High street retailer H&M is holding its first ever green bond sale, a significant move by the company as it seeks to improve its sustainability record.
The green bond – expected to be worth around £431 million (€500m) – will see H&M Group committing to use the funds raised within environmental projects or other business needs related to climate change.
The funds raised by the debut new bond offering are expected to be used to finance and refinance H&M projects such as using more recycled materials, ramping up renewable energy across the business and focusing on sustainable water use.
The high street giant already has debt tied to sustainability targets such as emissions cuts and recycling, which launched in February 2021. Applications to invest in the bond were oversubscribed by almost eight times.
At the time, H&M said: “Sustainably-liked bonds show that we stand by our goals and that we’re not only talking the talk but walking the walk.”
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“We also see the bond as a great way to spread the word about our extensive work for the environment among investors. We are happy to see that more and more people are willing to invest in companies that take responsibility and drive positive change.”
The business also recently launched a pre-loved fashion offering into the UK as it ramps up its efforts to support a more circular fashion industry.
In its 2021 report, it said it wants to “lead the change towards a circular and climate positive fashion industry while being a fair and equal company”, and identified the potential for a negative impact to its business where consumers prefer to buy from sustainable retailers.
Earlier this year, it was reported that clothes donated to H&M instore recycling points are being destroyed, burnt or dumped in landfill, something the brand said it has “zero tolerance” for. It has since changed its recycling partner.
H&M Group investor calls are being held early this week, with Bloomberg reporting that the bonds are expected to mature over an eight-year period.
