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
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.
Mass Balance Demonstrator
The Mass Balance Demonstrator project aims to adopt and scale up biomass-attributed PET by implementing the mass balance attribution (MBA) chain-of-custody model. Its core purpose is to replace fossil-based feedstocks with renewable feedstocks, thereby speeding up brand-driven decarbonisation.
T2T Pre-Assessment Questionnaire
The T2T (textile-to-textile) Pre-Assessment Questionnaire aims to accelerate the adoption of textile-to-textile recycling technologies by establishing a standardised due diligence framework for brands and recyclers. Developed by Fashion for Good with support from Textile Exchange, it addresses a critical gap in the industry: the absence of reliable, comparable data on environmental impact and technical performance across recycling technology providers. The tool reduces duplicative, ad-hoc information requests by replacing them with a single, structured assessment that captures what brands need to know and what recyclers need to communicate.
