Burberry signs £300m sustainability loan as part of its 'climate postive' pledge by 2040
The loan, coordinated by Lloyds Bank, is linked to the achievement of key environmental, social, and corporate governance (ESG) targets as part of the company’s ambition to become ‘climate positive’ by 2040. This includes accelerating emissions reductions across its extended supply chain by 46 er cent by 2030 and becoming net zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement.
The company, which has made 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.
Advertisement
Hide AdAdvertisement
Hide AdIt enlisted the support of investors to finance ambitious sustainability projects including refurbishing properties across its portfolio and ensuring natural resources are sourced sustainably and pollution from packaging is prevented.
Julie Brown, chief operating and financial officer at Burberry, said: “At Burberry we believe our long-term success depends on creating a net zero future.
“Linking sources of funding to sustainable initiatives will help drive this, not only in the luxury industry but also across the wider economy.
“We’re grateful for the support of our relationship banks in establishing this funding, which will help us on our journey to
decarbonise our own operations and extended supply chain.”
Advertisement
Hide AdAdvertisement
Hide AdIn 2021, Lloyds Bank created a new sustainability and ESG finance team to support corporate clients with their sustainability plans, providing funding and strategic insights.
Scott Barton, managing director of Lloyds Bank’s corporate and institutional coverage team, said: “Helping our clients reach net zero is a key priority for us.
“Working alongside a climate leader such as Burberry as it progresses its green journey will be crucial for helping the wider luxury fashion industry meet its ambitious goals.
“We’re proud to have acted as lead coordinator on this funding package for Burberry and look forward to helping support Burberry on its sustainability journey.”
Advertisement
Hide AdAdvertisement
Hide AdIn November, Burberry said that sales had returned to pre-pandemic levels and it has made strong progress in its first half.
The company sold the 10 acres of land it owned in Leeds next to the Grade I listed Temple Works building last June.
It is ramping up the rollout of new stores targeted at higher spending customers.
Burberry said that as global demand recovers from the effects of Covid-19, its Yorkshire manufacturing operations have continued to perform well.
Advertisement
Hide AdAdvertisement
Hide AdOuterwear, which is made in Yorkshire, saw improving momentum in the half with second quarter full price sales increasing by 12 per cent.
It added that Burberry Business Services in Leeds is going from strength to strength, driving process efficiencies and cost savings ahead of plan.
Burberry reported pre-tax profits of £191m for the six months to September 25, up from £73m a year ago.