Textile & Fashion

Background

The client, an established textile and apparel manufacturer with its own retail brand, operated across design, production, and distribution. Despite strong consumer recognition, the brand was increasingly exposed to ESG scrutiny from both international buyers and retail consumers. Key challenges included overdependence on water- and energy-intensive processes, insufficient supply chain transparency, and an absence of a credible climate or social responsibility strategy. The company had made ad hoc sustainability investments—such as organic fabrics and recycled packaging—but lacked a data-driven, forward-looking framework to guide strategic decisions.

Meanwhile, rising working capital needs and inflationary pressures strained liquidity, and its current financing structure did not align with sustainability goals or evolving local & EU green deal regulations. Management sought advisory support to recalibrate its strategy, access ESG-linked financing, and build long-term resilience.

Case

The Problem

The company faced a structural gap between market expectations for sustainable and transparent operations and its internal capabilities. It was unable to substantiate ESG claims with credible data or reporting, exposing it to greenwashing risks.
Operationally, inefficiencies in energy and water usage increased cost pressures and limited eligibility for green supply chain collaborations. Financially, the business was constrained by traditional debt instruments, and its fragmented sustainability efforts were not translating into reputational or investor value.
Without a coherent ESG roadmap and integrated financing strategy, the firm was losing competitive edge in both B2B and B2C segments.

Our Solutions

We delivered an end-to-end advisory engagement drawing on our Strategy, Corporate Finance, Sustainability & Climate Change, Sustainable Finance, Debt Advisory, and Valuation Services expertise. Our team initiated a materiality assessment aligned with GRI and CSRD principles, mapping ESG risks across sourcing, production, and retail operations. We defined a science-based sustainability roadmap and established measurable KPIs across climate, water, labor practices, and circularity. Concurrently, we supported the client in implementing supply chain traceability tools and preparing for third-party ESG ratings.
On the financial side, we restructured the client’s debt portfolio to reduce short-term pressure and collaborated with lenders to structure a sustainability linked loan facility aligned with global principles and local regulations .
We conducted a scenario-based valuation analysis to assess the financial impact of sustainability investments and supported executive communication strategies to engage investors and clients. The result was a strategically repositioned brand with enhanced ESG credibility, improved access to capital, and increased operational efficiency—ready to lead in a market shaped by transparency, accountability, and innovation.

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