Vicunha Makes Significant Strides in Decarbonization
The largest producer of denim in Latin America is taking a leap toward renewable energy.
Vicunha announced on Thursday that its company's manufacturing facilities in northeast Brazil will soon consume 100 percent renewable energy under an agreement signed with the Enel Group, one of the largest private companies in the Brazilian electricity sector.
More from Sourcing Journal
The Road to Decarbonization? It's Electrifying!
Can Brazil Be a New Hub for Denim Production?
Powering Vietnam's Renewables: H&M Signs Green Energy Agreement
This agreement allows Vicunha to generate clean energy to sustainably meet its consumption needs.
Starting mid-year, clean energy will power the multinational company's three factories located in the cities of Maracanaú, Pacajus, and Natal. The partnership will enable the self-production of energy from five wind power plants in the state of Piauí.
As one of the top three global denim producers, Vicunha's transition to renewable energy plays a pivotal role in advancing a low-carbon economy.
'We are constantly seeking ways to contribute to a more sustainable fashion industry by optimizing resources such as energy, water, and raw materials like cotton. The decarbonization strategy for our manufacturing plants represents a major step forward in this regard,' said Marcel Imaizumi, Vicunha operations and new business director.
The strategy aligns with Vichuna's overall sustainability mission including efforts to produce denim with reclaimed water and to support regenerative agriculture.
The deal was negotiated by Enel Comercializadora e Trading, which provides energy solutions for consumers in the free energy market. The company is among the top three energy traders in Brazil, holding a 7.5 percent market share. It was approved in late February by the Administrative Council for Economic Defense, a federal agency under the Ministry of Justice responsible for ensuring free market competition in Brazil.
Enel has been a part of the fashion industry's decarbonization efforts. In 2019, Gap Inc. announced a virtual power purchase agreement with Enel Green Power, a division of Enel Group, to purchase the electricity equivalent of a 90 MW portion of its Aurora wind farm each year.
'We are committed to assisting businesses across all productive sectors in their sustainability agendas, aligning ESG goals with economic benefits,' said Francisco Scroffa, head of Enel's non-regulated energy market in Brazil. 'Enel offers a diverse portfolio capable of serving companies with different profiles, expanding our network of partners in the decarbonization journey.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
PagSeguro Digital Ltd. (PAGS): A Bear Case Theory
We came across a bearish thesis on PagSeguro Digital Ltd. (PAGS) on Quipus Capital's Substack. In this article, we will summarize the bears' thesis on PAGS. PagSeguro Digital Ltd. (PAGS)'s share was trading at $8.78 as of 6th June. PAGS's trailing and forward P/E were 7.23 and 6.56 respectively according to Yahoo Finance. Photo by Clay Banks on Unsplash PagSeguro Digital Ltd. (PAGS) operates as a Brazilian payment processor with a core business model built around receivables discounting rather than payment processing itself. While many assume that PAGS earns margins on payment transactions, the reality is that most of the take rate is paid out in interchange and transaction fees, leaving processing effectively commoditized. The real profit engine is in advancing payments to merchants on credit card sales in exchange for a 2% monthly discount fee, amounting to annualized rates of 25–30%, with minimal risk, as receivables are guaranteed by banks or card networks. This business is especially viable among micro and small merchants, who lack access to traditional credit. However, the company's growth is constrained by a saturated market; PAGS now grows in line with Brazil's GDP plus inflation, and its receivables remain capped at roughly 30–35% of TPV. Further, the looming launch of PIX Parcelado threatens to disrupt the receivables model, allowing banks to offer credit-based instant payments that bypass PAGS entirely on the lucrative discounting side. Although PAGS could theoretically expand into other lending products, it lacks both the scale and risk infrastructure to compete with Brazil's established banks. In a best-case scenario, PAGS maintains current spreads, leverages its low-risk balance sheet, and grows EPS via share buybacks. At a 7x P/E, the stock could deliver a 14% return from buybacks alone, with 5–7% BRL-denominated growth on top. Yet, investors must weigh this against significant structural risk, particularly from PIX, and limited runway for long-term business expansion. Previously, we summarized a on Block, Inc., highlighting its evolution into a vertically integrated fintech ecosystem spanning consumer finance, business services, and AI-powered infrastructure, supported by scale advantages in Cash App and Square, improved profitability, and underappreciated assets like Tidal. Together, these theses capture a broader fintech divide: one leaning into innovation and ecosystem synergy to unlock durable value (Block), the other constrained by structural ceilings and rising platform risk (PagSeguro). PagSeguro Digital Ltd. (PAGS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held PAGS at the end of the first quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of PAGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 hours ago
- Business Wire
KBRA Assigns Preliminary Ratings to Lendbuzz Securitization Trust 2025-2
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes (five tranches) issued by Lendbuzz Securitization Trust 2025-2 ('LBZZ 2025-2'), an auto loan ABS transaction. The preliminary ratings reflect the initial credit enhancement levels ranging from 26.00% for the Class A notes to 4.50% for the Class D notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread. LBZZ 2025-2 is Lendbuzz Funding LLC's ('Lendbuzz' or the 'Company') second term ABS securitization in 2025 and the tenth overall. LBZZ 2025-2 will issue four classes of notes totaling approximately $266.1 million. At closing, this transaction will consist of approximately $250.7 million receivables, with an expected collateral balance of $275.7 million after completion of the two-month prefunding period. LBZZ 2025-2 will be collateralized by a pool of retail automobile contracts made to obligors and secured by new and used automobiles, light duty trucks, and vans. Lendbuzz is a car financing company established in 2015, headquartered in Boston, MA, with a research division based in Tel Aviv, Israel. The Company's founders launched the company after migrating to the U.S. for graduate school and finding that they could not access basic credit products because of a lack of credit history. Using alternative data and machine-learning algorithms to assess credit risk, Lendbuzz services a target consumer base that is typically unable to obtain financing from traditional lending sources such as credit unions, banks, and captive auto finance companies, despite sufficient verifiable income to support auto loan payments. KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology, as part of its analysis of the transaction's underlying collateral pool, the proposed capital structure, and Lendbuzz's historical static pool data. KBRA considered its operational review of the Company, as well as periodic update calls with Lendbuzz. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009830
Business Wire
5 hours ago
- Business Wire
KBRA Assigns Preliminary Ratings to Angel Oak Mortgage Trust 2025-7 (AOMT 2025-7)
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to six classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2025-7 (AOMT 2025-7), a $350.2 million non-prime RMBS transaction. The underlying collateral, comprised of 722 residential mortgages, is characterized by a significant concentration of loans underwritten using alternative income documentation. All the loans are either classified as non-qualified mortgages (55.2%) or exempt (44.8%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 67.4% of the pool, with no other originator comprising over 10% of the collateral. KBRA's rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction's payment structure, reviews of key transaction parties and an assessment of the transaction's legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology. To access ratings and relevant documents, click here. Click here to view the report. Related Publications Methodologies Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009736
