H&M and EY ask CFOs to lead on supply-chain decarbonization

H&M Group and EY are calling on CFOs to take the lead in financing fashion's supply-chain decarbonization or risk long-term corporate value and resilience.

Their new whitepaper, Accelerating Fashion Decarbonisation, makes a clear business case: Scope 3 emissions dominate the industry's footprint, and addressing them through targeted investments in renewables, efficiency, and low-carbon materials isn't just environmental. It's essential risk management that protects operations from climate disruption, strengthens competitiveness, and unlocks lasting value.

Drawing on insights from HSBC and the Apparel Impact Institute (Aii), the paper outlines collaborative financing models with shared risk and return profiles that enable brands to catalyze supplier transitions at scale. These approaches reframe sustainability from a cost center to a strategic lever for resilience and financial performance.

As H&M Group CFO Adam Karlsson emphasizes: “The cost of inaction on climate change is simply too high for the planet and for our industry. CFOs have a fiduciary responsibility to safeguard long-term business resilience, not just short-term profitability. As CFOs, our role is not to debate whether sustainability targets should be met, but to ensure how they are delivered. This requires a conversation combining cost efficiency and value creation: reducing risk, strengthening resilience, and safeguarding long-term corporate value.”

Scalable insetting platforms, such as those at carbon3.net, help turn verified Scope 3 reductions into actionable, tradeable assets, making widespread adoption more feasible. The solutions and partnerships already exist. The moment for collective action and smarter capital allocation is now.

Is your finance team viewing supply-chain decarbonization as a core investment priority? What's one step your organization could take next?

Whitepaper: hmgroup.com

Coverage: esgnews.com