John Lewis Partnership has signed a new £420 million five-year revolving credit facility linked to environmental targets.
The facility is provided by seven banks who continue to offer important backing to the John Lewis and Waitrose owner and its plans.
The financing replaces existing facilities of £500 million, which are due to expire at the end of next year.
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Under the terms of the new agreement, the interest rate the business pays on the facility will vary depending on whether it achieves 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:
1. Carbon emissions: to be net zero by 2035
2. Food waste: 50 per cent reduction in food waste across Waitrose by 2030, against a 2018 baseline
3. Transport: end use of fossil fuels across the company’s transport fleet by 2030
Furthermore, John Lewis Partnership recently 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.
“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,” John Lewis Partnership executive director for finance, Bérangère Michel said.
“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.
“This credit facility also reinforces the strong relationships we have with our banking partners, who continue to support the Partnership and our plans for the years ahead.”
The Partnership is investing around £800 million this year to transform and grow its retail brands, while diversifying into areas such as financial services and rented housing.
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