Impact job shifts and a closed innovation hub: What’s going on at H&M?

H&M has discreetly shut down its innovation hub The Laboratory in Stockholm, which the company previously argued was “steering H&M Group’s sustainable future”.

Last week Swedish news site DI broke the news that Alexandra Frid Razola, who led the hub, had her last day at H&M at the end of 2024. She has since taken on a new role at European transport giant Scania.

The revelations follow the news that the fashion giant has also removed both its sustainability chief Leyla Ertur and sustainable investments head Nanna Andersen from its executive team.

Impact Loop has requested further information from H&M, but has not yet been given a response. H&M's media officer Anna Frosch Nordin also reportedly refused to give details to DI about why the innovation hub was shut down. However she insisted that sustainability was still a “high priority” for the company, when asked by DI about the executive team changes. Frosch Nordin added that Ertur continues to report directly to the company’s CEO Daniel Ervér.

The Laboratory, founded in 2016, was intended to be an experimental workshop for new ideas and business models focused on sustainability. One of its most high profile investments was in textile recycling company Renewcell, which later went bankrupt.

The company has also made several impact investments through its investment arm called "New Growth and Ventures," led by Nanna Andersson. These include Heirloom, which captures carbon dioxide, and the battery company Rondo Energy.

Both the decision to close The Laboratory and remove Frid Razola and Andersson from the H&M Group’s top team were made after Daniel Ervér took over as CEO in January 2024.

This suggests a shifting approach to sustainability issues compared to during previous CEO Helena Helmerson’s time in the post. She was H&M's sustainability manager between 2010 and 2015. Later, during her time as CEO between 2020 and 2024, she spoke repeatedly about cutting waste and moving towards more circular business models.

However despite H&M being vocal about its efforts to champion sustainability in recent years, it has frequently been accused of delivering missed messages. In 2021 the Changing Markets Foundation, which works to promote sustainable growth solutions, reported that 96 percent of H&M's sustainability claims included vague statements without clear evidence. According to the company’s website, 85 percent of its commercial products currently include recycled or sustainably sourced materials.

H&M Group - which includes the brands Cos, Weekday, Monki and Arket has over 4,000 stores in more than 75 markets, and its clothes are available online in 60 markets. It made more than €20 billion in net sales in 2023.