New Delhi: 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 Mr. Albert Brenninkmeijer and Fund Director Bob Assenberg on the 5th of September.
Focussed on driving the implementation of innovative solutions in the fashion industry, Good Fashion Fund is the first of its kind to target size of USD 60m. 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.
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.”
Good Fashion Fund envisions 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. Bearing in mind the environment, GFF seeks mobilising the use of safe and recyclable materials, clean and efficient energy, closed-loop manufacturing and the creation of fair jobs and growth. They do so in line with the FIVE GOODS: Good Energy, Good Water, Good Materials, Good Economy and Good Lives.
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.”
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.
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.”
Small to medium manufacturers whose products or services are in tandem 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.
Bob Assenberg, Director Good Fashion Fund and FOUNT partner says, “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.”
Ultimately, the Good Fashion Fund drives positive impact across the entire fashion industry, demonstrating how to tangibly invest beyond sustainability and towards a restorative and regenerative apparel supply chain. 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.