H&M Group — V-MIL Audit
Domain Audit: Defence & Security Linkages
Direct Defence Contracting & Procurement
H&M Group is a Swedish fast-fashion retailer with no disclosed defence manufacturing, procurement, or contracting operations 123. No public evidence identified that H&M Group, its Israeli franchisee Match Retail Ltd., or any subsidiary holds direct contracts, tender awards, framework agreements, or memoranda of understanding with the Israeli Ministry of Defence (IMOD), Israel Defence Forces (IDF), Israel Prison Service, Israel Border Police, or other Israeli state security bodies for defence or security equipment supply, service provision, maintenance, or consulting 45. H&M Group does not appear in Israeli defence export directories (SIBAT) or international defence procurement registries as a contractor to Israeli state defence or security bodies 12. The company’s disclosed business activities are limited to retail fashion, franchising, and e-commerce 16.
Dual-Use Products & Tactical Variants
H&M is a fast-fashion retailer without known dual-use or military-spec product lines 123. No public evidence identified that H&M manufactures or markets ruggedised, tactical, mil-spec, or defence-grade variants of its products 123. No public evidence identified of H&M products being supplied to Israeli security forces under government defence contracts, or of export licence applications for military end-users 45. The company does not disclose any product line that would require export classification under EAR99/5A992.c or comparable defence-relevant commodity codes 12.
Heavy Machinery, Construction & Infrastructure
H&M is a retail fashion company without equipment manufacturing operations 12. No public evidence identified that H&M provides heavy machinery, construction equipment, or vehicles used in settlement construction, maintenance, demolition, or the separation barrier 12. No public evidence identified that H&M or its Israeli franchisee holds contracts for the construction, maintenance, or expansion of checkpoints, detention facilities, military bases, the separation barrier, or settlement infrastructure 784.
Supply Chain Integration with Defence Primes
H&M is a fashion retailer without disclosed defence-industrial supply chain relationships 123. No public evidence identified that H&M Group supplies components, sub-systems, raw materials, or manufacturing services to Israeli defence prime contractors including Elbit Systems, Israel Aerospace Industries, Rafael Advanced Defense Systems, or IMI Systems/Elbit Land 129410. No public evidence identified of joint development, co-production, or technology transfer agreements between H&M and Israeli defence firms 7894.
Franchise Partner’s Adjacent Business — Indirect Nexus: H&M’s Israeli franchisee Match Retail Ltd. is operated by principals with disclosed ties to the Israeli automotive trade sector 111213. Andrew Horesh, identified as Chairman of Match Retail in the 2008 franchise announcement and as CEO of H&M Israel in 2010, also served as CEO of Union Motors (Toyota Israel) 21112. Union Motors is the exclusive Israeli importer and distributor of Toyota and Lexus vehicles 11. Who Profits documents that Union Motors supplies Toyota vehicles to the Israeli military, with the Toyota Hilux used by the Israeli Army, police, border police, and civil administration in occupied Palestinian territories for protecting settlements and military bases, suppressing Palestinian demonstrators, and executing house demolitions 1415. The Toyota Camry served as the Israeli Army’s high command executive vehicle from 2006 to 2010 14. No public evidence identified that H&M Group has disclosed human rights due diligence specifically addressing the Union Motors military supply role in its franchise partner selection or monitoring process 163.
Logistical Sustainment & Base Services
No public evidence identified that H&M Group or its Israeli franchisee provides catering, transport, fuel supply, waste management, facilities maintenance, telecommunications, or other support services to IDF bases, military training facilities, detention centres, or security installations 784. No public evidence identified of shipping, freight forwarding, or port handling contracts specifically servicing Israeli defence logistics or military cargo 7845.
Munitions, Weapons Systems & Strategic Platforms
H&M is a civilian retail fashion company 123. No public evidence identified that H&M Group manufactures, assembles, or supplies any munitions, weapons systems, lethal platforms, explosive ordnance, or strategic defence components to Israeli forces 1293. The company has no disclosed involvement in any segment of the defence industrial base 12101718.
Export Licensing, Regulatory & Legal History
No public evidence identified of government decisions to grant, deny, suspend, or revoke export licences for H&M products to Israeli military or security end-users, in any jurisdiction 45. No public evidence identified of investigations, citations, or enforcement actions related to H&M’s compliance with arms embargoes, export control regimes, or sanctions affecting defence trade with Israel 418. No public evidence identified of court proceedings, judicial reviews, or legal challenges brought against H&M or against governments regarding H&M’s defence supply relationship with Israel 4518.
