AMSTERDAM – Fashion for Good has launched a US$60m fund to back new technologies and other initiatives aimed at tackling environmental and social issues in garment supply chains. The Good Fashion Fund will invest in the implementation of technologies in the likes of India, Bangladesh and Vietnam, focusing on R&D and innovative solutions where there is currently a lack of capital available.
“Currently, apparel supply chains are plagued by their negative environmental and social impacts,” said a press note from Fashion for Good. “But while sustainable solutions do exist today, there is a lack of capital available to scale these technologies within the supply chain.”
Small to medium manufacturers whose products or services are in line with specific criteria developed by Fashion for Good and who are “seeking to implement best-in-class technology and equipment,” will be eligible for funding. The fund is also mandated to support larger manufacturers committed to investing in “highly disruptive technologies.”
The Good Fashion Fund has been initiated by Fashion for Good, with C&A Foundation and The Mills Fabrica as launching investors and managed by impact investment firm FOUNT.
Katrin Ley, managing director Fashion for Good, said: “Disruptive innovation is needed to shift the Fashion Industry from a model of ‘take-make-waste’ towards a more circular and regenerative system. While the technology exists today to move forward towards circularity, it is not yet being scaled. The Good Fashion Fund provides the resources, tools and incentives needed to bridge the innovation gap, bringing these innovations to the mainstream.”
Leslie Johnston, executive director C&A Foundation added: “We all know that ‘business as usual’ will not result in the fashion industry being a true force for good. Innovation is critically needed. And yet, without sufficient funding, many innovations are unable to scale. We are therefore proud to be an anchor investor in the Good Fashion Fund which – with its high-risk appetite and focus on getting innovations into the supply chain – will address this finance gap.”