The Fashion Producer Collective is a collection of producer-led projects representing a range of perspectives from individuals within apparel supply chains.

The Collective meets regularly in closed-door sessions to discuss specific challenges and offer insight and support. The following is a summary of the key points raised in a session on decarbonisation in 2023. The points below are based on the insights written by Fashion Producer Collective co-founder, Kim van der Weerd.

Key takeaways:

1. High capital and operational costs:

• Investments in decarbonisation technologies often come with prohibitive capital and operational expenses, making it challenging for suppliers to implement them without external support.

2. Client price sensitivity:

• Even when decarbonisation efforts are feasible, the resulting increase in product costs may exceed what clients are willing to pay, hindering the adoption of sustainable practices.
• No suppliers at the session were able to provide an example of successfully factoring in emissions into price negotiations with brands.

“It’s time to let go of the belief that decarbonisation will save suppliers money (or is cost-neutral)”.

3. Importance of internal advocacy:

• Building relationships with key individuals within client organisations can lead to internal advocacy for supporting suppliers' decarbonisation initiatives.

4. Exploring alternative funding sources:

• Suppliers are considering various avenues for funding, including government support, especially if the investment aligns with public climate targets. Some are reaching out to machine manufacturers for a pilot/test case.

Recommendations for brands:

1. Financial support for decarbonisation:

• Provide financial assistance or co-investment opportunities to suppliers for implementing decarbonisation technologies, recognising the shared responsibility in reducing emissions.

2. Flexible pricing strategies:

• Collaborate with suppliers to develop pricing models that account for the increased costs associated with sustainable practices, ensuring fair compensation for environmentally friendly production.

3. Internal advocacy and support:

• CSR teams should champion suppliers' decarbonisation efforts, facilitating discussions with sourcing teams on how brands can support these initiatives.

4. Facilitate access to alternative funding:

• Assist suppliers in identifying and securing alternative funding sources, such as government grants or low-interest loans, to support investments in sustainable technologies.

By implementing these recommendations, brands can enhance their CSR initiatives, foster stronger partnerships with suppliers, and contribute to a more transparent and equitable fashion supply chain.

Call to action:

If you’re a supplier and would like to join, Get in touch