- VF Corporation allocates €496M from its second green bond to sustainable projects.
- Investments focus on recycled materials, renewable energy, and regenerative agriculture.
- Projects align with UN SDGs, supporting responsible consumption, clean energy, and life on land.
VF Corporation (NYSE: VFC), a global leader in apparel, footwear, and accessories, has released its 2024 Green Bond Impact Report. The report details the full allocation of net proceeds from its second green bond, issued in 2023, totaling approximately €496 million. These funds have been directed towards initiatives that generate significant environmental benefits, such as reducing greenhouse gas emissions through the procurement of recycled materials and powering VF facilities with renewable energy.
Sustainable Investments
The allocation follows VF’s 2020 Green Bond Framework, channeling funds into nine projects across three categories:
- Sustainable Products & Materials: Addressing SDG 12 (Responsible Consumption and Production).
- Sustainable Operations & Supply Chain: Targeting SDGs 7 (Affordable and Clean Energy), 9 (Industry, Innovation, and Infrastructure), and 12.
- Natural Carbon Sinks: Focusing on SDG 15 (Life on Land).
Jeannie Renné-Malone, VF’s Vice President of Global Sustainability, stated, “Elevating our focus on, and investment in, sustainable material substitutions, regenerative agriculture projects, and renewable energy investments allows us to leverage our commitment to sustainability and make progress toward our science-based targets. We hope investments such as this will inspire other brands and companies within our sector and beyond to make similar investments for the betterment of people and our planet.”
Historical Context and Future Vision
In February 2020, VF issued its inaugural green bond, marking a first for the apparel and footwear industry. This bond supported the company’s sustainability goals, facilitated progress toward climate targets, and funded projects aligned with key UN SDGs. Approximately €493 million in net proceeds from the first bond were allocated to 13 eligible sustainability projects worldwide.
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Compliance and Credibility
VF’s 2023 green bond issuance adhered to the ICMA Green Bond Principles (GBP) 2018. Sustainalytics, a renowned provider of sustainability research and services, reviewed VF’s Green Bond Framework and issued a Second-Party Opinion, affirming its credibility and impact.
The 2024 Green Bond Impact Report includes a detailed breakdown of allocated proceeds, highlighting the metrics and achievements of related projects.