Impact Accelerator Fund for Climate (IAF)
The carbon footprint related to the production of outdoor apparel, footwear and hard goods is significant. This is due to the extreme energy and resource intensity, with most impact taking place in the raw material and processing steps of the supply chain.
Significant resource is required for the industry to meet necessary climate targets and for a net-zero industry to be achieved by 2050. While it is difficult to estimate the exact amount of resource, a recent report by Aii and Fashion for Good suggests that the total investment required to decarbonise the fashion industry amounts to just over $1 trillion, with 61% required to implement existing solutions, and the remaining 39% to further develop, scale and implement key innovative solutions.
Given the large amount of required resource, current approaches will be limited and relying on CSR budgets alone will not be sufficient without additional creativity and changes to financial flows.
The European Outdoor Industry has a great opportunity to approach decarbonisation differently, to engage the collaborative spirit, and resilience for which the industry is well known, as well as leveraging opportunities such as overlaps in supply chains that our industry provides us. In doing so, the industry will be primed to reduce CO2 emission in the outdoor supply chains and raise awareness of climate change and the joint action of the outdoor industry.
WHAT IS THE IMPACT ACCELERATOR FUND FOR CLIMATE
The IAF is a collaborative fund dedicated to supporting decarbonisation projects and climate mitigation actions within supply chains related to the outdoor industry.
WHO PAYS INTO IT?
This fund is open for any interested party to contribute to, including brands, retailers, and other associated stakeholders. How funds are raised will vary by organisation, but innovation is key when considering how to approach this.
Whilst some organisations will have a set budget assigned to climate action, there are many other ways in which funds can be diverted or unused money can be accessed.
- Brands have a direct responsibility to actively engage in climate change mitigation initiatives, whether they have been addressing climate action for several years or at the beginning of their journey. However, many brands understand the overwhelming financial pressure involved in attempting to fund initiatives on their own, thus by sharing costs this pressure can be eased and their targets can be more easily/quickly met.
- Retailers have a key role to play in supporting climate action, and retail groups have publicly declared their desire to be actively involved in climate action through the development of pledges etc. By contributing to this fund, retailers will have the opportunity to make a financial contribution and show their commitment.
- Other stakeholders, such as business associations, charitable organisations, EU grants/schemes, foundation/match funding, 1% for the Planet etc.
HOW IS FUNDING ALLOCATED?
To be eligible for funding, projects must be nominated by EOG members and any project that applies for funding from the IAF must be assessed against a Funding Allocation Framework which assesses factors such relevance for the sector, impact reduction potential, etc.
The fund will allocate support to projects in the following areas:
- Clean replacement of electricity –solar rooftop projects, greening of remaining grid energy requirements
- Coal phase out for generation of industrial heat – boiler replacement, biomass fuel substitution, installation of electric/thermal solar boilers
- Long term offsetting projects
The assessment of applications is carried out by a panel which will be made up of EOG members and managed by the EOG Secretariat.
Funded projects are subject to regular updates/reviews etc.
For more information contact firstname.lastname@example.org