In autumn 2024 the Finance for Biodiversity (FfB) Foundation launched FABRIC (Fostering Action on Biodiversity through Responsible Investment in Clothing), a three-year collective investor engagement programme addressing the textiles and apparel sector’s impacts on nature. Through the programme, 16 investors — all members of the FfB Foundation — began engaging with 16 global clothing leaders across luxury, fast fashion, sportswear, and retail.
Their objective was to drive biodiversity-positive practices in the textiles and apparel sector and to develop tools and materials to help investors engage with companies in their portfolios to promote sustainable transformation in the sector. In this way, they would be able to drive action to mitigate the risks faced by financial institutions through their investments in the textiles sector.
Simona Rizzuto, Nature and Biodiversity Lead at LBPAM shares why her organisation joined the initiative:
“A nature‑positive transition requires a truly collective effort across industrial practices. In this context, the FABRIC collective engagement initiative contributes as a lever for change. By joining forces with other investors to demand ambitious targets, greater transparency, and clear action plans focused on companies’ key impacts, LBP AM actively supports leading textile players in advancing their sustainability journey, fully aligned with our biodiversity policy principles.”
Being part of a programme has been helpful for Clemence Bourcet, Sustainability Analyst, Biodiversity Lead at Sycomore AM:
“FABRIC has been particularly valuable in establishing common investor expectations on the integration of biodiversity‑related issues, which were shared with companies at the outset of discussions. These expectations have helped structure dialogue and clarify priority areas for improvement in the textile and apparel sectors.For Sycomore AM, joining FABRIC from its launch enabled us to engage companies on the basis of these initial expectations, notably on value chain traceability, biodiversity integration and reporting, and alignment with science‑based methodologies, while benefiting from a collective investor voice and shared feedback from dialogues with a variety of companies.”
Mary Beth Gallagher, Director of Engagement at Domini Impact Investments, adds:
“At Domini, we believe everything is interconnected, and that investors have a responsibility not only to manage portfolio‑level risk, but to help strengthen the health and resilience of the social and environmental foundations we depend on. We understand that change can really be advanced when the industry and system work together, and that the biodiversity challenges in the apparel sector, for example around raw material sourcing and lower-impact and recycled fabrics are not unique to one company. We therefore see value in this work that focuses on engaging the whole sector and collaborating with peers to drive impact around shared priorities.”
First steps
Investors taking part in the programme began their engagement by sharing a set of common expectations with the 16 textiles and apparel companies. These companies were asked to:
- Commit to biodiversity-positive practices
- Improve supply chain traceability
- Apply circular economy principles
- Set science-based, time-bound targets
- Align disclosures with TNFD, the Taskforce on Nature-related Financial Disclosures
The investors involved in FABRIC from 2024 are: Achmea IM, Aéma Groupe, CDC Croissance, Domini Impact Investments, EOS at Federated Hermes, LBP AM, ODDO BHF AM, Ofi Invest AM, Pictet Group, Robeco, Sycomore AM, Swedbank Robur, Vancity IM. They were joined in early 2026 by Mackenzie Investments.
Erika Maclean, Stewardship Manager at Mackenzie Investments, explains the organisation’s decision to join both the FfB Hub and the FABRIC programme:
“Preserving natural capital and managing the risks associated with nature loss is fundamental to our role as long-term stewards of client assets. As part of our ongoing work to understand nature-related dependencies and impacts across key sectors, we recognise that the textile and apparel value chain faces significant risks tied to raw materials, water use, and biodiversity loss.
“Joining the FfBHub and the FABRIC collaborative engagement programme gives us the sector insights and collaborative platform needed to address these challenges. Through this partnership, we aim to strengthen our engagement with portfolio companies on material sourcing, traceability, and water stewardship, and to support improved management of nature-related risks across supply chains.”
Between them, the FABRIC investors are engaging with: Adidas, Birkenstock, Brunello Cucinelli, Fast Retailing, H&M, Hermès, Hugo Boss, Inditex, Kering, LVMH, Moncler, Nike, PVH, Ross Stores, TJX, VF Corp.
Impact to date
Engagements with large corporates like this are typically complex and time consuming because of the web of global supply chains, manufacturing processes and distribution networks.
But investor influence is critical and most companies have been responsive and open to investor dialogue, demonstrating a willingness to engage on technically complex and strategic topics. They have acknowledged investor expectations and reference frameworks, while also recognising that significant work remains underway, particularly in relation to data availability, methodological robustness, and the refinement of nature risk and impact assessments. This initial phase therefore reflects early but tangible progress, combined with a shared understanding of the journey still ahead.
88% of companies responded to the initial letters that went out communicating investor expectations. This initial positive engagement has resulted in engagement meetings and ongoing discussions with 81% of the companies contacted. Most of the companies now have engagement plans in place. Only two of the 16 companies have not responded to outreach via the FABRIC programme.
What is next?
As Simona Rizzutto notes, ‘This first year of engagement has laid a solid foundation for constructive discussions focused on the most material nature-related risks across business models’.
In FABRIC’s second year – of an initial three-year scope – the investors involved in the FABRIC programme are diversifying from the original engagement, using the baseline of key asks that they have established to tailor their engagements with each company. Some companies are in discussion with multiple FABRIC investors as many are engaging with more than just one company in the programme, increasing the leverage they collectively hold.
Mary Beth Gallagher explains:
“Through FABRIC, we can access industry experts and key stakeholders on certification schemes and circularity strategies, enabling Domini and other investors to engage a broader set of companies and industry tools than would have been possible on our own.
In the next year of FABRIC engagement, we’ll seek to advance the conversation around circularity by understanding the value proposition and business model alignment needed for this to scale and be impactful, as well as encourage companies to clarify how they are supporting supply chain transformation, including regenerative agriculture for raw material production. Domini will continue to report on our engagement activity, as we did in our most recent Impact Report.”
Clemence Bourcet concludes:
“Building on this first phase of engagements, we are reviewing companies’ updated public disclosures and will continue our exchanges. At the same time, we will further refine our analysis to identify concrete areas for improvement and engage with companies on these points, with the aim of strengthening the integration of biodiversity considerations into their strategies and practices.”
Get involved
If you’re already an FfB Foundation member, you too can leverage the collective power of FABRIC to engage with textile and apparel companies in your portfolio. Contact info@financeforbiodiversity.org to find out how to join the programme.
If you’re interested in becoming involved but are not already an FfB member, find out more about joining our community.