Innovation of the Week is a subscriber-only series highlighting retail initiatives that have caught the eye of our team. Every week, we will bring you new ideas and case studies that link to the trends in our Retail Horizon 2024 reports – across consumer, technology, sustainability, and economy, policy and industry.
What is it?
Fashion brands H&M, Gap, Mango and Bestseller have signed up to the Future Supplier Initiative (FSI), an innovative collaboration working collectively to decarbonise the fashion sector.
Scope 3 supplier emissions account for 99% of the sector’s CO2 impact. This initiative aims to develop and finance supplier projects that incentivise renewable energy, supporting brands and suppliers to accelerate progress to meet their Science Based Targets.
The first phase of the project is focused on Bangladesh. A joint working group has been set up for Vietnam, with India, China, Italy and Turkey set to follow.
Why does it matter?
By providing support and financing to factories, brands will collaboratively help reduce Scope 3 emissions, helping those deterred by financial burdens and extended payback time to invest more confidently in renewables.
“At H&M Group, we want to lead the way within our industry and decarbonising our supply chain is one of the most important keys to further reduce our emissions. The Future Supplier Initiative shows that solutions are readily available and come with proven impact, but it requires commitments from brands and investors that are willing to invest. We encourage others to join our efforts to tackle our industry’s negative climate impact”
Daniel Ervér, chief executive, H&M Group
Strategic implications
The fashion sector follows the DIY sector in working together to solve the challenge of Scope 3 emissions. By working jointly, retailers can accelerate change. Expect more retailers to join and more sectors to follow.
Winning strategies
- Cross-industry collaboration
- Climate emergency imperative
Retail Horizon 2024 is Retail Week’s exclusive strategic toolkit for subscribers.
Across four in-depth reports, Retail Week research director Lisa Byfield-Green and our team of analysts explore the most significant trends that will shape the sector in the year ahead across consumer, technology, sustainability, and industry, economy and policy.
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