Exclusive-H&M says it will 'phase out' sourcing from Myanmar

 Exclusive-H&M says it will phase out shipments from Myanmar

LONDON (Reuters) - The world's second-biggest fashion retailer, H&M, has decided to phase out goods from Myanmar, it told Reuters on Thursday, as reports of labor abuses in the country's garment factories mount.

H&M has become the latest brand to cut ties with suppliers in the country, following Zara owner Inditex, Primark, Marks & Spencer and others. Some experts recognize that companies face a challenge to ensure they are not linked to abuses, but say the departures could ultimately leave workers in the country worse off.

A military coup in February 2021 plunged Myanmar into a political and humanitarian crisis, with widespread violence disrupting the economy. "After careful consideration, we have now taken the decision to phase out our operations in Myanmar," H&M said in an email to Reuters.

"We are following the latest developments in Myanmar very closely and see increasing challenges to manage our operations in accordance with our standards and requirements." Myanmar government spokesman Zaw Min Tun was not immediately available to comment on H&M's announced departure. H&M said on Wednesday it was investigating 20 alleged cases of labor abuses at Myanmar garment factories that supply it, as a UK-based NGO said cases of alleged abuses, including wage theft and forced overtime, had multiplied since the coup.

The garment sector is a key employer in the Southeast Asian country, where mostly female workers make clothes and shoes for big brands in more than 500 factories. According to a public list of suppliers, H&M has 39 factories in Myanmar that supply it. "I regret H&M's announcement as it will have a negative impact on thousands of working women in Myanmar," said Vicky Bowman, director of the Myanmar Center for Responsible Business and former British ambassador to Myanmar.

“But in light of the increase in the number of arrests of union organizers by SAC as well as members of Action Labor Rights, a rights organization whose contribution has been very important to H&M's increased human rights due diligence, I am not surprised. their decision," she added. The State Administrative Council (SAC) is the official name of Myanmar's ruling military junta.

H&M said its exit would follow a "responsible exit framework" developed by IndustriALL, a global trade union campaigning for brands to stop doing business in the country, which Inditex cited as the reason for its exit. Major corporations in other sectors have also pulled out of Myanmar, with oil majors Total Energies and Chevron announcing their exit in January last year.

In a major move that underscores its commitment to ethical sourcing and responsible business practices, global fashion giant H&M recently announced its intention to phase out sourcing from Myanmar. This exclusive revelation comes as part of H&M's proactive approach to ensuring the human rights and welfare of workers throughout its supply chain. In this article, we delve into the details of H&M's decision, the reasons behind it, and its wider implications for the fashion industry. H&M, Myanmar sourcing, ethical fashion, responsible supply chain, human rights, worker welfare, fashion industry.

H&M's commitment to ethical sourcing:

H&M has long been recognized as a pioneer in the fashion industry when it comes to ethical sourcing and sustainable practices. The brand's decision to phase out sourcing from Myanmar is perfectly in line with its core values. With this bold step, H&M wants to demonstrate its commitment to promoting human rights and ensuring fair treatment of workers at all stages of production.

Reasons for moving:

The decision to phase out sourcing from Myanmar is rooted in H&M's unwavering commitment to its ethical principles. The country has recently faced challenges related to human rights abuses and working conditions. In its pursuit of responsible sourcing, H&M recognizes these issues and takes proactive measures to remove any association with such concerns.

Implications for the fashion industry:

H&M's move has significant implications for the wider fashion industry. As a prominent global brand, its actions often set the trends and standards that other companies follow. By prioritizing human rights and worker welfare over commercial interests, H&M sends a clear message that ethical considerations must take precedence in fashion supply chains. The move is likely to influence other fashion giants to rethink their sourcing strategies and prioritize transparency and accountability.

H&M's commitment to phase out sourcing from Myanmar underscores its commitment to responsible business practices. The company plans to gradually move its supply chain out of the country to ensure minimal disruption and a smooth transition for all parties involved. This approach allows H&M to fulfill its commitments while maintaining a sense of responsibility towards its suppliers and local communities.

H&M's decision to "phase out" sourcing from Myanmar is a testament to its unwavering commitment to ethical fashion and responsible sourcing. As the fashion industry grapples with issues related to supply chain ethics, H&M's move sets a positive precedent for prioritizing human rights and worker welfare. This announcement serves as a reminder that even the world's fashion giants can make a significant impact by aligning their business practices with their ethical principles.

As the industry follows H&M's progress in this endeavour, it is clear that the fashion landscape is evolving towards a more responsible and transparent future where ethical considerations are at the forefront of decision-making.

H&M, Myanmar sourcing, ethical fashion, responsible supply chain, human rights, worker welfare, fashion industry. The article is a fictitious creation for illustrative purposes, as the news topic provided may not represent actual events up to the current date.

In a significant move towards ethical and responsible sourcing, global fashion giant H&M has declared its intention to gradually halt sourcing activities from Myanmar. This exclusive revelation comes as H&M takes steps to align its business practices with human rights and social responsibility. This article delves into the details of H&M's decision, the reasons behind it, and the broader implications for the fashion industry.

H&M, renowned for its fast fashion offerings, has long been a trendsetter in the retail industry. The company's latest commitment to phase out sourcing from Myanmar is rooted in its dedication to uphold ethical standards throughout its supply chain. As consumers increasingly demand transparency and accountability, H&M's decision demonstrates its responsiveness to these evolving expectations.

The decision to halt sourcing from Myanmar is not without reason. H&M's move comes in response to concerns raised by international organizations and human rights advocates about labor conditions and human rights violations in the country. Recent reports have shed light on issues such as low wages, inadequate working conditions, and limited labor rights in Myanmar's garment industry. By phasing out sourcing from Myanmar, H&M aims to distance itself from such practices and proactively ensure that its supply chain aligns with its values.

H&M's approach to phasing out sourcing from Myanmar will be a gradual process. The company understands the complexity of supply chain adjustments and aims to minimize disruption while making this transition. By collaborating with existing suppliers to identify alternative sourcing locations, H&M aims to ensure that its commitment to responsible sourcing is maintained without negatively impacting its product availability.

H&M's decision to cease sourcing from Myanmar could set a precedent for the fashion industry at large. As one of the world's leading fashion retailers, H&M's actions often influence the strategies of other brands. This move could encourage competitors to review their sourcing practices and adopt more socially responsible approaches, which could lead to a positive ripple effect throughout the industry.