Inditex is backing a $400 million fund designed to help decarbonise fashion supply chains, according to The Business of Fashion. The initiative is being developed with the World Bank and other investors, with the aim of giving textile manufacturers in emerging markets access to financing for cleaner production.
The report said the fund is intended to support factories that supply the global fashion industry as they look to cut emissions and invest in more efficient processes. Inditex, which owns brands including Zara and Massimo Dutti, has used sustainability-linked financing in previous years as the sector faces pressure to reduce the environmental footprint of production and logistics.
There is also a UAE connection through Azadea Group, which operates a wide regional retail portfolio for Inditex brands across the Middle East, including Zara and Massimo Dutti stores in the Gulf. That makes Inditex’s supply-chain financing moves relevant to the fashion retail network serving UAE shoppers.
The Business of Fashion said the new fund would focus on markets where textile manufacturing is concentrated but access to capital for cleaner equipment and energy use remains limited. No further terms of the financing were detailed in the report.
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