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

The facility is provided by seven banks which continue to offer important backing to the partnership and its plans. The financing replaces existing facilities of £500m, which are due to expire at the end of 2022. 

Under the terms of the new agreement, the interest rate the partnership pays on the facility will vary depending on whether the business achieves three environmental targets over five years related to reducing carbon emissions, reducing food waste and moving away from fossil fuels. These targets contribute to the partnership’s existing sustainability commitments.

Bérangère Michel, executive director for finance at the John Lewis Partnership, says: “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."

The partnership is investing around £800m this year to transform and grow its retail brands, John Lewis and Waitrose, while diversifying into areas such as financial services and rented housing.