How

To meet global climate goals, apparel brands must cut their supply chain emissions in half by 2030.

The technologies required to do this exist, but the financial burden and extended payback time deter many factories from adopting electrification and renewable energy solutions, slowing progress towards decarbonisation goals.

Future Supplier Initiative helps bridge these investment gaps by offering dedicated technical and financial support to garment manufacturing, and spinning and knitting facilities.

Fashion Industry

Organisations, brands, retailers…

CO₂

Banks

Suppliers

Tier 1 and Tier 2

How do we achieve impact at scale?

Brands that are committed to achieving Paris-aligned goals know that setting targets and requiring suppliers to do the same is not enough. Bringing technical solutions that allow factories to achieve 50%+ emission reductions, as well as financing to implement those technologies, are essential. This is what The Future Supplier Initiative provides. By joining, brands and suppliers are supported in identifying, financing and implement these necessary emission reduction projects within two years. It is the immediate, scalable solution for achieving our industry’s 2030 climate ambition.

Betsy Blaisdell

Director of Decarbonization, Guidehouse

Raj Woollen is committed to its sustainability and environmental initiatives, and one key goal is to reduce the impact of our manufacturing processes on the environment. This joint project with H&M Group, Guidehouse, and DBS has been a successful combination of expert energy assessment, close support in selecting the most suitable technology solutions, and an attractive financing model. We are confident that this will ensure the highest possible results in our decarbonisation journey, and we are grateful for this partnership.

Sumeet Nath

Raj Woollen Industries (FSI Proof of concept in India, 2023)

Accelerating net zero for supply chains requires the rapid scaling of low-carbon technologies and new, innovative financing models to drive adoption. The Future Supplier Initiative aims to address these challenges by directly funding factory upgrades to help suppliers improve their energy efficiency and decarbonise. As a purpose-driven bank with an extensive network in Asia, DBS is excited to be the first bank supporting this landmark Initiative and to help suppliers access sustainable financing in a practical way.

Tan Su Shan

Group Head of Institutional Banking, DBS

Financial Solutions

Tailored proposals

Creating site-specific technical and financial proformas.

Facilitating supplier and equipment/service provider proposal development to align on a final package of measures to be implemented and financed via loans with favourable terms.

Technology & Support

Technology list

FSI maintains and updates a list of decarbonization technologies through internal and expertise, review of case studies, OEM brochures and research
Categorize and prioritize the list based on payback, emission reduction potential, regional feasibility, ease of implementation and scalability

Evaluation and selection

FSI collects existing energy assessments and data, recent or planned emission reduction projects to understand present scenario
- Optionally, FSI energy experts or local partners conduct an onsite energy assessment to gather information and validate feasibility of potential technologies
Supplier submits data as per the request, and FSI evaluates collected information and selects feasible technical solutions from the list
FSI creates a technical and financial proposal for the package of proposed technologies, including calculation of relevant metrics and display of a marginal emission reduction cost curve, best suited to supplier’s requirement
Suppliers, brand and FSI align on the final package of projects for next stage of diligence

OEM Facilitation and Site Feasibility

Identify multiple OEMs or solution providers for the proposed projects
FSI facilitates OEM’s site visits to carryout feasibility assessments. OEMs provide proposals aligned to the technical requirements of FSI
Carry out technical due diligence of OEM proposals with the supplier to check their technical competency and make final selection

Emission Reductions

Methodology based on international standards

We developed a credible methodology to measure and attribute the emission reductions from implemented projects to investing brands’ scope 3 inventories, in accordance to currently available standards. The methodology can be expanded to align with relevant in-setting guidance documents being developed by the GHG Protocol.

Multi-step approach ensures credible measurement and allocation of emissions reductions:

Rigorous reduction potential analysis and project selection
Baselining – based on FSI protocol backed by CDM standards
Monitoring & Verification– based on FSI protocol backed by CDM standards
Allocation and reporting of generated emissions reductions to brands through voluntary offtake agreements