The Decarbonization Of Textile, Apparel & Footwear Suppliers Fund
Status: Proposed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
The Decarbonization of Textile, Apparel & Footwear Suppliers (D-TAFS) Fund is a global blended finance structured debt fund with an initial target size of USD 250 million, scalable to USD 400 million, supporting underserved tier 1, 2, and 3 suppliers in the Textile, Apparel, and Footwear (TAF) industry. The Fund is managed by Social Investment Managers and Advisors LLC (“SIMA”) and aims to accelerate decarbonization and improve sustainability across textile, apparel and footwear supply chains by financing solutions that reduce GHG emissions, water use and pollution, hazardous chemical use, waste, improve wastewater management. Eligible projects of D-TAFS will primarily include renewable energy, energy efficiency upgrades, water saving technologies, waste reduction and recycling measures, and interventions that reduce hazardous chemical use.
What is our funding objective?
FMO is considering a USD 50 million investment in the D-TAFS Fund to be used specifically for investments in renewable energy developers and energy service companies (ESCOs) serving the TAF industry with decarbonization solutions. It will offer a combination of both short-term and long-term financing.
Why do we want to fund this investment?
The DTAFS Fund directly supports the transition towards a more sustainable TAF industry, a key sector known for producing jobs, economic development benefits including for SMEs and women workers. However, it is also a source of significant global emissions and substantial resource impacts. The Fund fits well with FMO’s energy strategy by channeling capital into high impact renewable energy and efficiency solutions provided by energy developers and ESCOs across emerging markets. In addition, the investment offers strong additionality: it addresses a clear market gap in the financing of clean technologies within the TAF supply chain, where suppliers often lack access to affordable appropriate decarbonization capital. By investing in the DTAFS Fund, FMO helps accelerate the adoption of these clean energy solutions in the TAF industry. This investment is expected to be labelled 100% green.
What is the Environmental and Social categorization rationale?
The Fund’s preliminary E&S categorization is B+. The Fund targets a variety of decarbonization solutions, incl. on/off site and rooftop / ground mounted solar generation, energy efficient machinery, reduction in hazardous chemical usage and improvement in wastewater/effluent discharge. As such, impacts vary, depending on the decarbonization solution offered. IFC PS 1-8 are provisionally triggered, while the likelihood of triggering PS5-8 is seen as being lower.
More investments
| Date | Total FMO financing |
|---|---|
| 3/4/2026 | USD 15.00 MLN |
- Region
- Asia
- Country
- Asia
- Sector
- Energy
- Publication date
- 3/4/2026
- Deadline for feedback
- 5/3/2026
- Total FMO financing
- USD 35.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+