Lululemon Athletica Inc (LULU.O) and H&M Group (HMb.ST) are among backers of a $250 million fund. Aiming to speed up efforts to cut carbon emissions in the fashion industry’s supply chain- Apparel Impact Institute.
Once viable solutions have been identified and scaled up, the institute’s Fashion Climate Fund, which brings together clothing labels, philanthropic contributions, and other industry partners, plans to gather another $2 billion. Other early backers include the H&M Foundation and the Schmidt Family Foundation. There will be more in the coming months, with the fund expecting to raise $10 million from each one.
“The urgency to address the climate issues has never been more acute. Early-stage ideas and innovative solutions are important, but their influence materializes until after scaling. “The Fashion Climate Fund will assist new programs and solutions that follow a defined path from pilot to scale- H&M’s founder.
In a study, World Resources Institute found 96% of the fashion industry’s emissions come from third-party farms and factories used by multiple firms. The fund will help finance a range of initiatives including expanding the use of renewable energy. Developing next-generation materials, ditching the use of coal in manufacturing and improving energy efficiency included.
Successful initiatives will encourage other industry participants to help meet future funding needs.
-Reuters.