Sustainability is currently one of the most pressing and discussed topics in the fashion industry. Most of all because the industry is the second largest environmental polluter in the world. Several fashion houses signed a sustainability pact earlier this year. Additionally, brands made various sustainability statements during fashion week events. Prada previously joined the largest environmental treaty within the fashion industry and now the brand announced a new sustainability project.
Prada’s new sustainability project
Prada has taken out a loan of € 50 million with the Crédit Agricole Group. The French bank supports companies in achieving sustainable objectives. This loan will run for five years and is intended to encourage the company to make more sustainable choices. The fashion house receives a lower interest rate on the loan for each sustainable project or objective it achieves. Interest rates on the loan will be reduced if stores receive sustainability certification. Other options to reduce the interest rate is training employees with sustainability courses, or if Prada meets the objectives for using Re-Nylon. Re-Nylon is a sustainable nylon replacement that the brand has been working with for some time.
Prada the first in the industry
This is the first time that this construction is used in the fashion industry. In the chemical and utilities industry the agreement is more common. Financial director of Prada Alessandra Cozzani states that this makes sustainability a permanent part of the fashion house strategy: “this agreement shows that sustainability is a key element for the development of the Prada Group and is increasingly integrated into our overall strategy.”
Sustainability in the industry
Last May, Prada announced that it would stop using fur in its collections, joining labels such as Chanel, Burberry and Gucci. A month later, the Re-Nylon brand launched, a collection of six bags made with Econyl. Brands such as Prada, Chanel, Gucci, Hermès, Calvin Klein, Burberry and Versace t signed The Fashion Pact.
Sustainability was a hot topic during most Fashion Week events. Fashion houses like Gabriela Hearst and Gucci held a CO2 neutral show. Dior replanted trees they used during the show and Louis Vuitton and Miu Miu used recycled material for the decor.