H&M CHEMICAL STRATEGY AND ACTIONS. General Information

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1 H&M CHEMICAL STRATEGY AND ACTIONS

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3 GREENPEACE S CAMPAIGN OVERVIEW

4 ZERO DISCHARGE of HAZARDOUS CHEMICAL GROUP (ZDHC) NOVEMBER 2011-Latest,there are 56 contributors in total (23 brands) Several brands committed (Nike, Adidas, Inditex, Levis, etc) to DETOX by 2020 to eliminate the hazardous chemicals used in supply chain DETOX is NOT only concern from H&M It is concerns for ALL brands More info:

5 H&M Commitment on Positive systemic change in production H&M Commitment on Systemic Change Secure 100% technical system and competence by guidelines and trainings Best Chemical Management Practice (BCMP) Hazardous Substance Control (HSC) training Towards ZDHC

6 H&M ROADMAP FOR CHEMİCAL MANAGEMENT Internal organisation and working methods Industry development Collaboration and policy advocacy Supplier chemical management Action taken for supplier chemical management : To assist and give guidance to suppliers to implement proper chemical management system in factories, H&M published Best Chemical Management Practice (BCMP) guideline in 2016.

7 WHY BEST CHEMİCAL MANAGEMENT PRACTİCE (BCMP)? 1. Enhance Chemical Management System in facilities Current common problem: Understanding in good chemical management practice is not comprehensive Facility not able to self-evaluate performance in chemical management and safe working condition Leading to chemical management problems, e.g. purchase of hazardous chemicals, chemical accidents 2. Minimize Product Failure in chemical Better control of qualified chemicals in the purchase and production stage Any chemical problems could be identified in a systematic chemical management 3. Reduce environmental impact with good chemical management system Avoid input of hazardous chemicals into manufacturing process Eliminate the hazardous chemicals discharged and prevent adverse impact to environment ZDHC Building up a good foundation of chemical management system

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9 H&M TRIS Chemical Activities and Goals in Systemic Change BCMP Workshop in TR HSC Training TR %100 TR suppliers engaged BCMP workshops BCMP assessments started in our suppliers HSC Training TR MRSL Trainings BCMP Workshops in Romania, Portugal, Italy HSC Training TR %100 TR and Europe Suppliers have BCMP

10 H&M Commitment on Phase Out Plan on Hazardous chemicals H&M Commitment on Phase Out H&M is committed to continuously eliminate the use of all hazardous chemicals and hence achieve zero discharge of the same from all production procedures that are associated with the making and using of H&M products, at the latest by Towards ZDHC

11 How do we achieve ZDHC 2020? Positive List The goal is to eliminate hazardous chemicals and only using safe chemicals in production. Public Disclosure of Wastewater Discharge Testing Input Chemicals Management Wastewater Discharge Testing and Input Chemicals Management will be used as monitoring tool to achieve ZDHC 2020 goal.

12 H&M Commitment on Increase public availability and transparency- H&M Commitment on Increase public availability and transparency- Continuously review and update MRSL Towards ZDHC

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14 MRSL Group 1 USAGE BAN on ENTIRE Production Site USAGE BAN on H&M Production Line Group 2 USAGE BAN on H&M Production Line To be Phased OUT by 2020 in ENTIRE Production Site

15 WHERE TO FIND MRSL?

16 H&M Commitment on Innovation of safer alternative H&M Commitment on Innovation of safer alternative Promote better alternative *H&M Positive List *Industry positive list work Towards ZDHC

17 H&M Chemical Positive List 2018

18 H&M Positive List Safe chemicals translates to safe products. It is a competitive edge towards our customers. Using only safe chemicals means no product failures. The goal is to have enough selection of safe chemicals for effective and sustainable production Growing list - under development in 2018 (between March November) ready by Dec. 2018

19 H&M Positive List: How to use it? Where is it? Supplier portal Will be published also in ZDHC platform How factories will use it? Always make sure that you download the latest version as it will be updated monthly Download from Supplier Portal for easy-to-use Excel file Search and filter according to your needs (best to filter by Specific Function ) Before using in production, consult with the respective chemical manufacturer regarding the product to see if it is suitable for your needs

20 WHERE TO FIND POSITIVE LIST?

21 H&M Positive List: Methodology Our methodology promotes transparency within the chemical industry to allow traceability of chemical used in production. The methodology is as follows: 1. Screened Chemistry for non-dyestuff (auxiliary chemicals and polymers) Chemical products (non-dyestuff) that have undergone Screened Chemistry hazard assessment using GreenScreen methods by ZDHC approved accessors or by Rapid Screen from SciveraLens. Screened Chemistry should be performed to include full-product scoring, instead of per CAS numbers. 2. Chemical testing for dye-stuff Dyestuff products shall be developed by chemical testing against the most updated ZDHC listed on ZDHC Gateway Level 1 by product testing will be included in the Positive List. MRSL. Only dyestuff products

22 H&M Commitment on Transparency of chemical used and discharge in production H&M Commitment on public disclosure 100% disclosure of discharge performance in all wet processing units Discharge data disclosed in public platform (IPE, Gateway WW) Towards ZDHC

23 H&M Commitment on Promoting development of common standards H&M Commitment on Development of Common Standards Evaluate supplier chemical performance by Calculation modelling Environmental Emission Evaluator =(ECUBE) =E3 Towards ZDHC

24 Environmental Emission Evaluator (Ecube) AIM Transparency Hazardous chemicals in manufacturing H&M and Bureau Veritas Environmental Emission Evaluator (E cube) IT IS A TOOL Chemical Management Performance

25 Example on how to see utilization of good chemicals in E-cube today Chemicals Used Global 2% 49 units using Ecube in 2017 (India, Indonesia, Bangladesh, Pakistan, Turkey, China) 48% % 4776 Chemical Products from 862 different chemical suppliers Compliant: chemical product is compliant with H&M MRSL and RSL Transparent and non-compliant Non transparent Transparent and compliant Transparent: we know the composition of the chemical product Non-Transparent: Chemical company did not disclose the chemical data We will have data on use of POSITIVE Listed chemical products by mid-year 2018

26 H&M TRIS Chemical Activities and Goals in Public Disclosure Ecube-1 Pilot Facility and 1 facility disclosed their discharge data through IPE %50 facilities with wet processes disclose their discharge data through IPE&ZDHC Gateway and involve Ecube %70 facilities with wet processes disclose their discharge data through IPE&ZDHC Gateway and involve Ecube Ecube-4 facilities IPE 28 facilities %100 facilities

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28 THANK YOU!