ImpactAlpha, June 13 — The global apparel and footwear industry is responsible for 2.1 billion tons of carbon emissions, equivalent to the emissions of France, Germany and the U.K. combined. Nearly all of that amount comes from third-party farms and factories.
San Francisco-based Apparel Impact Institute has enlisted Lululemon, H&M, and the Schmidt Family Foundation to launch the Fashion Climate Fund with $40 million to help cut the fashion industry carbon footprint in half by 2030.
The fund is looking to raise an initial $250 million for early-stage solutions to improve energy efficiency, eliminate the use of coal and transition to clean energy and sustainable materials. Apparel Impact Institute is seeking $10 million each from 21 fashion industry leaders and philanthropic organizations.
Pilot to scale
The fund “provides a powerful mechanism to overcome the challenges of getting new solutions implemented by the industry,” said H&M’s Christiane Dolva. The Fashion Climate Fund aims to unlock an additional $2 billion in blended capital, including debt and equity, to help lower the industry’s supply chain emissions.