All of our suppliers must sign our code of conduct, the Sustainability Commitment which clearly states that factories should at least pay the local minimum wage or wages according to a collective bargaining agreement, whichever is higher...

Before starting any relationship with a supplier, we conduct a minimum requirement assessment. All suppliers must pass this assessment before we place an order with them. We then conduct regular follow up assessments to ensure our minimum requirements continue to be met.

Minimum Requirements checks on “wages paid” are performed at factories either by H&M Group governance teams or a 3rd party (Better Work Bangladesh). The validation process includes controls of payroll records and attendance records at the factory and wages are calculated against applicable legal required wage levels (including statutory minimum wage and skill levels defined by the legal minimum wage notification where applicable).

All allegations made about H&M Group, a supplier or business partner are investigated. If we discover and verify a violation of our policies, we take immediate action. For business relationships this will lead to enforcement action, and if prompt corrective action is not taken or adequate remedy provided, the ultimate consequence will be termination.

To further enable us to monitor and assess wage levels, we collect monthly wage data from tier 1 supplier factories which are validated by H&M Group governance teams on a quarterly basis. To gain deeper understanding on for example wage grade, skill levels, as well as gender and migrant workers, we conduct a bi-annual wage survey with our tier 1 suppliers.

We publish average wage data for key production countries – which includes Bangladesh – in our Sustainability Disclosure report and on our website.

We work with suppliers to improve wage management systems and we partner with peers, experts and governments to improve wages at the industry and country level.

We are a founding member of ACT, a collaboration of fashion brands with the global union IndustriALL that sets out to strengthen freedom of association and collective bargaining with the aim to reach living wages. Bangladesh is a focus country for ACT.

Out of the factories listed by BHRRC, three are actively supplying to H&M Group:

- Bengal Plastic Ltd

- FCI (BD) Ltd

- Talisman Ltd

These production units are based in the Dhaka EPZ where workers protested for higher wages in January 2024, when one factory had decided to pay more than the agreed minimum wage. Following the protests, all of our supplier factories based in Dhaka EPZ agreed to increase their wages to more than the set minimum wage.

According to our records, all of our supplier factories in Bangladesh have made the wage adjustments according to the new minimum wage (or higher) on time...

We have expressed our commitment to stand behind our responsible purchasing practices to our business partners in Bangladesh after the new minimum wage was set. This means that the prices we pay our suppliers for our current and future orders reflect the new minimum wage. We have communicated to our suppliers that we acknowledge the importance of our purchasing practices as enablers for improved wage levels, better planning and forecasting and beneficial payment terms. We advocate for a yearly revision of the minimum wage in Bangladesh to better follow the economic development in the country.

We support the right to freedom of association and believe that strong industrial relations contribute to resilient supply chains and decent work. Our Sustainability Commitment clearly states that all workers have the right to join or form a trade union. We have signed a Global Framework Agreement (GFA) with global trade unions IndustriALL and IF Metal in which all parties agree to actively work together to implement well-functioning industrial relations at H&M Group's direct suppliers.

National Monitoring Committees (NMCs)...oversee the implementation of the GFA within the specific country context. NMCs consist of H&M Group representatives working on the ground alongside national-level trade union representatives affiliated with IndustriALL and part of their role is to facilitate conflict resolution for employees and employers at factories. We work with suppliers to increase democratically elected worker representation and to empower worker to know their rights.

[The full response is attached]