Home improvement retailer Kingfisher has entered into a £550m three-year revolving credit facility agreement with its relationship banks, which will be linked to its sustainability and community-based targets.
Under the terms of the new agreement, which could possibly have two further one-year extensions, the owner of B&Q and Screwfix will benefit from a lower interest rate if it delivers specific targets that are aligned with its responsible business plan.
Part of this includes targets to deliver 1.5°C science-based carbon reduction targets by the end of 2025/26 financial year, with the facility covering Kingfisher’s actions to reduce its Scope 1 and 2 climate impacts. Scope 1 covers direct fuel used within its operations, while Scope 2 covers its electricity use. The company’s previous target was in line with the reductions required to keep global warming to 2°C.
Additionally, Kingfisher is committed to becoming forest positive by the end of the 2025/26 financial year by creating more forests than it uses. Its credit facility target is to reach 100% sustainable wood and paper for its products by the 2025/26 financial year, with the current rate being 80.7%.
It’s also aiming to help more than two million people whose housing needs are greatest in its communities by the 2025/26 financial year - this is double its previous target.
Kingfisher’s chief financial officer Bernard Bot said: “This revolving credit facility shows our commitment to integrate our responsible business principles into all aspects of our business. Our responsible business plan is an integral part of our powered by Kingfisher strategy and this facility links our ambitious sustainability and community targets with our financing activities. We are making great progress with our climate change and community programmes and I look forward to working with all our stakeholders on realising our commitments.”
The new credit facility replaces two existing facilities of £225m, which expires in March 2022, and £550m, most of which expires in August 2023.