Mobilizing resources from the fashion industry to protect and restore nature

The Climate for Nature Fund will mobilize resources from the fashion and beauty sectors to protect and restore nature. This is one of the fashion industry's solutions to respond to climate change.

According to multiple studies, the fashion industry is responsible for 10% of annual global emissions and 48% of its supply chain is linked to deforestation. The industry also has a severe negative impact on biodiversity due to chemical use and microplastic pollution.

On the other hand, extreme weather is posing a threat to the fashion supply chain by restricting access to raw materials. The estimated damage could be as high as $65 billion.

Among the many challenges facing the fashion industry due to climate change is that sourcing natural fibers and materials may become more difficult, and diversifying supply chains is only a temporary solution. From cotton to cashmere, many natural fibers and textiles are becoming difficult to meet demand.

Cotton farming is affected by drought in many countries (Photo: Common Objective).

At the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP24) in Poland in December 2018, the fashion industry adopted an agreement on combating climate change with commitments from representatives of 43 leading brands in the world such as Adidas, Guess, H&M, Levi Strauss&Co, Puma and many fashion, textile and logistics associations.

The parties have committed to action to reduce the impact of climate change along the entire production chain. The agreement invites new members to join and sets an initial target of reducing greenhouse gas emissions by 30% by 2030. Members also agreed to phase out coal-fired boilers and other coal-fired activities by 2025.

The luxury fashion sector is backing a number of initiatives, led by French conglomerate Kering’s Regeneration for Nature Fund, which supports agricultural projects around the world that seek to transition from current farming methods to regenerative ones. Kering aims to reduce its environmental impact by 40% by 2025.

The Regeneration for Nature Fund aims to rehabilitate 1 million hectares of farms, producers of raw materials for the fashion supply chain. With a view to positively impacting biodiversity, the fund also provides grants to farmers, NGOs and fashion industry stakeholders to develop agricultural change.

March demands fashion industry join the fight against climate change (Photo: Common Objective).

In late 2022, Kering Group will partner with French fashion group L'Occitane to establish the Climate for Nature Fund to protect biodiversity and promote regenerative agriculture practices in the fashion supply chain. This fund will mobilize resources from the fashion and beauty sectors to protect and restore nature. "This climate fund will create an opportunity for the luxury fashion and beauty industries to work together to support biodiversity restoration and conservation on a large scale," said Marie-Claire Daveu, Kering Group's Chief Sustainability and Institutional Affairs Officer.

Kering and L'Occitane have jointly pledged €140 million to the newly created climate fund (100 million and 40 million euros respectively). The plan is to attract additional investors to reach the €300 million target, and will invite other luxury fashion and beauty companies to join and scale up the fund. Operations will start in the first quarter of 2023 and projects will take place in countries where investors source raw materials, including Latin America, Africa and Asia. The fund will support the development of nature-based solutions to tackle climate change.

Kering and L'Occitane emphasize that their fund supports and protects natural carbon sources, and that the majority of restoration and protection projects include “afforestation, reforestation, restoration of important natural ecosystems, such as mangroves or natural regeneration, as well as regenerative agriculture and agroforestry projects. A small number of projects will also involve forest protection and avoided emissions.”

Khoi Nguyen