Collaboration with Fashion For Good on Financial Tools & Innovation to Achieve Science-Based Targets Report
About the Apparel Impact Institute: Aii identifies, validates, funds, and scales proven quality solutions to accelerate positive impact in the apparel and footwear industry. Aii programs focus on areas that result in positive environmental impact from the production of apparel and footwear products to improve the industry. To learn more about this program, email Ryan Gaines.
About Fashion for Good: Fashion for Good is a global platform for innovation, made possible through collaboration with stakeholders in the fashion ecosystem. At the core of Fashion for Good is their innovation platform. Based in the Amsterdam headquarters with a regional programme in South Asia, the global accelerator programmes give promising start-up innovators the expertise and access to funding they need to grow. The platform also supports innovators through its scaling programme and foundational projects, driving pilots and supply chain implementation with partner organisations. The Good Fashion Fund catalyses access to finance to shift at scale to more sustainable production processes.
As a follow-on to the WRI & Aii joint report “Apparel & Footwear Sector Roadmap to Net Zero Emissions” and the BCG & Fashion for Good joint report “Financing the Transformation in Fashion,” Aii and Fashion for Good are collaborating on a new report that will investigate the landscape of carbon-reduction solutions, the role for financial capital, and the total financial funding/investment required to achieve the implementation recommendations from the previous reports. We believe this work will provide a roadmap for apparel and finance industry decision makers, with the ultimate goal of creating a larger role for financial capital and innovation in reducing the carbon footprint of the apparel supply chain.
Part 1. Landscape of Solutions
Aii and Fashion for Good will provide an overview of the latest solutions for achieving science-based targets.
This includes implementation solutions such as:
- Renewable energy across the supply chain
- Energy-efficiency improvements
- Materials-efficiency improvements
- Scaling preferred materials
- Replacing coal-fired boilers
As well as innovation solutions:
- Next generation materials
- Moving from wet to dry processing
Part 2. The Role of Finance
Aii and Fashion for Good teams will map the landscape of currently available financial tools/instruments that manufacturers/brands can access (e.g. supplier trade finance, green bonds, and equity investment) as well as identify promising new financial tools/structures. Additional value will come from industry perspectives on the challenges and accelerants to broader adoption of these tools. Examples of apparel brands that have utilized these financial tools will also be included (e.g. Walmart and Puma).
Part 3. “Size of the Prize” Analysis on Key Reduction Opportunities
Aii and Fashion for Good teams, along with research partners, will quantify the estimated financial investment required to implement the landscape of solutions discussed in Part 1. Additional granularity will be provided on the investment size of specific interventions, as well as on a regional basis where relevant.
This project is a partnership between Aii, Fashion for Good, and HSBC.
The report is scheduled to be published in Q4 2021.