John Lewis signs a credit agreement linked to environmental goals

The John Lewis Partnership has signed a new 420 million pound revolving credit facility tied to environmental goals such as lowering carbon emissions, food waste, and fossil fuel consumption. Seven banks are providing the five-year facility, which will replace existing 500 million pound facilities that are set to expire at the end of 2022.

In comparison to a 2018 baseli rate, the interest rate John Lewis pays on the facility will vary depending on whether it meets three environmental goals: being net-zero by 2035, ending the use of fossil fuels across the company’s transportation fleet by 2030, and achieving a 50% reduction in food waste across Waitrose by 2030.

Bérangère Michel, the partnership’s executive director for finance, said that this is a significant arrangement for the partnership. In order to address climate change, businesses must integrate their financial strategy with environmental goals.

The John Lewis Partnership has announced that it will invest roughly £800 million this year to improve and grow its retail brands, as well as diversify into areas including financial services and rented accommodation housing.