The high-street retailer has refinanced its debt and secured a €200 million ($216 million) loan managed by CaixaBank, the cost of which will reduce if it hits sustainability milestones by 2025. These include sustainably sourced or recycled fibres for 100 percent of its cotton, polyester and tree-derived fibres like viscose, and a 10 percent reduction in carbon emissions from the company’s owned and operated facilities.
This is the first time Mango has linked its debt to environmental, social and governance (ESG) factors. It joins other fashion giants including H&M, Chanel and Adidas in issuing debts tied to sustainability commitments.
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Fashion Goes Green to Raise Capital
The likes of Chanel, Adidas and H&M are landing funds based on potential environmental, social and governance impact, relying on sustainability targets to secure both public and investor goodwill.