Civil Society Scrutiny & Documented Investigations
UN OHCHR Settlement Database: H&M is not listed in the UN OHCHR Business and Human Rights Database of companies involved in settlement activity under HRC resolutions 31/36 and 53/25 4.
UN Special Rapporteur Reports: H&M is not named in UN Special Rapporteur Francesca Albanese’s A/HRC/59/23 (July 2025) “From the economy of occupation to the economy of genocide,” including the sections covering military, surveillance/carcerality, and civilian heavy-machinery categories 5. H&M is not named in predecessor Special Rapporteur reports covering the occupation economy 5.
NGO Investigations: H&M does not have a dedicated entry in Who Profits’ database as a company profiting from occupation in its own right 141578. H&M is listed as a client of G1 Secure Solutions (formerly G4S Israel), which provides security services to Israeli settlements including Ariel, Atarot, Har Adar, Kalia, Ma’ale Adumim, Modi’in Illit, and at checkpoints 7. H&M is listed as a client of ENI Advanced Security Solutions, which won a tender from the Shomron Regional Council for perimeter security and command center for settlement Barkan in the West Bank 8. H&M is not named in PAX Companies Arming Israel and Their Financiers (June 2024), which focuses on arms manufacturers rather than retail companies 10. H&M is not named in FIDH Don’t Buy Into Occupation (November 2024) as a settlement-adjacent company 17. H&M is not named in Al-Haq Business and Human Rights in Palestine (July 2024) 18. The AFSC Companies Profiting from the Gaza Genocide (January 2025) documents Toyota vehicle supply through the David Urban Light Armored Vehicle programme via Union Motors, which is affiliated with the principals of H&M’s Israeli franchisee 914.
Settlement Nexus — Operations: H&M operates in Israel through a franchise agreement with Match Retail Ltd., a private Israeli company registered as “Import marketing sale of fashion clothing products” with registration number 514200708 11213. The franchise agreement was announced December 9, 2008, and was disclosed as required under Sweden’s Securities Market Act 1. The first H&M store in Israel opened March 11, 2010, in Tel Aviv’s Azrieli Center Mall 2. The second H&M store opened March 16, 2010, in Jerusalem’s Malha Mall 19. As of December 2023, H&M operates 24 stores in Israel, predominantly in the Gush Dan metropolitan area 6. H&M explicitly states it does not operate any stores in the occupied areas of East Jerusalem or the West Bank 6. Malha Mall is located in the Malha neighborhood of Jerusalem, within Israel’s declared municipal boundaries under Israeli administration 2021. The neighborhood is named after the Palestinian village al-Malha, depopulated during the 1948 Arab-Israeli War; the mall opened in 1993 20. H&M operates an & Other Stories store at Malha Mall (opened November 2021) under the same Match Retail franchise arrangement 22. H&M launched online sales in Israel in 2022 6.
Franchise Partner Leadership: Amihai Kilstein is listed as current CEO of Match Retail Ltd. per Dun & Bradstreet 12. Andrew Horesh served as Chairman of Match Retail per the 2008 franchise announcement and is identified as CEO of Union Motors (Toyota Israel) and H&M Israel in 2010 press materials and Haaretz reporting 21112. George Horesh (Andrew Horesh’s father) is the founder and owner of Union Motors, the exclusive Israeli importer and distributor of Toyota and Lexus vehicles, with an estimated net worth of approximately $1.7 billion 11.
Pre-Entry Due Diligence: In March 2008, an H&M management team visited Israel at the initiative of Israel’s economic attaché in Stockholm 23. During the visit, H&M met with representatives of Ahava Dead Sea Laboratories, an Israeli cosmetics company whose primary manufacturing plant was in Mitzpe Shalem, an Israeli settlement in the occupied West Bank 23. No business deal with Ahava was announced 123. H&M ultimately entered a franchise agreement with Match Retail rather than Ahava 1.
