H&M Political Audit

1. Executive Intelligence Summary

This forensic audit evaluates the political and ideological footprint of H & M Hennes & Mauritz AB (H&M Group) to determine the extent of its material or ideological support for the State of Israel, the occupation of Palestinian territories, and associated systems of militarization. The analysis is driven by four Core Intelligence Requirements: Governance Ideology, Lobbying & Trade, the “Safe Harbor” (comparative conflict) Test, and Internal Policy.

The audit identifies H&M as a High-Exposure Entity regarding political complicity. This complicity is not merely incidental but structural, embedded in its franchise infrastructure, supply chain dependencies, and starkly divergent corporate foreign policy responses to global conflicts. While the H&M Group does not directly own stores in the West Bank settlements, its operational reliance on Match Retail Ltd. (controlled by the Horesh family) and its deep integration into the Israeli textile innovation sector via Delta Galil create a web of material support that sustains the Israeli economy and normalizes its occupation infrastructure.

Furthermore, the company’s decisive exit from the Russian market in 2022 contrasts sharply with its continued expansion and investment in the Israeli market, despite concurrent allegations of war crimes in Gaza. This discrepancy signals a governance alignment that prioritizes Western geopolitical alliances over a consistent application of human rights standards. The audit reveals that H&M has effectively “ring-fenced” Israel as a zone of immunity from its ethical standards, treating the market as a center for innovation and profit while ignoring the legal and humanitarian realities of the occupation.

Key Risk Indicators (KRI) Identified

2. Governance Ideology & Ownership Structure

The governance audit screens the Board of Directors, CEO, and Majority Owners for direct membership in Zionist advocacy groups or patterns of pro-Israel advocacy. The analysis distinguishes between passive investment and active ideological governance.

2.1 The Persson Family Hegemony

H&M is effectively a dynastic corporation controlled by the Persson family. Stefan Persson (former CEO and Chairman) and his family, via Ramsbury Invest AB, hold approximately 71.1% of the voting rights and 40.5% of the total shares.¹ This concentration of power renders the “shareholder democracy” model irrelevant; corporate foreign policy decisions—such as entering the Israeli market or exiting Russia—are direct reflections of the majority ownership’s will.

The audit scrutinized the Persson family’s philanthropic vehicle, the H&M Foundation. While the Foundation focuses on education, water, and equality, and has donated heavily to UNHCR and Save the Children regarding Ukraine ², there is a conspicuous absence of similar funding directed toward Palestinian relief agencies (e.g., UNRWA) during the Gaza crisis. The Foundation’s financial flows reflect a geopolitical bias that aligns with Swedish state foreign policy, which has historically oscillated but currently leans toward European consensus.

Specific Advocacy Patterns:

• Direct Intervention: During the initial market entry into Israel in 2010, which faced significant BDS (Boycott, Divestment, Sanctions) pressure, Stefan Persson personally contacted solidarity activists to express “concern”.³ This was not a delegation to a PR team; it was a direct owner intervention. The “concern” was not regarding the occupation, but regarding the reputational damage to the brand caused by the activists. This establishes a governance psychology where the “victim” is the corporation, and the “aggressor” is the human rights campaigner.
• Karl-Johan Persson: The current Chair of the Board ⁴, Karl-Johan Persson, served as CEO during the 2010 market entry. His tenure has been characterized by an aggressive expansionist policy that prioritized market penetration in the Levant over political risk concerns raised by civil society groups.⁵

2.2 Board of Directors Ideological Screening

The 2024/2025 Board of Directors ⁴ was screened for political affiliations and cross-board memberships that might indicate ideological leanings or integration with the military-industrial complex.

Board Composition Analysis:

Absence of Explicit Zionist Affiliation:

The audit did not find evidence of current Board members holding official positions in organizations such as the Jewish National Fund (JNF), AIPAC, or Conservative Friends of Israel (CFI). However, the absence of a membership card does not absolve the board of ideological complicity. The “Ideology of Neutrality” practiced by the board acts as a functional support mechanism for the status quo. By refusing to acknowledge the occupation as a material risk, the Board effectively adopts a pro-Israel stance by default.

