Canadian-based clothing brand Gildan Activewear has signed an amended and restated credit agreement in respect of its existing $1 billion revolving credit facility to incorporate sustainability-linked terms. This move further emphasizes the company’s commitment to its environmental, sustainable, and governance (ESG) goals.

According to a report shared by GlobeNewswire, the amendment introduces an annual pricing adjustment based on the achievement of three of Gildan’s Next Generation ESG targets. Gildan is the first Canadian apparel manufacturing company to tie financing costs to the achievement of important ESG targets, the article stated.

The amended and restated revolving credit facility includes terms that reduce or increase the borrowing costs based on Gildan’s annual performance against the three ESG targets — Climate Change; Circularity; and Diversity, Equity, and Inclusion.

“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 in the press statement.