Case Studies
The Price Parity Toolkit (PPT) was designed to help bridge the price gap between next-gen* and conventional materials. Developed by Fashion for Good with the support of Canopy, this industry-supported framework introduces a financing mechanism that decouples price premiums at early stages of the supply chain to enable adoption and drive the scale of lower-impact materials.
Introduction
The scalability of sustainable and next-gen materials in the fashion industry often hinges on overcoming financial barriers and achieving price parity with conventional alternatives. The below case-study research examines how leading initiatives, specifically the textile industry examples of Circulose, Better Cotton Initiative (BCI) and Good Cashmere Standard (GCS) and the cross-industry reference of the Fisheries Improvement Fund (FIF) have designed innovative financial and operational models to decouple sustainability costs from adoption friction. By studying their varying fee structures (volume-based vs. fixed licensing), payment timings, and traceability mechanisms (mass balance versus blockchain), we aim to identify strategic frameworks that effectively incentivise long-term corporate commitment and accelerate the mainstreaming of next-generation materials and practices.
Textile Industry
Circulose
Circulose produces an innovative next-generation cellulosic pulp made entirely from 100% recycled textiles. It can be used to produce MMCF’s such as viscose and lyocell. The company’s new commercial strategy features a new pricing model, designed to reduce friction and accelerate large-scale adoption. Effective from 2026, this pricing model is part of a strategic shift that positions Circulose as a circularity solution provider for the fashion industry.
The shift to this pricing model reflects Circulose’s evolution from a pulp producer to a solution provider, with the “Circular License Fee” representing the services included in that solution. Brands gain access to tailor-made services and solutions, designed to meet each brand’s specific needs. These include conversion planning and support, value chain orchestration, tailored material library (digital and physical), a price calculator tool, access to the supplier network, traceability tools, and support for marketing and communications. All these services are designed to help brands scale adoption with confidence.
Better Cotton Initiative (BCI)
BCI is the world’s largest cotton sustainability program with a membership that includes farmers, ginners, retailers, and brands. It caters to bring environmental and societal betterment to the cotton industry.
BCI charges a licensing fee that includes a membership fee and volume based fee (VBF), invoiced in two cycles – a pre-payment based on 75% of previous sourced volumes and a balance payment adjusted at year-end based on total volumes. The fees support farmer training and sustainable cotton practices, thus promoting financial decoupling. Traceability is ensured through chain of custody based on mass balance and tracking via the Better Cotton Platform. BCI also reinforces consumer protection through a claim framework that guides brands’ claims about BCI usage and consumer-facing labels introduced in 2025 for products containing physical BCI cotton.
Good Cashmere Standard (GCS)
Developed by the ‘Aid by Trade Foundation’, the GCS is an independent standard focused on welfare induced cashmere production in Inner Mongolia. Its network includes multiple stakeholders from herders to brands.
GCS follows a volume-based licensing fee structure, where brands pay upfront based on committed volumes, with year-end reconciliation for any excess sourcing. Funds are directed toward sustainable cashmere farming. Full physical traceability is achieved through TextileGenesis blockchain and stringent chain of custody protocols. GCS further ensures consumer assurance through qualitative labelling that reflects the quality and blends of certified cashmere.
Wider Industry
Fisheries Improvement Fund (FIF)
Other industries have shown adoption of premium decoupling mechanisms. One case study for comparative analysis involves the Fisheries Improvement Fund (FIF).
The FIF is an innovative financing vehicle to accelerate the implementation of Fishery Improvement Projects (FIPs) worldwide, developed by Finance Earth and World Wildlife Fund (WWF). FIPs have a strong track record of delivering fishery improvements, but are typically highly reliant on grant funding and have difficulties raising sufficient funding for full implementation.
The FIF works with third party investors to secure impact investment to cover upfront costs of FIP delivery, and repays this through multi-year volume-based fee contribution agreements with corporate off-take companies (seafood buyers and retailers). Following the launch of a pilot FIP in Chile in April 2024, the FIF is targeting a scale up to support 100+ FIPs globally.
Other Projects
Sorting for Circularity Rewear
Fashion for Good expanded its Sorting for Circularity framework to address the challenge of sorting for rewearable textiles to understand better their resale potential and the demand across the second-hand market. We launched an 18-month initiative in January 2024 in collaboration with Circle Economy, brand partners adidas, Inditex, Levi Strauss & Co. and Zalando to enhance the sorting of rewearable textiles using innovative AI technologies. The project seeks to improve garment recovery for resale, promoting circularity in the fashion industry.
Behind the Break
Behind the Break is a multi-phase research initiative developed by Fashion for Good in collaboration with The Microfibre Consortium. The project takes a research-led approach to advance the fashion industry’s understanding of fibre fragmentation, addressing uncertainties in existing testing protocols and key knowledge gaps. By supporting the development of a more credible and consistent foundation, the initiative aims to enable stakeholders to make informed decisions and take decisive action to mitigate fibre fragment pollution, while leveraging the best available science.
Feedstock Activation Europe: FAE
Project FAE (Feedstock Activation Europe) is an initiative led by Fashion for Good to channel post-consumer textiles as feedstock for textile-to-textile recycling at scale. It addresses a core gap in the value chain: today, sorters cannot viably prepare post-consumer material at the price, quantity and quality recyclers require, leaving most non-rewearable textiles with no viable destination.