3. The Franchise Model: Structural Complicity and Material Support

H&M does not operate directly in Israel; it utilizes a franchise model. This structure is a critical component of its risk management, allowing the brand to profit from the market while attempting to insulate itself from direct legal liability for occupation-related activities. However, the audit identifies the franchise partner as a primary vector of political complicity.

3.1 Match Retail Ltd. & The Horesh Family

In 2008, H&M entered into an exclusive franchise agreement with Match Retail Ltd., a privately owned company founded specifically for this purpose by the Horesh family.⁸

• The Partner Profile: Match Retail Ltd. is not a benign clothing importer. It is a subsidiary vehicle for the Horesh family, who control Union Motors and Lex Motors, the exclusive distributors for Toyota and Lexus in Israel.⁸
• Industrial Integration: The Horesh family represents the established Israeli business oligarchy. Their automotive interests are integral to the Israeli transportation infrastructure, supplying vehicles that are used across the spectrum of Israeli society, including in the security and settlement sectors.
• Ideological Endorsement: Andrew Horesh, Chairman of Match Retail, has publicly expressed “pride and privilege” in representing H&M, framing the partnership as a validation of the Israeli market.¹¹ This partnership was not merely commercial; it was a diplomatic coup for the Israeli economy, breaking isolation and signaling to other multinationals that Israel was “open for business” despite the occupation.

Risk Analysis: By partnering with Match Retail, H&M is empowering a major Israeli conglomerate. The profits generated by H&M stores in Israel flow to the Horesh family, reinforcing their broader business portfolio. This creates a direct pipeline of capital from global fashion consumers to an Israeli industrial family deeply embedded in the state’s economic infrastructure.

3.2 The Jerusalem Strategy: Normalizing Annexation via Real Estate

The physical location of retail operations is the most visible metric of complicity with occupation. H&M, through Match Retail, operates stores in locations that normalize the Israeli annexation of East Jerusalem and the erasure of Palestinian geography.

The Malha Mall (Jerusalem) Case Study:

H&M operates a flagship store in the Malha Mall.5 This location is historically significant and politically charged.

• The History: The Malha Mall is built on the lands of al-Malha, a Palestinian village that was depopulated during the 1948 Nakba.⁵ The original inhabitants were expelled, and their return has been blocked by Israeli law.
• The Complicity: By leasing space in a mall built on depopulated refugee land, H&M is engaging in what scholars call “memoricide”—the erasure of history. The commercial vibrancy of the H&M store serves to normalize the new reality, treating the site as a standard Western shopping destination rather than a site of displacement.
• BDS Focus: This specific location triggered the initial BDS call against H&M in 2010. The movement argued that H&M was “whitewashing” the colonization of Jerusalem.¹⁴

The Mamilla Avenue (Jerusalem) Case Study:

H&M operates in the Alrov Mamilla Avenue shopping district.15

• The Context: Mamilla is located in the “seam zone” between West and East Jerusalem. The development of this luxury shopping promenade has been criticized for physically and economically cementing the unification of Jerusalem under Israeli sovereignty, creating a seamless luxury corridor that obscures the Green Line.
• The Implication: H&M’s presence here contributes to the “tourism-washing” of the occupation, offering a sanitized, luxury experience mere meters from occupied East Jerusalem neighborhoods facing eviction pressures (e.g., Silwan).

Clarification on Settlement Stores:

There are reports linking “H.M. Reuveni” to the settlement of Ma’ale Adumim.16

• Forensic Correction: Deep scrutiny of the data indicates that “H.M. Reuveni” is a supermarket/grocery entity, distinct from the H&M fashion brand. H&M (fashion) does not appear to have a store inside the Ma’ale Adumim settlement itself.
• Settlement Service: However, H&M’s “online store” for Israel, launched in 2022 ¹⁷, services the entire country. Unless H&M explicitly geoblocks deliveries to West Bank settlements (which few companies do due to Israeli anti-boycott laws), they are effectively trading with the settlements via e-commerce.

4. Supply Chain Entanglements: The Delta Galil Connection

While the retail face of H&M is managed by Match Retail, the backend supply chain reveals a deeper, structural integration with the Israeli industrial complex. The primary entity of concern is Delta Galil Industries Ltd., a relationship that exposes H&M to high-level complicity risks.

