To our peers and fellow climate activists across fashion value chains and beyond,
The catalyst for co-commissioning this paper is our shared conviction that if we fail
to devise new ways of funding decarbonisation, we will also fail to realise our climate
goals. We wanted to inspire more expansive, creative and imaginative thinking about
how the sector might go about collectively funding decarbonisation in such a way
that goes beyond business-as-usual, and primarily debt-based, solutions.
Although the intention and objectives of this paper have been fairly narrowly defined,
it’s worth emphasising the broader context within which this paper sits. Currently, the
sector’s approach to climate action places the burden for action on factories in pre-
dominantly global South nations. Although this is to a certain extent rational, given
that this is where the vast majority of fashion’s emissions are currently concentrated,
a just transition requires shared risk and responsibility.
Second, this paper’s focus reflects the fact that the sector’s approach to climate action
more generally is overwhelmingly focused on decarbonisation—with less emphasis on
adaptation and resilience. However, as the direct employers of some of the individuals
most vulnerable to climate change globally, it is our shared conviction that the sector
must expand the framing of the current climate action conversation to also include
adaptation and resilience. Both adaptation and resilience have their own funding re-
quirements and a just transition demands a collective approach to all three.
Third, the specific challenge of how to fund decarbonisation is an opportunity to
re-imagine cost-driven supply chain structures to ensure that they are fit for the
future and capable of driving sustainability more generally. Currently, funding for de-
carbonisation must compete with many other manufacturer investment needs such as
improved wastewater management systems, worker wellbeing programmes, and more
general growth and infrastructural improvement investments.
Finally, the need for this paper originated in private discussions between producers
hosted by the Asia Garment Hub1 , which led to the realisation that many of our de-
carbonisation funding challenges are shared. However, we also want to emphasise
that our perspectives are not monolithic and we do not align on everything. Indeed,
some of us are direct commercial competitors. Nonetheless, we came together to
commission this paper because of our shared belief that manufacturer perspectives
on this topic—in all their breadth and complexity—must be better understood if we
are serious about driving meaningful impact.
This report has been endorsed by the International Apparel Federation and Fashion Producer Collective.