Burberry agrees £300m sustainability-linked loan with Lloyds bank
Following the issue of its sustainability bond in 2020, Burberry has taken another step towards its ambition of being climate positive by 2040 with the company's first sustainability-linked loan.
The British luxury house today announced that it has coordinated with Lloyds Bank to refinance its revolving credit facility (RCF) to a £300 million sustainability-linked loan.
The loan builds on Burberry’s efforts to embed environmental, social and governance (ESG) factors across its operations, including its sources of financing.
Burberry said in a statement that the facility is "linked to the achievement of key ESG targets", such as accelerating emissions reductions across its extended supply chain (Scope 3) by 46% by 2030 and becoming net zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement.
In September 2020, Burberry became the first luxury brand to issue a sustainability bond, enlisting the support of investors to finance ambitious sustainability projects.
Among its climate change initiative, the luxury brand said it is protecting and restoring natural habitats in countries where it operates, developing regenerative and holistic land management practices to grazing and farming systems and supporting farming communities where it sources raw materials from.
Lloyds Bank said it 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 & 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."
