Chanel has raised a 699-million-dollar bond with clauses linked to its environmental and climate goals. The news was reported by Reuters. As sustainability continues to be one of the key topics in the fashion industry, Chanel is making sure it’s on board with the industry shift to going green.
The company is working on switching away from less eco-conscious materials used in clothing and handbags and are looking at ways to try and improve its energy sourcing in stores.
The five- and ten-year bond issued by Chanel marks the first time the company has embarked into the bond market.
There’s potential for some proceeds to go toward startups developing alternatives to materials like plastic.
The terms of the deal say Chanel will have to pay a premium when the bonds mature if it doesn’t mean emission cutting goals within the company and their supply chain.
Chanel is looking at ways to restructure its future financing strategy and keep it in line with its new sustainability goals.
The brand is literally on to greener pastures.
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