Sustainable Innovation Venture Funds
Inditex Announced a $50M Fund to Drive Sustainable Textiles
Colin Smith — November 9, 2024
Inditex, the parent company of Zara, has launched a new 50 million euro venture fund aimed at driving textile innovation and sustainability. The fund, managed by Mundi Ventures, is designed to support start-ups focused on developing new materials and technologies that minimize environmental impact. This initiative aligns with Inditex's broader strategy to decarbonize its business by 2040 and make 100% of its raw materials and fibers more sustainable by 2030. The company has already made significant progress, with over 50% of the raw materials used in its collections coming from recycling or organic or regenerative cultivation by the end of 2023.
The venture fund will primarily invest in projects that promote sustainable practices within the textile industry. Inditex has previously invested in companies like Circ, known for its textile-to-textile recycling efforts, and Galy, which is developing an innovative process for growing cotton in a laboratory from cotton stem cells. The new fund will further support emerging innovations and materials with a smaller environmental footprint, contributing to Inditex's goal of halving its greenhouse gas emissions by 2030 and achieving net-zero emissions by 2040. The company also aims to produce 40% of its textile fibers from conventional recycling processes, 25% from crops grown using organic or regenerative farming practices, and 10% from other preferred materials.
By launching this venture fund, Inditex demonstrates its commitment to sustainability and innovation in the textile sector. The fund will provide financial support to start-ups that align with Inditex's Sustainability Innovation Hub, fostering the development of new technologies and materials that reduce environmental impact. This initiative is part of Inditex's broader efforts to promote a circular economy and reduce its carbon footprint, making it a significant step towards a more sustainable and environmentally responsible future.
Image Credit: Inditex
