Waitrose’s parent company has agreed a £420 million credit facility to spur its bid for sustainability.
The John Lewis Partnership (JLP), which also operates the “never knowingly undersold” department stores, agreed the deal with seven banks.
Its interest rate will go down if the group reaches net zero by 2035 while cutting out fossil fuels from its vehicles and halving Waitrose food waste by 2030.
The loan replaces the current £500 million facility, which is due to expire at the end of next year.
“This is an important agreement for the Partnership,” JLP executive finance director Bérangère Michel said.
“It is critical for businesses to align financial strategy with sustainability goals in order to address climate change.”
She was “pleased” that the company was “living up to its sustainability commitments” ahead of the UN Climate Change Conference in Glasgow on Sunday.
This autumn has seen a flurry of supermarkets pledging to reach net zero emissions by 2035.
Tesco announced the policy in September, closely followed by Big 4 rivals Sainsbury’s and Morrisons.