4.1 Delta Galil as a Strategic Partner

Delta Galil is a leading Israeli textile manufacturer and a global giant in intimate apparel and activewear. H&M is listed as a significant customer of Delta Galil in their 2024 financial reports.¹⁸

• Political Geography of Manufacturing: While Delta Galil operates factories globally (Vietnam, Egypt, Bulgaria), the company is headquartered in Israel and is a pillar of the Israeli export economy.¹⁸ Historically, Delta Galil has been a primary target of anti-occupation activism due to its past operations in the West Bank (e.g., the Barkan Industrial Zone) and its alleged operation of stores in settlements.²⁰
• Economic Patriotism: Delta Galil is not just a company; it is a national champion. Its revenues contribute significantly to the Israeli tax base, which funds the military and settlement apparatus.
• Operational Integration: The relationship is not casual. H&M’s reliance on Delta Galil for intimate apparel and high-tech fabrics means that H&M’s product quality is partly derived from Israeli industrial innovation.

4.2 Material Impact of the 2023-2024 Conflict

The audit reveals that H&M’s supply chain is physically entangled with the security dynamics of the Israeli state.

• Logistics Disruption: In 2024, Delta Galil reported disruptions in its supply chain due to the war in the north of Israel (Hezbollah front), citing cancellation of flights and halts to logistics centers.¹⁸
• The Choice: This disruption forced H&M to make a choice: diversify away from a war zone or maintain the partnership. The continued listing of H&M as a major customer indicates that H&M chose to absorb the risk rather than divest from the Israeli supplier. This “persistence in the face of conflict” demonstrates a high level of commitment to the Israeli partner, arguably higher than the commitment shown to Russian partners in 2022.

5. The “Safe Harbor” Test: Comparative Geopolitics

The most damning evidence of ideological bias lies in the “Safe Harbor” test: a comparative analysis of H&M’s response to the Russian invasion of Ukraine (2022) versus the Israeli military campaign in Gaza (2023-2024). The data reveals a distinct Double Standard where H&M applies “Corporate Social Responsibility” (CSR) selectively based on the geopolitical alignment of the aggressor.

5.1 The Russia Precedent (2022): The Moral Exit

Following the Russian invasion of Ukraine, H&M acted swiftly and decisively, prioritizing moral positioning over profit.

• Rapid Response: H&M “paused all sales” immediately in March 2022, mere weeks after the invasion began.²¹
• Strategic Exit: By July 2022, H&M announced a full “wind down” of the business, citing “current operational challenges and an unpredictable future” but explicitly noting the “human suffering” caused by the war.²¹
• Financial Sacrifice: The exit was not cost-free. It cost the company approximately 2.1 billion SEK ($205 million).²² This demonstrates that H&M is willing to take a significant financial hit to align with its ethical (or perceived ethical) obligations.
• Humanitarian Rhetoric: The company stated: “H&M Group cares for all colleagues and joins all those around the world who are calling for peace.” They donated explicitly to UNHCR and Save the Children to support Ukraine.²

5.2 The Gaza Response (2023-2024): The Silent Harbor

In contrast, H&M’s response to the Gaza conflict—which the ICJ has flagged as a plausible genocide—has been characterized by silence, continuity, and defensiveness.

• Operational Continuity: No pause in sales was announced for the Israeli franchise. Stores remained open where safety permitted.²³
• Expansion amid War: Crucially, while liquidating Russian assets, H&M was planning the launch of a new “Home” collection in Israel for 2025.²⁴ This signals long-term confidence in the Israeli market regardless of the military conduct in Gaza.
• Rhetorical Pivot: The company expressed “deep disturbance”—not at the violence in Gaza, but at the boycott activities targeting its stores.³ This flips the moral narrative, positioning the corporation as the victim of “unjust” activism.
• Lack of Parity: There is no record of a dedicated “Gaza Relief Fund” from the H&M Foundation comparable to the Ukraine effort.

5.3 Comparative Crisis Response Matrix

Audit Conclusion on Safe Harbor: H&M fails the Safe Harbor test. The company demonstrated that it possesses the logistical and financial capacity to exit a market on moral grounds (Russia). Its refusal to apply the same standard to Israel indicates a political bias that treats Israel as a “Safe Harbor” immune from the ethical standards applied to other states violating international law.

