Fashion and cosmetics brand Hugo Boss is financially backing a venture capital (VC) fund dedicated to sustainable fashion, which was launched this week by Collateral Good.
Described by the Zurich-based VC platform as the “first of its kind in size and nature”, the fund has a target size of €100 million and will invest globally in technology with the aim of accelerating the transformation of the textile and fashion industry to a more sustainable sector.
The fund dedicated to sustainable fashion comes as the world’s government’s and business leaders are in Dubai for the United Nations COP28 climate summit. Several other retailers have used this week to announce new initiatives aimed at halting the climate crisis, including H&M Group and Bestseller which are investing in a wind project in Bangladesh that will support their supply chain partners.
Operating under the name Collateral Good Ventures Fashion I SCSp RAIF – under SFDR Art. 9 (“dark green”) – the fund dedicated to sustainable fashion will invest initial cheques from €1-3 million into startups into areas such as recycling of textiles, upcycled raw materials, novel dyeing materials and processes, and supply chain transparency. The plan is for a portfolio comprising 20 to 25 startups.
The investment team will be led by partner Martin Ott, formerly managing director for Adidas Ventures. Besides corporates such as Hugo Boss, the fund has attracted interest from asset managers, institutional investors, and others.
Daniel Grieder, CEO of Hugo Boss, remarked: “Our ‘Claim 5’ strategy defines our growth trajectory, but at the same time, it is guided by our commitment to be sustainable throughout.
”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.”
Michael Kleindl, founder & managing partner of Collateral Good, called Hugo Boss “the perfect ally in our mission to decarbonise the fashion industry”.
[Image credit: Hugo Boss]
