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.