International fashion companies Bestseller and H&M Group have pledged to invest in the first early-development offshore wind project in Bangladesh.
The announcement came at the United Nations COP28 climate change conference in Dubai, and the retailers will be working with non-profit organisation Global Fashion Agenda (GFA) and Copenhagen Infrastructure Partners (CIP) to make it happen.
GFA is in discussions with other fashion brands to get involved in the offshore wind project in Bangladesh, which is projected to reduce emissions by circa 725,000 tonnes annually. The project also has the potential to significantly increase the availability of renewable energy in one of the fashion industry’s most important manufacturing countries.
It marks a dedicated move by the fashion groups involved to address Scope 3 emissions in their supply chains. It is estimated more than 70% of the fashion industry’s greenhouse gas emissions come from upstream activities. This part of the supply chain predominantly relies on non-renewable energy sources, such as petroleum, gas, oil, and coal.
GFA is advocating collective investments by fashion brands in new renewable energy generation to help change the industry’s reliance on fossil fuels.
The offshore wind project in Bangladesh is currently in early-stage development by CIP in collaboration with a local partner Summit Power. If development is successful, operations are expected to commence in 2028 and it would be a move towards the first utility-scale offshore wind farm in the country.
The project would likely contribute to substantial job creation, stabilise energy supply, and reduce emissions.
Thomas Tochtermann, chairman of the GFA and director emeritus of McKinsey & Co, said: “Renewable energy availability is a necessity if we are to truly transform the emissions trajectory of the fashion industry, and collective action is essential to realising this.
“I am proud to present this industry-led investment for crucial renewable energy infrastructure in Bangladesh, one of the key manufacturing countries. GFA and CIP invite stakeholders from the fashion industry and beyond to be part of the solution and join this endeavour.”
Niels Holst, partner and co-head of the growth markets fund at CIP, added: “If successful, the Cox Bazar Wind Farm and the collaboration with GFA, Bestseller, H&M Group, and other fashion brands will represent a transformative model to progress a just and rapid energy transition in a number of the most vulnerable and carbon intensive countries.”
Anders Holch Povlsen, CEO of Bestseller, said investing in the project means the retailer can “support the availability of renewable energy in one of our key manufacturing countries and aim to reduce climate emissions from our supply chain”.
Helena Helmersson, CEO of H&M Group, commented: “For us, this is a great example of how a collaborative approach on sustainable financing solutions and policy work can go hand in hand to overcome industry-wide challenges.
“We are grateful for the engagement we have had with local stakeholders and excited to see our joint efforts coming to life. The nearshore wind park in Bangladesh is an important step for the transformation of the Bangladesh renewable energy market and we believe that this will contribute greatly to the decarbonisation of the garment industry as a whole.”
[Image credit: Not the actual Bangladesh project – Green Retail World]
