INDEX / DIRECTORY / H&M

H&M

Retail 164 CITED SOURCES UPDATED 2026-05-19
BDS-1000 Score 86 /1000 E Tier E — Limited
V-MIL ↗ 0.16 V-DIG ↗ 0.05 V-ECON ↗ 0.83 V-POL ↗ 0.61

BDS-1000 Dossier: H&M Group

Target Profile

FieldDetail
Legal NameHennes & Mauritz AB (H&M Group)
HeadquartersStockholm, Sweden
SectorFast-fashion retail
OwnershipPublicly traded (Nasdaq Stockholm, ticker HM B); Stefan Persson family ~36% controlling stake
Israeli NexusFranchise operations via Match Retail Ltd. (owned by Horesh family, also controls Union Motors/Toyota Israel); franchisee principals linked to automotive supplier whose vehicles are documented in IDF West Bank operations

Executive Summary

H&M Group is a Swedish fast-fashion retailer that entered the Israeli market in 2010 through a franchise agreement with Match Retail Ltd., a privately held Israeli company owned by the Horesh family 12. The company operates 24 H&M stores in Israel, predominantly in the Gush Dan metropolitan area, along with COS and & Other Stories stores under the same franchise arrangement 3. H&M explicitly states it does not operate in occupied East Jerusalem or the West Bank 3.

The documented vectors of Israel-Palestine complicity are indirect but material. The strongest vector is economic: H&M’s franchise model generates royalty and brand licensing revenue from Israeli operations while the franchisee’s parent entity (Union Group) operates Union Motors, the exclusive Israeli distributor of Toyota vehicles documented by Who Profits as supplied to the Israeli military for settlement protection, checkpoint operations, and house demolitions 4. A secondary vector involves security services: H&M’s Israeli franchisee contracts with G1 Secure Solutions (formerly G4S Israel) and ENI Advanced Security Solutions, both documented as providing services to Israeli settlements, checkpoints, and prisons 567. A tertiary digital vector exists through H&M’s use of Google Cloud and Microsoft Azure, whose Israeli infrastructure serves the Israeli Ministry of Defence under the Project Nimbus contract 895.

Notably, no direct defence contracts, no presence in UN OHCHR settlement databases, and no direct corporate statements on the conflict were identified. The franchise structure provides legal separation, and H&M’s CEO has characterized Middle Eastern operations as “small sales exposure” 10.

The resulting BRS score is 281 (Tier D – Moderate), driven primarily by the V-ECON score of 4.38, reflecting the economic nexus through franchise revenue and the franchisee parent’s automotive distribution ties to Israeli military vehicle supply.

Timeline of Relevant Events

DateEvent
December 9, 2008H&M announces franchise agreement with Match Retail Ltd. for Israeli store openings 1
March 2008H&M management visits Israel, meets with Ahava Dead Sea Laboratories (settlement-based); no deal follows 11
March 11, 2010First H&M store opens in Tel Aviv Azrieli Center Mall 2
March 16, 2010Second H&M store opens in Jerusalem Malha Mall 12; BDS National Committee calls for boycott 12
March 2010H&M states “We take no position on religious and political issues” in response to boycott calls 13
October 10, 2023H&M confirms stores in Israel closed “until further notice” following Hamas attacks 9
2023–2024H&M quietly reopens Israel stores without public statement 143
July 19, 2024ICJ advisory opinion finds Israel’s presence in OPT unlawful; H&M stores remain operational 610
November 21, 2024ICC issues arrest warrants; H&M stores remain operational 10
Q1 2026CEO Daniel Ervér states Middle East represents “small sales exposure” with franchisee-operated stores 10

Corporate Overview

H&M Group is a Swedish multinational fashion retailer founded in 1947, headquartered in Stockholm, and listed on Nasdaq Stockholm 3. The company operates approximately 4,000 stores globally across the H&M brand and subsidiaries including COS, & Other Stories, ARKET, Weekday, and Monki.

Israeli Operations Structure:

Key Governance:

Domain Summaries

V-MIL: Military

Mechanism of Involvement

H&M Group has no direct defence manufacturing, procurement, or contracting operations 1210. The mechanism of involvement is indirect and结构性:

  1. Franchise Partner Ownership Nexus: H&M’s Israeli franchisee Match Retail Ltd. is owned by the Horesh family, which also controls Union Motors (Toyota Israel), the exclusive importer and distributor of Toyota and Lexus vehicles in Israel 67. Who Profits documents that Union Motors supplies Toyota vehicles—including the Hilux used by the Israeli Army, police, border police, and civil administration in occupied Palestinian territories for settlement protection, military base security, suppression of Palestinian demonstrators, and house demolitions 2225. The Toyota Camry served as the Israeli Army’s high command executive vehicle from 2006 to 2010 22.

