Fashion’s decarbonization plans are running into a factory investment problem: a projected return does little good without accessible capital and dependable business from buyers.

At Sourcing Journal’s Fall Summit in New York on Sept. 29, Naurin Muzaffar, founder and director of consultancy Innovatus, and Vidhura Ralapanawe, executive vice president of innovation and sustainability at Epic Group, called for changes in how brands involve suppliers in climate decisions. Sourcing Journal climate and labor editor Jasmin Malik Chua moderated the discussion.

“We are tired. We are very tired,” Muzaffar said of suppliers’ experience with the recurring debate over who should shoulder decarbonization.

Factories receive targets and mandates, she said, while the practical questions of how to finance and implement them often remain unresolved. Manufacturers need a role in designing those requirements before the decisions have been made.

Muzaffar described three conditions for investment: a return on investment, access to capital and business commitment. A project may offer savings, but expensive borrowing and unpredictable demand can make a payback stretching over several years difficult to justify.

“So unless all three gates are open, the investment and the progress will not take place,” she said.

Ralapanawe said sustainability and sourcing teams need to work together on those conditions. He contrasted conferences attended largely by sustainability professionals with sourcing discussions where those responsible for climate work were less represented.

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