Wednesday 2 June 2021 9:04 am

B&Q owner Kingfisher signs £550m credit deal linked to sustainable targets

Kingfisher has signed a £550m three-year credit deal that will see it benefit from a lower interest rate on the loan if it delivers specific targets to help tackle climate change.

Kingfisher, which also owns Screwfix, 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 DIY giant has also pledged to create more forests than it uses and to reach 100 per cent sustainable wood and paper for its products by its 2025/26 financial year. Its current level is 80.7 per cent.

Kingfisher also wants to help two million people who have the greatest housing needs via a community contribution.

If it meets its targets, Kingfisher will be charged less for its loan.

Bernard Bot, Kingfisher’s chief financial officer, 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.”

Kingfisher’s share price was down 1.36 per cent at just after 9am this morning.