Over the past year, fashion companies from Adidas to Chanel have issued hundreds of millions of dollars in debt to meet environmental targets, betting that there would be plenty of investors interested in financing green projects. Last week, it was H&M’s turn.
The Swedish fast fashion giant made plans to issue €500 million ($607 million) in bonds that will go towards goals ranging from increasing the use of recycled materials to reducing greenhouse-gas emissions by 10 percent.
H&M’s announcement is the latest example of a trend growing across industries as companies seek to tap into appetite for environmental, social and corporate governance (ESG) financing. It extends to a variety of financial products from sustainability-linked bonds — a current favourite among fashion companies — to green and social-impact bonds that help businesses fund social and environmental projects across their companies and supply chains. Roughly $4 billion in sustainability-linked bonds were issued