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Clothing retailer Joules has announced an extension to its current funding arrangements, converting the facility to an ESG-linked financing arrangement.
Placed through Barclays Bank, the scheme includes a £25m revolving credit facility and £9m term loan to September 2024.
Under the terms of the arrangement, Joules’ interest rate loan margin will depend on its performance in three sustainability performance targets (SPTs).
The SPTs include reducing the group’s carbon emission intensity, delivering 100% more sustainable materials in the manufacturing process, and increasing its employee engagement score.
Marc Dench, CFO at Joules, said that the targets have been set as “with growth comes responsibility”.
He added: “This extension to our financing facilities 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.
“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.”
The company’s progress regarding its three SPTs will be reported alongside its annual results and “responsibly Joules” update.
