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
Price Parity Toolkit
The Price Parity Toolkit (PPT) was designed to help bridge the price gap between next-gen* and conventional materials. This industry-supported framework, with catalytic funding from Laudes Foundation and developed by Fashion for Good with support from Canopy, Finance Earth and select brands and fibre producers, introduces a financing mechanism. This mechanism aims to decouple price premiums early in the supply chain, thereby enabling the adoption and scaling of lower-impact materials.
The Next Stride: Bio-based Materials for Footwear Soles
“The Next Stride: Bio-based Materials for Footwear Soles” aims to validate the performance and environmental impact of bio-based polymers as sustainable alternatives to the fossil fuel-derived materials currently used in footwear soles. The objective is to collectively de-risk the transition to these “next-generation” materials by rigorously testing their technical properties and assessing environmental benefits. Ultimately, the purpose is to accelerate the adoption of these bio-based solutions and pave the way for a more sustainable footwear industry.
Beyond50 Denim: Combining Cottonised Hemp And Green Chemistry
“Beyond50 Denim: Combining Cottonised Hemp And Green Chemistry” aims to validate the performance and environmental impact of cottonised hemp processed with green chemistry to act as a true alternative to cotton in denim applications. The project goal is to evaluate the performance of SEFF’s cottonised hemp fibre in combination with Fibre52’s bio-friendly chemistry solution within denim fabric applications with a total hemp content of 50% and above. The fabrics will be benchmarked against conventional 100% cotton denim with a specific focus on handfeel and aesthetic characteristics.
