A report co-authored by GlobalCAD sheds light on how impact investment can help improve sustainability in the textile industry

The report titled “Good Fashion Fund – Lessons Learned during Phase I”, crafted by GlobalCAD and adelphi, sheds light on the transformative journey of the Good Fashion Fund (GFF) in fostering sustainability within the textile and apparel industry.

Alongside adelphi, GlobalCAD assessed GFF’s progress and extracted valuable insights that address the environmental and social challenges in the textile sector. Their collaborative efforts have ensured that the report not only reflects the fund’s achievements but also provides a roadmap for future sustainability initiatives.

The Good Fashion Fund, as the first-of-its-kind impact investment fund, has set out to transform the textile and apparel industry by financing disruptive and high-impact production technologies in Bangladesh and India. Over the past three years, GFF has navigated numerous challenges and opportunities, and its partnership with GlobalCAD has been instrumental in documenting these experiences.

The report by GlobalCAD and adelphi provides critical insights and strategic initiatives undertaken by GFF, including:

Bridging the Sustainability Gap: Export-oriented textile manufacturers face significant challenges in investing in new technologies due to the lack of committed purchases from brands. The report explores how financial actors like GFF can bridge this gap.

Navigating Challenges and Opportunities: In-depth analysis of the hurdles and prospects in sustainable textile production.

Technology as a Sustainability Driver: Highlighting success stories from GFF’s portfolio across tier 1–3 factories, showcasing the role of technology in driving sustainability.

Addressing the Funding Gap: While the funding gap remains large, the report notes the increasing availability of investments for technological upgrades in producer countries.

Tailored Financial Assistance: Emphasizing the importance of combining finance with a robust environmental and social framework, complemented by dedicated technical assistance.

Policy Support: Discussing the role of financial actors like GFF in providing essential funding to help manufacturers comply with new regulations.

Closing the Brand-Supplier Gap: How impact investors can help align brand expectations with supplier needs.

The Future of Sustainability: Advocating for shared responsibility in the sustainability transition and the critical support role of investors like GFF.

Bob Assenberg, Fund Director of the Good Fashion Fund, remarked on the GFF website: “Phase I of the Good Fashion Fund has provided us with invaluable insights into the real-world challenges and opportunities in financing the fashion supply chain’s transition to sustainability. This report is a testament to our commitment to transparency and continuous improvement.”

The “Lessons Learned” report serves as a valuable resource for industry stakeholders, encouraging knowledge exchange, fostering collaboration, and inspiring future actions towards a more sustainable future.

Geisel García Graña
Geisel García Graña
Geisel is Communication & Ecosystem Manager for GlobalCAD and a consultant in communication and sustainable cities. She has a PhD. in Communication Sciences by the Autonomous University of Barcelona. @geiselgg