Non-profit think tank Planet Tracker has received a grant from Laudes Foundation to bring its proven methodology to the fashion industry by launching Textiles Tracker, which will identify and analyse potential financial risks, enabling investors to cost in natural capital factors. Tackling the fashion industry’s systemic issues is a key aim of the foundation.
Switzerland-based Brenninkmeijer family enterprise launched the Laudes Foundation in January this year to address the dual crises of climate breakdown and inequality that endanger nature and jeopardise the safety and dignity of countless communities and to advance the work of the C&A Foundation. The family is the founder of C&A, a global chain of clothing stores.Non-profit think tank Planet Tracker has received a grant from Laudes Foundation to bring its proven methodology to the fashion industry by launching Textiles Tracker, which will identify and analyse potential financial risks, enabling investors to cost in natural capital factors.Tackling the fashion industry's systemic issues is a key aim of the foundation.#
Currently, the listed equities portion of the fashion industry generates over $1.2 trillion in revenues. Yet investors in this industry are not incorporating the true cost of their investments. Specifically, while multiple studies have highlighted the deep, environmental impact of the fashion and textiles industry, Planet Tracker has found little analysis assessing those natural capital-related financial risks across the value chain which can impact shareholder value.
“This grant will give us the resources to undertake a detailed analysis of the textiles industry and identify value-at-risk for investors,” said Planet Tracker’s chief executive officer Robin Millington.
“We launched Laudes Foundation to help harness the productive power of the market to value all people and respect nature. This can only be done if investors have access to the right information to make informed decisions. Planet Tracker is a powerful demonstration of how this can be done in an industry – in this case fashion, an industry that generates 10% of global greenhouse gas emissions. We’re proud to work with Robin and her team to better capture these risks and influence the flow of capital in this important industry," said Leslie Johnston, chief executive officer of Laudes Foundation, in a press release.
Since 2000, global clothing production globally has doubled while utilisation has decreased by 36 per cent, resulting in up to 73 per cent of all produced clothing (equivalent to $460 billion) ending in landfill annually.
“By identifying financial risks to investors linked to ecological boundaries within the textiles value chain, Textile Tracker aims to stimulate investors to re-allocate funds in ways which influence change in the industry towards more sustainable practices,” concludes Millington.
Fibre2Fashion News Desk (DS)
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