Burberry has refinanced its revolving credit facility to a £300 million sustainability linked loan.
It is linked to the fashion brand’s achievement of key environmental, social and governance (ESG) targets as part of its ambition to become climate positive by 2040.
This includes reducing emissions across its extended supply chain, i.e. Scope 3 emissions, by 46% by 2030 and becoming net zero by 2040.
In September, Burberry became the first luxury brand to issue a sustainability bond, with support from investors to finance ambitious sustainability projects, including refurbishing properties across its portfolio which are certified by LEED or BREEAM 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.”