Sustainable finance
Overcoming the industry’s financial barriers
Our sustainable finance strategy
Aii is committed to unlocking $2B by 2030 towards the $1T total that the industry needs
Aii is building a coalition of brands, financial institutions, and manufacturers to collectively fund the decarbonization of the apparel and footwear industry supply chain through a mix of capital sources. One approach is our $250M Fashion Climate Fund, which provides grants for early- to mid-stage projects. We’re also stewarding an initiative to unlock $2 billion in capital, providing attractive sources of financing for suppliers to make climate-improvement investments.
IT WILL TAKE $1 TRILLION IN INVESTMENT FOR THE APPAREL AND FOOTWEAR INDUSTRY To REACH NET ZERO
Financing is keeping us from our decarbonization goals, and traditional funding structures aren’t working. If we’re going to meet our 2030 targets, we can’t continue with business as usual. We have to innovate. In order to do this we’re aligning the apparel and footwear industry, philanthropy, and financial institutions to catalyze innovation.
EXAMPLE APPLICATION OF FINANCIAL ASSISTANCE
Access to finance is a major barrier to reaching net zero. Aii deploys grants to solutions with a data-backed path to significant carbon reductions, intended to help them reach scale quickly. We understand that billions will be needed in capital expenditures for facility improvements, and that it’s challenging for suppliers to access attractive financing. Aii is building a portfolio of innovative financial tools and will pair suppliers with the loans and other financial vehicles they need.
Example application of financial assistance
Breaking down the $1 Trillion
Reaching net zero will require a variety of stakeholders and solutions. We believe that not all solutions are created equal, and we’re committing to funding and amplifying those solutions that are proven to make a meaningful impact on carbon emissions. Aii’s portfolio of solutions boasts a more favorable cost-per-tonne ratio than other solutions on the market.
Funder distribution
Program cost
Types of funders that contribute to the $1 Trillion investment
Bank debt, bonds, and loan funds (Debt investment)
Venture capital and private equity (equity investment)
Government, development banks and philanthrophy (debt, equity and grants)
Brands and manufacturers (debt, equity and grants)
Sustainability premiums
Types of Funders. Source: Aii and FFG analysis (2021)
Program cost per tonne of reduction of CO2e over useful life
*cc&s = Carbon Capture and Storage
Source: Kenneth Gillingham and James H. Stock. “The cost of Reducing Greenhouse Gas Emissions.”
Journal of Economic perspectives 32, no. 4 (Fall 2018) 53-72.
Journal of Economic perspectives 32, no. 4 (Fall 2018) 53-72.
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HELP US CREATE SYSTEMIC CHANGE IN THE INDUSTRY
Contact us to learn more about our strategy and how you can get involved, or learn how we’re raising and deploying grants through the Fashion Climate Fund.
