Joules announces ESG-linked financing facility
6 May 2021
British fashion and lifestyle brand Joules has established an ESG-linked financing facility with Barclays Bank.
The company said Thursday it has extended its current funding arrangements with the bank, which include a 25 million pound revolving credit facility and 9 million pound term loan, to September 2024. It has converted the facility to an ESG-linked financing arrangement.
The new agreement links the margin on the facility with Joules’ performance against three sustainability performance targets: to reduce its carbon emission intensity, deliver 100 percent more sustainable materials in the manufacturing of its products, and increase its employee engagement score.
Under the terms of the agreement, Joules will benefit from a lower interest rate loan margin if the group hits these targets.
Further details of the targets and the progress made to achieve them will be reported alongside the group’s annual results each year.
“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,” said chief financial officer Marc Dench in a release.
“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.”