Sustainable clothing has been facing an increasing demand as people are asking brands to produce their clothing in an ethical manner. Now, Prada has made history as the first-ever luxury brand to obtain a loan from the French banking group Crédit Agricole.
However, the deal comes with conditions attached that the label has to fulfill. The first condition of the loan is that there must be a certain amount of stores that are certified gold or platinum, according to the green-building rating system Leadership in Energy and Environmental Design in terms of construction of a building, its management, and the number of resources it consumes or wastes it produces.
Secondly, the brand would have to increase the training hours for their employees.
Lastly, and most importantly, Prada pledges to reduce and end the use of virgin nylon by 2021. Econyl, a recyclable yarn made from upcycled plastic waste would be put into use instead.
The decision of banning nylon is a major step for the fashion brand considering its popular product, Tessutto bags, are completely made of non-biodegradable nylon. “This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy. We are confident that this collaboration with Crédit Agricole, a leader in its sector, will help to extend the benefits of a responsible business to the financial world, “Alessandra Cozzani, Chief Financial Officer of Prada S.p.A said in a statement.
Alberto Bezzi Senior Banker at Crédit Agricole said of the deal: “The luxury sector is being increasingly committed in developing a sustainable business. I am very proud of this collaboration, which confirms Prada’s ongoing efforts for engaging in and cultivating virtuous behaviour that contributes to its sustainable growth.”