The partnership with HSBC provides PVH ’s suppliers with access to critical funding based on a set of science-based environmental targets, as well as a series of social elements, including a healthy and safe working environment, compensation and benefits, and employment issues, such as forced labour, child labour, and harassment and abuse.
PVH says the programme demonstrates its long-standing commitment to driving sustainable business by continuously improving and protecting the environment and human rights across its global supply chain.
According to recent research conducted by HSBC and Boston Consulting Group (BCG), global supply chains need US$100 trillion of investment by 2050 if they are to achieve net-zero emissions targets – and as much as half of this is required by small- and medium-sized enterprises (SMEs). Sustainable supply chain finance is one way to help leading companies and key sectors like the apparel industry ensure that progress is made to advance their targets and commitments, HSBC and PVH say.
“We are proud to leverage our international and sustainability expertise to help one of the world’s largest apparel companies make progress against their ESG goals,” says Marissa Adams, regional head of global trade and receivables finance for HSBC North America.
Sarah Clarke, PVH ’s chief supply chain officer, adds: “PVH ‘s commitment to environmental stewardship and enhancing human rights in our supply chain is core to our ‘Forward Fashion’ strategy. The availability of accessible financing is pivotal to ensuring our suppliers are empowered to invest back into their businesses and people, and contribute to our collective goal of creating an innovative and responsible global supply chain.”
Suppliers progress will be measured against PVH ’s Human Rights and Environmental Supply Chain standards and performance assessment standards will be measured using industry-aligned tools. These include the Social Labor Convergence Program(SLCP), which measures a facility’s performance against human rights and labour standards, and the Sustainable Apparel Coalition’s (SAC) Higg Facility Environmental Module, which assesses environmental standards. HSBC will act as a key financing partner in providing capital based on these trusted standards and building on the bank’s established expertise in sustainable supply chain finance programs that drive progress.
“With this announcement, HSBC continues to show its leadership in critically needed sustainable supply chain finance to fund the textile, apparel and footwear industry’s transition to net zero. We estimate the total cost for the decarbonisation of this industry to be $1 trillion between now and 2050, the majority of which will go towards capital investment in the supply chain. We applaud HSBC, along with PVH , for forming this strategic partnership to finance clean production at apparel manufacturing facilities,” notes Lewis Perkins, president of the Apparel Impact Institute.
PVH Corp’s Tommy Hilfiger brand recently launched its first rental pilot, offering consumers in the UK market the opportunity to rent or buy Tommy Hilfiger womenswear, footwear and accessories from the brand’s past and the current seasons.