MILAN (AP) — The Prada fashion group has signed what is billed as the first business loan in the luxury goods sector linking the annual interest rate to practices that help the environment.
Prada said Tuesday that the five-year, 50 million-euro ($55-million) loan with Credit Agricole Group will see interest rates lowered based on “achievement of ambitious targets related to sustainability.”
The targets include the number of stores that meet defined standards for “green” buildings, education workshops for employees and the use of regenerated nylon in collections.
The fashion world, recognized as the second most polluting industry after oil, has been working in recent years to adopt more environment-friendly practices. Prada’s efforts include a project, called Prada Re-Nylon, to use recycled nylon made from plastic recovered from oceans in its trademark nylon bags.