Fashion brands including H&M and Nike are urging Vietnam to introduce Direct Power Purchase Agreements (DPPA) to help them meet their sustainability goals, reports Nikkei Asia. A consortium of international clothing brands, including Target, Mulberry, Mammut, etc which rely heavily on Asian garment factories, are under pressure from shareholders and consumers to reduce emissions in their supply chains.

The consortium -- which includes the second-biggest US mega-retailer, Target, UK handbag maker Mulberry and Swiss sports brand Mammut -- had hoped Vietnam would launch a planned DPPA pilot in 2020, but that has not happened. The national utility, Electricity Vietnam (EVN), has a monopoly on the country's power grid, but DPPAs would allow private producers to sell wind and solar power through the grid.

PVH Corp, parent of Calvin Klein, Tommy Hilfiger and others, also signed the letter as it aims to drive the fashion industry toward net-zero emissions in line with the goals of the Paris Agreement. H&M another signatory, said, the success of the DPPA pilot in Vietnam will also send important signals across the region as to the possible national actions available to meet the renewable energy requirements.