• Initiated by Fashion for Good, the Fund is a collaboration between C&A Foundation, Hong Kong-based The Mills Fabrica and impact investment firm Fount. 
  • With a target size of US$60m, it will finance investments in supply chain innovations specifically in India, Bangladesh and Vietnam as well as other areas throughout Asia.
The Good Fashion Fund has been initiated by Fashion for Good, with C&A Foundation and The Mills Fabrica as launch investors, and managed by impact investment firm Fount

The Good Fashion Fund has been initiated by Fashion for Good, with C&A Foundation and The Mills Fabrica as launch investors, and managed by impact investment firm Fount

A new Good Fashion Fund is being launched to finance investments in supply chain innovations in India, Bangladesh and Vietnam so that manufacturers can improve their environmental and social impacts.

Initiated by Fashion for Good, a global initiative trying to make fashion more sustainable, the Good Fashion Fund is a collaboration between C&A Foundation, Hong Kong-based The Mills Fabrica, and impact investment firm Fount. 

With a target size of US$60m, it is said to be the first investment fund focused solely on driving the implementation of innovative solutions in the fashion industry.

Currently, apparel supply chains are plagued by their negative environmental and social impacts. But while sustainable solutions do exist, there is a lack of capital available to scale these technologies within the supply chain. The Fund was created to address this gap – connecting the most promising technologies to the industry to collaboratively tackle its challenges.

"Disruptive innovation is needed to shift the fashion industry from a model of 'take-make-waste' towards a more circular and regenerative system," explains Katrin Ley, managing director of Fashion for Good. "While the technology exists today to move forward towards circularity, it is not yet being scaled. The Good Fashion Fund provides the resources, tools and incentives needed to bridge the innovation gap, bringing these innovations to the mainstream."

The new fund provides impact lending tools to finance investments in supply chain innovations specifically in India, Bangladesh and Vietnam as well as other areas throughout Asia. Its blended structure combines risk-tolerant capital with private sector investment to allow for flexibility and tailored financing to best fit each individual situation.

The vision for the Good Fashion Fund is for manufacturers in the apparel supply chain to invest and reinvest in innovations that deliver both economic growth and good fashion practice, mobilising the use of safe and recyclable materials, clean and efficient energy, closed-loop manufacturing and the creation of fair jobs and growth, in line with 'Five Goods': Good Energy, Good Water, Good Materials, Good Economy and Good Lives.

Small to medium manufacturers whose products or services are in line with these criteria looking to implement best-in-class technology and equipment, will be eligible for funding. The Fund is also mandated to support larger manufacturers committed to investing in highly disruptive technologies.

"We all know that 'business as usual' will not result in the fashion industry being a true force for good" - Leslie Johnston

"We all know that 'business as usual' will not result in the fashion industry being a true force for good," says Leslie Johnston, executive director ar C&A Foundation. "Innovation is critically needed. And yet, without sufficient funding, many innovations are unable to scale. We are therefore proud to be an anchor investor in the Good Fashion Fund which – with its high-risk appetite and focus on getting innovations into the supply chain – will address this finance gap."

Bob Assenberg, director of the Good Fashion Fund and Fount partner, adds the Fund demonstrates "how to invest beyond sustainability towards a restorative and regenerative apparel supply chain and addresses the need in the local markets for long term financing for manufacturers and contributes to multiple SDGs."

The Good Fashion Fund will be officially launched by C&A Foundation board director Albert Brenninkmeijer and Assenberg tomorrow (5 September) at the Hong Kong Fashion Summit.

Earlier this year, Fashion for Good announced it is expanding to South Asia with the launch of a dedicated regional innovation programme.