International non-profit Apparel Impact Institute (AII) has unveiled the initial five recipients of grants from its Fashion Climate Fund, supported by Target, Lululemon, H&M, and the Schmidt Family Foundation. These grants are aimed at aiding the fashion industry in achieving its ambitious target of reducing carbon emissions by 100 million tonnes by 2030. The selected beneficiaries encompass US non-profit Precision Development, German agency GIZ, German Tech Company Made2Flow, UK-based climate solution provider BluWin, and British multinational PwC.
The Fashion Climate Fund, with backing from major stakeholders, is set to infuse US $ 250 million into decarbonisation initiatives for these organisations. This financial support is anticipated to unlock US $ 2 billion of additional capital. Kurt Kipka, Aii’s chief impact officer, expressed satisfaction with the progress made in the grant application process and the development of the supporting tool.
Out of approximately 150 applications received, 12 reached the pitching round, and ultimately, five were selected to receive a total of US $ 1,716,305 in the first round of grants, distributed over up to three years. The Climate Solutions Portfolio (CSP) helped selecting the following recipients to deploy funds:
- Precision Development (US $ 499,005, two years) – for its Leaf Color Charts (LCC) project, aimed at reducing fertilizer use in Indian cotton farming.
- GIZ (US $ 649,300, three years) – for a solar PV project in Bangladesh, fostering renewable energy adoption in the textile and apparel sector.
- Made2Flow (US $ 230,000, one year) – to incorporate automated impact reduction recommendations into supply chain facility software, boosting scalability and reducing in-person visits for energy efficiency assessments.
- BluWin (US $ 88,000, one year) – to implement its Clean by Design framework, focused on enhancing energy efficiency.
- PwC (US $ 250,000, one year) – to execute its ‘Cleaner Production System,’ an energy efficiency project extending across Tier 2 and Tier 3 suppliers in India and Bangladesh.
To stand eligible for funding and registry inclusion, organisations must provide high-quality, verified data or estimates showcasing measurable greenhouse gas emissions reductions resulting from their solutions, aligning with Aii’s rigorous application process.