As I reflect on Aii’s strong growth over the last year, I am filled with pride and gratitude for the increasing industry-wide collaboration and commitment that continues to define our work.

When we launched Aii, we knew the impactful and proven mill improvement program, Clean by Design, would be the foundation on which we could build pivotal partnerships and design innovative solutions to expand our decarbonization efforts. Six years later, we have broadened our portfolio to include diverse programs across supply chain tiers and global regions, research and exploration around renewable and thermal energy, and innovative grant-making to scale decarbonization programs and solutions. To date, over 50 brands/retailers have partnered with Aii and we have reached over 1070 producers to address climate change globally. We are putting our vision into motion, and in 2023, our emphasis was squarely on execution and activation to move us closer to our ambitious goal to enable the reduction of 100 million tonnes of CO₂e from the apparel supply chain by 2030.

After opening our first call for Climate Solutions Portfolio (CSP) applications in April, we granted $1.7M to five solutions that we estimate will reach 70-90 facilities and 40,000 farms and achieve total potential emissions savings of almost 1.5 megatonnes CO₂e. We also launched the CSP platform, which serves as a central hub for brands, retailers, industry stakeholders, and external commercial financing partners looking to accelerate decarbonization efforts. Finally, in the fall, we focused the second round of our CSP application process on finding partners to develop data-driven roadmaps on thermal energy and energy storage — critical solution areas that currently lack industry-wide knowledge and reliable data. We are partnering with two organizations that will develop roadmaps providing vital research to fill knowledge gaps hindering progress toward Net Zero.

In 2023, we made terrific strides in activating our blended capital strategy, bringing stakeholders together in New York during Climate Week and later in the year, with the support of the Rockefeller Foundation, at the Bellagio Retreat Center in Lake Como. Fashion Climate Fund Lead Partners H&M Group, Lululemon, and PVH alongside HSBC, Standard Chartered, BNP-Paribas, Guidehouse, Brandix, MAS Holdings, and others convened in person for four days to activate blended finance toward decarbonization needs. As a result of these meetings, we have established working groups that will determine the best methods to connect producers with funding in key regions.

We were also thrilled to announce HSBC as our latest lead partner to the Fashion Climate Fund at COP28. We continue to raise the $250M catalytic Fashion Climate Fund and seek additional lead partners to join us to unlock $2B or more into the supply chain’s decarbonization work.

However, while we celebrate our successes, we must acknowledge the challenges ahead. We can bring forth the most effective solutions and financial resources, but it will mean nothing if we can’t demonstrate business value to producers and get their buy-in on this transformative work. We are ready to confront this challenge head-on and will spend 2024 deepening our engagement with producers, understanding their needs, and creating a conducive environment for adopting sustainable solutions. Producers must be at the table alongside brands, retailers, climate philanthropy, and financial institutions for the industry to meet its climate goals.

As we enter the new year, we embrace the challenges before us with bold determination and collective effort. Together, we can continue to drive positive change.