Global sustainability initiative Fashion for Good has launched the Good Fashion Fund, a collaboration between the C&A Foundation, Hong Kong-based The Mills Fabrica and Dutch impact investment and advisory firm Fount. Its aim is to spearhead systemic change in the apparel and footwear supply chain by investing in the implementation of innovative technologies in India. With an aim to target size USD 60 mn in two years, the same has been launched in Bangladesh and Vietnam. The Good Fashion Fund. officially announced at the Hong Kong Fashion Summit by C&A Foundation Board Director Mr. Albert Brenninkmeijer and Fund Director Bob Assenberg on the 5th of September.
Currently apparel supply chains in India or anywhere else, are plagued by their negative environmental and social impacts. But while sustainable solutions do exist today, there is a lack of capital available to scale these technologies within the supply chain. The Fund was created to address this gap – connecting the most promising technologies to the industry to collaboratively tackle its challenges. GFF also gives a great opportunity to Indian MSME’s and SME’s to be part of this initiative as beneficiaries or investors depending upon their requisites.
The new fund provides impact lending tools to finance investments in supply chain innovations specifically in India, Bangladesh and Vietnam as well as other areas throughout Asia. The fund’s blended structure combines risk-tolerant capital with private sector investment, that allows for flexibility and tailored financing to best fit each individual.
India’s and, for that matter Asia’s small to medium manufacturers whose products or services are in tandem with their criteria looking 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.
While bridging the gap for investors financially, the Good Fashion Fund has effectively incorporated the environmental factors catering to FIVE GOODS: Good Energy, Good Water, Good Materials, Good Economy and Good Lives. GFF encourages mobilising the use of safe and recyclable materials, clean and efficient energy, closed-loop manufacturing and the creation of fair jobs and growth. They aim at delivering economic growth as well as good fashion practice by encouraging manufacturers in the apparel supply chain to invest in innovations that cater to the same.
On lines of catering off-beat, Leslie Johnston, Executive Director C&A Foundation says, “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.”
For an extensive outlook, Vanessa Cheung, Founder The Mills Fabrica: “With the launch of the Good Fashion Fund, we are delighted to partner with C&A Foundation, Fashion for Good and FOUNT to create a new platform to address the financing gap for sustainable innovations. We look forward to supporting the Fund with our network and partners in Asia.”
Katrin Ley, Managing Director Fashion for Good says, “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.”
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