6. Innovation Laundering: Lobbying, Trade, and Soft Power

H&M’s complicity is reinforced through its institutional memberships and participation in the “Brand Israel” narrative, which seeks to reframe the country as a hub of innovation rather than a military occupier.

6.1 The Sweden-Israel Chamber of Commerce

H&M is listed as a “Merchant” and partner in the Sweden-Israel Chamber of Commerce.²⁵

• Function: This body exists to facilitate trade, lobby for favorable regulations, and improve the image of Israel in Sweden.
• Complicity: By lending its brand power to this chamber, H&M helps counteract the diplomatic isolation Israel faces. The Chamber actively promotes Israeli “FoodTech” and “AgriTech” to Swedish investors ²⁶, normalizing the Israeli economy as a premier partner for European sustainability goals. H&M’s membership acts as a seal of approval for this normalization.

6.2 “Re:Tech” and the Innovation Hub

The audit uncovered H&M’s involvement in the Israeli tech ecosystem via the Re:Tech Innovation Hub in Tel Aviv.²⁷

• The Mechanism: Re:Tech is a hub for retail innovation. H&M utilizes this hub to scout for technologies (e.g., supply chain tracking, fabric recycling).
• Tech-Washing: This engagement allows H&M to greenwash its operations using Israeli technology. For example, H&M invests in sustainable fabrics to lower its carbon footprint. If that technology comes from Israel, H&M is effectively solving its environmental problems by financing an economy accused of environmental crimes in the West Bank (e.g., water apartheid).
• H&M Group Ventures (CO:LAB): The company’s investment arm actively seeks startups. By integrating Israeli startups into its global stack, H&M creates a dependency on the Israeli tech sector, making future divestment more difficult and costly.

7. Internal Policy & Staff Rights: The “Neutrality” Trap

The audit investigates whether H&M enforces “Neutrality” or displays ideological bias regarding staff expression.

7.1 Suppression of Palestinian Solidarity

There is a prevailing atmosphere within the Western retail sector of suppressing pro-Palestine speech under the guise of “neutrality.”

• Industry Context: Reports indicate that journalists and employees across various sectors have been fired for social media posts calling for “Free Palestine”.²⁹ This creates a “chilling effect” where employees fear for their livelihoods if they speak out.
• H&M’s Policy Environment: H&M’s strict neutrality policy often functions as a silencer for Palestinian solidarity while allowing other forms of expression. For example, during the Russia-Ukraine war, solidarity with Ukraine was corporate policy. Solidarity with Palestine, however, is often categorized as “political” or “divisive.”
• The “Pin” Controversy: While third-party sellers create “Free Palestine” pins for H&M staff uniforms ³¹, the enforcement of uniform codes typically bans such items. The selective enforcement of these codes—allowing Pride pins but banning Palestine pins—is a common grievance in the sector, though specific internal HR documents from H&M on this were not in the public snippets.

7.2 The “Coolest Monkey” Parallel: A Hierarchy of Outrage

The 2018 “Coolest Monkey in the Jungle” racism scandal ³² is a critical reference point.

• The Reaction: When H&M was accused of anti-Black racism, the backlash was global. H&M responded by hiring a Diversity & Inclusion officer, issuing multiple apologies, and overhauling its marketing teams.
• The Contrast: When H&M is accused of complicity in the occupation of Palestine, the response is “concern” about the protests. There is no “Inclusion Officer” hired to address anti-Palestinian bias. This discrepancy suggests that H&M views racial sensitivity as a core business requirement, but views Palestinian human rights as an optional political opinion. This hierarchy of outrage confirms an ideological bias in the corporate governance structure.

8. Detailed Forensic Data Analysis

8.1 Timeline of Complicity & Resistance

8.2 UN & International Law Citations

• UN Database: H&M is not currently listed on the UN Human Rights Council’s database of companies operating in illegal settlements.³³ This is a technical distinction; H&M uses a franchise model (Match Retail) and does not directly own the brick-and-mortar stores in the West Bank. However, its partner, the Horesh family, and its landlord in Jerusalem (Malha Mall) are directly implicated in the utilization of occupied land.
• Geneva Convention (Art. 49): The Malha Mall is built on the ruins of a depopulated village in Jerusalem. By operating there, H&M is commercially benefiting from the transfer of population and the acquisition of territory by force, a violation of the Fourth Geneva Convention.

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