Inditex, the owner of ZARA, has committed up to $50 million (£37.5 million) to a new fund targeting $400 million (£300 million) to help textile, apparel and footwear manufacturers in emerging markets reduce their environmental impact.
The Decarbonisation of Textile, Apparel & Footwear Suppliers (D-TAFS) fund was launched on 10 November by the World Bank’s International Finance Corporation (IFC) and investment manager Social Investment Managers & Advisors (SIMA). It will provide long-term loans to manufacturers and energy developers to finance cleaner production.
The fund will support projects including renewable energy installations, machinery upgrades, water conservation and wastewater treatment. It will also help manufacturers improve their management of chemicals and industrial waste.
Inditex Chief Executive Oscar García Maceiras said emissions were connected to “all of the processes” across the fashion supply chain, describing the public-private initiative as the first-of-its-kind.
Inditex and the IFC are the fund’s largest investors, committing up to $50 million (£37.5 million) and $60 million (£45 million) respectively. Other backers include Dutch development bank FMO, French finance institution Proparco, British International Investment, the Global Environment Facility and the Apparel Impact Institute.
The first funding round is expected to raise $225 million (£168.8 million), with further fundraising planned to reach the $400 million target.
The initiative aims to address a key barrier to reducing emissions across fashion supply chains: manufacturers, particularly smaller suppliers, often lack access to the affordable financing needed to invest in cleaner technologies and production processes.
The fund will offer loans on preferential terms, combining commercial and development capital to help make these investments more accessible. Its focus will include manufacturers across Asia, the Middle East, North Africa and Latin America.
The launch builds on Inditex’s existing investment in lower-impact production. In 2024, the group established a separate €50 million (£43 million) venture capital fund to support emerging businesses developing lower-impact materials and technologies.
Inditex has also been expanding its global retail and logistics operations. In September, the group reported a 7.6% increase in first-half sales to €19.8 billion (£17 billion), with plans to invest around €2.3 billion (£2 billion) in its stores, online operations, technology and logistics during 2026.
The new fund brings together fashion brands, development finance institutions and investors in an effort to accelerate improvements at the manufacturing stage of the supply chain.