Burberry signs £300m sustainability linked loan

Funding linked to Burberry’s ambition to be climate positive by 2040

Burberry has refinanced its Revolving Credit Facility (RCF) to a £300m Sustainability Linked Loan, coordinated by Lloyds Bank.

The facility is linked to the achievement of key ESG targets as part of the company’s ambition to become Climate Positive by 2040. This includes accelerating emissions reductions across its extended supply chain (Scope 3) by 46% by 2030 and becoming net zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement.

The loan builds on Burberry’s efforts to embed ESG across its operations, including its sources of financing. In September 2020, it became the first luxury brand to issue a sustainability bond, enlisting the support of investors to finance ambitious sustainability projects including refurbishing properties across its portfolio which are certified by LEED or BREEAM1 and ensuring natural resources are sourced sustainably and pollution from packaging is prevented.

In 2021, Lloyds Bank created a new Sustainability and ESG Finance team to support corporate clients with their sustainability plans, providing funding and strategic insights.

Scott Barton, Managing Director of Lloyds Bank’s Corporate & Institutional Coverage team, said: “Helping our clients reach net zero is a key priority for us. Working alongside a climate leader such as Burberry as it progresses its green journey will be crucial for helping the wider luxury fashion industry meet its ambitious goals. We’re proud to have acted as lead coordinator on this funding package for Burberry and look forward to helping support Burberry on its sustainability journey.”

Notes to edtors

Burberry’s climate change initiatives

• Burberry has already taken industry-leading steps to advance the decarbonisation agenda, including cutting its market-based emissions by 92% since 2016.
• This year, Burberry will be carbon neutral across its own operational use globally and use 100% renewable electricity.
• In June, Burberry became the first luxury brand to commit to being Climate Positive by 2040. This involves: 
  • Accelerating emissions reductions across its extended supply chain (scope 3) by 46% by 2030 
  • Becoming net zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement
  • Investing in nature-based projects with carbon benefits that restore and protect natural ecosystems and enhance the livelihoods of global communities 
• Burberry has built on this commitment with its leading biodiversity strategy. This focuses on:
  • Protecting and restoring nature within and beyond its own value chain through projects supported by the Burberry Regeneration Fund o Extending support for farming communities, intensifying efforts around farm-level certifications and training where Burberry sources raw materials
  • Developing regenerative supply chains, applying regenerative and holistic land management practices to grazing and farming systems