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
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.
