What: Harrods’ 2025 ESG report shows progress on emissions, zero waste, gender pay and employee wellbeing as it seeks to rebuild trust.

Why it is important: The report shows how measurable ESG progress can support reputation repair, operational resilience and responsible luxury positioning.

Harrods has published its third annual ESG report for 2025, covering the period from 1 February 2025 to 31 January 2026, as it seeks to move forward from the Mohamed Al Fayed sexual abuse scandal. The report highlights progress across environmental, social and governance priorities, positioning responsibility as central to the luxury department store’s future. Harrods reduced greenhouse gas emissions by 9% year on year and cut operational emissions by the same amount, exceeding its annual target as it works toward a 90% reduction by 2030. It also reported a decade of zero waste to landfill, supported by facility upgrades at its Knightsbridge flagship that improved waste separation and data capture. On social sustainability, Harrods reduced its median gender pay gap from 4.4% to 0.2%, well below the UK average. It also introduced or relaunched policies covering menopause, domestic abuse and fertility, trained 58 mental health first aiders, recorded 569 employee charity days and launched a new Partner Code of Conduct for suppliers.

IADS Notes: Harrods’ 2025 ESG report shows how sustainability reporting is becoming part of a wider effort to rebuild trust, embed responsible luxury and demonstrate measurable operational progress. In July 2026, Drapers reported that Harrods appointed Natalie Deacon as head of sustainability to lead the next ESG phase, focused on embedding sustainability across everyday operations, customers, colleagues and long-term goals. Fashion Network’s March 2026 coverage of Harrods’ renewed Traid partnership showed how the retailer is translating circularity into surplus management, staff engagement, donations and workshops. The report’s reputational context is reinforced by Drapers’ June 2026 coverage of Harrods seeking independent oversight of Mohamed Al Fayed’s estate to support transparent compensation channels, while BoF’s March 2026 article on the closure of Harrods’ compensation scheme underlined the ethical complexity of survivor redress and corporate accountability. More broadly, Vogue Business reported in April 2026 that H&M’s sustainability report used emissions disclosure and measurable targets to build trust with consumers, investors and regulators, reinforcing the wider retail shift toward transparent, evidence-based ESG reporting.

Inside Harrods’ latest ESG report