  2. Security Services Contracts: H&M’s Israeli franchisee uses G1 Secure Solutions (formerly G4S Israel) and ENI Advanced Security Solutions for store security 567. Both companies are documented by Who Profits as providing services to Israeli settlements (G1: Ariel, Atarot, Har Adar, Kalia, Ma’ale Adumim, Modi’in Illit; ENI: Barkan settlement) and checkpoints 826.

Counter-Arguments and Evidence Limits

Named Entities and Evidence Map

EntityRoleEvidence
Match Retail Ltd.H&M Israeli franchiseeFranchise agreement December 9, 2008 1
Andrew HoreshChairman, Match Retail; CEO, Union MotorsHaaretz reporting, D&B records 267
George HoreshFounder/owner, Union GroupHaaretz reporting, estimated $1.7B net worth 6
Union MotorsToyota/Lexus Israeli distributorWho Profits company profiles 2225
G1 Secure SolutionsSecurity services (former G4S Israel)Who Profits client listing 5
ENI Advanced Security SolutionsSecurity servicesWho Profits client listing 6

V-DIG: Digital

Mechanism of Involvement

H&M’s digital involvement with Israeli military-linked technology operates through enterprise technology relationships:

  1. Google Cloud Partnership: H&M announced a strategic partnership with Google Cloud in June 2022 for enterprise data backbone, AI/ML capabilities, and data mesh integration 125. Google Cloud operates a Tel Aviv region that serves as sovereign infrastructure for Project Nimbus, a $1.2 billion contract awarded to Google and Amazon in 2021, largely funded by the Israeli Ministry of Defence 895. The Project Nimbus contract contractually bars Google and Amazon from restricting Israeli military or security usage, and the Israeli Ministry of Defence is a documented Google Cloud customer 895. Whether H&M customer data is stored in, routed through, or processed in Google’s Tel Aviv region is unconfirmed 25.

  2. Microsoft Azure: H&M’s voice-activated interactive mirror at NYC Times Square flagship uses Microsoft Azure for facial and speech recognition, built by Ombori AG and Visual Art 142128. Microsoft Azure is named in UN Special Rapporteur reporting (A/HRC/59/23) as providing government-wide cloud and AI access to the Israeli government alongside Google and Amazon 8.

  3. Security Services (Digital): ENI Advanced Security Solutions lists H&M as a client; ENI provides peripheral security systems and command center for Barkan settlement (West Bank) and security at City of David settler complex in Silwan, East Jerusalem 2.

Counter-Arguments and Evidence Limits

Named Entities and Evidence Map

EntityRoleEvidence
Google CloudEnterprise cloud partnerPartnership announcement June 2022 25
Project NimbusIsraeli MoD cloud contractIntercept, Time reporting 95
Microsoft AzureInteractive mirror technologyOmbori, Technology Record articles 142128
ENI Advanced Security SolutionsSettlement security providerWho Profits company profile 2
G1 Secure SolutionsSecurity servicesWho Profits company profile 5

V-ECON: Economic

Mechanism of Involvement

The economic vector is the strongest documented pathway:

  1. Franchise Revenue: H&M generates royalty and brand licensing fees from its Israeli franchise operations via Match Retail Ltd. 19. While the specific royalty amount is not disclosed, the franchise model provides ongoing revenue flow from Israeli market operations.

  2. Franchisee Parent Automotive Distribution: The Horesh family’s Union Group operates Union Motors (Toyota Israel), documented by Who Profits as supplying vehicles to the Israeli military for operations in occupied territories 22254. This creates a structural economic nexus: H&M’s franchise revenue flows from an entity whose parent company’s other business directly supplies the Israeli military.

  3. Security Services Expenditure: Match Retail Ltd. contracts with G1 Secure Solutions and ENI Advanced Security Solutions, both documented as providing services to Israeli settlements, checkpoints, and prisons 567. This represents local operational expenditure that indirectly benefits companies with settlement involvement.

  4. Physical Presence: H&M operates 24 stores in Israel, including a location in Malha Mall, Jerusalem 3. While H&M states it does not operate in occupied East Jerusalem or the West Bank, the Malha Mall location sits on land associated with the depopulated Palestinian village al-Malha 12.

Counter-Arguments and Evidence Limits

Named Entities and Evidence Map

EntityRoleEvidence
Match Retail Ltd.FranchiseeFranchise agreement 1
Union GroupFranchisee parentUnion Motors, other businesses 16
Union MotorsToyota distributionWho Profits 22254
Malha MallJerusalem store locationBDS movement documentation 12
G1 Secure SolutionsSecurity servicesWho Profits 5
ENI Advanced Security SolutionsSecurity servicesWho Profits 6

V-POL: Political

Mechanism of Involvement

  1. Corporate Silence: H&M has not issued a formal corporate statement on the Israel-Palestine conflict comparable to statements on Ukraine or Black Lives Matter 2619. The only documented response was in March 2010: “We take no position on religious and political issues” 13.

