Hugo Boss Backs 100M-Euro Sustainable Fashion Fund; National Retail Federation Launches Support for Retailers: Short Takes
BOSS MOVE: Hugo Boss is backing a new 100 million-euro venture capital fund with Zurich-based Collateral Good to invest in start-ups and technology targeted toward accelerating sustainability in the fashion industry.
With a target of 100 million euros, about 10 million euros will be investment directly from the German fashion company over five years, to invest 1 million to 3 million euros in 20 to 25 start-ups in the sustainable fashion space. Other investors will come from a combination of family offices and asset managers.
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Former Adidas Ventures managing director Martin Ott will lead the fund, which is called the Collateral Good Ventures Fashion I.
“The partnership with Collateral Good perfectly complements our sustainability strategy ‘For a bold and better future,’ which strives for a planet free of waste and pollution. Through this new form of investment, we will look for new solutions to target areas such as increasing circularity, using only nature-positive materials, eliminating microplastic pollution and achieving zero emissions,” said Boss chief executive officer Daniel Grieder.
The fund will invest in projects including recycling textiles, upcycling raw materials, preventing microfiber release as well as repair and care solutions.
CELL UP: Circulose-maker Renewcell has a new chief financial officer. Shipping executive Peter Schultz will join the Swedish textile-to-textile recycling firm starting in January.
The hire comes as Renewcell seeks to stabilize its executive ranks as it faces financial challenges following slower than anticipated sales. It is still seeking to fill the CEO position, with Magnus Håkansson holding the position in the interim.
The Swedish company produces Circulose, a textile pulp made from chemically recycled cotton waste, and runs one of the world’s first commercial scale textile-to-textile recycling plants.
With that factory online, it has the current capacity to produce about 60,000 tons of pulp annually, ramping up to 360,000 tons a year by 2030.
Still, the firm is producing and selling at about half of its break even point, according to Håkansson upon the release of the company’s third-quarter results on Nov. 7.
He called on companies to back up their promises to move to circular materials and buy the material, or enter into offtake agreements in order to get Circulose moving through the supply chain.
The company will release its full-year results on Feb. 13.
UNDER COVER: Under Armour has partnered with testing solutions supplier James Heal to make its fiber-shed testing method widely available to other brands.
The athleticwear-maker developed the testing method to help brands understand how much their products shed microfibers at different stages including production, wearing and cleaning. The company is making it publicly available so other brands can track their own contribution to the problem.
“Until now, integrating fiber-shed testing into industry research and development activities has required a significant time and cost investment,” said Under Armour senior vice president of innovation Kyle Blakely.
“At Under Armour, we believe intervening early to mitigate shedding is critical, which is why our test method is designed to specifically address these time and cost barriers to entry. Thanks to our partners at James Heal, we are excited to make our innovative test method widely available as we address our own environmental impact,” he added.
Under Armour worked with the U.K.-based James Heal over the past eight month to develop the kits.
Brands that purchase the kits will also receive continued support from research and certification company Hohenstein, which will serve as a neutral third-party facility for testing and technical guidance.
Under Armour has provided free kits to high-volume textile mills in its global supply chain to encourage early intervention within its indirect scope.
Under Armour has a stated goal of making 75 percent of its products from “low-shed” materials by 2030, and is developing a reduced-shed version of its fleece that is expected to launch in the second half of 2024.
FRONT AND CENTER: Trade association National Retail Federation is creating the Center for Retail Sustainability, backed by consulting firm Deloitte.
The center will aim to support retailers create economic value, including creating circular services and improving supply chain traceability.
“We are excited to work with NRF to scale successful sustainability solutions across the retail sector. With deep experience in the retail sector, retail supply chains and sustainability, Deloitte can help drive positive outcomes in supporting our industry move forward, including the center’s development of an initial circularity roadmap for the retail industry,” said Deloitte & Touche sustainability, climate and equity leader James Cascone.
The center will be led by NRF vice president of corporate social responsibility and sustainability Scot Case.
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