GHG Emissions, Finance - June 13, 2022
Lululemon, H&M Group Join Fashion Climate Fund
Lululemon, H&M Group, H&M Foundation, and The Schmidt Family Foundation are the lead funders in its new $250 million Fashion Climate Fund operated by the Apparel Impact Institute (Aii), a nonprofit organization dedicated to operationalizing and accelerating climate action and sustainability solutions in fashion.
Aii and its lead partners established the Fashion Climate Fund to drive collective action to tackle fashion’s supply chain emissions. The fund could unlock an estimated $2 billion in blended capital across various asset classes, including debt and equity, to help meet the industry’s goal to halve carbon emissions by 2030.
The nonprofit group is currently in discussion with additional lead partners, with the goal of each funder committing $10 million over eight years to reach science-based targets.
To support management of solutions and apply use of funds, Aii will launch a Climate Solutions Portfolio to serve as an online registry of early-, mid-and late-stage initiatives that tackle supply chain GHG emissions. The major stakeholders for this tool include brands, retailers, suppliers, solution providers, innovators, foundations, government grantmakers, private equity and banks.
“By aligning industry leaders and climate-focused philanthropists behind scalable solutions, the Fashion Climate Fund opens a pathway for greater collaboration and cross-pollination of solutions, facilitating greater investment and stronger collective action toward the industry goal of halving emissions by 2030, while also seeking climate justice for the citizens and communities where our fashion is made,” said Lewis Perkins, President of Aii, in a statement. We are greatly encouraged by the leadership and decisiveness shown today from these lead partners and honored to play this role as we open up this first phase of the project finance.”
The Fashion Climate Fund will provide programmatic funding for supplier interventions across the value chain: transitioning to renewable electricity, accelerating next-generation materials, scaling sustainable materials and practices, eliminating coal in manufacturing and improving energy efficiency. Aii has created strategic collaborations with Textile Exchange, Fashion for Good, and Solidaridad, among others, to address those focal areas.