DBS, the Singapore bank Inditex and PVH use for sustainable financing programs, has a new carbon-cutting partnership.
A memorandum of understanding was signed on Sept. 14 by DBS and Reset Carbon, an end-to-end carbon management firm, to collaborate with buyers and suppliers of all sizes along Asia’s apparel supply chain to drive the adoption of decarbonization and sustainability solutions.
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Reset Carbon’s advisory services and technical support will be available to apparel, footwear and textile companies, assisting them in carbon reduction, establishing specific science-based carbon-reduction targets and enhancing in-house capabilities.
DBS will offer financing plans to suppliers who want to invest in cost-effective technologies that will lead to marked reductions in factory emissions, water consumption and waste production.
“The apparel sector is looking for solutions in both finance and resource efficiency advisory, to mitigate the harmful impacts of fast-changing fashion,” said Yulanda Chung, managing director and head of sustainability at the Institutional Banking Group of DBS. “This partnership brings together DBS’ extensive Asia network and expertise in sustainable finance with Reset’s successful Carbon Leadership Programme.”
The Carbon Leadership Program, now three years old, is open to apparel brands and suppliers who want to establish science-based carbon reduction targets. It is in partnership with the Apparel Impact Institute (Aii), and it uses standardized tools and collaborative processes to establish action plans through benchmarking and assessments.
More than 20 of the world’s largest apparel brands have participated in the program, including Target, Levi’s, Gap, Ralph Lauren, Nike, C&A, AEO and Lululemon, according to Reset Carbon. In total, if fully implemented this represents possible annual reductions of up to 3 million tons of CO2.
“Reset’s mission is to drive significant carbon reductions in our customers’ value chains,” said Liam Salter, Reset Carbon CEO. “With financing increasingly seen as an integral part of the solution, we are excited to partner with DBS who we view as the most innovative bank in the region.”
DBS has also partnered with Inditex, owner of retailer Zara, on an initiative to advance organic cotton crops in India. This program for the Asian apparel, footwear and textiles supply chain will add to the progress made by apparel brands in reducing emissions, but the United Nations Environment Programme notes that fashion is still a long way from meaningfully decarbonizing supply chains.
Another DBS partnership with PVH gives the Calvin Klein and Tommy Hilfiger owner’s suppliers competitive access to capital, with rates based on their environmental and social performance.
Aii, for its part, is laser focused on helping fashion decarbonize and halve emissions by 2030. Earlier this month it announced the first grantees under the $250 million Fashion Climate Fund. They include BluWin, GIZ, Made2Flow, Precision Development and PwC, which are part of the organization’s Climate Solutions Portfolio.
This portfolio offers a variety of grantees plus ready-to-go solutions that any organization can include in a decarbonization plan, Kurt Kipka, Aii’s chief impact officer, previously told Sourcing Journal.
Jessica Binns contributed to this report.