"Sustainability, as a value, is now universally recognized and shared, also by the financial industry. For us and for all companies, this results in an important stimulus to achieve increasingly ambitious goals towards a sustainable economy. We are proud to be among the first players in the luxury sector to have embarked on this path and to be considered a reference counterpart in the field today".
Alessandra Cozzani, Chief Financial Officer of Prada S.p.A.
Prada S.p.A. is the first business in the luxury goods industry to sign sustainability linked loans, which are financial facilities with a mechanism that allows for a reduction in the interest rate upon the achievement of quantitative targets in the field of sustainability.
The most recent agreement was signed on the 10th of February 2021, with UniCredit. It is a five-year loan, worth EUR 90 million, linked to the following KPIs:
The Prada Group’s recent investments in the industrial sector, especially in the most delicate phases of the production process, have led to reducing production waste in clothing, leather goods and footwear while effectively managing its collection and disposal. The Group is now committed to transferring these waste materials to third parties for their introduction into other production cycles, either through their regeneration or conversion into fertilizers or energy.
The investment plan for the construction of photovoltaic systems in the Group’s industrial and corporate sites continues in order to ensure an increasing production of KWh/year in the period 2021-2025. A significant part of these interventions will be concentrated on the production and logistics sites in Levanella, Tuscany, with the aim of making the complex of buildings in this territory nearly self-sufficient from an energy point of view.
This facility follows a first five-year loan with Crédit Agricole in 2019, worth EUR 50 million, followed by a second EUR 75m five-years term loan, with the Japanese bank Mizuho in January 2020.
Both these loans monitor the achievement of the same specific targets related to: