
<h3 class="wp-block-heading">The Bigger Picture</h3>



<p>The fashion industry continues to struggle with rising carbon emissions, despite ambitious pledges to cut pollution in half by 2030. Cleaning up the sector’s production processes will require billions of dollars in investment, not just small-scale energy efficiency measures.</p>



<p>The <strong>Apparel Impact Institute (AII)</strong>, a U.S.-based non-profit, is leading efforts to mobilize funds from retailers, manufacturers, and philanthropic organizations to support cleaner production. According to AII, achieving net-zero emissions in fashion by 2050 will demand an estimated <strong>$1 trillion investment</strong> across the supply chain — from improved insulation to waste heat recovery systems.</p>



<p>We spoke with <strong>Lewis Perkins, President of AII</strong>, about the challenges and opportunities in fashion’s decarbonisation journey.</p>



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<h3 class="wp-block-heading">Why Emissions Are Still Rising</h3>



<p>Although many global brands have set ambitious carbon-cutting targets, overall emissions in fashion remain on the rise. Perkins emphasizes that true progress depends on <strong>collective action</strong>:</p>



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<li>Brands must co-invest in suppliers with measurable decarbonisation benchmarks.</li>



<li>Preferred sourcing strategies could incentivize suppliers to adopt greener processes.</li>



<li>Long-term commitments are essential to give suppliers the confidence to invest in clean technologies.</li>
</ul>



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<h3 class="wp-block-heading">Financing the Transition</h3>



<p>AII has launched the <strong>Fashion Climate Fund</strong>, aiming to raise <strong>$250 million in catalytic capital</strong>. These funds will be used to subsidize cleaner technologies, launch carbon-reduction programs, and unlock larger financing opportunities for suppliers.</p>



<p><strong>Key initiatives include:</strong></p>



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<li><em>Clean by Design</em>: Starting with simple, cost-saving measures such as insulating pipes and installing energy meters.</li>



<li><em>Thermal Heat Recovery &; Electrification</em>: Scaling up to bigger interventions like heat pumps and phasing out on-site coal.</li>



<li><em>Deployment Gap Grant</em>: A subsidy model to accelerate large-scale projects.</li>



<li><em>Loan Guarantees</em>: Using pooled funds to reduce borrowing costs and unlock up to <strong>$2 billion in debt financing</strong> once the $250 million fund is fully raised.</li>
</ul>



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<h3 class="wp-block-heading">Country-Specific Approaches</h3>



<p>Every country has its own energy mix and regulatory environment. Perkins highlights the need for tailored strategies that may include:</p>



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<li>Expanding renewable electricity access.</li>



<li>Exploring on-site solar, wind, or geothermal systems.</li>



<li>Partnering with local governments and energy providers on long-term electrification projects.</li>
</ul>



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<h3 class="wp-block-heading">Beyond Factories: Community &; Worker Impact</h3>



<p>Decarbonisation cannot focus solely on factories; it must also benefit workers and communities. AII is exploring projects that measure the <strong>ecological risks of inaction</strong>, including the costs of energy, water, carbon pricing, and ecosystem damage.</p>



<p>Future programs will increasingly focus on:</p>



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<li><strong>Water efficiency</strong> as a key performance indicator.</li>



<li>Ensuring that facility-level investments provide <strong>long-term community benefits</strong>.</li>



<li>Building alignment between environmental goals and <strong>social impact</strong>.</li>
</ul>



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<h3 class="wp-block-heading">The Way Forward</h3>



<p>For fashion brands, supporting suppliers in going green is not only about meeting climate pledges but also about safeguarding ecosystems, reducing operational costs, and ensuring community resilience. Achieving net-zero will require <strong>bold investment, collective action, and long-term vision</strong> — and the time to accelerate is now.</p>

How Fashion Brands Can Support Suppliers in Going Green
