Prada has signed a £42 million loan agreement where repayment terms depend on the fashion brand’s sustainability achievements.
There has been a lot of positive news about the fashion industry taking steps towards becoming more sustainable, but Prada has taken some very unique steps.
The company has teamed up with Crédit Agricole and signed a £42 million loan agreement where repayment terms depend on Prada’s sustainability achievements.
Dezeen has highlighted one area that Prada will need to focus on as part of this deal.
“Through the loan, this promise to use more Econyl is put against a numerical goalpost, meaning a certain percentage of the company's output will need to use the material in order to keep interest payments low.
The exact numbers that need to be hit is not fixed, but will become increasingly more demanding as the company's green capabilities increase.”
There are several other sustainability goals tied into the contract, and an annual review of achievements will determine the interest rate on repayments.
Prada will also have to look at the impact of its physical stores, which will need to move towards LEED design standards with a gold or platinum certification.
It’s a fantastic idea that could be applied to pretty much every industry, giving companies that carrot and stick approach to focus more on making eco-friendly decisions.