Sustainable Finance

Burberry Signs £300 million sustainability linked loan as Part of ESG Targets

Published on: 24 January 2022 01:15 PM
by KnowESG

A Brief Summary

Burberry, announced the signing of a £300 million sustainability-related loan, with terms attached to the company's progress toward its net zero and supply chain decarbonization ESG targets. Lloyd's Bank arranged the loan, which will be used to refinance Burberry's revolving credit facility.

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Following the issuing of Burberry's first £300 million sustainability bond in September 2020, the first of its type in the luxury fashion market, the arrangement expands the company's usage of sustainable financing instruments. While the previous bond's revenues were to be used for sustainability initiatives, the new loan's conditions are tied to the company's sustainability performance, sustainable financing practices that have exploded in popularity in the last year.

The financing is specifically related to the attainment of ESG goals as part of the company's "Climate Positive" goal. Burberry announced a new environmental sustainability goal in June 2021, committing to become Climate Positive by 2040, going beyond the company's 2040 net-zero goal and aiming to have a positive climate impact beyond its value chain footprint, with an interim goal of reducing Scope 3 supply chain emissions 46 per cent by 2030.