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

Under the terms of the new agreement, the interest rate paid will vary depending on whether John Lewis meets three environmental targets over the five years, related to reducing carbon emissions, reducing food waste and moving away from fossil fuels.

The facility is being provided by seven banks who are continuing their backing for the Partnership, with the financing replacing existing facilities of £500 million which are due to expire at the end of 2022.

Existing John Lewis sustainability commitments included being net zero on carbon emissions by 2035, and reducing food waste by half across Waitrose by 2030, against a 2018 baseline. The group is also committed to ending the use of fossil fuels across its transport fleet by 2030.

Bérangère Michel, executive director for finance at the John Lewis Partnership, said: “This is an important agreement, as it is critical for businesses to align financial strategy with sustainability goals in order to address climate change. And it is an important step ahead of the COP26 summit.”

The group has credit facilities with other banks if additional finance is needed.

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