John Lewis new credit facility is linked to eco targets
Linking future financing to building for a sustainable future has become a key issue for the John Lewis Partnership. So the UK retail giant has signed a new £420 million five-year revolving credit facility with repayments based on its environmental targets.
Under the terms of the new agreement, the interest rate it pays on the facility will vary depending on whether John Lewis can achieve three environmental targets over five years related to reducing carbon emissions, reducing food waste and moving away from fossil fuels.
These targets contribute to the Partnership’s existing sustainability commitments: Carbon emissions to be net zero by 2035; food waste to be cut by 50% across Waitrose by 2030; and ending the use of fossil fuels across the retailer’s transport fleet by 2030.
Bérangère Michel, executive director for Finance at the John Lewis Partnership, said: “This is an important agreement for the Partnership. It is critical for businesses to align financial strategy with sustainability goals in order to address climate change.
"I am pleased that the Partnership is living up to its sustainability commitments and its purpose by making this very important step, ahead of the COP26 summit."
The firm said it’s investing around £800 million this year to transform and grow its retail brands, John Lewis and Waitrose, while diversifying into areas such as financial services and rented housing.
Additionally, the John Lewis Partnership said it has joined leading businesses in signing up to the Science Based Targets Initiative Business Ambition for 1.5°C as well as the UN Race to Zero campaign.
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