Collateral Good, a climate-first Venture Capital (VC) platform based in Zürich, has announced the launch of a new sustainable fashion fund — the “first of its kind in size and nature” according to the VC.
The venture is being launched in partnership with none other than global fashion giant HUGO BOSS.
“We are excited to enter the partnership with Collateral Good, a reputable and experienced Venture Capital Investor in Sustainability,” CEO of HUGO BOSS Daniel Grieder expressed enthusiasm about the collaboration. “Together, we will fund the most promising technologies and innovations that drive sustainability within our industry and explore how we can integrate them into our products and processes at scale.”
Michael Kleindl, Founder and Managing Partner of Collateral Good, echoed the sentiment:
“We are incredibly excited to announce leading premium fashion company HUGO BOSS as a lead investor in Collateral Good Ventures Fashion I. HUGO BOSS is the perfect ally in our mission to decarbonize the fashion industry.”
€100M for Change
The fund aims to raise €100 million, earmarked for investments in innovations and technologies that would “accelerate the transformation of the textile and fashion industry to a more sustainable one,” Collateral Good explains.
In the press release announcing the fund launch, the VC reminds us that over 8% of global greenhouse gas emissions come from the fashion industry and says that the new sustainable fashion fund aims to address exactly this.
Initial investments, ranging from €1 to €3 million, will be distributed across 20 to 25 startups “all along the value and supply chain.” This includes startups working on the “recycling of textiles, upcycled raw materials, novel dyeing materials and processes, and transparency of supply chain, among others.”
Related Articles: Robeco’s New Sustainable Fashion Fund: What to Know | 5 Sins of Greenwashing In Fashion | How to Tell if a Company Is Greenwashing: 5 Ways to Discover if Sustainability Claims Are Real
Leading the investment team is Martin Ott, former Managing Director of Adidas Ventures. HUGO BOSS will see about 10% of the investments, the fashion giant reveals in its statement, and adds that the fund has already garnered interest from prominent family offices, asset managers, and institutional investors.
”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,” BOSS CEO Grieder said. “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.”
As the fashion world grapples with its ecological footprint, this partnership sets a precedent for other industry leaders to join forces in steering the fashion narrative toward a greener and more sustainable direction.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — In the Featured Photo: Models on a catwalk. Featured Photo Credit: Wikimedia Commons.