B&Q owner Kingfisher ties loans to climate plans
The business will pay lower interest rates if it reduces emissions sufficiently.
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Your support makes all the difference.The owner of B&Q and Screwfix has signed an agreement that will let it borrow more than half a billion pounds with lower interest rates if it cuts its carbon production.
Kingfisher said a recently signed £550 million revolving credit facility had been linked to “ambitious sustainability targets”.
The company will be charged less for its loan if it meets targets from its responsible business plan.
Kingfisher has updated its climate change targets to reduce emissions by 2026 in a way that will not contribute to more than 1.5C global warming.
Its previous target was to help limit global warming to 2C.
The climate ambitions include so-called scope one and two emissions, such as the petrol Kingfisher uses and the emissions from the electricity its shops run on.
But it will not include scope three emissions, which include the impact of the products Kingfisher buys from suppliers and the emissions employees produce during their daily commutes.
“This revolving credit facility shows our commitment to integrate our responsible business principles into all aspects of our business,” said chief financial officer Bernard Bot.
“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.”
Kingfisher’s strategy also includes a pledge to plant more trees than it uses within five years, and use 100% sustainable wood and paper in its products in the same time. It currently uses around 81% sustainable wood and paper.
The company said it will also work to help more than two million people fix the bad housing conditions they live in.