H&M, Lululemon back fashion climate fund
H&M Group and Lululemon are lead investors in a Fashion Climate Fund being raised by the nonprofit Apparel Impact Institute.
Why it matters: The $250 million fund carries some big names and an ESG focused approach to greening a part of the retail industry that is increasingly under the microscope: the supply chain.
Details: AII said in a release that it plans to offer grants to early-stage startups seeking to decarbonize the fashion supply chain.
What's happening: So far the fund has attracted $40 million from the two fashion companies, plus the H&M Foundation and the Schmidt Family Foundation, an AII spokesperson tells Axios
- Further lead partners are expected to each invest a minimum of $10 million over the next eight years.
State of play: The fashion industry has a less-than-stellar record on sustainability and transparency more broadly. It alone generates about 10% of global carbon emissions.
- 96% of those emissions come from third-party farms and factories, AII says, citing the World Resources Institute.
- Grants will range from $5,000 to "several hundred thousand dollars," AII president Lewis Perkins tells Axios.