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November 15, 2019updated 14 Nov 2021 12:59pm

Prada becomes first luxury brand to sign sustainability deal

Italian luxury fashion house Prada Group has made history as the first luxury brand to obtain a sustainability term loan deal.

By Deborah Williams

Italian luxury fashion house Prada Group has made history as the first luxury brand to obtain a sustainability term loan deal.

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The £42.9m (€50m) deal was signed with French cooperative banking group Crédit Agricole and lasts for five years.

Prada will be required to fulfil three sustainability-related conditions as part of the deal. The first centres on the company’s brick-and-mortar retail stores, with a number of them required to hold a Gold or Platinum Leadership in Energy and Environmental Design green-building certification.

The second condition requires the company to increase employee training hours and the third requires the group to use regenerated nylon (Re-Nylon) for product production. Also referred to as Econyl, the material is created from plastic waste such as reclaimed fishing nets and can be recycled, recreated and remoulded. The company said its ultimate goal is to convert all its virgin nylon into Re-Nylon by the end of 2021.

Prada noted that the loan interest rate can be reduced if it fulfils the sustainability targets.

Prada chief financial officer Alessandra Cozzani said: “This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy. We are confident that this collaboration with Crédit Agricole, a leader in its sector, will help to extend the benefits of a responsible business to the financial world.”

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What are the key consumer trends driving FMCG in 2022?

The consumer landscape has permanently changed since the COVID-19 pandemic began, prompting trends to emerge or accelerate, causing subsequent macro-economic shifts. In order to stay relevant, Consumer Packaged Goods companies must stay abreast of these developments. It is here that GlobalData can offer valuable assistance. Download GlobalData’s Trendsights: Trends to Watch in 2022 report to:
  • Gain insight into the 12 most important trends across the FMCG value chain
  • See the consumer survey data that underpins these insights
  • Learn what early-movers are already doing in terms of NPD and product marketing
Take a look at this report to give yourself the best standing in this developing market.
by GlobalData
Enter your details here to receive your free Report.