GHG Emissions, Finance, Sourcing Renewables - January 21, 2022
Burberry’s Sustainable Bond For 2040 Net Zero Goal
Luxury retailer Burberry announced that it refinanced its revolving credit facility to a £300 million sustainability linked loan and the terms are linked to its 2040 net zero goal.
The company will accelerate its reduction in emissions across its extended chain (Scope 3) by 46% by 2030.
The loan is part of Burberry’s efforts to embed ESG across its operations, including its sources of financing. In September 2020, it became the first luxury brand to issue a sustainability bond.
“At Burberry we believe our long-term success depends on creating a net-zero future,” said Julie Brown, Chief Operating and Financial Officer at Burberry in a statement. “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.”
Burberry has already cut its market-based emissions by 92% since 2016 and this year the company will be carbon neutral across its own operational use globally and use 100% renewable electricity.