Left, right and centre, brands are clambering to hop onboard the sustainability train, as people are increasingly demanding that their clothes are made in an ethical manner.
But now Prada has made history as the first luxury brand to obtain a loan from French banking group Crédit Agricole with stringent sustainability-related conditions attached to it.
The first condition of the £42.9 million loan relates to the brand's physical stores: there must be a certain amount of stores that are certified either gold or platinum by the green-building rating system Leadership in Energy and Environmental Design, which takes into account the construction of a building, its management, and the number of resources it consumes or waste it produces.
Secondly, Prada will have to increase its training hours for its employees, and lastly, the third goal reinforces the luxury brand’s pledge to reduce and phase out the use of virgin nylon by 2021, instead moving to Econyl, a recyclable yarn made from upcycled plastic waste.
Alberto Bezzi Senior Banker at Crédit Agricole said of the deal: “The luxury sector is being increasingly committed in developing a sustainable business. I am very proud of this collaboration, which confirms Prada’s ongoing efforts for engaging in and cultivating virtuous behaviours that contribute to its sustainable growth.”
The move to phase out nylon is of paramount importance for the Italian fashion house, given the long-standing success of their cult Tessuto bags, which have traditionally been made with non-biodegradable nylon (Prada currently uses around 700,000 meters of the material annually.)
Commenting on the deal, Prada’s Chief Financial Officer Alessandra Cozzani, said: “this transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy.”
Prada was founded in Italy in 1913 by Mario Prada - Prada's granddaughter, Miuccia, is now head designer of the brand.
