H&M’s (unbelievably small) Sacrifice

For the past little while, we have been promoting sustainability and ethical production. But are such goals really feasible for fast fashion giants like H&M? We did some research and it turns out that the answer is: absolutely!

Currently, H&M has 1.6 million workers in its supply chain, and 272, 580 of them are in Bangladesh.

On average, these workers make SEK 750 krona ($119.09) per month, while a living wage in Bangladesh is more than double that amount at SEK 2083 ($330.74).

Sasja Beslik, Head of Sustainable Finance at Nordea Wealth Management, led a team for a research project, which concluded that a very small increase in H&M’s clothing items would allow the retailer to be able to pay it’s factory workers a living wage.

Do you want to know exactly how this can be done? Thanks to the information on Business Insider, we can see just how achievable this would be.

  • If shirt prices were to go up 0.60 cents in stores, H&M could pay double salaries to factory workers.
  • If prices then would rise a further 0.40 cents, H&M could pay out living wages to the workers in Bangladesh.
  • The average price for an H&M shirt, in store, is about $27.50 today.
  • If factory workers received a double wage, the shirt would cost $28.10 instead.
  • If factory workers received a living wage, the shirt would cost $28.50 – that is, $1 more than the current price.

*Currency conversion based on rates on June 12, 2017

So, does H&M have an excuse for neglecting their factory workers? We highly doubt it.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s