H&M Indonesia has firmly embedded environmental and social responsibility into its business model, aligning with the global fashion giant’s ethos of “Fashion and quality at the best price.” For H&M, quality extends beyond the durability of its products—it also encompasses corporate ethics, environmental sustainability, and social responsibility. Since its establishment in 1996, H&M Indonesia has embraced these principles, driving change toward circular and renewable fashion while fostering an inclusive and fair work environment.
A Vision for a Sustainable Future
H&M Indonesia’s vision is anchored in three key ambitions: 100 percent Leading the Change, 100 percent Circular and Renewable, and 100 percent Fair and Equal. The company collaborates with a wide array of stakeholders, including customers, employees, suppliers, policymakers, industry peers, NGOs, and academic institutions, to push for systemic change within the fashion industry. Through multi-stakeholder initiatives such as the Ethical Trading Initiative (ETI), Sustainable Apparel Coalition (SAC), and Better Cotton Initiative (BCI), H&M Indonesia promotes responsible sourcing and sustainable production practices. The company has also formalized its commitment through partnerships with organizations like the International Labour Organization (ILO), Swedish trade union IF Metall, IndustriALL (ACT), and the Swedish development agency Sida.
Circular and Renewable Fashion
H&M Indonesia actively integrates circularity into every stage of its value chain, from product design and manufacturing to materials, packaging, and end-of-life product disposal. The company has partnered with Danone AQUA for the Bottle2Fashion initiative, transforming PET bottles into fashion items, and works with Gamaindigo to develop natural dyes. Additionally, it has collaborated with Bureau Veritas (BV) to create E-Cube, an emissions monitoring program for better chemical management, and has teamed up with WWF to improve rattan farming capacity and product traceability.
Committed to minimizing its environmental footprint, H&M Indonesia adheres to stringent regulations on air quality, emissions, energy efficiency, and water conservation. The company is also transitioning to 100 percent renewable energy across its operations, aiming to achieve a climate-positive value chain by 2040.
Ethical Sourcing and Animal Welfare
H&M Group’s ethical sourcing policy ensures that all raw materials come from responsible and sustainable sources. The company strictly prohibits sourcing from ancient and endangered forests and aims to use only FSC-certified wood by 2025. Through its partnership with CanopyStyle, H&M supports the development of alternative cellulosic fibers derived from recycled textiles and agricultural residues.
The company also upholds high animal welfare standards. It does not use fur, exotic animal skins, or materials from endangered species and has phased out angora wool. Additionally, it is transitioning away from mohair and cashmere, ensuring that all wool and down products come from ethically certified farms. H&M Group continues to advocate for a global ban on animal testing for beauty products, working alongside organizations such as Humane Society International and the Fibre Alliance.
Commitment to Fair and Equal Workplaces
H&M Indonesia’s 100 percent Fair and Equal ambition focuses on empowering workers and promoting diversity and inclusiveness. The company partners with UNFPA, USAID, ILO, and the Indonesian Ministry of Health to support initiatives related to women’s empowerment, disability employment, fair wages, workplace safety, and collective bargaining. With dedicated sustainability teams at both global and national levels, H&M Indonesia translates its vision into actionable and measurable goals, ensuring fair labor practices throughout its supply chain.
Innovating for a Sustainable Future
To drive its Leading the Change ambition, H&M Indonesia prioritizes innovation, transparency, and rewarding sustainable actions. By leveraging artificial intelligence and new technologies, the company continues to develop sustainable materials and ethical fashion. Transparency remains a key focus, with efforts to provide customers with detailed product traceability information, allowing them to make informed and responsible purchasing decisions. The company also encourages suppliers, employees, and consumers to adopt sustainable behaviors through incentives and awareness campaigns.
H&M Indonesia actively educates and empowers its customers by offering garment recycling programs, incorporating Clevercare labels to extend product lifespans, and improving transparency in the supply chain. From its initial goal of democratizing fashion by making clothing accessible and affordable, H&M’s mission has evolved to ensure that fashion is sustainable and beneficial to society.
Redefining Fashion Democracy
Sustainability is now a key performance metric for the company, with measurable Key Performance Indicators (KPIs) integrated alongside sales figures and customer satisfaction ratings. By embedding sustainability into its business model, H&M Indonesia continues to lead the way in ethical fashion, proving that profitability and environmental responsibility can go hand in hand.
