Some of the global fashion brands including H&M Group, Mango, Gap Inc. and Bestseller have come together to decarbonise the fashion sector under the Future Supplier Initiative.
The initiative, facilitated by The Fashion Pact in partnership with Apparel Impact Institute, Guidehouse, and DBS Bank, offers a collective financing model to support deep decarbonisation in the apparel sector.
The initiative will begin with a programme in Bangladesh, supported by Bestseller, Gap Inc., H&M Group and Mango and more brands are being recruited to expand the initiative in other key apparel manufacturing regions including Vietnam, India, China, Italy and Turkey.
With an estimated 99% of total fashion brand emissions occurring in the supply chain (Scope 3), the Future Supplier Initiative aims to accelerate the transition to net zero by sharing the financial risks and responsibilities of transitioning to renewable energy sources in Tier 1 and 2 garment and textile factories.
Under this initiative, a combination of technical support and financial incentives will be used to help overcome the barriers that prevent many factories from adopting electrification and renewable energy solutions.
Significant emission reductions can be achieved by adopting energy-efficient technologies and processes and transitioning to renewable energy sources. As these processes have lengthy payback periods, the suppliers hesitate to embrace electrification and renewable energy solutions. The Future Supplier Initiative aims to reduce the cost for suppliers by working with fashion brands to decrease the cost of capital for loans that can accelerate decarbonisation. The initiative also aims to provide technical support to help suppliers identify and implement low-carbon technologies and solutions.
