Agreement Templates
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 template agreements below are designed to assist brands and/or innovators in establishing a PPT mechanism, and reflect considerations and options outlined throughout the Step-by-Step guidelines. Please see the below template agreements for implementing a PPT mechanism between:
- An innovator and a brand
- An innovator and a Tier 4 (e.g., fibre) producer*
*applicable where ‘Option 1: Separate Fee’ is chosen in Step 7 of the Step-by-Step guidelines, as a way to compensate the Tier 4 for the Integration Premium associated with processing next-gen materials
Brand and Innovator documents
The template agreements formalise the key terms detailed in the Step-by-Step Guidelines. They also offer optional terms that Innovators and Brands might consider incorporating. The separate ‘Heads of Terms’ documents highlight the most important commercial points in each full agreement, with regard to design and implementation of the PPT mechanism.
Innovator and Fibre Producer documents
The template agreements formalise the key terms detailed in the Step-by-Step Guidelines. They also offer optional terms that Innovators and Fibre Producers might consider incorporating. The separate ‘Heads of Terms’ documents highlight the most important commercial points in each full agreement, with regard to design and implementation of the PPT mechanism.
Disclaimer: Please note that the template agreements and linked ‘Heads of Terms’ documents are provided as examples, and to be adjusted per brands and innovators needs. These documents and their contents do not constitute legal advice and should not be treated as such. Any company seeking to implement PPT is advised to seek their own legal advice prior to entering into associated contracts or other agreements.
Other Projects
Retrofit Track
Fashion for Good, in collaboration with its industry partner, the Apparel Impact Institute (Aii), is offering implementation support through the Retrofit Track in India. This is a limited opportunity, under which only three shortlisted facilities will receive hands-on guidance to apply the blueprint in their operations.
Demonstrator
Decarbonising textile processing cannot be achieved through individual technologies alone. It requires end-to-end implementation in real factories, where multiple innovations must operate together under production constraints, commercial timelines, and regional infrastructure realities. Demonstrator facilities play a critical role in bridging this gap — translating validated technologies into integrated, operating factories that generate the technical, financial, and operational evidence needed for scale.
Blueprints
The open-source, modular blueprint for sustainable Tier-2 textile manufacturing is a forward-looking, industry-wide tool designed to accelerate adoption of next-generation sustainability practices. It enables manufacturers to build and implement near-net-zero factories by providing clear operational pathways, alongside economic viability and social impact analysis of advanced processes and solutions. By breaking complex technical recommendations into adaptable modules, the blueprint allows manufacturers of all scales to integrate improvements in a phased, practical way, aligned with globally benchmarked best practices and emerging regulatory standards. The project aims to cover 7 geographies by 2030.
