H&M joins UN roundtable in Bangladesh to boost renewable energy market

Global fashion brand H&M Group has joined the UNFCCC Fashion Industry Charter for Climate Action in Bangladesh to discuss key reforms needed for the transformation of the renewable energy market. The roundtable brought together stakeholders from various sectors, including fashion brands, policy makers, garment manufacturers, experts, renewable energy developers, and financial institutions.

The main focus of the discussion was the need to advance policies for power purchase agreements and similar solutions, like green tariffs, to enable the industry to procure renewable energy. The roundtable also discussed how to unlock some of the challenges the Bangladeshi garment industry faces in this area, and what role each stakeholder plays to push the development forward.

At the closing of the event, it was clear that the transformation of the energy market in Bangladesh requires all parties to work together proactively in developing new frameworks in order to proceed faster and meet climate ambitions. The next UN Climate Change Conference (COP28) will be a crucial moment for public and private sectors from all industries to respond on the progress of their climate ambitions towards 2030, H&M said in a press release.

H&M Group has set a priority to reduce its absolute emissions by 56% by 2030, in line with its approved science-based target. The company also aims to source 100% renewable electricity to run its operations and supply chain by 2030.

“We are happy to take part in this important conversation about how to increase the access to renewable energy for the suppliers we work with and what kind of overall business and legal environment is needed to achieve this. Given the changing legislations in the world, we want to make sure that our suppliers in Bangladesh do not fall behind,” said Yosef El Natour, head of production, H&M Group.

“H&M Group supports the development of the necessary frameworks enabling our suppliers to move towards more renewable energy. Power purchase agreements can play a key role in the green transformation of the industry in Bangladesh, helping suppliers to remain resilient while ensuring that the local communities also benefit from this development,” said Ziaur Rahman, H&M Group country manager for Bangladesh.

“We are grateful to the government of Bangladesh for their kind support to hold this dialogue, for their presence here today as we seek for solutions, looking at how can make the transition quicker, what are available tools and mechanisms in the context of Bangladesh as a leader in ready-made garment sector and how can we design policies that drive innovation, that provide incentives to invest, and create a level playing field as needed,” says Lindita Xhaferi-Salihu, Fashion Industry Charter Lead, UNFCCC.