Prada has signed a £43 million deal with financial services company Crédit Agricole Group in an effort to champion sustainability.
The five-year sustainability loan, which is seen as the first of its kind in the luxury industry, allows for the Italian fashion house to alter its interest rates on an annual basis if it achieves certain eco-friendly objectives.
These three objectives, as chosen by Crédit Agricole, are if Prada employees train or work for a certain amount of time, if the fashion house uses an adequate quantity of sustainable nylon substitute Re-Nylon, and if a certain number of Prada stores receive LEED (Leadership in Energy and Environmental Design) gold or platinum certifications.
Alessandra Cozzani, chief financial officer at Prada, explained the significance of the sustainability loan.
“This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy,” Cozzani said in a statement sent to Vogue Business.