British lifestyle brand Joules has extended and converted its current credit facility with Barclays Bank to an Environmental Social and Governance (ESG) linked financing arrangement.
The new financing agreement links the margin on the facility with Joules’s performance against three Sustainability Performance Targets (SPTs) that are aligned with its 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 targets:
- Reducing its carbon emission intensity;
- Delivering 100% more sustainable materials in the manufacturing of its products; and
- 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.
Its current funding arrangements with Barclays include a GBP25m revolving credit facility and GBP9m term loan, to September 2024.
“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 Joules CFO, Marc Dench.
“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.”