Spanish beauty and fashion conglomerate PUIG has taken another step towards its green transition by participating in a financing program tied to the achievement of eco-responsible goals. Last week, PUIG made headlines when it announced its decision to discontinue the use of exotic skins in its brand catalog, which features well-known names such as Jean Paul Gaultier, Nina Ricci, Paco Rabanne, Carolina Herrera, and Dries Van Noten. Now, the company is furthering its environmental ambitions by securing a €200 million loan from Banco Sabadell.
Since setting its initial sustainability goals in 2014, PUIG has made significant progress in achieving them. However, the group recently unveiled even more ambitious targets in its roadmap. The loan from Banco Sabadell will be directly linked to PUIG’s greenhouse gas emissions volumes, which will be measured based on the Greenhouse Gas Protocol (GHG) indicator and Science Based Targets criteria.
This financing solution is expected to help PUIG in its recovery efforts, as the company experienced a 24% decline in sales in 2020, totaling €1.53 billion. With the loan, PUIG aims to achieve a turnover of €3 billion by 2023.
PUIG is joining the ranks of other fashion and beauty brands that have chosen financing options that promote sustainability. Prada, Chanel, and Gucci are among the companies that have recently taken similar steps towards supporting the environmental and societal transition of their supply chain stakeholders. For example, Gucci partnered with Intesa Sanpaolo for a loan to support its transition towards greener practices.
By aligning its financing with its eco-responsible goals, PUIG is showcasing its commitment to sustainability and setting a positive example for the industry. As more companies follow suit and adopt financing models that prioritize sustainability, it is clear that the fashion and beauty sector is placing a significant focus on reducing its environmental impact and contributing to a more sustainable future. PUIG’s latest move highlights the growing importance of incorporating environmental considerations into financial decision-making processes and signifies a positive shift in the industry.
Useful links:
1. https://www.gssthinkstep.com/en/greenhouse-gas-protocol-ghg
2. https://sciencebasedtargets.org/
