By Jaime Llinares Taboada
Associated British Foods PLC said Wednesday that Primark is launching a sustainability program, and that this will lead to a modest increase in costs through 2030.
The British conglomerate said the nine-year Primark Cares program addresses the brand's most material environmental, social and governance factors. It includes commitments to make all clothes using recycled or more sustainably sourced materials, to halve carbon emissions across the value chain, and to pursue a living wage for workers in the global supply chain, all by 2030.
AB Foods said these changes will only lead to a modest increase in costs, and that it is confident of Primark's ability to mitigate them without a material impact to its operating profit margin in the short term and any significant movement in the longer term.
The FTSE 100 group also said the program is an opportunity to drive further sales growth.
Shares at 0742 GMT were down 0.3% at 1,908 pence.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT
(END) Dow Jones Newswires
September 15, 2021 04:04 ET (08:04 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.