Swedish fast fashion giant H&M has signed a green energy deal [1] with Power Engineering Consulting Joint Stock Company 2 (PECC2) to facilitate its Vietnam-based suppliers’ transition to renewable energy sources.
H&M Vietnam and PECC2 signed a Memorandum of Understanding (MoU) to cooperate under the Direct Power Purchase Agreement (DPPA) mechanism. The deal, signed on November 19, marks an important step towards the international fashion brand’s sustainable development goals. PECC2 is a leading energy consulting and engineering company based in Vietnam.
This MoU represents the first DPPA cooperation agreement signed with a major global fashion brand for PECC2 and is expected to help H&M access clean energy at reasonable costs. This agreement enables H&M to procure clean energy at competitive rates, supporting the company’s goal to reduce greenhouse gas emissions by 56% by 2030.
The successful execution of DPPAs will be crucial to boost the viability of wind and solar power projects in Vietnam and jumpstart the commercial operations of transitional renewable energy projects launched over the past five years. The DPPA mechanism, approved by the Vietnamese Government in July 2024, allows private renewable energy developers to sell electricity directly to consumers, bypassing the state-owned power buyer.
The signing ceremony took place at the PECC2 Innovation Hub in Ho Chi Minh City, with key figures such as Jessica Vilhelmsson, Regional Country Manager of H&M, and Nguyen Hai Phu, Chief Operating Officer of PECC2, in attendance. During the event, H&M’s delegation was given a tour of the facility, including the Battery Energy Storage System (BESS), the Operations Control Center (PECC2-OCC), and the Digital Capability Center (PECC2-DCC).
PECC2 aims to facilitate the transition to clean energy through the development of renewable energy projects, supplying sustainable electricity to major corporations like H&M. This partnership is expected to create opportunities for clients in the renewable energy landscape and ensure mutual benefits for all stakeholders involved.
The collaboration between H&M and PECC2 underscores the growing trend of integrating sustainability into business practices and highlights the importance of corporate responsibility in achieving global environmental goals.
Sources:
[1] PECC2 and H&M sign a Memorandum of understanding on the cooperation under the DPPA Mechanism
