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
Behind the Break
In early 2024, Fashion for Good and The Microfibre Consortium joined forces on “Behind the Break: Exploring Fibre Fragmentation”, a collaborative project designed to advance the industry’s understanding of fibre fragmentation. Although fibre fragmentation is an issue that spans multiple industries, this project specifically focuses on the textile and fashion value chain, aligning with the missions of Fashion for Good and its partners to drive systemic change towards a more sustainable industry.
Future Forward Factories
The “Future Forward Factories” project, initiated by Fashion for Good, focuses on transforming tier 2 processing in the textile industry through innovative low-impact, decarbonisation solutions. It aims to generate actionable blueprints for factories of the future that combine renewable energy and technology upgradation including mostly dry processing innovations. These blueprints take into account the macro geographical factors that are customised for every product to achieve next-zero facilities with a strong return on investment. The blueprint also takes into account the Just Transition lens to ensure that the transitioning from a conventional to Future Forward Factories is inclusive and people-centric.
World of Waste
World of Waste is an online tool dedicated to uniting industry-wide efforts to develop and disseminate data on textile waste. The platform consolidates data from individual studies by partnering with ecosystem players.
