Joules announces new sustainability-linked financing facility
Joules, the premium British lifestyle brand, has announced that it has extended its current funding arrangements with Barclays to September 2024, which includes a £25 million revolving credit facility and £9 million term loan, and has converted the facility to an ESG-linked financing arrangement.
The new financing agreement links the margin on the facility with Joules' performance against three Sustainability Performance Targets that are aligned with Joules' ESG focus areas. Under the terms of the agreement, Joules will benefit from a lower interest rate loan margin if the Group delivers on the following environmentally linked targets:
- Reducing its carbon emission intensity
- Delivering 100% more sustainable materials in manufacturing
- Increasing its employee engagement score
The details of the targets and progress against them will be reported alongside the publication of the Group's annual results and its Responsibly Joules update each year.
Joules' outgoing Chief Financial Officer, Marc Dench, said: "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.
"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."
Caroline York is due to replace Dench as the company's new CFO next week.
The premium lifestyle brand is also gearing up to open six new stores within Center Parcs villages across the UK and Ireland as part of a new retail agreement with the short break provider. The stores will provide guests with staycation essentials, from gilets and jumpers to Joules’ outdoors-inspired Right as Rain collection.