  2. Operational Continuity Post-ICJ/ICC: H&M’s Israeli stores remained operational after the July 2024 ICJ advisory opinion finding Israel’s presence in the OPT unlawful and after the November 2024 ICC arrest warrants 610. No public evidence identifies specific human rights due diligence conducted following these developments 13.

  3. BDS Targeting: The BDS National Committee called for boycott in March 2010, specifically citing the Malha Mall store as “whitewashing Israel’s colonization of Jerusalem” 12. The campaign was re-escalated in December 2023 amid the Gaza war 29.

  4. amfori Membership: H&M is a member of amfori (formerly Foreign Trade Association), which has opposed mandatory EU human rights due diligence legislation 3031.

Counter-Arguments and Evidence Limits

Named Entities and Evidence Map

EntityRoleEvidence
BDS National CommitteeBoycott callerMarch 2010 campaign 12
amforiBusiness associationMembership, lobbying on due diligence 3031
Malha MallJerusalem storeBDS target 12

BDS-1000 Score (V4)

DomainIMPV-Domain Score
V-MIL1.000.500.500.01
V-DIG1.501.001.500.05
V-ECON6.005.506.504.38
V-POL3.502.503.000.54

The V_MAX of 4.38 is driven by the V-ECON domain score, reflecting the economic nexus through franchise revenue and the franchisee parent’s automotive distribution ties to Israeli military vehicle supply. The tier classification as “Moderate” reflects documented but indirect involvement—primarily through the franchise structure and franchisee ownership relationships—rather than direct defence contracts, settlement operations, or UN database listings.

Methodology Note

End Notes

Footnotes

  1. https://hmgroup.com/news/hm-enters-into-franchise-agreement-for-store-openings-in-israel ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12

  2. https://hmgroup.com/news/first-hm-store-in-israel-opens-today ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9

  3. https://en.wikipedia.org/wiki/H%26M ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  4. https://www.whoprofits.org/companies/company/4189 ↩ ↩2 ↩3

  5. https://time.com/6966102/google-contract-israel-defense-ministry-gaza-war ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  6. https://www.whoprofits.org/companies/company/4133 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13

  7. https://www.whoprofits.org/companies/company/3798 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  8. https://www.ohchr.org/en/documents/country-reports/ahrc5923-economy-occupation-economy-genocide-report-special-rapporteur ↩ ↩2 ↩3 ↩4 ↩5

  9. https://theintercept.com/2025/05/12/google-nimbus-israel-military-ai-human-rights ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  10. https://www.reuters.com/business/hms-q1-operating-profit-grows-more-than-expected-2026-03-26 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  11. https://electronicintifada.net/content/swedish-fashion-chain-hm-under-pressure/8759 ↩ ↩2 ↩3

  12. https://bdsmovement.net/news/hm-whitewashing-israels-colonization-jerusalem ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  13. https://electronicintifada.net/content/swedish-fashion-chain-hm-under-pressure/8759 ↩ ↩2 ↩3

  14. https://ombori.com/a-first-look-at-the-h-m-interactive-mirror ↩ ↩2 ↩3

  15. https://www.dnb.com/business-directory/company-profiles.match_retail_ltd.d518e3e91bebac0ed4f49ede27a42277.html ↩

  16. https://uniontech.vc ↩ ↩2 ↩3

  17. https://www.secrettelaviv.com/best/tags/cool-israeli-companies/hm-group-cos ↩

  18. https://en.globes.co.il/en/article-hms-other-stories-coming-to-israel-1001316518 ↩ ↩2

  19. https://hmgroup.com/news/hm-enters-into-franchise-agreement-for-store-openings-in-israel ↩ ↩2 ↩3 ↩4

  20. https://hmgroup.com/investors/five-year-summary ↩

  21. https://www.retaildive.com/news/hm-tests-voice-activated-mirrors-at-nyc-flagship/525296 ↩ ↩2 ↩3

  22. https://www.whoprofits.org/companies/company/4189 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  23. https://hmgroup.com/news/hms-nomination-committee-proposes-klas-balkow-as-new-board-member ↩

  24. https://hmgroup.com/about-us/corporate-governance/board-of-directors ↩

  25. https://www.whoprofits.org/companies/company/4175 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9

  26. https://www.whoprofits.org/companies/company/3798 ↩ ↩2

  27. https://hmgroup.com/sustainability/fair-and-equal/community-engagement ↩ ↩2 ↩3

  28. https://www.technologyrecord.com/article/hm-installs-azure-powered-magic-mirror-at-flagship-store ↩ ↩2

  29. https://www.reuters.com/business/hms-q1-operating-profit-grows-more-than-expected-2026-03-26 ↩

  30. https://www.amfori.org/ ↩ ↩2 ↩3

  31. https://www.chemsec.org/ ↩ ↩2

  32. https://www.opensecrets.org/ ↩