over as H&M chairman in 2020 after serving as CEO, also holds an active role at Ramsbury Invest. 'They've never, at least in modern times, expressed a strong desire to remain public,' said Daniel Schmidt, an analyst at Danske Bank. 'I would say that transparency has always been a part of it.' H&M's shares reached an all-time high about a decade ago and have since fallen by around 60%, valuing the group at 220 billion kronor. Zara owner Inditex SA, by contrast, has climbed about 60% over that period. For the Perssons, the sagging stock price is no doubt a frustration but also presents an opportunity by making full control more attainable. At the current price, it would cost the family at least 70 billion kronor to buy the remaining outstanding shares, according to Ekman. That would likely require them to take on debt. According to Bloomberg Intelligence analyst Charles Allen, a delisting would also require a premium. 'If the bid were financed by debt, then it may reduce the company's operating flexibility,' Allen said. 'It wouldn't really matter if the debt was in the company or the family, as either way cash flow would have to be diverted from investment to pay interest and then repay.' Operationally, the fast-fashion retailer appears stuck in the slow lane, facing tepid demand for its apparel, fierce competition and now US tariffs. The first-quarter results were weaker than analysts had expected and showed that efforts to claw back customers through higher marketing spending hadn't brought a rebound. CEO Daniel Erver, an H&M veteran who took the top job last January, was involved in setting the current strategy and has yet to reverse market share losses in countries including Germany, France and the UK. Attempts to reconnect with younger audiences through collaborations, such as with pop artist Charli XCX, haven't significantly boosted growth. H&M has been criticized for a lack of transparency over sudden management changes and being the only company in Stockholm's benchmark index not to disclose the shareholdings of its top executive team. 'Obviously, being a listed company puts management under more scrutiny than if they were private, but it also presumably offers some incentives to management and other employees that would not be available if it were private,' BI's Allen said. Anders Oscarsson, head of equities at AMF, one of Sweden's biggest pension managers and the largest non-family shareholder, said he hasn't heard the family say anything about taking H&M private and that such a move would be a big loss for investors. 'It would be sad if the company disappears from the stock exchange,' he said. Yet if the family's purchases lead to a marked deterioration in the stock's liquidity, that wouldn't be a good outcome either. 'It might become a bit like Hotel California — where you can neither check in nor check out.'


Fashion Network
6 days ago
- Fashion Network
Stand.earth report: H&M outranks Zara and Shein on climate goals
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Fashion Network
6 days ago
- Fashion Network
Stand.earth report: H&M outranks Zara and Shein on climate goals
'We are starting to see more of a division in the fashion sector,' said Todd Paglia, executive director of 'We have this smaller group of companies actually putting money and staff into making this change happen,' he said. 'But the majority of fashion companies still aren't taking enough action.' Shein, for example, landed in what the report calls the 'F club.' Since the last scorecard, its supply chain (or Scope 3) emissions have climbed by more than 170%, according to the analysis. Shein, which is reportedly working toward an IPO in Hong Kong, hasn't yet released its 2024 sustainability report. A Shein spokesperson said the company has rolled out several decarbonization projects in the past few years and recently partnered with industry consultants to develop new ways to reduce emissions over the short and long term. As the business grows, however, the company may see emissions increase in parts of its operations as 'we implement and scale our reduction strategies,' the spokesperson said. Shein announced the launch of a €200 million ($228 million) 'circularity fund' in the UK and EU last July and committed to investing €50 million in broader ESG efforts. In its 2023 sustainability report, it said it intended to cut its emissions by 25% by 2030 and to achieve net zero by 2050. developed the Fossil -Free Fashion Scorecard to map companies' progress in decarbonizing their supply chains. The scoring looks at five categories: commitment and transparency, renewable energy, low-carbon materials, clean shipping, and advocacy. H&M's Scope 3 emissions in 2023 were only about half as much as Zara's or Shein's. It still has the largest Scope 1 and 2 emissions of the three, but that represents a much smaller fraction of the total. Henrik Sundberg, H&M's climate impact lead, said the company is systematic in how it reduces its footprint. 'Measuring our emissions accurately and building a clear roadmap to reach those targets — that's the approach that has worked for us,' he said. H&M was one of only three brands reviewed by that met rigorous United Nations criteria for net zero target integrity. According to the report, it was one of six that provided financing to suppliers to transition to clean energy, either directly or in the form of a bank loan. The company reported spending about $179 million last year on decarbonization measures. Inditex received a high score for its climate and energy commitments, as well as its transparency. It was also one of eight brands that raised their Scope 3 emissions targets compared to the previous report. However, Inditex and Shein were among five companies that reported a significant increase in emissions since their baseline year. 'Inditex has set significantly more ambitious climate goals,' said Rachel Kitchin, senior corporate climate campaigner. 'At the same time, we have noted that the company's emissions have continued to increase in both transportation and manufacturing.' Inditex said it couldn't comment on the report before reviewing it. A company spokesperson said that in 2024, it reduced its Scope 3 emissions by more than 560,000 tons, compared with 2018, 'thereby underscoring the importance of collaboration with our supply chain.' The scorecard criteria have been externally reviewed by independent experts and stakeholder organizations such as Action Speaks Louder and the Changing Markets Foundation, according to Its research relies on brands volunteering to disclose their emissions data to CDP, a nonprofit that maintains the world's largest corporate emissions database. Paglia said that the sustainability gap between fashion brands proves that doing better is possible. 'What we are seeing is that you can do it despite the complexity and difficulty,' he said. 'There are no excuses left for the companies falling behind.'