34 C
Lahore
Saturday, July 13, 2024

Leading global brands join forces to decarbonise Bangladesh’s fashion industry

Leading global fashion brands like Gap Inc, H&M Group, Mango, and Bestseller have joined forces to participate in an initiative to decarbonise the fashion sector in Bangladesh.

It is facilitated by non-profit The Fashion Pact in partnership with brand and manufacturer platform Apparel Impact Institute, consultancy firm Guidehouse and Singaporean DBS Bank.

The Future Supplier Initiative offers a collective financing model to support decarbonisation in the apparel sector, according to a statement from H&M. Future Supplier Initiative estimates that 99 percent of total fashion brand emissions occur in the supply chain. It aims to accelerate the transition to net zero by sharing the financial risks and responsibilities of transitioning to renewable energy sources in garment and textile factories alongside their suppliers.

Decarbonisation is the process of reducing or eliminating carbon dioxide emissions from processes such as manufacturing. The initiative is a brand-agnostic mechanism that will develop and finance projects to support both brands and suppliers to meet their “Science Based Targets” (SBTs) and stay within the 1.5 degree trajectory.

The 1.5-degree trajectory is a specific goal outlined in the context of global efforts to address climate change, with the aim being to limit global warming to an increase of no more than 1.5 degrees Celsius above pre-industrial levels.

“The cost of inaction on climate change is unaffordable,” said Eva von Alvensleben, executive director and secretary general of The Fashion Pact, according to a statement from H&M. “If the fashion sector is to meet its goals and transform its supply chain, we urgently need to address the gap between ambition and action,” she said.

The H&M statement added that achieving significant emission reductions would mean that suppliers may need to adopt a range of energy-efficient technologies and processes, as well as transitioning to renewable energy sources, often with lengthy payback periods that can take decades.

This deters many suppliers from embracing electrification and renewable energy solutions, hindering progress toward decarbonisation goals. To help accelerate progress and bridge these gaps, the Future Supplier Initiative aims to reduce the cost for suppliers by working with fashion brands to decrease the cost of capital for loans that can accelerate decarbonisation.

Alongside financial incentives, technical support will be provided to help suppliers identify and implement low-carbon technologies and solutions.

The initiative seeks to identify common factory units, interventions and costs and match projects with the highest potential for impact.

“Gap Inc is committed to bridging the climate gap by collaborating with our supply chain partners to reduce emissions,” pledged Richard Dickson, president and CEO of Gap Inc.

Related Articles

Stay Connected

11,285FansLike
394FollowersFollow
9,340SubscribersSubscribe

Latest Articles