CMOs: Is Your Brand Ready to Leverage Solar-Powered Suppliers?
The scaling of brand-backed solar programs creates new opportunities for CMOs to demonstrate measurable environmental progress.
Fashion brands are accelerating investments in rooftop solar installations across Asia-Pacific garment factories, with the Greener Garments Initiative surpassing seven megawatt-peak (MWp) of installed capacity after 200% growth in 18 months.
The Apparel Impact Institute is simultaneously testing new financing models to help suppliers adopt renewable energy without upfront capital requirements.
The developments address a significant gap in the region's textile manufacturing sector. Bangladesh alone has five gigawatts of rooftop solar potential for industrial installations, representing 20% of the country's total energy capacity. Current installations utilize less than 1% of this potential, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
Supplier emissions account for 96% of the fashion industry's total carbon footprint, making factory-level energy transitions critical for brands pursuing environmental goals.
Brand partnerships drive small supplier adoption
The Greener Garments Initiative, a joint program by SOLShare and Bestseller, has installed seven MWp of solar capacity for small and medium-sized factories across South Asia since 2022. The program grew installations by more than 200% over 18 months by using operational expenditure models where energy companies build and manage solar plants while suppliers pay for electricity without upfront costs.
"Supplier emissions account for 96% of our footprint, so we must support their transition," said Felicity Tapsell, Head of Responsible Sourcing at Bestseller, in a statement to Thomson Reuters Foundation.
The Apparel Impact Institute is pooling funds from brands and philanthropies to develop solar capacity in Asian factories through its Fashion Climate Fund. The initiative targets supply chain emissions by providing capital and technical support to suppliers who lack financing access.
Vietnam leads Southeast Asia in textile solar adoption, with Verdant Energy acquiring an 11 MW rooftop portfolio for factories including Eclat Fabrics. H&M Group has committed to 100% renewable electricity across its Asian supply chain, investing in solar plants in Vietnam and Bangladesh.
Leighton Cosseboom
Large manufacturers self-fund while SMEs need support
DBL Group, one of Bangladesh's largest textile manufacturers, has self-funded 5.42 MW of rooftop solar capacity with plans to expand further. "Financing renewable projects is manageable for us, so we can self-invest in solar plants," said Mashook Mujib Chowdhury, Senior Manager of Sustainability at DBL Group.
The operational expenditure model has become essential for smaller suppliers across the region. Under this approach, energy companies own and operate solar installations while factories pay for electricity generated, eliminating capital barriers that prevent most small and medium-sized enterprises from adopting renewable energy.
Shafiqul Alam from IEEFA notes that financial access remains the primary barrier for many manufacturers seeking to install solar capacity. Thailand and Cambodia are emerging as additional solar hubs, with textile mills expanding capacity through brand partnerships and government incentives.
Leighton Cosseboom
Implications for marketing leaders
The scaling of brand-backed solar programs creates new opportunities for marketing executives to demonstrate measurable environmental progress. Scope three emissions, which include supplier operations, represent the largest portion of most fashion brands' carbon footprints but have historically been difficult to address with verifiable data.
Solar installations provide quantifiable metrics for investor relations and sustainability communications. The programs also strengthen procurement messaging around cost resilience, as factories with renewable energy face lower exposure to fossil fuel price volatility.
Marketing leaders should frame these initiatives around supply chain competitiveness rather than pure environmental messaging. Suppliers with lower energy costs and renewable capacity increasingly win contracts from brands facing regulatory pressure in European and North American markets.
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