Fashion industry unveils financing scheme for cotton decarbonisation

The fashion industry has launched an ambitious programme to incentivise sustainable cotton production, signalling a shift towards collaborative efforts in tackling supply chain emissions.

The Unlock Programme, developed by The Fashion Pact and sustainability consultancy 2050, aims to provide financial incentives for farmers to adopt lower-impact and regenerative farming practices. Initial results from the pilot phase show promising carbon reductions in cotton production across India and the USA.

Eva von Alvensleben, Executive Director of The Fashion Pact, emphasised the urgency of the initiative: "Recent reports on sustainable raw materials outline that demand for low-climate-impact raw materials could exceed supply by as much as 133 million tons by 2030 – a clear indication that we need to invest in Tier 4 to meet demands on more sustainable raw materials."

The programme works by quantifying greenhouse gas impacts of farming practice changes and issuing "Unlock Units" to farmers based on their emissions reductions. Participating brands can then purchase these units, channelling investment directly to farmers and potentially using the claims within their Scope 3 inventories.

Pilot activities in 2023 resulted in carbon reductions of 200-600 kg per hectare in India and an average of 950 kg of removals and 2,000 kg of reductions per hectare in the US. The programme is now scaling up, with over 10,000 farmers enrolled for the 2024 growing season.

Laila Petrie, Director General of Future Earth Lab, which will house the programme moving forward, said: "Unlock was created with the intention to truly push the boundaries of what was possible with the aligned support of the fashion industry... We aim to make these solutions available to farmers all over the world."

The initiative, partly funded by the Laudes Foundation, has attracted 25 brands in its pilot phase, including J.Crew Group and House of Baukjen. It aims to enrol up to 90,000 farmers within the next few years and expand beyond the USA and India.

As the fashion industry grapples with its environmental impact, the Unlock Programme represents a novel approach to shared responsibility in supply chain decarbonisation. Its success could pave the way for similar initiatives across other raw materials and sectors.