This week, Inditex followed dozens of other brands in the race to own circular textile fiber supplies. In May this year, they secured a €100M off-take agreement with circular cellulose fiber recycler Infinited Fiber Company (IFC), absorbing around 30% of the recycler’s total circular fiber capacity. There is steep competition to gain ownership of these circular materials as brands strive to increase the quantity of recycled content in their products. The other simultaneous ‘win’ is promotability of the sustainability credentials of their materials, if not products (more on that when I cover the Higg MSI in the coming weeks).
Inditex’s latest effort to gain a competitive advantage in the circular fiber market is by investing in the Series B $30M raise by startup Circ. Circ’s technology chemically recycles discarded clothing, separating out polyester and cellulose: a breakthrough innovation similar to that of its recycling peer, Worn Again. Most clothing is produced from a blend of cotton and polyester, and Circ’s technology extracts the foundational building blocks called monomers, and supplies this raw material to fiber and textile producers, replacing virgin ones. These monomers are synthesized into the polymers used in everyday textiles: polyester and cellulose, with the same quality as virgin ones.
But what are the fiber volumes available from Circ and how much will Inditex be able to access? During a video interview with Circ’s CEO Peter Majeranowski, he explained that Inditex’s investment does not secure access to fibers, but that an off-take agreement similar to the one Inditex has with IFC is a possible next step. Inditex aims to switch all its polyester to sustainable or recycled by 2025, making this investment in Circ look critical (unless they switch to recycled PET from non-textile sources, which is still problematic). Majeranowski shared that Circ’s output from its first large-scale commercial production facility, launching in 2024-2025, will be around 65,000 tonnes of recycled raw material per year. Assuming that the waste input is 50% cotton and 50% polyester, around 32,500 tonnes of each raw material monomer would be produced annually. This is a drop in the ocean compared to the volume of material used by Inditex, I assume aloud, and Majeranowski agrees.
I’ve reported for years at Forbes on the investment of brands in circular and low-impact materials, and my findings, including those above, raise a critical question: Is this investment in circular solutions being paired with operational changes in fashion businesses, or are they isolated initiatives, providing positive press coverage and a halo effect whilst upholding existing wasteful practices (which these circular technologies have no hope of addressing within the timeframe set for net-zero ambitions)?
What environmental difference can these investments truly be making when we do not yet know the comparative impact reduction of circular fibers versus linear ones. I say this because circular raw materials will likely reduce impact in the extraction phase, but even recycled raw materials require energy to be processed into new textiles that are then dyed and finished. The risk is that high-profile investments by Inditex in Circ brings with it the assumption that circular raw materials entirely cancel out virgin ones, and even give brands a license to increase production volumes, which would still be an environmental and social disaster in the current infrastructure.
I’ll take a slight diversion here, to say that fashion businesses are primarily marketing businesses—the vast majority do not own the production process or make products in-house—they source, then market, and sell them. Therefore the phase of fashion waste that hurts brands the most is the end-of-life phase, where consumers throw clothing in bins, leading to landfills, or in second-hand markets like Kantamanto in Ghana (where 15 million pieces of thrown-away clothing end up every week).
This sort of very public waste is ugly and reputationally risky for brands; which is probably why they are investing so heavily in circular materials from recycled clothing, instead of renewable energy with their suppliers. This is the case despite renewable energy offering far more impact reduction potential, and therefore much more hope of achieving net-zero targets.
To qualify this deduction, the calculable impact reduction from Circ fibers is not public, in contrast to the very calculable impact reductions of decarbonizing energy sources powering the supply chain. But despite Circ’s impact reduction potential being private, Majeranowski explained that comparative Life Cycle Assessments (LCA’s) have been done to assess their circular monomers versus extracting virgin ones, and the results “look very favorable” for Circ. This LCA information was available to investors in this Series B raise, so it is conceivable that Inditex could have examined the projected impact reduction per unit of Circ recycled raw materials compared to the virgin ones their suppliers are using. Perhaps this is an assessment they might conduct if they do proceed to an off-take agreement with Circ, to quantify how Circ materials would chip away at their aforementioned recycled fiber targets.
It seems, on reflection, that for brands, investing in circular fibers now provides a powerful marketing narrative that’s more tangible for consumers (thereby winning favor and bragging rights), compared to investing in renewable energy in the supply chain; But what this ultimately means is brands are not motivated to invest in solving their biggest sources of environmental and social impacts, which happen in the supply chain during the creation of their products.
