Major Brands Unite to Decarbonize Fashion Sector through Collective Financing Model
Some world’s leading fashion brands, including Bestseller, Gap Inc., H&M Group, and Mango, have committed to a groundbreaking initiative to decarbonize the fashion sector, starting with a pilot program in Bangladesh.
The Future Supplier Initiative, facilitated by The Fashion Pact in collaboration with Apparel Impact Institute, Guidehouse, and DBS Bank, introduces a collective financing model to reduce emissions in the apparel supply chain. Recognizing that 99% of fashion brand emissions occur in the supply chain (Scope 3), the initiative seeks to accelerate the transition to net zero by sharing the financial risks and responsibilities of switching to renewable energy sources in garment and textile factories.
This brand-agnostic mechanism will provide financial incentives and technical support to suppliers, helping them adopt low-carbon technologies and renewable energy solutions. The initiative’s goal is to enable suppliers to meet Science Based Targets (SBTs) and stay within the 1.5-degree Celsius climate trajectory.
The Future Supplier Initiative will initially focus on Bangladesh, with plans to expand to other key apparel manufacturing regions, including Vietnam, India, China, Italy, and Turkey. The first year will prioritize factories based on impact, develop technical proposals for deep decarbonization, and de-risk lending to suppliers. Year two will focus on project implementation and monitoring the climate impact.
For more information on joining the initiative, visit futuresupplierinitiative.com.
Read More: https://hmgroup.com/news/major-brands-commit-to-innovative-collective-financing-model-to-decarbonise-the-fashion-sector/
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