John Lewis signs £420m credit deal linked to sustainability

The John Lewis Partnership has signed a new £420m five-year revolving credit facility linked to environmental targets.

It revealed the deal is provided by seven banks who continue to offer “important backing” to the Partnership and its plans, with the new financing to replace existing facilities of £500mn, which are due to expire at the end of 2022.

According to the retailer, sustainability targets include to be net zero by 2035, a 50% reduction in food waste across Waitrose by 2030, against a 2018 baseline and end use of fossil fuels across the company’s transport fleet by 2030.

Under the terms of the new agreement, the interest rate the retailer pays on the facility will vary depending on whether it achieves the three environmental targets over five years related to reducing carbon emissions, reducing food waste and moving away from fossil fuels.

The John Lewis Partnership has also 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.

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.”