The sustainability-linked loan underscores Gildan’s commitment to its environmental, social, and governance (ESG) targets.
The amendment introduces an annual pricing adjustment based on the achievement of three of Gildan’s Next Generation ESG targets, which were communicated at the beginning of this year.
“Sustainability is a key pillar of our Gildan Sustainable Growth strategy, and this sustainability-linked facility is further evidence of our pledge to making meaningful advancements by 2030 in the areas of climate change, circularity and diversity, equity, and inclusion,” said Rhodri Harries, executive vice president, chief financial and administrative officer at Gildan.
The amended and restated US$1bn five-year revolving credit facility includes terms that reduce or increase the borrowing costs based on the company’s annual performance against the following three recently announced ESG targets:
- Climate Change: The reduction of Gildan’s Scope 1 and Scope 2 GHG emissions by 30% by 2030, in alignment with the SBTi and the level of decarbonisation required to meet the goals of the Paris Agreement.
- Circularity: 75% of Gildan’s packaging and trims specific to apparel SKUs will contain recycled or sustainable materials by 2027.
- Diversity, equity, and inclusion: The achievement of gender parity by 2027 for Gildan’s employee group encompassing the director level and above.
The move follows last week’s launch of the Gildan Respects ESG campaign which aims to reinforce the appeal of Gildan’s approach to making apparel as well as support the Company’s “Next Generation ESG” strategy messages and global positioning programme.
The new branding and creative campaign will be activated through content on various platforms, including the release of an anthem film and documentary series, social media marketing, display advertising, and a renewed digital experience on websites and social platforms across Gildan’s global communication and marketing efforts.