Prada just took out a $55 million loan that’ll see interest rates lowered in exchange for going green — and it’s a first for the luxury goods industry

  • The Prada fashion group has taken steps to become a more environmentally-friendly company. 
  • The fashion group has signed for a loan, which “will see interest rates lowered based on ‘achievement of ambitious targets related to sustainability.'”
  • It’s being touted as the first business loan of its kind in the luxury goods sector. 
  • Visit Business Insider’s homepage for more stories.

 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.

Read the original article on Associated Press. Copyright 2019.

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