Dunelm secures new sustainability linked bank facility
Homeware retailer group Dunelm has signed up to £185m of credit – linked to its long-term green agenda.
The Leicestershire-headquartered homewares giant said it has signed a “sustainability-linked unsecured revolving credit facility” with a number of banks.
Dunelm Group stated the facility has an initial term of four years, which may be extended by a maximum of a further two years at its request, subject to lender consent.
In a statement to the London Stock Exchange, it said there were four green performance targets which matched its “ambitious” sustainability plans, including a commitment to going Net Zero:
- A 50 per cent cut in the chain’s greenhouse gas emissions by 2030 against a 2019 base, in line with what it says is the Science Based Targets Initiative 1.5 degrees scenario;
- All own brand cotton products to meet Dunelm’s “More Responsibly Sourced” standard by 2025;
- A 20 per cent cut in plastic packaging of own brand products by 2024;
- Provision of a customer recycling service for 50 per cent of products by 2024.
The deal has been agreed with Barclays, Lloyds, NatWest, Santander and Credit Industriel et Commercial.
Laura Carr, Dunelm’s chief financial officer, said: “Our sustainability plans have already taken a big leap forward as we continue to pursue our ambition of being sustainable in everything we do.
“We are delighted to further demonstrate our commitment with this new sustainability linked revolving credit facility, which is clearly aligned to our Net Zero Pathway.
“We appreciate the support of our banking partners and their alignment with our sustainability ambitions.”
Dunelm’s performance will be verified independently and published in its annual report. Interest on the loans will go up or down depending on how it does.