- Kristopher Fraser |
In a first for luxury fashion, Prada has signed a sustainability linked 50 million euro five-year loan agreement with Crédit Agricole Group. The terms of the agreement state that interest rates will be adjusted based on certain sustainability goals being met, such as using a certain amount of Re-Nylon, certifying Prada stores as LEED Gold or Platinum, or providing employees with a set number of training hours.
Alessandra Cozzani, the company's chief financial officer, told Vogue Business that, "This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy." With sustainability being so relevant to the longevity of both the fashion industry and the environment right now, Prada chose a brilliant time to make this move.
As consumers are also becoming more conscious about where their products are coming from and how they impact the environment, fashion brands are responding accordingly for both customer retention and to bring in new clients. With Prada being the first to take this type of eco-friendly step, other luxury brands can look to them as a model to follow suit. A domino effect could begin for luxury brands to go more green.photo: via Prada.com