When it comes to sustainability, Gildan is putting its money where it says its values are.

The Top 40 promotional products supplier, also one of the world’s largest manufacturers of basic apparel, has signed an amended and restated $1 billion five-year revolving credit facility that includes terms that reduce or increase the borrowing costs based on the Montreal-headquartered firm’s performance relative to three important goals in its corporate environmental, social and governance (ESG) plan.

Gildan said it’s the first Canadian apparel manufacturing company to tie financing costs to the achievement of ESG targets.

Borrowing costs will lower if Gildan meets targets like reducing its Scope 1 and Scope 2 GHG emissions by 30% by 2030, in alignment with the Science Based Targets initiative (which drives climate action in the private sector) and the level of decarbonization required to meet the goals of the Paris Agreement.

Another objective Gildan will be measured against includes seeing to it that 75% of its packaging and trims specific to apparel SKUs contain recycled or sustainable materials by 2027. The third benchmark goal involves achieving gender parity by 2027 among positions at the director level and above.

“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.

In January 2022, Gildan debuted its Next Generation ESG, which guides sustainability and corporate social responsibility initiatives over the next eight years.

In March, Gildan said it will be creating an anthem film and documentary series as part of a new marketing and communications campaign, “Gildan Respects,” that aims to share compelling stories and accomplishments from the supplier’s Next Generation ESG plan.

Based on estimated 2020 North American promotional product revenue of $413.1 million, Gildan ranked sixth on Counselor’s most recent list of the largest suppliers in the industry.

On the credit facility deal, Gildan noted that BMO Financial Group is acting as lead sustainability structuring agent, while TD Financial Group and CIBC Financial are co-lead sustainability structuring agents on the sustainability-linked loan.

Promo for the Planet is your destination for the latest news, biggest trends and best ideas to help build a more sustainable and socially-responsible industry.