{"id":26333,"date":"2023-12-11T02:05:00","date_gmt":"2023-12-11T02:05:00","guid":{"rendered":"https:\/\/aiinewstg.local\/?p=26333"},"modified":"2024-02-03T01:14:34","modified_gmt":"2024-02-03T01:14:34","slug":"apparel-impact-institute-announces-hsbc-as-new-funder-to-the-fashion-climate-fund","status":"publish","type":"post","link":"https:\/\/apparelimpact.org\/resources\/apparel-impact-institute-announces-hsbc-as-new-funder-to-the-fashion-climate-fund\/","title":{"rendered":"Apparel Impact Institute Announces HSBC as New Funder to the Fashion Climate Fund"},"content":{"rendered":"\n

+Debuts new financial tools to help suppliers finance decarbonization projects with support from Rockefeller Foundation<\/em><\/h3>\n\n\n\n

December 11, 2023, Dubai, UAE \u2013 <\/strong>Apparel Impact Institute (Aii) announces HSBC as a new philanthropic funder to its $250M Fashion Climate Fund (FCF). HSBC is pledging an initial $4M over the next three years and will also aim to provide sustainability and trade finance expertise to support the FCF\u2019s mission of driving industry-wide convergence to modernize apparel and footwear supply chains to meet the industry\u2019s ambition to halve carbon emissions by 2030.<\/p>\n\n\n\n

As outlined in the recent report, \u201cUnlocking The Trillion-Dollar Fashion Decarbonisation Opportunity: Existing And Innovative Solutions<\/a>,\u201d<\/em> co-authored by Aii & Fashion for Food and supported by HSBC, studies estimate that more than 2% of the global greenhouse gas emissions stem from the fashion industry. With the global average temperatures projected to rise by 3 degrees Celsius this century, disruptive solutions and unprecedented actions are needed to curb emissions. The findings in the report are significant \u2013 analysis shows an estimated $1T is required to finance the decarbonization of the fashion industry by 2050 \u2013 and bringing together a diverse range of actors from across the value chain is critical to enabling solutions. <\/p>\n\n\n\n

HSBC joins current FCF backers, Target Corporation, H&M Foundation, H&M Group, Lululemon, The PVH Foundation, and the Schmidt Family Foundation. The bank\u2019s support will help fund market insight reports, regional research projects to identify and overcome financial barriers, as well as build connections between facilities, brands, NGOs, governments, and financial institutions. HSBC\u2019s contributions will support FCF in building the infrastructure needed to enable partners to identify, measure, secure finance for and deploy decarbonization solutions from renewable energy to energy efficient measures. <\/p>\n\n\n\n

Lewis Perkins, President of Aii shares, \u201cWith this announcement, HSBC continues to show its support in critically needed sustainable supply chain finance to fund the textile, apparel, and footwear industry\u2019s transition to net zero. We estimate the total cost for the decarbonization of this industry to be $1 trillion between now and 2050 \u2013 the majority of which will go towards capital investment in the supply chain. We applaud HSBC for its continued support and ongoing collaboration during this critical time.\u201d<\/em><\/p>\n\n\n\n

Jenny McInnes, Group Head of Policy and Partnerships at HSBC, adds, \u201cAt HSBC we are not only leveraging our philanthropy but also our trade finance expertise to support the apparel sector\u2019s journey to net zero and the decarbonization of trade and global supply chains. Aii play an important role in bringing key stakeholders to design solutions that tackle some of the systemic challenges facing the apparel and footwear industry.\u201d<\/em><\/p>\n\n\n\n

Looking ahead to early 2024, the focus of Aii and FCF\u2019s continued work will be to create an enabling environment to develop financial instruments and expand membership of brands and manufacturers.<\/p>\n\n\n\n

Aii Launches Suite of New Financial Tools to Help Suppliers<\/strong><\/p>\n\n\n\n

With support from FCF\u2019s lead partners, including HSBC, Aii is also working on building innovative financial tools to complement its portfolio of solutions. These tools aim to create greater incentives for suppliers to undertake decarbonization projects via access to more affordable capital.  The Rockefeller Foundation, a partner of Aii, is also encouraging this work by committing significant grant support to the FCF to bring these financial tools from conversation to deployment.<\/p>\n\n\n\n

This fall, Aii and a small group of key stakeholders from across the value chain including HSBC, BNP-Paribas, Standard Chartered, MAS Holdings, Brandix, PVH, Lululemon, H&M Group and Guidehouse, gathered to create an activation plan starting with the most critical regions. One of the outcomes of this meeting is an Aii-backed \u201cclimate finance solutions\u201d marketplace portfolio approach to facilitate suppliers\u2019 access to affordable capital. This will include two initial financing initiatives that could look like (a) Facility Loan Guarantees and (b) blended capital supplier funds. Three working groups made up of participating representatives will further operationalize these primary options. <\/p>\n\n\n\n

About Apparel Impact Institute <\/strong><\/p>\n\n\n\n

Apparel Impact Institute (Aii) is a 501(c)(3) global nonprofit organization dedicated to identifying, funding, scaling, and measuring the apparel and footwear industry\u2019s proven environmental impact solutions. Aii works with over 50 brands and retailers who are leading the sector\u2019s decarbonization efforts, including Target, Gap, PVH, Lululemon, H&M Group, and Ralph Lauren. Aii has also built a $250M Fashion Climate Fund (FCF) to leverage a first-of-its-kind collaborative funding model between philanthropy and corporate entities. Lead Partners to the FCF are Lululemon, H&M Group, PVH, Target Corporation, HSBC, H&M Foundation and The Schmidt Family Foundation.  It is designed to catalyze climate action by funding and scaling solutions for decarbonization, and marked to unlock a total of $2B in blended capital, to meet the industry\u2019s goal to halve carbon emissions by 2030.  Most recently, Aii has updated<\/a> its widely credited 2021 \u201cRoadmap to Net Zero<\/a>,\u201d a report and guide calling for the system-wide collaboration needed to reduce GHG emissions in the apparel and footwear industry by 45% at minimum by 2030 and to zero by 2050. To learn more about Aii, please visit apparelimpact.org<\/a>.

About HSBC Holdings plc<\/strong>
<\/strong>HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,021bn at 30 September 2023, HSBC is one of the world\u2019s largest banking and financial services organizations.<\/p>\n","protected":false},"excerpt":{"rendered":"

Apparel Impact Institute (Aii) announces HSBC as a new philanthropic funder to its $250M Fashion Climate Fund (FCF). HSBC is pledging an initial $4M over the next three years and will also aim to provide sustainability and trade finance expertise to support the FCF\u2019s mission of driving industry-wide convergence to modernize apparel and footwear supply chains to meet the industry\u2019s ambition to halve carbon emissions by 2030.<\/p>\n","protected":false},"author":1,"featured_media":26485,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"%%post_title%% %%sep%% %%sitetitle%%","_seopress_titles_desc":"%%post_excerpt%%","_seopress_robots_index":"","footnotes":""},"categories":[48],"tags":[],"media-types":[51],"class_list":["post-26333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aii-updates-category","media-types-article"],"acf":[],"_links":{"self":[{"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/posts\/26333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/comments?post=26333"}],"version-history":[{"count":0,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/posts\/26333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/media\/26485"}],"wp:attachment":[{"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/media?parent=26333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/categories?post=26333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/tags?post=26333"},{"taxonomy":"media-types","embeddable":true,"href":"https:\/\/apparelimpact.org\/wp-json\/wp\/v2\/media-types?post=26333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}