// Burberry refinances its revolving credit facility to a £300m sustainability linked loan
// The retailer became the first luxury brand to issue a sustainability bond back in September 2020
Burberry has refinanced its revolving credit facility to a £300 million sustainability linked loan as part of the luxury retailer’s ambition to become ‘climate positive’ by 2040.
It has the achievement of key environmental, social and governance (ESG) targets woven into its terms as part of its ambition to become climate positive by 2040.
This includes accelerating emissions reductions across its extended supply chain by as much as 46% by 2030 and becoming net zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement.
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The retailer, 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.
Burberry chief operating and financial officer Julie Brown said: “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.”
Lloyds Bank created a new sustainability and ESG finance team last year “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.”
In November, Burberry said that sales had returned to pre-pandemic levels and it has made strong progress in its first half.
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