Hugo Boss invests in sustainability-focused venture capital fund

Hugo Boss said it has further strengthened “its commitment to a more sustainable future” by becoming the first company to invest in Collateral Good Ventures Fashion I.

This is a climate-first venture capital fund designed to accelerate sustainability in the fashion industry.

The Luxembourg-based venture capital fund has a total target volume of €100 million, of which around 10% will come via investment from the German fashion giant. It also said the fund has already attracted interest from notable family offices, asset managers and institutional investors.

The fund will operate under the name Collateral Good Ventures Fashion I SCSp RAIF.

Hugo Boss didn’t say how much has been invested at this initial stage and whether the full 10% will be spread out over multiple instalments. But it explained the the fund will use its contribution over a period of five years to subsidise several portfolio companies that are in the start-up, early growth and potential stages “and are developing innovative solutions and technologies in the sustainability field”. 

That can mean various areas along the entire value and supply chain, such as upcycling of raw materials, preventing microfibre releases, and repair and care solutions. 

“Our CLAIM 5 strategy defines our growth trajectory, but at the same time, it is guided by our commitment to be sustainable throughout,” said Hugo Boss CEO Daniel Grieder. And he added that the new link-up “perfectly complements our sustainability strategy ‘For a bold and better future’, which strives for a planet free of waste and pollution. Through this new form of investment, we will look for new solutions to target areas such as increasing circularity, using only nature-positive materials, eliminating microplastic pollution, and achieving zero emissions.”