As the entire world continues to stress upon the urgency of climate change, the fashion industry — the world’s second largest polluting industry — is finally coming together to proactively come up with solutions towards reducing its damage to the planet.
While Chanel made investments in green chemistry firm, Evolved by Nature, for clean technology, and LVMH named eco-fashion pioneer Stella McCartney as sustainability advisor, Prada Group — which also owns Miu Miu — just signed a £42.9 million (approx. HK$431.7 million) loan with French banking group Crédit Agricole, with interest rates conditional to its “achievement of ambitious targets related to sustainability.”
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Lorenzo Bertelli, Head of Marketing and Communication of #Prada S.p.A. talks about the Prada Group’s commitment to the environment. Discover the video produced by @the_business_debate in collaboration with @brigittelacombe and in partnership with @reuters. #PradaGroupImpact
This marks the very first time a luxury brand has obtained a loan with sustainability-related conditions. Interests to this five-year loan are to be adjusted annually based on Prada’s ability to fulfil the three specific social and environmental goals that were predetermined and agreed upon by both parties.
These targets include making sure a certain number of their physical stores are certified gold or platinum within the green-building rating system — to be evaluated from its design and construction to the management and also how much resources it consumes and waste it produces — by Leadership in Energy and Environmental Design (LEED); hosting education workshops for employees; and reinforcing the brand’s recent pledge to phase out the use of virgin nylon by 2021.
“This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy,” said Prada’s Chief Financial Officer Alessandra Cozzani.
The brand has been actively demonstrating its commitment to social and environmental responsibilities in the past year, including the announcement to go fur-free starting from its SS20 collections, the launch of its Prada Re-Nylon project involving the use of Econyl — an infinitely recyclable yarn made from upcycled plastic waste — for its trademark nylon bags, and many other initiatives. With Prada helping to lead the way, here’s hoping other luxury brands will follow suit in implementing serious efforts to save our planet.