Lululemon Athletica and H&M Group are backing a $250 million fund with the goal of reducing the carbon footprint of the fashion industry’s supply chain, non-profit group Apparel Impact Institute said.
The fund is seeking to find both effective and scalable solutions which can help players in the fashion industry cut emissions in half by 2030 and reach neutrality by 2050.
The funding will be used to pay for several key initiatives such as expanding the use of renewable energy, developing innovative materials, improving energy efficiency and putting an end to the use of coal for powering production.
“The urgency to address the climate issues has never been more acute. Early-stage innovations and new solutions play a critical role, but the impact does not happen before they can be scaled, and the industry starts adopting and implementing them,” said the H&M Foundation’s Christiane Dolva.
“The Fashion Climate Fund will support new programs and solutions with a structured pipeline for getting from pilot to scale. We believe it provides a powerful mechanism to overcome the challenges of getting new solutions implemented by the industry, and thereby accelerate the progress on climate action.”
The institute aims to raise another $2 billion from philanthropic donors, retail brands, and other stakeholders once it succeeds in finding effective solutions.