HO CHI MINH CITY — Fashion brands including H&M and Nike are pressing Vietnam to move ahead with a renewable energy purchase program as companies come under increasing pressure to meet their sustainability goals, Nikkei Asia has learned.
A consortium of 29 brands sent a letter to Vietnamese Prime Minister Nguyen Xuan Phuc this month urging the country to introduce direct power purchase agreements (DPPA) between private buyers and sellers of renewable energy. Currently, energy users can only buy electricity through the national utility or through small-scale projects such as rooftop solar panels.
International clothing brands, which rely heavily on Asian garment factories, are under pressure from shareholders and consumers to reduce emissions in their supply chains. Renewable energy in Vietnam — the world’s third-largest textile exporter — is key to those companies hitting their emission targets.
“Without the DPPA we believe renewable energy development will plateau and fall short of meeting the growing energy needs of Vietnam’s industries,” the consortium warned in the Dec. 15 letter, seen by Nikkei.
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