THE WHAT? Chanel has missed an interim renewable target for 2021, reaching just 92 percent of its electricity needs from renewable sources as opposed to the target of 97 percent, according to Bloomberg.
THE DETAILS The news is significant to investors as the luxury fashion company raised the 600 million euros (US$613 million) through a bond in 2020, tying its interest payments to meeting climate targets.
Chanel stated it intends to generate on-site renewable electricity where possible, however may reach the 2025 goal of 100 percent via power purchase agreements, green tariffs, renewable electricity credits or energy attribute certificates.
THE WHY? Chanel said, “Conditions in certain markets, including South Korea, have meant that it has taken more time than expected to find the right solution to shift to renewable electricity. We remain confident of achieving our objective of 100% by 2025.”