Key Learnings & Insights:

The report provides first-hand insights from the GFF as it seeks to tackle the issues in the textile industry and demonstrate that investments in the textile manufacturing sector (particularly in Asia) are possible, while generating positive financial, environmental and social returns for the investees and for the fund. The report indicates the strategic initiatives of the GFF to promote sustainability and to help manufacturers navigate the inherent challenges and opportunities. Highlights include:

• Sustainability expectations vs. reality in textile manufacturing: Export oriented textile manufacturers are expected to comply with a range of certifications, but manufacturers face challenges to invest in new technologies without having a proper commitment from brands to carry along such investments by purchasing fixed quantities. How can financial actors like GFF bridge this gap?
• Challenges and opportunities for more sustainable textile production
  • Technology: key element for driving sustainability. Success stories from GFF portfolio across tier 1 – 3 factories
  • Access to Finance: funding gap is huge, but investments in technological upgradation is increasingly becoming available in producer countries
  • Tailored Assistance to Enhance Sustainability: finance is complemented by a clear E&S framework and dedicated technical assistance. Case example of GFF’s support
  • Policy Support: financial actors like GFF can provide the funding needed for manufacturers to adapt to new regulations
  • Role of Brands: impact investors like GFF can play a role in closing the gap between brand expectations and supplier needs
• The Way Forward: Manufacturers cannot take burden of sustainability transition alone, how can investors like GFF support?

Authors and Organization:

The report is authored by the GlobalCAD and adelphi, the Development Evaluators of the Good Fashion Fund. As part of the evaluation, GlobalCAD and adelphi situated the GFF results and learnings to address the environmental and social challenges of the textile & apparel industry, and support the Fund on a net-positive trajectory.

“Phase I of the Good Fashion Fund has provided us with invaluable insights into the real-world challenges and opportunities in financing the fashion supply chain’s transition to sustainability. This report is a testament to our commitment to transparency and continuous improvement” said Bob Assenberg, Fund Director of the Good Fashion Fund.

“We are excited to share our journey and hope that the lessons learned will serve as a blueprint for future endeavors in sustainability within the fashion industry” added Bernadette Blom, Director E&S at the Good Fashion Fund.

Additional Information

To download a copy of “Good Fashion Fund – Lessons Learned during Phase I,” please click here [Download PDF]

Media contacts:

Good Fashion Fund
Jayanth Kashyap B. (Investment Lead)
www.goodfashionfund.com
jayanth@goodfashionfund.com
LinkedIn: Good-Fashion-Fund

About Good Fashion Fund

The Good Fashion Fund (GFF), is initiated by Fashion for Good and is a collaboration between Laudes Foundation, The Mills Fabrica and FOUNT complemented by Rabobank as lender to the Fund. The Fund provides long-term USD loans in addition to technical and environmental and social expertise to manufacturers in Asia, primarily India and Bangladesh. Financing is to be used to invest in impact equipment that deliver both economic growth and good fashion practice. The Good Fashion Fund has a blended capital structure with an actual fund size of USD 19 million. The Fund is managed by FOUNT, a leading impact investment firm from the Netherlands. Current partners of the GFF include Pratibha Syntex (India), Sri Kannapiran Mills (India), Progress Apparels (Bangladesh) and EPIC Group (Bangladesh)

About FOUNT

FOUNT is a leading impact investment firm that provides Strategic Advisory and Investment Management services to drive social and environmental impact alongside reasonable financial returns in emerging markets. With active involvement in various sectors across emerging economies, including sustainable apparel, agriculture, clean cooking, and affordable housing, FOUNT is committed to creating positive change.

For more information, please visit: www.fount.eu