The British fashion group Burberry Group Plc paid particular attention to sustainability criteria as part of its latest refinancing measure. The company announced on Monday that the previous revolving credit facility has been replaced with a new £300 million (EUR 359 million) loan, the terms of which are linked to compliance with ESG targets.
This is based on the Group’s existing sustainability plans. Burberry aims to reduce emissions along its entire supply chain by 46 percent by 2030. The company then wants to become “climate positive” by 2040. This is not the first time that the fashion house has used sustainable instruments for its financing: According to its own statements, it was the first luxury brand to issue a bond linked to sustainability criteria as early as September 2020.
The latest credit line was coordinated by the British bank Lloyds, which set up its own team for sustainable and ESG-linked financial instruments. “Helping our clients achieve ‘Net Zero’ is a key priority for us,” said Scott Barton, Managing Director of Lloyds’ Corporate & Institutional Coverage team. “Supporting a climate leader like Burberry on its green journey is an essential step in helping the entire luxury fashion industry achieve its ambitious goals,” Barton said in a statement.
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