Majeranowski is hopeful, though, that by plowing funds into recyclers like Circ, high-volume recycling facilities will be established, proving the success of the circular technology and catalyzing the expansion of its infrastructure to the Global South: “Circ outputs are [fed into] the very beginning of the supply chain, and our customers are in the Global South, but what pulls that [circularity demand] through is the brands and their consumers in the Global North.”
Indeed, the Global South is where Majeranowski wants to operate and Circ’s commitment to working within the supply chain is resolute, but the investment won’t flow there until the tech is proven in the Global North, which beholds Circ to its first incarnation as a savior for fashion’s ugly piles of post-consumer garment waste. Fashion brands tend to tackle sustainability from the point of view of alleviating consumers’ dissent or guilt around this waste. This is true despite the ultimate cost of this very public investment in circularity obscuring the fact that they are ignoring their supply chain impacts, which will amount to an overshooting of all climate targets.
There is currently no public evidence that the circular fiber innovations brands are investing in will have a significant impact on emissions reductions industry-wide within the timeframe set for net-zero. Conversely, a focus on decarbonization in the supply chain has far more quantifiable and tangible impact reduction but is not nearly as marketable.
I am, in fact, a strong advocate for low-impact materials innovation and circular fibers, as demonstrated by my dozens of articles and interviews on this topic. However, I am not an advocate for brands’ use of investments in such innovations as a siloed strategy and marketing tool to protect their brand relevance and reputation and alleviate shopper guilt.
I feel the need to press the point that it is not known what the impact reduction potential of circular fibers is right now, and it hasn’t been adequately modeled to explain the potential to reduce emissions in line with industry-wide targets. Conversely, the impact reduction potential of implementing renewable energy in the supply chain is clear and quantifiable with respect to net-zero targets–it just doesn’t suit brands’ marketing priorities and sales targets.
Is investment in circular fibers essential? Yes. Should it be the primary sustainability strategy of the industry? No. Then why is it the primary strategy? Because brands, for better or worse, currently steer much of where the investment dollars go, and they go to solving brands’ most pressing and public challenges, not those of the industry which reside in the supply chain that makes the products brands sell.
There are a few key things that owners should consider to decide if their investment is worthwhile
Author of the article:
Inflation is up more than 8%, the highest yearly change in almost four decades, according to Statistics Canada. And in a scramble to bring that inflation rate down, the Bank of Canada raised its benchmark rate to the highest amount since 1998: 2.5 per cent.
The hope is that inflation gets back to a normal two per cent by 2024. For borrowers with fixed mortgage rates, they would have locked in a certain interest rate when they purchased their property. For variable-rate mortgages, the interest rate that the borrower pays is tied to the central bank’s inflation rate.
Canadian borrowers are dealing with a five-year fixed rate of around 4.5 to 5.5 per cent. Variable rates are in the 3.8 to 4.5 per cent range. And rates are at least two per cent higher than a year ago.
Now that the days of easy money are a distant memory, real estate investors affected by higher interest rates may have to adjust behaviours in order to maintain a positive cash flow—or at least break even during this difficult time.
Remember, real estate is a long game
Big real estate investors, such as developers, buy properties to hold for years, through many up and down cycles.
“My views are that if you are going to invest you should be a long-term holder,” says developer Gino Nonni of Nonni Property Group.
“I don’t know how often you can buy something and then turn around and make a substantial profit in a short period of time. At minimum, mom and pop investors pay their mortgage down and typically the value of the asset will go up.”
He believes the shortage of land will always constrain supply and put pressure on prices. The result is a secure, long-term investment.
“That’s the way I view it, and that’s what I tell my friends when they ask. I tell them to always hold.”
Put your investment in perspective
Millennial broker Jacky Chan, president of BakerWest Real Estate, has been investing in real estate his entire adult life. He prefers real estate to other investments because it’s less volatile, and with the world’s population growing by about 80 million people a year, people are always going to need a place to live. Prices may slow down, but overall they go up.
“The faster an investment moves, the closer you need to monitor it, especially with the recent hype of NFTs and cryptocurrency,” says Chan. “But look at any real estate market in the world with a growing population, and it was definitely cheaper 50 years ago than it is today.”
Two things matter in real estate investment, says Chan: positive cash flow and appreciation. If the investor isn’t over-leveraged by too much debt, they should maintain a long-term outlook and not get spooked by interest rate hikes.
If you own a $1 million property and have a $500,000 mortgage at five per cent, you are, in simple terms, looking at $25,000 interest per year.
If the property increases by five per cent in a year on the $1 million investment, that’s an increase of $50,000, so the owner has a net positive of $25,000.
