PARIS — Conservation International’s Regenerative Fund for Nature, the Kering– and Inditex-backed impact fund, has crossed the 1 million hectare milestone and is lowering the threshold for new participants to join the program, the group revealed in its latest report released Thursday.

The fund has now enrolled 1.1 million hectares of farmland into regenerative agriculture projects, including 845,000 hectares in direct projects and 267,000 hectares in indirect ones aimed at transforming the raw material supply chains for fashion.

“The Regenerative Fund for Nature has proven to be a successful example of an innovative financing mechanism and we hope other companies will join in order to help scale regenerative farming practices in luxury and fashion’s supply chains,” said Kering sustainability programs and innovation director Géraldine Vallejo.

Kering spearheaded the fund with Conservation International in 2021; Zara parent company Inditex joined in 2023.

Now active in eight countries with 13 projects spanning commodities like cotton, wool, leather and cashmere, the fund’s outcomes range from healthier soils and restored ecosystems to improved livelihoods through premium pricing for producers.

Kering has already begun sourcing materials from these projects, with regenerative raw materials appearing in its collections across various brands.

To bring additional fashion brands on board, the fund introduced a new tiered partnership model, opening the door to a broader coalition of contributors.

The original partner level remains at a $3 million commitment over three years, while the new principal tier requires a $200,000 annual investment over the same period of time. Associate contributors will be reviewed on a case-by-case project basis to allow for more flexible engagement and financial commitments.

“We’ve seen excellent outcomes in farms and communities when investment and collaboration come together to support the transition to regenerative agriculture,” Vallejo said. “These holistic practices not only benefit nature and create better long-term resiliency for companies but they are also feasible with the right support.”

Jim Fitzpatrick, director of the Regenerative Fund for Nature, said: “Over 1 million hectares [are] being impacted by investments from the fund. Each effort is centered around people and aims to instill regenerative agriculture practices designed to improve ecosystem health by delivering positive outcomes for people, nature and climate.”

The fund has also established a new monitoring and evaluation framework, elevating water and climate as core performance principles, aligned with the Science-Based Targets Network, or SBTN, have benchmarks as the fund’s projects grow in scope. The framework will establish clear baselines and success metrics to provide consistency and clarity on outcomes for participants and brands.

To that end, the fund introduced a first-of-its-kind impact allocation system, enabling brands to more accurately distinguish between direct and indirect benefits.

This development is particularly significant as the fashion industry continues to navigate increasingly rigorous disclosure requirements, particularly in the European Union, alongside growing consumer pressure to back up sustainability claims with hard data.

Projects include a pilot in Argentina, where local herders have integrated new methods to protect their flocks from predators, allowing threatened species such as the Andean cat and guanaco to recover. Producers now earn a 15 percent price premium for their Wildlife Friendly-certified merino wool and mohair.

In the Mongolian steppe, nomadic communities used satellite data to better allocate the size of their herds ahead of winter.

In India, which now accounts for 22 percent of global cotton production, female smallholder cotton farmers were certified as organic producers with the support of training programs, local procurement hubs and secure pricing mechanisms, with a 10 percent price premium for their cotton.

Projects in Uganda focused on improving cotton yields, soil health and reducing human-wildlife conflict. Additional initiatives are underway in France, Pakistan, South Africa and Spain.

The fund also held its third annual Learning Exchange in Malargüe, Argentina, in October 2024, bringing together grantees, scientists and corporate leaders in the field to discuss challenges and propose new ideas, including establishing a working group examining cotton safeguards.

Looking ahead, the fund will refine its definitions and establish new criteria on ecosystem type, land classification and land transition phase. “This will enable more transparency, clarity and accuracy in our reporting, and how investments are driving impact,” the group said.

“The goal is to reduce the environmental impact of the fashion sector while simultaneously giving back to nature and enhancing the livelihoods of the communities that supply these essential raw materials. The fund will continue to expand on and elevate our mission through scaled projects and partnerships within the fashion industry,” it added.