Circular economy in fast fashion : examining circular economy in H&M group’s reporting (2021-2025)

Abstract

The fashion industry is facing growing environmental pressure, and H&M Group sits at the centre of it. As one of the world's largest clothing retailers, H&M Group has spent years making public commitments to circularity, keeping materials in use, reducing waste, and growing the business sustainably. This thesis examines how credible those commitments actually are. Using qualitative content analysis and a longitudinal case study approach, it analyses H&M Group's Annual and Sustainability Reports from 2021 to 2025, tracing how their circular economy strategy developed and whether the progress they report is genuine. The findings are mixed. Real progress exists: recycled materials more than doubled from 18 to 32 percent, scope 3 emissions improved, and circular infrastructure grew through partnerships, resale platforms, and garment collection programmes. But the strategy is structurally imbalanced focused heavily on recycling and end-of-life solutions while largely ignoring product durability, repairability, or any reduction in production volumes. Resale never exceeded 0.8 percent of group revenue. The share of sustainably sourced materials fell from 62 to 59 percent between 2021 and 2024, yet no report ever acknowledged this decline. The core business model of high volume, low prices, and constant new collections remained unchanged throughout. H&M Group has made real but limited progress toward a circular economy. Its reporting consistently frames modest improvements as something larger, not through fabrication, the data is largely verified, but through a repeated pattern of selective optimism that undermines overall credibility. As EU sustainability disclosure requirements tighten, the gap between what is said and what the data shows will become increasingly difficult to maintain.