British fashion house Burberry has announced its plans to issue a sustainability bond. They are the first luxury fashion brand to make this move. The purpose? To attract ethical investors, whose investments will in turn help fund social and environmental projects that are eligible under Burberry’s new Sustainability Bond Framework.
Born out of the company’s dedication to making social and environmental improvements in the fashion industry, the Sustainability Bond Framework is centred on ethics, corporate responsibility, animal welfare, and environmental sustainability.
The Bond Framework reads, “Burberry’s commitment to sustainability is long-standing, grounded in the belief that for its future growth, Burberry needs to actively address the challenges facing its industry and the world in which it operates. Burberry is dedicated to reducing its environmental footprint and enabling social progress as it helps transform its industry through powerful collaborations.”
The Sustainability Bond Framework touches on three key areas or goals. The first goal is to produce more green buildings and invest money in properties that are certified as either LEED platinum or gold or BEAM outstanding or excellent. An example of a project that aligns with this goal would be the energy-efficient refurbishment of retail stores.
The second focus of the framework is on the sustainable management of resources. That is why they aim to use bond money to invest in projects that relate to the procurement of BCI-certified materials. This would mean funding projects that support sustainably-grown cotton through the Better Cotton Initiative.
Finally, the Burberry Sustainability Bond Framework is committed to pollution prevention and control, which includes a reduction in air emissions, greenhouse gases, and waste. In this third project category, they hope to invest in projects that will increase the proportion of recycled materials in packaging materials. This could mean anything from sourcing 100% recycled polyester for brand labels to sourcing reusable and recyclable packaging materials from a Forest Stewardship Council (FSC) certified forest.
The bond is guaranteed by the Burberry Group and will be listed on the official list of the UK Listing Authority. Once listed, it can be traded on the Main Market of the London Stock Exchange. Currently, Burberry is already listed on the London Stock Exchange under BRBY.L.
