Manufacturing factories

These are factories that are either owned or contracted by our suppliers to make our products. Normally, these are so called “cut and sew” factories where the final manufacturing takes place. One supplier can own or contract one or more factories. All of them are covered by our Full Audit Program. In 2015 we launched a new programme for assessing the sustainability performance of our suppliers and support them even better. This even stronger partnership approach is called SIPP (Sustainable Impact Partnership Programme).

Processing factories

Not all factories possess the required facilities for making certain products - for example creating prints, washings or embroideries etc. In these cases, the suppliers can outsource specific tasks to so called processing factories. This is considered subcontracting and must be announced to H&M. We require that all processing factories are approved by our auditors. After approval, we approach the processing factory in the same way as any other factory making products for and include them in our Full Audit Programme, and going forward, in SIPP. A processing factory is often contracted by more than one supplier. In some cases, one factory can be both a manufacturing factory and a processing factory. For example, when a manufacturing factory has certain production processes like in-house washing and offers this service to other manufacturing factories.

Fabric & yarn mills (second tier suppliers)

Fabric and yarn mills source fabrics and yarn to our supplier factories. These are the second tier suppliers. Normally we do not have direct business relationships with the mills. Nonetheless, we are working more and more to increase our influence and to support improvements at various stages of the Supply chain. Securing an additional and widely unique level of transparency by disclosing the names and locations of fabric mills is one way. At the same time, we are integrating the most important fabric and yarn mills into our audit programme and also into our supplier-relationship management strategy.

DATA Figures for factories taken from CCC H&M Profile - 2014. The answer they gave was a link to their factory list.

Manufacturing factories

These are factories that are either owned or contracted by our suppliers to make our products. Normally, these are so called “cut and sew” factories where the final manufacturing takes place. One supplier can own or contract one or more factories. All of them are covered by our Full Audit Program. In 2015 we launched a new programme for assessing the sustainability performance of our suppliers and support them even better. This even stronger partnership approach is called SIPP (Sustainable Impact Partnership Programme).

Processing factories

Not all factories possess the required facilities for making certain products - for example creating prints, washings or embroideries etc. In these cases, the suppliers can outsource specific tasks to so called processing factories. This is considered subcontracting and must be announced to H&M. We require that all processing factories are approved by our auditors. After approval, we approach the processing factory in the same way as any other factory making products for and include them in our Full Audit Programme, and going forward, in SIPP. A processing factory is often contracted by more than one supplier. In some cases, one factory can be both a manufacturing factory and a processing factory. For example, when a manufacturing factory has certain production processes like in-house washing and offers this service to other manufacturing factories.

Fabric & yarn mills (second tier suppliers)

Fabric and yarn mills source fabrics and yarn to our supplier factories. These are the second tier suppliers. Normally we do not have direct business relationships with the mills. Nonetheless, we are working more and more to increase our influence and to support improvements at various stages of the Supply chain. Securing an additional and widely unique level of transparency by disclosing the names and locations of fabric mills is one way. At the same time, we are integrating the most important fabric and yarn mills into our audit programme and also into our supplier-relationship management strategy.

DATA Figures for factories taken from CCC H&M Profile - 2014. The answer they gave was a link to their factory list.