Prada's pioneering decision to sign a $43 million green loan with Crédit Agricole was another industry-wide shake-up that paved the way for other brands. The organisation has to achieve its targets which are based on •
the number of shops assigned to LEED Gold or Platinum Certification
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showing environmental efficiency
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the number of employee training hours which will help them bring up green initiatives and boost creativity
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the use of Prada Re-Nylon
If Prada is successful in achieving the above targets the interest rate on the loan will be reduced. This is an interesting opportunity for Prada because they are really confident that they will be able to improve sustainability
and they have accepted the risk of paying more if they can't. As part of the Luxury Agreement referred to above the corporation has committed to reach net zero emissions by 2050. Is Prada able to keep up with this without having a significant strain on it? We need to understand that each company is as important as the other, arguing that the implementation of a structure whereby businesses are rated within the framework of their sustainability programs is not the solution. Each brand should be responsible for bringing about effective change in its own right. These small and viable changes made towards sustainability by each and every company will cause a huge impact and this can drastically change way things work moving to a greener future.
KAIZEN’S OPERATIONS & RESEARCH ENTITY
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