MAS Holdings, South Asia’s largest garment and textile manufacturer, announced this week that two of its production sites in Central Java, Indonesia, will become the company’s first manufacturing unit to run entirely on renewable energy.
MAS has signed up for the Science-Based Targets initiative (SBTi), pledging to cut Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 25.2% by 2025 compared to 2019 levels. This includes emissions from the company’s operations as well as purchases of electricity from utility providers.
These two facilities have sealed 15-year long-term agreements to acquire renewable electricity from PT PLN, making MAS the first company in Indonesia’s Semarang Region to join the program.
MAS facilities will obtain all of its electricity from geothermal power sources, which helps cut the facilities’ overall carbon emissions by around 98%. Each unit of power acquired by MAS facilities will be accompanied by a renewable energy certificate (REC), confirming eco-efficiency of the power generation source.
The scheme was implemented as part of Indonesia’s aim to raise renewable energy in the country’s energy mix from roughly 11% in 2021 to 25% by 2025.
The initiative reduces MAS’s total carbon footprint by an estimated 3000 metric tonnes, equivalent to removing the annual carbon emissions of 657 passenger vehicles. According to preliminary calculations, the carbon footprint of a garment manufactured at these facilities will be reduced by 5% to 15%.
Sid Amalean, Head of Sustainable Business at MAS Holdings, explained that public-private collaborations of this type are vital to making a real impact in the fight against climate change. The company is actively seeking similar opportunities in other countries where they do business.
In addition to lowering direct emissions from its activities, the company has also invested in coordinated initiatives to reduce the environmental effect of its supply chain.
