VF Corp announced it has fully allocated the net proceeds from its inaugural green bond issued last year, totaling approximately €493 million ($596 mm).

VF said the proceeds allocated to thirteen of VF’s eligible worldwide sustainability projects delivered positive environmental impacts, including two million trees planted, approximately 16,000 metric tons of CO2e (carbon dioxide equivalent) avoided annually through procurement of sustainable materials and more than 970 million liters of water saved annually through conservation initiatives.

“We take great pride in being the first company in the apparel and footwear industry to issue a green bond,” said Scott Roe, executive vice president and chief financial officer for VF. “We believe that business success and environmental stewardship are closely linked together, demonstrated by the success of this effort which has enabled us to advance progress toward achieving our science-based targets while also strengthening our business for the long term. We hope our success will inspire others in our industry and beyond to pursue similar initiatives.”

VF issued its inaugural green bond, the first for the apparel and footwear industry, in February 2020. The allocation of the green bond net proceeds was an essential step in VF’s implementation of its Made for Change sustainability and responsibility strategy, supporting its business objectives.

VF’s use of the green bond proceeds shows it is committed to three key sustainability areas core to its business: sustainable products and materials, sustainable operations and supply chain and natural carbon sinks. The net proceeds also support projects that align with key UN Sustainable Development Goals (SDGs): SDG 7 – Affordable and Clean Energy; SDG 9 – Industry Innovation and Infrastructure; SDG 12 – Responsible Consumption and Production; and SDG 15 – Life on Land.

VF published a Green Bond Impact Report, with a breakdown of allocated proceeds, select metrics, and related projects’ achievements.

VF’s Green Bond was issued under the ICMA Green Bond Principles (GBP) 2018. VF’s Green Bond framework was reviewed by Sustainalytics that issued a second-party opinion stating that its framework is credible and impactful.