#Sustainability

2022-09-15

A greener future: VF Corporation’s tax equity investment on renewable energy projects

In July 2022, VF Corporation initiated the largest renewable energy tax equity investment in the footwear and apparel industry. This investment, which is expected to be completed within the next 6 months, will fund the development of four utility-scale solar projects in South Carolina, anticipated to generate 47,000 MWh of renewable energy per year, roughly 23% of VF’s FY21 global electricity load.

“VF’s recent tax equity investment aligns with our commitment to address climate change and increase our use of renewable energy,” shares Jeannie Renne-Malone, VF’s Vice President of Global Sustainability. “We are excited that this investment is good for business and the planet. We hope investments such as this and our industry-first green bond will inspire other major companies within our sector and beyond to make similar financial investments for the betterment of people and our planet.”

For context, a tax equity investment is a transaction in which an investor leverages their balance sheet to fund a project or set of projects. In return, the investor receives a tax credit through their investment, which can turn cash flow neutral or potentially cash flow positive, even when accounting for the cost of the renewable energy certificates (RECs) generated. Tax equity investments are critical to the financing of renewable energy projects. Without such investments, these types of sustainability projects would not likely be built at the same pace in the United States.

“We take great pride in executing the largest renewable energy tax equity investment in the apparel and footwear industry,” said Matt Puckett, Executive Vice President and Chief Financial Officer for VF. “We believe that financial and environmental stewardship are not mutually exclusive. This is an example of the ideal scenario, when forward-looking financial investments help us to advance progress toward achieving our science-based targets while also supporting our business needs.”

Tax equity investments are possible because of ambitious public policies that support renewable energy. For instance, this type of deal could only be executed thanks to the Investment Tax Credit (ITC). While ITCs have been available for years, the recently passed Inflation Reduction Act (IRA) extends these tax credits and incentives for investing in sustainability and green energy projects for 10 years. This is a perfect example of why public policy is critical and is an important lever to help corporations successfully meet their sustainability goals.

In total, VF is investing nearly $17.7 million in cash for these four South Carolina solar projects, collectively known as Iris 4. In addition to environmental benefits, Iris 4 is intended to create 229 jobs between construction and operational management. The financial investment partner on these projects is the U.S. Bancorp Community Development Corporation (USBCDC), the tax credit division of U.S. Bank. This is the first time VF and U.S. Bank have worked together to develop and finance a solar project.

“Solar tax equity investments are increasing in popularity among non-traditional investors, including corporations like VF,” said Erica Garry, who specializes in the syndication of tax equity in solar projects for USBCDC. “As a company with brands that are synonymous with the outdoors – like The North Face®, Timberland®, etc. – and a strong commitment sustainability, fighting climate change, and protecting people and the planet, we’re excited about helping VF add renewable energy to its portfolio.” VF’s tax equity investment is the 2nd and largest in the apparel and footwear sector and one of only about 30 non-financial corporations to complete this type of deal. We hope that tax equity investments become more common place and continue to be important tools used to finance and expand renewable energy.

Texprocess 2026: Automation, digitalisation and AI redefine textile processing

Making investment decisions in textile processing has become significantly more demanding. Increasing energy costs, a shortage of skilled labour and ongoing geopolitical uncertainties are compelling companies to focus on technologies that deliver clear gains in efficiency and process reliability. This applies equally to apparel manufacturing and to the processing of technical textiles and high-performance materials. As a result, modernisation initiatives are assessed more carefully – even as the need to upgrade production systems continues to intensify.

Techtextil 2026: Between innovation pressure & market reality

From 21 to 24 April 2026, Techtextil in Frankfurt am Main will once again become the central meeting point for the international technical textiles and nonwovens industry. Running in parallel, Texprocess will focus on the industrial implementation of textile processing technologies as the leading platform in this field. Together, the two trade fairs form a closely integrated presentation and working platform along the entire textile value chain – from material development to finished applications.

Between geopolitical pressure and industrial resilience

In this interview, Dr. Janpeter Horn (VDMA) discusses the current challenges facing textile machinery manufacturers, shaped by geopolitical tensions, regulatory developments and subdued investment. He also outlines why innovation strength, integrated solutions and strategic positioning remain key to global competitiveness.

Hohenstein publishes 2025 Sustainability Report

The testing and research service provider Hohenstein has published its latest sustainability report, outlining key progress and strategic initiatives. The report focuses on ambitious CO₂ reduction targets, the company’s new mission statement and the systematic expansion of sustainable services for customers worldwide.

Global Standard gGmbH launches second public consultation for GRTS Draft 2 for the textile industry (1–30 April 2026)

Global Standard gGmbH is pleased to announce the release of Draft 2 of the Global Responsible Textile Standard (GRTS) for its second public consultation. The consultation will be open from 1 April 2026 to 30 April 2026, inviting stakeholders across the textile and apparel value chain to provide input and contribute to the further development of this new Standard.

Textile Exchange publishes cotton Life Cycle Assessment study to strengthen impact data

Textile Exchange has published the first in a series of seven Life Cycle Assessment (LCA) studies designed to improve the quality and robustness of environmental impact data for raw material production across the fashion, textile, and apparel industry. The first LCA study focuses on cotton and addresses critical data gaps and methodology variability through new high-quality data across key producing countries. The study includes organic, regenerative, recycled, and country averages for conventional cotton production systems, providing a clearer picture of the associated environmental impact.

Techtextil & Texprocess 2026: Global benchmark for textile innovation – Performance Apparel Textiles takes centre stage at the opening

With 1,700 exhibitors from 54 countries, Techtextil and Texprocess 2026 showcase the full range of innovation within the international textile industry – from new materials and recycling technologies to finishing solutions and high-performance textile manufacturing and processing technologies. The opening press conference centred on a key theme where innovation is especially strong: Performance Apparel Textiles.

Circulose and CTA announce collaboration to enable lyocell fibers using CIRCULOSE® pulp

Circulose has announced an agreement with China Textile Academy Green Fibre (CTA) to offer lyocell fibers produced using CIRCULOSE® pulp. Producing lyocell from recycled pulp at commercial scale is an important step in making textile-to-textile recycled materials available across a wider range of textile applications.