“Even though the rate has gone up, the real estate value is still increasing.”
When things are getting tight
Let’s say you purchased a condo to live in, and purchased another as an investment. With interest rates climbing, what happens if you took out a variable rate mortgage and the rent isn’t covering the higher mortgage payment? Mortgage advisor Alex McFadyen, of Thrive Mortgage, saw a lot of people buy second properties in the last couple of years, and they might now find themselves stretched. All experts will tell you that selling off the property should be a last resort, but how do you avoid that when costs are mounting?
“Ask yourself if the property itself is really underwater, or are there expenses we can remove or eliminate?” says McFadyen. “That’s the first thing we determine.”
He gets his clients to write down all their property expenses, including management and maintenance fees, taxes, utilities, and any upcoming repairs on the home. If it’s a primary property that’s causing them stress, then he asks them to write out a cash flow budget spreadsheet to see what’s coming in and going out. McFadyen finds that the main culprit for expenses is often a car loan or credit card debt, or — more commonly these days — travel debt. Cut those debts and throw that money at your mortgage instead, he advises.
Take control of the situation
If expenses are truly unmanageable, McFadyen advises that clients consider consolidating debts with a loan, such as the possibility of taking out a second mortgage or home equity line of credit(HELOC) to get it under control. He predicts consolidation will be a “massive trend” in the next 12 months.
“I ask my clients, ‘are you able to sleep at night right now?’ If someone isn’t able to effectively get out of debt, what is the downside of setting yourself up with a second mortgage or HELOC to help things?”
McFayden has a client who owes nearly $75,000, which caused their credit score to go down to the low 500s (a good score should stay above 650). By consolidating their debt, it became a more manageable single payment instead of several payments that were only covering the interest owed. The key thing is to do it before you’re drowning in debt.
Restructure for bumpy times
Long term, everyone agrees that real estate will go up in value, so do what it takes to get through the interim.
McFadyen is helping some of his clients to re-amortize their 20-year mortgages to 30 years, for example. With a longer amortization period, the clients have reduced monthly payments, which helpsto reduce expenses and eliminate payment shock.
McFayden also advises mortgage holders coming up for renewal to consider a refinance option and lock into a one- or two-year mortgage, until rates settle down. If historical trends are an indicator, we are near the peak, he says. A lot of his clients are taking that approach because there is good value in short-term mortgages, if rates do come back down as expected. That means the borrower isn’t locked in at a higher rate. Additionally, they don’t face a huge penalty, if they do want to take advantage of lower rates.
“We’ve seen folks worried about rising mortgage payments and we’ve helped them lock into short terms, to stem the tide,” says McFadyen.
But also, know when to sell
That said, when a person is over-leveraged, with negative cash flow and sleepless nights, then it could be time to sell that investment property. You’ve got to think about your mental health, advises McFadyen.
“If you are significantly underwater and it’s not only impacting your quality of life and there are no options to re-amortize or consolidate debt, and you can’t afford to make payments and it’s impacting your quality of life, and if the property also has upcoming expenses, then we would recommend letting it go,” he says. “If they are in so much stress and they have the ability to get out from under it, they should consider it as a last resort.”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Glasgow, Scotland, Aug. 13, 2022 (GLOBE NEWSWIRE) — With the intention of being one of the top investment platforms for investors of all stripes, FXM Venture was established in July of 2020. FXM has been extending its impact to adjacent nations thanks to the vision and leadership of its core members.
BACKGROUND OF FXM VENTURE
Ten significant individuals were involved in the founding and early development of FXM Venture, with the goal of establishing this investment fund’s brand on a global scale. And today, 100 members work in 6 transnational branches and continue their tradition. In addition to being directed and run by professionals with decades of expertise in a variety of sectors, including finance, investing, marketing, and technology, FMX is also run by vital departments like: customer service personnel, technical staff,…
Additionally, in just two years (starting in July 2020), FMX has called for a total investment of 8 million USD.
HOW DOES FXM VENTURE WORK?
For both long- and short-term traders, funding rates are regular payments. Investors are free to select a transaction based on their financial situation and liquidity. Users can, in particular, withdraw money at any moment and get interest.
At FXM Venture, we have experienced traders in both Forex and Cryptocurrencies allowing us to build a stable financial foundation to increase the returns of our investors.
