Doing the right thing and building a competitive business are not opposing goals. That was the core message I shared last week at the DG GROW event, where I spoke about why, at H&M Group, we see responsible practices as both the right thing to do and a driver of long‑term competitiveness.

Our long-term family ownership means sustainability isn’t a trend for us — it’s a guiding principle shaping responsible decisions and value creation.
Here are three ways responsible business conduct strengthens competitiveness across our value chain:

1️⃣ Transparency that builds trust We rely on primary data, science-based targets, and robust reporting to track progress, avoid greenwashing, and strengthen credibility. Our in-house sustainability teams work closely with suppliers on climate, water, chemicals, social impact, and compliance — and we reward strong performance because it reduces risk and builds resilience.

2️⃣ Partnerships and stakeholder engagement Lasting change requires collaboration. Our supplier relationships average nine years, with some spanning more than nineteen. Many systemic challenges — from wages and social protection to energy systems — also require supportive policy frameworks. One example is our collaboration with the ILO on the Employment Injury Scheme in Bangladesh, now part of national labour reform.

3️⃣ Innovation and capability building Some challenges demand new solutions. Through our Green Fashion Initiative, we support suppliers in investing in energy-efficient equipment and innovative technologies — from rooftop solar to waterless dyeing. Early results of our new waterless dyeing technologies show up to 50% lower energy use, 90% less water consumption, and 90% fewer chemicals, improving both environmental impact and operational efficiency.

Responsible business conduct builds trust, fuels innovation, and strengthens long-term competitiveness. I’m grateful to have been part of this important conversation. Many thanks to EU Business, Michael Ristaniemi, Alexandra Kuxová, Amaryllis Verhoeven, Kuba Boratyński and the entire team for the kind invitation and excellent organisation.