This initiative, spearheaded by The Fashion Pact in collaboration with Apparel Impact Institute, Guidehouse, and DBS Bank, aims to drive significant decarbonisation within the apparel sector. It is currently seeking more brand partners and plans to extend its reach to other major apparel manufacturing hubs, including Vietnam, India, China, Italy, and Turkey.
Acknowledging that almost 99 percent of fashion brand emissions stem from the supply chain (scope 3 emissions), the initiative’s mission is to expedite the transition to net zero. It aims to do this by spreading the financial risks and responsibilities associated with adopting renewable energy sources in tier 1 and tier 2 garment and textile factories. The programme, designed to be brand-neutral, will support both brands and suppliers in achieving science-based targets and adhering to the 1.5-degree Celsius climate goal.
To address the challenges that many factories face in adopting electrification and renewable energy solutions, the initiative combines technical support with financial incentives. During its first year, the programme will prioritise factories with high potential impact, develop technical plans for comprehensive decarbonisation, and reduce lending risks for suppliers by offering more attractive project terms.
In its second year, the initiative will focus on executing and monitoring projects to evaluate the climate impact of these investments. Additionally, it will provide technical assistance to help suppliers identify and implement low-carbon technologies and solutions. Baseline assessments and ongoing monitoring of emission reductions will be conducted to validate the success of financed and implemented projects.
Eva von Alvensleben, executive director and secretary general of The Fashion Pact, highlighted the urgent need for climate action, warning that the cost of inaction is too high. She stressed the necessity for the fashion industry to close the gap between ambition and implementation by sharing the costs, risks, and responsibilities of transitioning to renewable energy.
Anders Holch Povlsen, owner and CEO of Bestseller, expressed confidence in the initiative’s potential to drive meaningful change, noting that solutions with proven impact are already available but require commitment from brands and investors.
Daniel Ervér, CEO of H&M Group, echoed this sentiment, stating that the initiative shows that impactful solutions are within reach, but success depends on the commitment of brands and investors.
Toni Ruiz, CEO of Mango, emphasized the need for every stakeholder to use their influence to achieve the industry’s ambitious climate goals. He noted that a collaborative effort among brands and retailers is essential to create conditions that encourage and enable suppliers to make the necessary investments.
By fostering global and regional collaboration among fashion brands, the Future Supplier Initiative aims to transition from setting targets to concrete implementation and measurable reductions, moving beyond basic energy efficiency metrics to achieve significant environmental impact.