The Fashion Climate Fund, which already has industry heavyweights like H&M, is adding a new lead partner and laying out a game plan for fund deployment.
PVH Corp., through its philanthropic arm, The PVH Foundation, joins the $250 million climate fund spearheaded by the San Francisco-based nonprofit Apparel Impact Institute. Aii is an organization that helps clean up fashion supply chains with programs like Clean by Design. PVH joins Lululemon, H&M Group and The Schmidt Family Foundation to fund solutions across the value chain that promote decarbonization. Each funder commits a minimum of $10 million to the Fashion Climate Fund.
“Our company purpose, to power brands that power fashion forever, is at the core of our multi-year growth plan and has guided us for many years,” Stefan Larsson, CEO of PVH Corp, said in a press release. “We know that collaboration and funding are critical to driving solutions that address the fashion industry’s contributions to climate change and we are proud to support the Fashion Climate Fund in this work.”
The philanthropic funds will go towards pilot and pre-seed innovations that industry can use to achieve impact at scale, track businesses and award funds in the soon-to-be-opened “Climate Solutions Portfolio” or CSP online registry. will launch from Aii. Although still in development with partner Reset Carbon, stakeholders including brands, retailers, suppliers and investors will be able to access this tool later this year.
“PVH is investing in the infrastructure needed to scale solutions and unlock more sustainable blended capital to achieve goals,” Aii President Lewis Perkins told WWD. “As we build out the CSP, we will announce specific funded projects, beyond current program offerings, in 2023.”
In the coming year, Aii and its partners will further take CSP off the ground by developing evaluation criteria (including solution type and stage of innovation for bankable projects) and deploying funds by 2022 from those. criteria. An expert advisory council spanning science, industry, academia and NGOs will also be announced.
Aii has already unlocked an estimated $175 million in financial capital through previous programs like Clean by Design. Under the latest fund, Aii anticipates unlocking an estimated combined capital of $2 billion over the next eight years.
But among the large-scale targets, Perkins doesn’t want to leave small and medium-sized companies out of the news.
“It is important to note that with a larger budget, Aii and its partners can expand the reach and build greater capacity per region to remove carbon from the supply chain. And as leading partners join us with a minimum of $10 million, Aii continues to work with a variety of brands, retailers and their suppliers at many levels of resource commitment to begin or continue their work toward supply chain improvements. “, said. “We continue to deliver programs for SME brands/retailers and their suppliers, addressing critical goals for water and chemical management, among others, while also making carbon dioxide and climate a key performance indicator for our business. worked”.