H&M Group Strengthens Climate Strategy With Investment in Rondo Energy

H&M Group has taken a significant step in advancing its climate strategy by partnering with and investing in Rondo Energy, a leader in zero-carbon industrial heat and power solutions. This collaboration aims to leverage Rondo’s innovative Heat Batteries, which convert renewable electricity into continuous, high-temperature heat, to decarbonize H&M’s extensive textile supply chain. By joining Rondo’s Strategic Investor Advisory Board, H&M seeks to explore and implement these cutting-edge technologies in its global operations.

Southeast Asia, a major hub for textile manufacturing, stands to benefit significantly from this collaboration. H&M and Rondo’s efforts in the region include the recent installation of Southeast Asia’s first heat battery, which also powers a cement plant. These advancements underscore the potential for creating positive environmental and economic impacts in the region. H&M Group’s investment in Rondo Energy highlights its commitment to sustainable practices and its role in the global effort to combat climate change through innovative, clean energy solutions.

H&M Group has consistently invested in initiatives aimed at decarbonizing its supply chain. The partnership with Rondo Energy marks a pivotal move in these efforts, as it focuses on scalable and sustainable solutions. Rondo will use the investment from H&M Group Ventures to expand its international operations and develop storage projects that cater specifically to the textile industry. This move aligns with H&M’s broader goals of supporting suppliers in reducing energy use and increasing the adoption of renewable electricity.

The fashion industry, which accounts for approximately 5% of global greenhouse gas emissions, faces considerable challenges in reducing its carbon footprint due to its reliance on low-cost energy. Currently, coal is the predominant energy source for fabric production, contributing significantly to emissions. Rondo’s Heat Batteries offer a viable alternative, capable of replacing fossil fuels with clean, renewable energy, potentially reducing the carbon footprint of clothing production by nearly two-thirds.