The Fashion Climate Fund, which already counts industry heavyweights such as H&M, is adding a new lead partner and laying out a plan for funding distribution.
PVH Corp., through its philanthropic arm, The PVH Foundation, is joining the $250 million climate fund led 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 finance solutions across the value chain that promote decarbonisation. Each funder commits a minimum of $10 million to the Fashion Climate Fund.
“Our company’s purpose, to drive brands that drive fashion forward for good, is at the heart of our multi-year growth plan and has guided us for many years,” said Stefan Larsson, CEO of PVH Corp, in a press release. “We know that collaboration and funding are critical to driving solutions that address the fashion industry’s contribution to climate change, and are proud to support the Fashion Climate Fund in this effort.”
The philanthropic funds will go towards pre-seed and pilot innovations the industry can use for scaled impact, track ventures and grant funding in Aii’s soon-to-be-launched “Climate Solutions Portfolio”, or CSP, online registry. Although still in development with partner Reset Carbon, stakeholders – including brands, retailers, suppliers and investors – will have access to this tool later this year.
“PVH is investing in the infrastructure needed to scale solutions and unlock increased sustainable blended capital to achieve goals,” Aii President Lewis Perkins told WWD. “As we build the CSP, we will announce specific funded projects, beyond the current program offerings, in 2023.”
In the coming year, Aii and partners will get CSP further off the ground by developing an evaluation criteria (including solution type and stage of innovation for fundable projects) and deploying 2022 funds outside of those criteria. An advisory council of experts comprising science, industry, academia and voluntary organizations is also to be announced.
Already, Aii has unlocked an estimated $175 million in financial capital through previous programs such as Clean by Design. Under the latest fund, Aii expects to unlock an estimated $2 billion in blended capital over the next eight years.
But in the midst of the big goals, Perkins does not want to forget the small to medium-sized companies in the news.
“It’s important to note that with an increased budget, Aii and its partners can expand our reach and build deeper capacity by region to decarbonize the supply chain. And while leading partners join us at a minimum of $10 million, Aii continues to work with a range of brands, retailers and their suppliers at many levels of resource commitment to begin or continue work towards supply chain improvements, he said. “We continue to offer programs for SMB brands/retailers and their suppliers, as well as addressing critical objectives of water, chemical handling and more, while making carbon dioxide and climate a leading key indicator for our work.”