Joules adds ESG targets to finance deal
In a further sign of how important environmental, social, and governance-linked (ESG) issues are these days, lifestyle retailer Joules has announced a renewal of its funding deal with a strong ESG element included.
The company said it has extended its current funding arrangements with Barclays Bank that include a £25 million revolving credit facility and £9 million term loan, to September 2024. And it has converted the facility to an ESG-linked financing arrangement.
The new agreement links the margin on the facility with the retailer’s performance against three Sustainability Performance Targets (SPTs) that are aligned with its ESG focus areas.
It means the company will benefit from a lower interest rate loan margin if it delivers on targets such as reducing its carbon emission intensity; using 100% more sustainable materials in the manufacturing of its products; and increasing its employee engagement score.
The firm will report its progress against each of these targets alongside the publication of its annual results every year.
And it said the new arrangement reflects its strong commitment to operating responsibly and sustainably “to the benefit of its employees, communities, and the environment”.
CEO March Dench added that the new finance deal "further enhances the group's robust financial position and, importantly, further aligns Joules' sustainability commitments, which are central to our business purposes, to the group's long-term financial strategy and performance.
“With growth comes responsibility. The decision to link this financing to our ESG focus areas reflects the group's stated commitments to create value for all stakeholders by reducing its environmental footprint and positively impacting the people we work with, the communities we're based in, and the world around us.”
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