In the wake of climate change, more brands are drastically shifting their focus to reduce their environmental impact, and recently, luxury fashion house Prada has set itself apart. The iconic apparel company signed a €50 million, 5-year sustainability term loan with Crédit Agricole Group. As per the terms of the contract, if Prada reaches certain sustainability goals -- for example, having stores assigned a LEED Gold or Platinum certification or meeting its Re-Nylon fabric use -- the rates of the loan will be reduced.
“Now that [luxury] consumer and company awareness of sustainability has noticeably increased, a lot of other companies are to be expected to take on sustainability-linked loans,” says Mario Ortelli, managing partner of luxury advisory firm Ortelli&Co.
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