Good Fashion Fund to Invest in Supply Chain Innovation
South & East Asia, September, 04 2019 -
The Good Fashion Fund launches today, spearheading systemic change in the apparel and footwear supply chain by investing in the implementation of innovative technologies in India, Bangladesh and Vietnam.
Initiated by Fashion for Good, the Fund is a collaboration between C&A Foundation, Hong Kong based The Mills Fabrica and FOUNT. The Good Fashion Fund will be officially announced at the Hong Kong Fashion Summit by C&A Foundation Board Director Albert Brenninkmeijer and Fund Director Bob Assenberg on the 5 September.
"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," commented Katrin Ley, Managing Director Fashion for Good.
Financing supply chain innovations
With a target size of US$ 60 million, the Good Fashion Fund is the first investment fund focused solely on driving the implementation of innovative solutions in the fashion industry. Currently, apparel supply chains 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.
"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," explained Leslie Johnston, Executive Director C&A Foundation.
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’s situation.
The vision for the Good Fashion Fund is for manufacturers in the apparel supply chain to invest and reinvest in innovations that deliver both economic growth and good fashion practice, mobilising the use of safe and recyclable materials, clean and efficient energy, closed-loop manufacturing and the creation of fair jobs and growth, in line with the Five Goods: Good Energy, Good Water, Good Materials, Good Economy and Good Lives.
Small to medium manufacturers whose products or services are in line with these 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.
The Good Fashion Fund is the result of unique collaboration. It is initiated by Fashion for Good, with C&A Foundation and The Mills Fabrica as launching investors and managed by impact investment firm FOUNT. Fashion for Good provides an unrivalled industry network and strong deal pipeline, as well as access to innovations and technical knowledge, while FOUNT provides ample investment and fund management expertise in emerging countries.
"We are thrilled to be working with Fashion for Good, C&A Foundation and The Mills Fabrica to generate substantial impact within the apparel value chain in Asia, an initiative that fits FOUNT’s impact and sustainable investment strategy very well. The Fund demonstrates how to invest beyond sustainability towards a restorative and regenerative apparel supply chain and addresses the need in the local markets for long term financing for manufacturers and contributes to multiple SDGs," said Bob Assenberg, Director Good Fashion Fund and FOUNT partner.