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The H&M Greenwashing Scandal

The question now is: Has H&M management learned its lesson, and is the company on its way to sustainability? So what did H&M exactly do and how does it plan to climb out of its greenwashing scandal? To answer these questions, let's proceed in order and start with where the problem began: The retail brand's reporting challenges and its sustainability certification system, the Higg Index.

These accusations did not involve just H&M: While the retail brand immediately indicated it would renew its efforts towards sustainability, including through its Conscious Collection and recycling initiatives, the accusations of greenwashing reverberated with many consumer brands, exposing the need for greater transparency to stakeholders, and greater accountability in the fashion industry's sustainability efforts in general.

The role of meaningful sustainability reports in the race to become a sustainable business. In addition to certifications and ratings, sustainability reports provide consumers and investors with a look at whether a business has transparent and verifiable sustainability practices. As mentioned above, Impakter Index analysts don't stop there and cover more aspects: They also critically analyze sustainability reports and look at the overall environment in which a company operates, including external reports and news in the media, particularly focusing on greenwashing scandals as was the case with H&M. This points at the importance of thorough and consistent sustainability reporting through measurable targets and progresses.

Ultimately, the H&M greenwashing accusations serve as a reminder of the importance of transparency and accountability in the fashion industry, and the importance of sustainability reports in revealing a company's efforts toward ethical products and processes.

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