Do we like H&M?
Fast-fashion clothing retailer (H&M, COS, Arket, Monki, Weekday and more), based in Stockholm, Sweden
Our score: 5 out of 10. Mixed. We'd back it cautiously. It has real safety and energy commitments, but we have doubts about low supply-chain pay, fast-fashion waste, a past greenwashing settlement and a fresh fine.
Erling Persson opened the first shop in Västerås, Sweden, in 1947 under the name Hennes. It later became Hennes & Mauritz and listed on the Stockholm exchange in 1974. Today it's a global chain that is still run under the Persson family's influence, with Karl-Johan Persson as chairman.
Daniel Ervér has been CEO since January 2024. Reuters reported in September 2026 that the Persson family has been quietly increasing its stake, to more than 68%. That has fuelled talk of a take-private. The family's spokesperson wouldn't comment on any plans, saying only that they are long-term owners.
The latest drama is from Australia. The ACCC says H&M Australia paid $138,600 in penalties over 4,473 children's nightwear items with missing or inadequate fire warning labels. H&M had recalled the items voluntarily and agreed to run a consumer awareness campaign. The products did meet the flammability rules, but not the labelling rules.
On the green front, the Dutch regulator ACM had concerns about its 'Conscious Choice' labels in 2022. H&M pulled them and donated €500,000 to sustainability groups. US class actions over its sustainability claims were dismissed. On the plus side, H&M says it sourced renewable electricity equal to 96% of its own electricity use in 2024.
Workers are the sore spot. Clean Clothes Campaign's Fashion Checker found no public evidence that H&M suppliers pay a living wage. H&M says its suppliers' average gross wages are higher than the minimum wage. It did sign the binding factory safety Accord, so we land in the middle at 5.