Uniqlo Indonesia signs agreement with PLN as part of its new sustainable business model

Fast Retailing (Uniqlo Indonesia) represented by its CFO Shigeru Kumano on 13 December signed a deal with PLN Indonesia which was represented by Executive VP of Corporate Customer Service and Large Institutions Edison Sipahutar. 

The deal covers the collaboration between the two entities on the sale and purchase agreement on renewable energy. It is considered as a part of Uniqlo Indonesia’s plan to transition into a new sustainable business model. 

To support this transition, Uniqlo Indonesia decided to partner with the government by utilising electricity generated from renewable energy in all Uniqlo stores.

“Our company emphasises the importance of taking care of the environment in all processes of our business, from manufacturing to distribution and sales to reducing greenhouse gas emissions and waste by implementing environmentally friendly production processes,” Kumano said.

The move is also considered as Uniqlo Indonesia's commitment to achieving one of the goals of the Paris Agreement on Climate Change: to reduce greenhouse gas emissions by 2050. 

With the agreement, Uniqlo Indonesia became the first clothing retail company in Indonesia that obtained a Renewable Energy Certificate (REC). This certificate is regarded as proof that Uniqlo’s electricity comes from PLN’s renewable energy generators. Uniqlo’s electricity will be generated by the Kamojang geothermal power plant in West Java and will be distributed through and delivered by the existing infrastructure. 

"This REC is evidence of the production of MegaWatt-hour (MWh) power from renewable energy power plants where 1 REC is equivalent to 1 MWh of energy production. To date, there are 70 companies from various industries, including Uniqlo Indonesia, that create a sustainable industry through the use of electricity from renewable energy,” Edison explained.

He added that Indonesia could save much more energy if more companies from various industries decide to obtain RECs in the future. This is “to ease Indonesia’s environmental burden”.

Fast Retailing in September announced its targets and action plans for the 2030 fiscal year. The targets have been approved as Science Based Targets by the SBT initiative (SBTi) for sustainable business. 

The targets are: to create quality and environmentally friendly clothing; to reduce greenhouse gas emissions by 90% from shops and offices to supply chains; to save on electricity consumption; to increase the proportion of recycled materials to around 50%; to initiate waste reduction initiatives; and, lastly, to create a workplace that respects diversity and inclusion.