FXM also has AI technology in trading approaches to Real-time forecasts of hundreds of scenarios, execution strategies, and commercial alliances, in addition to our research, market neutral algorithms by monitoring market movements and building trading algorithms. Our primary goal is to establish a win-win relationship between the customer and the firm, in which FXM Venture develops specific investment plans and strategies, while investors can then choose suitable investment packages, together with FXM consider and select specific investment plans.
ORIENTATIONS AND VISIONS
By expanding its operations and financial system in 2022, FXM aims to become one of the best legitimate funds in the world. To that end, 4 additional branches will be opened, and recruiting efforts will be stepped up to reach our target of 200 members.
In terms of financing, FXM VENTURE’s aim is to raise our fund up to $15 million.. Aside from that, FXM equips you with the resources you need to be completely confident in your investment decisions. Furthermore, you may invest with FXM with complete confidence because here are what make FXM different:
PROFESSIONAL TRADER TEAM
SECURED DEPOSITS AND WITHDRAWALS
24/7 CUSTOMER SUPPORT SERVICE
FXM does not intend to stop at satisfying almost 30,000 customers who have been using services and investing in FXM (with a customer satisfaction rate of 78% and a customer return rate of 85%), FXM is as complete as possible with the goal of increasing the number of clients to 50,000 in the next quarter with a satisfaction level of over 90%.
And also, Remember to refer friends to be rewarded with $25 for every friend who joins and registers at least one package — with no cap on the number of people you can refer, and gain matching income on their profits: F1 (10%), F2 (5%), F3 (3%), F4 (2%).
There is no offer to sell, no solicitation of an offer to buy, nor a recommendation of any securities or any other products or services. Furthermore, nothing in this PR should be construed as a recommendation to buy, sell or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security or related transaction is suitable for you based on your investment objectives, financial situation and risk tolerance. Please consult your business advisor, attorney or tax advisor regarding your specific business, legal or tax situation.
has its sights on gaining a bigger share of the energy drink with a $550 million investment in Celsius Holdings. The energy drink maker is also at the center of a lawsuit between Russell Simmons and his ex-wife Kimora Lee Simmons along with her husband Tim Leissner, as he tries to retrieve his shares in Celsius back from them. Allegedly Kimora Lee and Leissner transferred and were using his shares of Celsius as collateral to pay a bond in connection with these criminal charges. Leissner already pleaded guilty, and agreed to forfeit $43.7 million for his role in the Malaysia 1MDB scandal that cost Goldman more than $3 billion. Simmons alleges that his shares of Celsius are being used as collateral to pay a bond in connection with these criminal charges.
The Breakdown You Need To Know:
Celsius recorded a first-quarter domestic revenue increase of 217% to $123.5 million and the long-term distribution deal gives Pepsi a minority stake of about 8.5%. The brand, which doesn’t use artificial preservatives or sugar, adds to PepsiCo’s energy drink portfolio, which already includes Rockstar as well as Mountain Dew drinks Amp, Game Fuel, and Kickstart. CultureBanx reported that with these types of returns it’s easy to see why Simmons wants his shares back from the couple.
Quick Recap on how these three people ended up in this situation. Goldman Sachs GS
last year agreed to pay the Malaysian government $3.1 billion, to settle claims in the 1Malaysia Development Berhad (1MDB) fund. One of the main people who got the bank involved in this scandal was Kimora Lee’s Simmons husband Tim Leissner.
The bank swiftly parted ways with him after his shady dealings with Jho Low came to light. In November 2018, when Leissner agreed to pay $43.7 million toward victim compensation, it was in order to avoid jail time.
In his claim, Simmons says Kimora and Leissner “knew full well that Leissner would need tens of millions of dollars to avoid jail time, stay out on bail, and forfeit monies for victim compensation.” Simmons claims they used their Celsius shares as collateral for Leissner’s bail, and he wants his shares returned.
Now Russell wants no financial part in keeping Leissner out of jail. In a letter sent to his ex-wife Kimora Lee on May 5, 2021, he was pleading with her to do the right thing and avoid a lawsuit. He wrote that “I am shocked and saddened to see how your side has behaved in response to my repeated attempts to get an agreement from you to rightfully and legally reaffirm my 50% of the Celsius shares..which have been locked up with the government after being used for your husband’s bail money.”
A representative for Kimora Lee said “Kimora and her children are shocked by the extortive harassment coming from her ex-husband, Russell Simmons, who has decided to sue her for shares and dividends of Celsius stock in which Kimora and Tim Leissner invested millions of dollars.” At this point Russell is asking a judge for damages against Kimora and Leissner and believes he should be awarded restitution for interest and equal value for the wrongfully obtained shares.
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