H&M's effort to decarbonize its supply chain may show early progress.

H&M reports a drop in supplier coal use and says a Vietnamese factory, Bangjie, will reach a carbon intensity score of zero once a new heat pump replaces diesel backup in April.

On an industrial park in Vietnam's Hung Yen Province sits Bangjie, a textile manufacturer that supplies H&M. The factory plans to install a heat pump in April and remove a diesel backup generator, which H&M says will bring its carbon intensity score to zero. H&M measures carbon intensity as grams of CO2 equivalent per megajoule of energy and counts renewable electricity as having a carbon intensity of zero. The company has set multi-year growth and emissions targets that it says guide these supplier changes. Key facts: - Bangjie is cited as one of H&M’s first suppliers expected to reach a carbon intensity score of zero after a new heat pump is installed and diesel backup is removed. - H&M defines carbon intensity by emissions per megajoule of energy and treats renewable power such as wind or solar as zero carbon intensity. - The company revised its goals in 2024 to aim for a 56% reduction in greenhouse gas emissions by 2030 versus a 2019 baseline, alongside stated growth and margin targets. - H&M divides its near-term emissions priorities into decarbonizing production processes (about 64% of emissions), switching to lower-impact materials (about 17%), and extending product lifecycles. - H&M reports that the number of Tier 1 and 2 suppliers using on-site coal fell from 118 in 2022 to 27 in 2024, with some suppliers using biomass boilers as an interim solution. Summary: H&M is attempting to lower supplier emissions by changing energy sources and tracking carbon intensity, with Bangjie's planned heat pump offered as an early example. Critics cited in the reporting warn that focusing on carbon intensity can overlook other environmental impacts. Bangjie's heat pump installation is scheduled for April, and H&M continues to report progress toward its stated 2030 emissions goal.