Please invest in Our Daily Planet today, by making a one time or monthly contribution.
We do not charge our readers a subscription fee for our content. We want to continue to grow our readership, particularly among millennials and public servants. Voluntary contributions from readers will help us employ interns and freelance journalists, expand our content, and reach a larger audience.
The Prada fashion group has become the first luxury brand to sign a sustainability-linked loan. This type of loan (amounting to $55 million for Prada) links annual interest rates to practices that help the environment. For instance, as Vogue Business explained, Prada’s rates will be trimmed if a certain number of stores are assigned a LEED Gold or Platinum certification; if employees meet a set number of training or hours; and if it meets targets for using Re-Nylon, a sustainable nylon substitute, for the production of goods.
Sustainability Loans, Summed Up: Sustainability or environmental, social and governance (ESG)-linked loans monitor a company’s performance along several ESG indicators as investors are increasingly calling for greater transparency. As Reuters explained,
Independent sustainability rating firms have been scoring companies’ ESG performance for more than two decades, but third-party ratings are gaining importance as sustainability-linked loans gather momentum.
Sustainability-linked loans totaled US$71.3bn at the end of the third quarter of 2019, and have more than doubled from US$32bn of deals raised in the same period in 2018.
Fashion’s Dirty Secret: The fashion industry faces numerous challenges in the effort to be more eco-friendly. Additionally, in an effort to maintain exclusivity, many fashion brands have taken to burning leftover merchandise worth millions in an effort to maintain scarcity. Prada isn’t a company that does this, but its high fashion peers like Louis Vuitton and Cartier have been heavily criticized for this practice. It shows that fashion needs to rethink many of its core tenets inorder to align them with true stewardship of our planet.
Why This Matters: While smaller companies have taken out these types of loans, this is the first time that a major fashion group has done so. The UN launched a formal alliance earlier this year to address sustainable fashion, and sustainability-linked loans are just one mechanism that can help apparel manufacturers and retailers walk the walk on sustainability. After all, textile production produces 1.2 billion tons of CO2 equivalent per year, that’s more emissions than international flights and maritime shipping. This doesn’t even account for the natural resource and animal and human welfare issues that the sector faces.
Italy FTW: At the same time that Milan-based Prada announced its sustainability-linked loan, the Italian government will require children in every grade to study sustainability and climate change.
by Natasha Lasky, ODP Staff Writer A new UN report suggests that plastic pollution isn’t just a threat to marine life — it’s also an issue of environmental justice. The report, titled Neglected: Environmental Justice Impacts of Plastic Pollution, highlights that poor nations and communities around the world disproportionately suffer the effects of plastic waste. This […]
President Biden’s new infrastructure plan contains something surprising — funding for “construction” projects to remove highways. Why? Because for decades, Black communities in cities across the U.S. have been cut off and/or divided by highways and major roads that were built without regard to their impact on those neighborhoods.
Why This Matters: Highways built in the 50s and 60s often came at the expense of communities of color. Their impact enforced segregation, disrupt thriving communities, and distanced Black people from city resources and job opportunities.
by Ashira Morris, ODP Staff Writer European Union countries like Germany, the Netherlands, and Sweden have been sending millions of tons of trash to be burned in “waste to energy” incinerators. But because of the incinerators’ CO2 emissions and health impacts, the bloc is starting to cut off funding for new plants. This change “comes […]
Our Daily Planet is your daily dose of the stories shaping our world and the ways that you can take action. From the climate crisis to the protection of biodiversity, if these issues matter to you then please subscribe & stay informed!
Your privacy is Important! We promise never to use your email address to send you spam or advertisements.