Luxury brand Prada has showcased its commitment to environmental sustainability through the introduction of new bags made from plastics and fishing nets collecting in oceans, according to the Robb Report.
The publication stated the bags manufactured in the “Re-Nylon” line are made from Econyl, which is a material developed by Aquafil, which blends waste pulled from oceans with textile waste. The Robb Report noted that Aquafil claims the process it uses to make Econyl means the material can be recycled indefinitely, with no loss of quality.
Prada has announced that it plans to move from using virgin nylon to Econyl across all of its product categories by the end of 2021, the publication stated.
Prada’s commitment shows that environmental responsibility is a required part of doing business for companies worldwide, and stewardship of the environment could increasingly become a point of focus for investors.
In a recent article examining Burberry’s recently declaration that it aims to reduce greenhouse gas emissions 95% from its direct operations, and to reduce gas emissions 30% in its extended supply chain, HSBC global co-head of consumer research Erwan Ramboourg stated that ESG, or environmental, social and governance factors “is becoming mainstream, and luxury brands are trying to achieve their targets in a very focused manner”.
Airlines are also taking notice of the growing importance of ESG in a company’s overall business strategy. Delta Air Lines CEO Ed Bastian recently concluded that ESG is “something that we are paying attention to. I think investors will increasingly pay more attention to [it], and it’s going to be a point of pride for Delta people…”
ESG criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature; social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates; governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.