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

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.

In a written statement for Impact Loop, the company clarified:

"We’ve been working on the sustainability of our business for more than 30 years and sustainability is an integral part of everything we do. It is part of our business idea to provide fashion & quality at the best price in a sustainable way. For us, there is no compromise between great design, affordable prices, and sustainable solutions.

We are a purpose-driven company committed to driving social and environmental positive impact in our industry. We want to use our power, scale and knowledge to push the fashion industry towards a more sustainable future, and Sustainability Director Leyla Ertur, continues to report directly to our CEO Daniel Ervér.

Regarding our work around strategy, business development, and innovation, these areas have gradually been consolidated in the Strategy, Innovation & Business Development function, headed by Johan Lundgren who is part of the executive management team. The new executive management team was announced on our external website on the date it came into effect, 30th January".

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.