H&M Group has entered into a new virtual power purchase agreement (VPPA) with Lightsource bp, signaling a significant move towards achieving its sustainability and clean energy targets. This partnership involves the development of renewable energy infrastructure in Texas, underscoring H&M’s commitment to reducing its carbon footprint. By collaborating with Lightsource bp, H&M is taking steps to not only offset its energy consumption with renewables but also to actively support the building of new solar energy projects in the region.
What Does the Partnership Entail?
This agreement builds on a previous collaboration initiated in 2021 between H&M and Lightsource bp. The new VPPA focuses on the Second Division solar project in Brazoria County, Texas. This 125MW project, still under construction, is projected to start operations by the end of 2024. It is anticipated to cut down carbon emissions by approximately 155,000 metric tons annually, aligning with H&M’s objectives for a cleaner energy portfolio.
How Will This Impact the Environment?
The solar project is designed with environmental considerations, aiming to enhance biodiversity within the first five years. Site-specific grasses and vegetation will be planted around the solar panels, and the integration of agriculture, such as sheep grazing, is planned. Only about 10% of the land will be occupied by the solar infrastructure, showing a commitment to minimizing ecological disruption. This approach aims to create a harmonious balance between renewable energy development and ecological preservation.
Comparing with previous announcements, H&M’s commitment to sustainable energy has been consistent over the years. Earlier efforts focused on obtaining renewable electricity through certificates. The current strategy emphasizes direct involvement in the creation of new renewable energy sources. This evolution in approach highlights a growing trend among corporations to take a more active role in contributing to the energy transition by investing in physical infrastructure.
Helen Brauner, Interim Chief Operating Officer at Lightsource bp USA, acknowledged the significant role of corporate energy buyers in driving sustainable infrastructure.
“Corporate energy buyers with sustainability goals such as H&M are not only making a meaningful positive impact on our environment. They are enabling the construction of new, home-grown lower carbon energy infrastructure that supports energy diversification, grid reliability, and local economies.”
The VPPA aligns with H&M’s broader environmental goals, which include sourcing 100% renewable electricity for its operations by 2030 and achieving net zero emissions by 2040. Ulrika Leverenz, Head of Green Investment at H&M Group, emphasized the importance of building actual renewable capacity rather than solely relying on certificates.
“Considering fashion’s environmental impact, we see great value in moving away from just using certificates to contributing to more clean energy. By partnering with solar and wind farm developers, we can help build renewable electricity capacity in power grids around the world.”
The partnership between H&M and Lightsource bp exemplifies a shift towards more active roles by corporations in addressing climate challenges. By investing in renewable projects, companies not only meet their sustainability goals but also contribute to the broader development of clean energy infrastructure. This initiative sets a precedent for other businesses aiming to integrate sustainability into their operations, highlighting the importance of direct action in achieving long-term environmental objectives.
