DBS and Reset’s partnership was formalised through a memorandum of understanding (MOU) signing and both aim to collaborate with buyers and suppliers, including small and medium enterprises, throughout Asia’s manufacturing supply chain.
AFT brands will have access to Reset’s advisory services and technical support, assisting them in achieving carbon reductions within their supply chains, establishing science-based carbon reduction targets, and enhancing in-house capabilities.
DBS will provide financing solutions to suppliers to invest in cost-effective technologies that lead to substantial reductions in factory emissions, water consumption, and waste production.
Yulanda Chung, managing director and head of sustainability at the Institutional Banking Group of DBS, commented: “The apparel sector is looking for solutions, in both finance and resource efficiency advisory, to mitigate the harmful impacts of fast-changing fashion. This partnership brings together DBS’ extensive Asia network, and expertise in sustainable finance with Reset’s successful Carbon Leadership Programme.”
Companies will have the opportunity to engage in the three-year-old Carbon Leadership Programme in partnership with the Apparel Impact Institute (AII), which is designed to assist apparel brands and their suppliers in establishing science-based carbon reduction targets.
Action plans are subsequently formulated through benchmarking and assessments, utilising standardised tools and collaborative processes.
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Thus far, more than 20 of the world’s largest apparel brands have participated in the programme, representing potential annual reductions of up to three million tonnes of CO2 if these action plans are fully implemented.
Liam Salter, CEO of Reset, added: “Reset’s mission is to drive significant carbon reductions in our customers’ value chains. 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 to develop new solutions for our collective customers.”
DBS shared that the United Nations Environment Programme reported that the global fashion industry, valued in the trillions, contributes to approximately 8% of worldwide carbon emissions.
The United Nations Climate Change noted that whilst numerous apparel brands have made progress in reducing emissions within their own operations to meet their sustainability commitments, the decarbonisation of supply chains remains a significant challenge.