500-750words article reflection only wiht my listed material. 

https://centers.fuqua.duke.edu/edge/wp-content/uploads/sites/11/2019/10/MBA-EDGE-Climate-Change-and-Business.pdf
https://www.youtube.com/watch?v=1-RnnEFWUM4&feature=youtu.beA Case Study of H&M’s Strategy
and Practices of Corporate
Environmental Sustainability

Danny C. K. Ho

Abstract This study aims to examine the degree to which a large international
fashion company—H&M—has improved corporate environmental sustainability
using the principle of eco-efficiency and eco-effectiveness. Case study method is
employed and data are collected from its corporate annual reports and websites.
The strategy and practices relating to product design, purchasing, manufacturing,
transportation, retail operation, and product usage and recycling are examined.
Based on the data, the study examines the extent to which cradle to cradle
approach has been applied to design and manage H&M’s operations. This study
also explores the possibility of integrating eco-efficiency and eco-effectiveness in
improving corporate environmental sustainability.

Keywords Corporate environmental sustainability � Fashion supply chain �
Eco-efficiency � Eco-effectiveness

1 Introduction

The pursuit of corporate environmental sustainability is vital to the apparel
industry in general and fast fashion retailers in particular for their future devel-
opment. According to Sull and Turconi:

Fast fashion describes the retail strategy of adapting merchandise assortments to current
and emerging trends as quickly and effectively as possible. Fast fashion retailers have
replaced the traditional designer-push model—in which a designer dictates what is ‘‘in’’—
with an opportunity pull approach, in which retailers respond to shifts in the market within
just a few weeks, versus an industry average of six months (Sull and Turconi 2008 p. 5).

D. C. K. Ho (&)
Department of Supply Chain Management, Hang Seng Management College,
Hang Shin Link, Siu Lek Yuen, Shatin, NT, Hong Kong
e-mail: dannyho@hsmc.edu.hk

P. Golinska (ed.), Logistics Operations, Supply Chain Management
and Sustainability, EcoProduction, DOI: 10.1007/978-3-319-07287-6_16,
� Springer International Publishing Switzerland 2014

241

The business of fast fashion has been competitive yet profitable and growing
rapidly. For example, sales of the Inditex Group (parent company of Zara)
increased by 53.2 % from €10,407 million in 2008 to €15,946 million in 2012,
while its net profit rose by 87.6 % from €1,262 million in 2008 to €2,367 million
in 2012. During the same period, H&M achieved 35.5 % increase in sales, up from
SEK1,04,041 to SEK1,40,948 million, while its net profit increased by 10.3 %
from SEK15,294 to SEK16,867 million.

The fast fashion trend promoted by retailers such as Zara, TopShop and H&M
has brought the trend of disposable fashion that encourages more frequent impulse
purchase of cheap, in-season and non-durable garments and the tendency to keep
these products for a shorter time than their real useable life (Birtwistle and Moore
2007). In addition, these garments are expected to be used less than ten times
(McAfee et al. 2004), and are likely to end up as harmful, non-biodegradable
wastes at lMBAEDGETM

Lead Author: Katie Kross, MBA, Managing Director, Center for Energy, Development, and the Global Environment (EDGE), Duke University.

© 2019, Center for Energy, Development, and the Global Environment, The Fuqua School of Business, Duke University, Durham, NC.

Climate Change & Business:
What Every MBA Needs to Know

Executive Summary

Climate change presents one of the biggest challenges to economies in the 21st century. The impacts of
climate change will affect where new offices and manufacturing facilities are sited, how leaders plan for and
respond to crises, how investors think about the cost of capital, how customers perceive the brands they buy,
where and how raw materials are sourced, and even, potentially, what materials are available for new
products in the future. Because of the widespread nature of impacts, these risks are relevant to MBAs in
functions including finance, strategy, procurement, product
development, marketing, real estate, operations/supply chain
management, and human relations.

Managers who understand the risks can also envision business
opportunities. Companies that act now to mitigate risks in their
supply chains, properties, and investment portfolios can gain
competitive advantage over industry peers. Acting on climate
also minimizes companies’ reputation risk with customers,
employees, and policy-makers. Finally, there are a host of
multi-billion-dollar growth-market opportunities that
entrepreneurs and investors can capitalize on. Every MBA
thinking about the future of business should understand the
risks—and opportunities—facing their industry from climate
change.

The Issue

The climate is changing as carbon dioxide (CO2) and other greenhouse gases emitted by industrial activity
interfere with the earth’s natural climate system. Heat-trapping gases concentrated in the atmosphere are
producing an overall rise in average global temperature (“global warming”), but also disrupting the
atmosphere’s typical patterns, producing complicated changes that are interrelated but not uniform.

Effects
The effects of climate change are already visible,
and accelerating. The extent and pace of change
will depend on how fast policy and business
mitigation strategies take effect. Climate change
effects include:

 Rising global temperatures. At the crux of

climate change is a rise in the average global
temperature. 2018 was the fourth hottest year
on record, with temperatures 0.79ºC (1.42ºF)
higher than average globally. Four of the five
hottest years on record have occurred between
2014-2018.i (Note that this warming does not
necessarily eliminate extreme cold events. As
climate change disrupts the flows of air and
water around the earth, there can be times of

“Climate change presents
significant risks to many

companies, by threatening
their assets and supply

chains. The more they
know about those risks, the

faster they can act to
address




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