Major fashion brands launch Future Supplier Initiative to accelerate decarbonization
The Future Supplier Initiative, facilitated by The Fashion Pact in collaboration with Apparel Impact Institute, Guidehouse, and DBS Bank, introduces a collective financing model designed to aid apparel suppliers in their deep decarbonization efforts. The initiative, set to debut in Bangladesh, will initially receive backing from prominent brands including Bestseller, Gap Inc, H&M Group, and Mango. Additional brands are being actively recruited with plans to expand the program to other regions.
Recognizing that an estimated 99% of total fashion brand emissions originate within the supply chain, the Future Supplier Initiative aims to accelerate the transition to net zero emissions. The initiative seeks to share the financial risks and responsibilities associated with transitioning to renewable energy sources in Tier 1 and 2 garment and textile factories.
The Future Supplier Initiative will combine financial incentives, such as de-risking loans, with technical support to help suppliers overcome barriers to adopting electrification and renewable energy solutions. This approach is expected to reduce the cost for suppliers by decreasing the cost of capital for loans, thus accelerating decarbonization efforts.
The brand-agnostic mechanism will develop and finance projects to support both brands and suppliers in meeting their Science Based Targets (SBTs) and staying within the 1.5-degree trajectory. Technical support will help suppliers identify and implement low-carbon technologies and solutions, while baselining and monitoring emissions will demonstrate the impact of the projects.
The initiative will focus on identifying and matching projects with the highest potential for impact. By pinpointing common factory units, interventions, and costs, it aims to foster a global and regional joint effort among fashion brands, moving from targets and roadmaps to actual implementation and measurable reduction beyond energy efficiency measures.
