The PVH Foundation joins the Apparel Impact Institute’s Fashion Climate Fund

The nonprofit Apparel Impact Institute (Aii), which focuses on mobilizing climate action in fashion, has welcomed the PVH Foundation as the new lead funder of the Fashion Climate Fund. Aii believes this will advance the fund’s goal of driving industry-wide convergence to modernize the fashion industry’s supply chain and meet the broader sector’s ambition to reduce half carbon emissions by the end of this decade.

PVH Foundation on behalf of PVH Corp, owner of fashion brands Tommy Hilfiger and Calvin Klein; joins Lululemon, H&M Group, H&M Foundation and The Schmidt Family Foundation as lead funders, each committing $10 million.

This investment would underscore PVH Corp’s confidence in Aii as a critical partner and intellectual clearinghouse that will help achieve the fashion industry’s 2030 climate goals.

Quoting sound data Roadmap to Net Zero: Achieving science-based goals in the apparel industry report, Aii says 96% of fashion industry emissions come from third-party farms and factories that are shared across the industry and deemed too risky for brands, retailers or sources of traditional capital systems perform necessary upgrades and overhauls.

The Fashion Climate Fund is described as the first of its kind and is strategically designed to leverage industry cash and philanthropic funds to execute fundamental supply chain improvements.

These improvements include transitioning to renewable electricity, improving energy efficiency, eliminating coal in manufacturing, scaling sustainable materials and practices, and accelerating next-generation materials. . It is also hoped that the work will de-risk investment opportunities, allowing the industry to engage larger financial institutions to unlock approximately $2 billion in additional asset classes, including debt and securities. equity.

Aii Chairman Lewis Perkins said, “The leadership shown by PVH Corp, a long-time partner of Aii, represents a major step forward in our work to address supply chain emissions. of fashion. The PVH Foundation helps power the Fashion Climate Fund’s unique grant-making engine to accelerate proven supply chain programs, solutions and innovations to reduce carbon emissions.

Stefan Larsson, CEO of PVH Corp, adds, “Our company’s purpose, to power brands that move fashion forward for good, is at the heart of our multi-year growth plan and has guided us for many years. We know that collaboration and funding are key to finding 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 Fashion Climate Fund and the first round of lead backers were announced in June 2022 and since then Aii says it has made progress in developing its Climate Solutions Portfolio, which is an online registry of initiatives that fight against supply chain carbon emissions. He also finalized his strategy and approach for the fund’s blended capital approach and built the framework for onsite carbon data collection.

In the coming months, Aii says it will continue to deploy funding into supplier carbon goal-setting and prioritization projects, Clean By Design efficiency programs and renewable energy pilots. , and to build the “funds utilization” strategy for 2023, while convening more partners in this fund and developing strategic relationships with investment capital, both commercial loans and private capital, in the perspective $2 billion capital release.

Aii was founded in 2017 by the Sustainable Apparel Coalition (SAC), the Sustainable Trade Initiative (IDH) and the Natural Resource Defense Council (NRDC), alongside Target Corporation, Gap Inc., PVH and HSBC.

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