In a first for luxury fashion, Prada has announced it has inked a €50 million (Dhs200 million), five-year sustainability term loan with Crédit Agricole Group.
The terms of the agreement allow for interest rates to be adjusted annually based on certain sustainability goals being met. For instance, the rates will decrease should the luxury fashion house use a certain amount of Re-Nylon (a sustainable nylon substitute); certify its stores as LEED Gold or Platinum; or provide employees with a set number of training hours.
“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, in a statement.
While the agreement is a first of its kind, Prada has also been championing sustainability in other ways. In May, the brand announced that it would stop using fur, joining brands like Chanel, Burberry and Gucci. The brand also launched Re-Nylon, a set of bags made with Econyl regenerated yarn — created with recycled plastic waste from oceans, fishing nets and textile fibre waste.
With Prada being the first to take this type of eco-friendly step, we’re sure other brands will be looking to follow suit.
Photos: Instagram and Jason Lloyd-Evans