Good fashion fund launches to invest in supply chain innovation

The Good Fashion Fund, a collaboration between C&A Foundation, Fashion for Good, FOUNT and The Mills Hong Kong on Tuesday launched, spearheading systemic change in the apparel and footwear supply chain by investing in the implementation of innovative technologies in India, Bangladesh and Vietnam.

The Good Fashion Fund is the first investment fund focussed 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 Good Fashion Fund was created to address this gap – connecting the most promising technologies to the industry to collaboratively tackle its challenges.

The new fund provides impact lending [products/instruments] to finance investments in supply chain innovations in India, Bangladesh and Vietnam. With a target size of EUR 60m, the fund's blended structure combines risk-tolerant capital with private sector investment, allowing for flexibility to tailor financing to best fit each 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.