H&M, Zara Face Scrutiny Amid Supply Chain Allegations

Zara and H&M sold clothing potentially manufactured with cotton sourced from Brazilian farms associated with land grabbing, illegal deforestation, and human rights violations, as reported by Earthsight. The British NGO highlighted that both brands purchased clothing from suppliers who, in turn, used cotton grown by two producers repeatedly fined for violating environmental legislation. This information was uncovered through an investigation that used export records to trace the supply chain of both textile houses.

The cotton in question was cultivated by two of Brazil’s largest agribusinesses – SLC Agricola and Horita Group – from the western Bahia state, part of the valuable Cerrado biome, extensively deforested in recent decades to accommodate industrial-scale agriculture. SLC, with 440km2 of cotton plantations in western Bahia, has been fined over US$250,000 by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) since 2008 for environmental infractions. Similarly, the Horita Group, with 1,400km2 of cotton plantations in the region, has been fined over 20 times by IBAMA, totaling US$4.5 million between 2002 and 2019.

According to Earthsight, Horita and SLC provided between 4% and 29% of the cotton for the Indonesian manufacturer Kahatex, which supplied 29% of its production to H&M between October 2020 and September 2021. Additionally, the two Brazilian producers supplied between 4% and 14% of the cotton imported in 2023 by Jamuna, a Bangladesh-based company that exports almost two-thirds of its production to Inditex, owner of Zara. The company sold US$251 million worth of clothing in Europe manufactured by Jamuna between January and August 2023, according to the report.

The Brazilian cotton used in the garments sold by Inditex and H&M carried a Better Cotton certification, an organization dedicated to monitoring the sustainability of cotton crops. Earthsight emphasized that the organization's requirements for compliance with local environmental laws are “excessively vague" and do not mention land ownership disputes.

Inditex sent a letter to Better Cotton highlighting the seriousness of the findings revealed by the investigation and urgently requested the results of their evaluations. In turn, Better Cotton stated in a release that they had completed an audit of the reported farms and needed time to analyze the results and identify ways to strengthen their standards.

The Brazilian Cotton Growers Association (ABRAPA) stated in a release that its members are committed to addressing the allegations with the utmost urgency and transparency and condemned practices that harm the environment.

Inditex Group, which also owns other popular fashion brands such as Pull&Bear, Bershka, Massimo Dutti, and Stradivarius, along with the Swedish H&M, are the world's largest fashion groups with a combined profit of approximately US$41 billion in 2022, as highlighted by Earthsight. "They have established themselves as leaders in the fast fashion sector, with H&M operating around 4,399 stores worldwide while Zara and other Inditex brands have 5,815," the report reads.

The NGO pointed out that to prevent situations that endanger vital ecosystems and violate human rights in developing countries, large clothing retailers, including H&M and Zara, must go beyond using certification schemes to ensure their goods are ethically sourced by establishing their own, more rigorous checks.

This is not the first time such brands have been involved in controversial situations. In 2023, an investigation by the Swedish portal Aftonbladet revealed that some garments collected by H&M within its recycling program ended up in clothing landfills in Africa.

The research team placed tracking devices on 10 garments left at collection points in Stockholm. The investigation revealed that only two garments were sent for recycling, five were lost, one was sent to India, and the remaining two to Africa. The team tracked a jacket that ended up in Cotonou, a city in Benin, Africa. "They send the clothes that don't sell to be dumped, many of which end up on the coast or get incinerated to get rid of them," explained the report.

In Mexico, a study conducted by PROFECO described fast fashion as a concerning environmental issue. The consumer protection agency underscored that fast fashion brands mostly use synthetic fibers derived from petroleum such as polyester, nylon, rayon, or acrylic, which are the same polymers used in disposable packaging. This clothing could also be considered disposable, as its poor quality often prevents reuse or extending its lifecycle, leading to endless mountains of waste, explained the article published in December 2019 in the Consumer Magazine. 

PROFECO pointed out that brands such as Bershka, Esprit, Forever 21, Gap, Guess, H&M, Mango, Oysho, Pull & Bear, Shein, Zaful, Massimo Dutti, Zara, Victoria's Secret, Stradivarius, United Colors of Benetton, and UrbanOutfitters do not base their business model on the durability and quality of garments but on the rapid introduction of clothing sets replaced within a period of weeks. Additionally, other factors such as precarious working conditions in the production chain exacerbate the issue.

PROFECO recommends consumers to stay informed about the materials and origins of their garments and to prioritize quality over quantity in their purchases. "It is true that quality costs more, but when we factor in durability, the cost-benefit ratio always favors us," highlighted the agency.