The report, titled ‘Unlocking Equity in Innovation: Balancing the Scales in Supply Chain Partnerships,’ finds that this disconnect in tempo, coupled with an uneven distribution of risk, contributes to persistent power imbalances that hinder the formation of broad, equitable partnerships needed to meet climate objectives.
The research is based on more than 30 interviews with stakeholders worldwide, spanning the apparel supply chain.
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Findings show that current barriers to progress include misaligned expectations between industry actors, a lack of recognition and compensation for suppliers, and irregular commitments from brands.
The report notes that although brands, investors and innovators have significant influence over sustainable change, suppliers who carry out the implementation of innovations remain “under-recognised and under-compensated”.
Key barriers highlighted in the report
- Systemic misalignment where unrealistic expectations regarding costs and timelines make commercialisation difficult
- Supplier inequity, as suppliers are required to take on a disproportionate share of financial and operational risk during the co-creation and implementation of innovation
- Low brand commitment, with most activity focused on short-term pilot projects rather than long-term purchase agreements or investment partnerships needed for scaling up.
Transformers Foundation intelligence director Melinda Tually said: “Suppliers are critical value creators of innovation. Without equal partnership, the industry cannot achieve the scale, speed, or impact needed to meet its climate goals.”
Opportunities identified in the report
- Closing knowledge gaps through open-source sharing between brands, suppliers and other stakeholders to support supply chain standardisation
- Recognising and incentivising suppliers by promoting supplier roles and partnerships to increase appreciation for their contributions, with an emphasis on starting partnerships with suppliers
- Embracing systems change by encouraging pre-competitive collaboration, developing strong business cases beyond sustainability or technical factors, and offsetting price premiums to help scale innovation.
Transformers Foundation founder Andrew Olah said: “Innovation won’t transform the industry unless it’s built on fair, transparent partnerships. This report is a call to reimagine how value and risk are distributed, and to ensure suppliers have an equal seat at the table.”
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