Burberry secures 300 million pound sustainability linked loan

In coordination with Lloyds Bank, luxury house Burberry has refinanced its Revolving Credit Facility to a 300 million pound Sustainability Linked Loan.

As part of the company’s goal of becoming climate positive by 2040, the facility is linked to the attainment of key environmental, social and governance (ESG) targets. This also includes the acceleration of emissions reductions across its extended supply chain by 46 percent by 2030 and becoming net-zero by 2040.

The company’s chief operating and financial officer, Julie Brown, said in the announcement: “At Burberry, we believe our long-term success depends on creating a net-zero future. Linking sources of funding to sustainable initiatives will help drive this, not only in the luxury industry but also across the wider economy.

“We’re grateful for the support of our relationship banks in establishing this funding, which will help us on our journey to decarbonise our own operations and extended supply chain.”

According to the report, the loan looks to build on the brand’s efforts to implement ESG across all operations, including its financial sources.

Lloyds Bank developed its sustainability and ESG finance team in 2021, with the intention to aid clients with their sustainability plans through funding and strategic planning. It hopes the partnership with Burberry will translate to other luxury fashion brands, and drive them to meet greener goals.