Italian luxury fashion house Prada is stepping up its sustainability drive by trying to lower its carbon footprint, using more recycled nylon and looking for alternatives to leather.
In fiscal year 2020, Prada scored below its peers on environmental issues and lagged on governance, ESG scores compiled by Bloomberg showed. Since then, there has been progress.
“We are B minus for CDP at the moment and we want to become an A as soon as possible,” said Lorenzo Bertelli, Prada’s head of corporate social responsibility, referring to a non-profit group that measures the environmental impact of companies.
“We expect to improve our score already this year.”
Mr Bertelli, 34, who is next in line to be chief executive, is the son of Patrizio Bertelli and Miuccia Prada, who together transformed the Milan-based company into one of the world’s most recognisable fashion brands.
He joined Prada’s board of directors in 2021. He’s also a member of board-level committee focused on environmental and social sustainability issues.
Prada has moved to burnish its sustainability credentials in recent years. In November 2021, Prada said it would use more low-impact materials in its products and packaging as well as lower greenhouse gas emissions as part of a carbon-neutrality push.
While sustainability scores are “fundamental” for evaluating corporate greenness, they can fail to capture the nuances of individual business models, Mr Bertelli said, while attending a conference in Lisbon on sustainability and ocean preservation, co-hosted by Prada and Unesco.
That applies to the assessment of modern slavery in Prada’s supply chain, he said.
“We produce almost all our products in Italy, compared to big companies of the fast fashion which produce abroad,” Mr Bertelli said.
At the moment, the group doesn’t need more loans, as we have a positive cash flow
Lorenzo Bertelli,
Prada’s head of corporate social responsibility
“Already the fact that you produce in Italy should be counted for sustainable impact.”
In 2019, Prada issued the luxury industry’s first sustainability-linked loan, an instrument that offers a lower interest rate if certain sustainability targets are met, thereby saving the issuer money.
Prada arranged that €50 million ($52.1m) loan with Credit Agricole. It arranged a similar €75m loan with Japanese bank Mizuho in 2020. Both loans were linked to targets for more green, energy-efficient stores, employee training and the use of regenerated nylon in products.
A third loan, arranged in February 2021 with UniCredit, raised €90m and is linked to the regeneration and reconversion of production waste as well as to boosting Prada’s share of self-produced energy.
“We are progressing positively towards each of the targets,” Mr Bertelli said. “At the moment, the group doesn’t need more loans, as we have a positive cash flow.”
Mr Bertelli was in Lisbon to champion Sea Beyond, a programme that aims to raise awareness about ocean preservation among secondary school pupils.
The project is supported by revenue from Prada Re-Nylon, a collection of bags for men and women launched three years ago. The products are made from nylon yarn obtained by recycling discarded plastic collected from landfills and oceans. Since the end of 2021, Prada has converted all the production of virgin nylon into regenerated nylon.
Prada says its scientists are now trying to invent other eco-friendly materials, especially as a younger generation of buyers demand more sustainable products.
But leather — a mainstay of Prada’s handbags, jackets and shoes — is not that easy to substitute.
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
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What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