Store Closures and Reopening: On October 10, 2023, H&M confirmed via Bloomberg News that its stores in Israel would be closed “until further notice” following the Hamas attacks and Israel’s declaration of war 24. H&M initially closed all 24 Israel stores following the October 7, 2023 attacks 24. H&M quietly reopened its Israel stores without public announcement; no formal press release or corporate statement from H&M Group confirming or explaining the reopening was identified 6. As of 2024, H&M continues to operate its 24 Israeli stores 6.
Charitable and Matching Programmes: No public evidence identified that H&M Group operates an employee charitable matching programme that channels funds to FIDF, JNF, or other Israeli military-linked organisations 16. The H&M Foundation (funded by the Stefan Persson family) focuses on climate solutions and textile industry innovation; no evidence was found of H&M Foundation donations to Israeli military or settlement-linked organisations 16. H&M Group’s community engagement policy states the company considers views of “people living in affected communities” but does not reference Israel-specific programmes 16.
Institutional Divestment: The Norwegian pension fund KLP divested NOK 275 million from 16 companies linked to Israeli settlements in July 2021; H&M was not among the excluded companies 25. No public evidence identified that Swedish AP pension funds (AP1–AP7) have divested from H&M Group on Israel or settlement grounds; H&M does not appear on AP4’s documented exclusion list 26.
Boycott and Divestment Campaigns: The BDS National Committee (BNC) called for a boycott of H&M in March 2010, specifically citing the Malha Mall store in Jerusalem as emblematic of “Israel’s colonization of Jerusalem” and stating that “H&M claims to adhere to the UN Global Compact” while operating in Israel 19. European boycott campaigns were launched alongside the BNC call in 2010 19. H&M has not announced any policy modifications, contract terminations, or human rights due diligence disclosures specifically addressing its Israeli franchise structure or franchise partner’s other business activities, in response to civil society pressure or post-July 2024 ICJ Advisory Opinion or post-November 2024 ICC arrest warrant developments 163.
End Notes
Footnotes
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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 ↩13 ↩14 ↩15 ↩16 ↩17
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https://hmgroup.com/news/first-hm-store-in-israel-opens-today ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15
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https://hmgroup.com/sustainability/sustainability-reporting ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8
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https://www.ohchr.org/en/business/bhr-database ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11
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https://reliefweb.int/report/occupied-palestinian-territory/summary-un-special-rapporteurs-report-corporate-complicity-economy-occupation-and-genocide-including-list-referenced-companies ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7
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https://www.whoprofits.org/companies/company/3798 ↩ ↩2 ↩3 ↩4 ↩5 ↩6
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https://www.whoprofits.org/companies/company/4133 ↩ ↩2 ↩3 ↩4 ↩5 ↩6
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https://investigate.afsc.org/gaza-genocide-companies ↩ ↩2 ↩3 ↩4
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https://paxforpeace.nl/publications/the-companies-arming-israel-and-their-financiers ↩ ↩2 ↩3
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https://www.haaretz.com/israel-news/business/2019-06-19 ↩ ↩2 ↩3 ↩4 ↩5
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https://www.dnb.com/business-directory/company-profiles.match_retail_ltd.d518e3e91bebac0ed4f49ede27a42277.html ↩ ↩2 ↩3 ↩4 ↩5
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https://en.checkid.co.il/company/MATCH+RETAIL++LTD-1aVQdjw-514200708 ↩ ↩2
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https://www.whoprofits.org/companies/company/4189 ↩ ↩2 ↩3 ↩4
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https://hmgroup.com/sustainability/fair-and-equal/community-engagement ↩ ↩2 ↩3 ↩4 ↩5
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https://www.fidh.org/en/issues/human-rights-in-israel-and-palestine/don-t-buy-into-occupation ↩ ↩2
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https://bdsmovement.net/news/hm-whitewashing-israels-colonization-jerusalem ↩ ↩2 ↩3
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https://www2.hm.com/hw_il/customer-service/shopping-at-hm/store-locator/israel/jerusalem/malcha-mall/il0002.html ↩
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https://en.globes.co.il/en/article-other-stories-to-open-first-two-israel-stores-1001367042 ↩
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https://electronicintifada.net/content/swedish-fashion-chain-hm-under-pressure/8759 ↩ ↩2 ↩3
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https://www.bloomberg.com/news/articles/2023-10-10/israel-h-m-inditex-stores-close-following-hamas-attacks ↩ ↩2
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https://www.klp.no/en/press-room/why-klp-is-excluding-16-companies-following-un-report ↩