PARIS – Puig continues to strengthen its commitments in the green space, most recently with its first sustainability-linked loan for 200 million euros with Banco Sabadell.
European luxury brands – such as Richemont, Burberry and Chanel – banks and investors are cultivating a garden of medium-term bonds, loans and revolving credit facilities related to specific sustainability targets in a bid to appeal to a new generation of investors; add value to their businesses; fulfil ESG requirements, and (last but not least) help save the planet.
The brands are under pressure, as well, to catch up with other industries, such as energy and automotive, food and beverage, to make their mark in the sustainability space.
Puig’s sustainable financing operation links its margin to the evolution of two environmental indicators: the volume of direct, and indirect, emissions generated by the electricity consumed and purchased.
Puig has been moving toward a more sustainable business model since 2013.
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“In 2020, despite being immersed in one of the most difficult contexts of recent times due to the health and economic crisis caused by COVID-19, we successfully completed our first sustainability program,” said Marc Puig, chief executive officer of Puig, in a statement.
“We are preparing for a new and ambitious roadmap that will be based on reinforcing and continuously improving the five strategic pillars, and on integrating the most significant international certifications and commitments.”
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Over the past seven years, Puig achieved a 55 percent reduction in its carbon footprint while maintaining a healthy business. The group is carbon-neutral in its four factories that use renewable energy and implement other environmental actions.
“During the last seven years, Puig has also consistently achieved the goal of ‘zero waste to landfill’ at its four production plants and two headquarters through reuse, recycling and sending waste for energy recovery,” said the company.
“This operation fits perfectly with our determined approach to support our customers in their contribution to a better future for all,” said César González-Bueno, ceo of Banco Sabadell.
In the first half of 2021, the bank has granted more than 3.62 billion euros in sustainable financing, plus more than 300 million euros in eco-related financing, and approximately 1.85 billion euros in loans for social purposes.
Puig, with sales of 1.54 billion euros in 2020, sells products in 150 countries and runs 26 subsidiaries.
Its beauty and fashion division includes owned brands Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Penhanligon’s and L’Artisan Parfumeur, as well as the licenses of Christian Louboutin and Comme des Garçons. The group’s lifestyle fragrances include Adolfo Dominquez, Antonio Banderas, Shakira and Benetton.
Puig also has a division for prestige makeup, with the Charlotte Tilbury brand, and a derma division, with the Apivita, Uriage and Isdin brands.
For more, see:
Puig Profits, Sales Decline in 2020 Due to the Pandemic
Bankers, Investors and Consumers Tell Brands: ‘Go Green or Go Home‘
Circularity Is the Way Forward, Says Richemont in Sustainability Paper
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