Lululemon

About the fund

The Fashion Climate Fund is a $250 million blended finance initiative established by the Apparel Impact Institute to address carbon emissions in global fashion supply chains. Currently in fundraising status with $70 million raised to date, the fund deploys capital to support overseas manufacturers in implementing energy efficiency measures and transitioning from fossil fuel-dependent processes to cleaner technologies. It focuses specifically on financing carbon assessments and capital-intensive infrastructure upgrades, such as replacing conventional boilers with heat pumps. The fund operates with a leveraged approach, aiming to catalyze up to $2 billion in total investments toward fashion industry decarbonization. Working with foundation partners and apparel brands, the fund represents a targeted intervention in a sector facing significant climate transition challenges.