Circular Economy consists of five founding principles, which are mentioned below: * Design out waste * Build resilience through diversity * Rely on energy from renewable sources * Think in ‘systems’ * Waste is food
H&M uses only two principles. Besides the principle ”Design out waste” company also applies the principle “Rely on energy from renewable sources.”

The renewable energy is the energy, which is originated from natural processes that are unceasingly supplemented. This involves the things, which are: sunlight, geothermal heat, wind, tides, water, and various forms of biomass. This type of energy has no opportunity to be depleted and its permanently renewed.

In case of using electricity on the large scale the main target is taking the majority of things from renewable sources, but it was quite hard to control progress. This is due to the lack of a strong foundation in order to determine what prepare as renewable energy, as well as how to calculate it and report CO2 issue abbreviation linked with its use. So, we had an opportunity to take applicable activity with a range of stakeholders. Together with the World Resources Institute (WRI) and the Carbon Disclosure Project (CDP) amongst others, we cooperate devoted working group to find a agreement on how to determine arrangement and report on renewable energy use.
We are satisfied to see that these joint tries to give the result in a set of new global guidelines that are to be published in 2013. This is a critical and at the same time crucial step which is ultimately useful for us in order to reduce our scope 2 issues as well as heel require for renewable energy. With the guidelines there is an opportunity to follow up on our performance in sourcing renewable energy.
In the meanwhile we have taken
 this opportunity to improve our tendency to work towards sourcing all our