The loan, coordinated by Lloyds Bank, is linked to the achievement of key environmental, social and corporate governance (ESG) objectives as part of the company’s ambition to become ‘climate positive’ by 2040. This includes accelerating emissions reductions across its extended offering. chain of 46% by 2030 and becoming net zero by 2040, 10 years before the 1.5°C trajectory defined in the Paris Agreement.
This is how the luxury fashion house Burberry aims to fight against global warming by…
The company, which has been manufacturing its famous products in Castleford and Keighley in West Yorkshire for 100 years, became the first luxury brand to issue a sustainability bond in September 2020.
It has secured backing from investors to fund ambitious sustainability projects, including renovating properties across its portfolio and ensuring that natural resources are sourced sustainably and pollution from packaging is avoided.
Julie Brown, Chief Operating and Finance Officer of Burberry, said: “At Burberry, we believe that our long-term success depends on creating a net zero future.
“Linking funding sources to sustainable initiatives will help drive this, not just in the luxury industry, but across the economy as well.
“We are grateful for the support of our partner banks in establishing this financing, which will help us on our journey towards
decarbonize our own operations and extended supply chain.
In 2021, Lloyds Bank created a new ESG Sustainability and Finance team to support corporate clients with their sustainability plans, providing them with finance and strategic insights.
Scott Barton, managing director of Lloyds Bank’s corporate and institutional coverage team, said: “Helping our clients achieve net zero is a key priority for us.
“Working alongside a climate leader like Burberry as it progresses on its green journey will be crucial in helping the wider luxury fashion industry achieve its ambitious goals.
“We are proud to have acted as lead coordinator of this funding for Burberry and look forward to helping Burberry on its sustainability journey.”
In November, Burberry said sales had returned to pre-pandemic levels and made solid progress in the first half.
It is accelerating the deployment of new stores aimed at high-spending customers.
Burberry said as global demand recovered from the effects of Covid-19, its manufacturing operations in Yorkshire continued to perform well.
Outerwear, which is made in Yorkshire, saw improved momentum over the half, with full-price sales in the second quarter up 12%.
He added that Burberry Business Services in Leeds is going from strength to strength, improving process efficiency and cost savings ahead of schedule.
Burberry reported pre-tax profits of £191m for the six months to September 25, up from £73m a year ago.