H&M Group partnered with Lightsource bp and Schroders Greencoat as part of a multi-year power contract for new solar projects.
Based on the partnership, which was first communicated in 2021, Lightsource bp has developed a customised power contract for H&M Group to support the company’s ambitious goal of reducing its absolute scope 1 and 2 emissions and scope 3 emissions by 56% respectively by 2030 and from a 2019 baseline. This also includes increasing the annual sourcing of renewable electricity to 100% by 2030.
The renewable solar electricity produced at the Streetfields and Northfield House plants will supply H&M Group business activities across the UK. Renewable power contracts like this can include varied tenors and provide much needed price predictability for corporates and businesses to help meet sustainability and decarbonisation targets, adds Lightsource bp.
The joint capacity of the Streetfields and Northfield House projects is expected to reduce CO2 emissions by 10,500 metric tonnes each year.
“Renewable energy plays a crucial role in our climate roadmap to reduce emissions and achieve net-zero by 2040. Power purchase agreements like this one bring us one step closer to meeting our ambitious climate goals and increasing the availability of clean energy in the country,” says Ulrika Leverenz, head of green investment at H&M Group.
The solar projects became operational in December 2022, and ownership was transferred to a fund managed by Schroders Greencoat. As part of the agreement, Lightsource bp will provide third-party solar asset operation and maintenance services through the company’s Operations & Maintenance division, already contracted for 179MW of Schroders Greencoat’s solar assets.
Swedish fashion giant H&M signed, what is claimed to be, the largest renewable power purchase agreement of its kind in Sweden last December. The Group says these steps are crucial in reducing the fashion retailer’s carbon footprint.