Why a development bank partners with a brand
SAVE was run as a public-private partnership with DEG, the German development finance institution that belongs to the KfW group and finances private-sector projects in developing and emerging countries.
How the model works
- The public partner contributes funding and development expertise for measures that benefit workers, communities and the environment beyond one company.
- The private partner contributes its supplier relationships, technical staff and its own money, and has to use the results in its business.
- Bringing in a second brand (here H&M) and a local NGO (ASSIST) helps because factories often produce for several brands at once, so shared standards reduce duplicate audits.
The factory is meant to keep the benefit: lower operating costs from using less energy and water, which is why resource efficiency is a common focus of these partnerships.