Several world-leading fashion brands have pulled together to decarbonise the fashion sector by participating in an innovative initiative that is to kick off in Bangladesh. Leading the pack are brands like Bestseller, Gap Inc., H&M Group, and Mango.
The Future Supplier Initiative is a collaboration between The Fashion Pact, Apparel Impact Institute, Guide house, and DBS Bank. It’s a significant effort aimed at reducing carbon emissions in the apparel sector. Currently, 99 percent of total fashion brand emissions occur in the supply chain, which is known as Scope 3 emissions. The initiative’s goal is to speed up the transition to net zero emissions by sharing the financial risks and responsibilities of moving to renewable energy sources in Tier 1 and 2 garment and textile factories.
This initiative is independent of any specific brand and aims to create and fund projects that help brands and suppliers meet their Science Based Targets (SBTs) and stay within the 1.5-degree trajectory, thereby significantly reducing carbon emissions in the industry.
The Future Supplier Initiative offers a practical solution to the challenges of decarbonisation. By providing technical support and financial incentives, we aim to help factories adopt electrification and renewable energy, making the transition more feasible. The initiative also allows fashion retailers to join forces, driving progress and providing support to apparel suppliers in their journey to decarbonisation. By sharing the costs, risks, and responsibilities of transitioning to renewable energy, we can kickstart a new era of change in the fashion industry revolving around sustainability and a shared commitment.
To achieve significant emission reductions, suppliers might adopt a range of energy-efficient technologies and processes and transition to renewable energy sources, often with lengthy payback periods that can take decades. This deters many suppliers from embracing electrification and renewable energy solutions, hindering progress towards decarbonisation goals. The Future Supplier Initiative aims to address these specific challenges by reducing the cost for suppliers through [specific strategies], working with fashion brands to decrease the cost of capital for loans that can accelerate decarbonisation. Alongside financial incentives, technical support will be provided to help suppliers identify and implement low-carbon technologies and solutions. Baselining and monitoring emission reductions will also be conducted to demonstrate the impact of projects financed and implemented by the initiative.