ECJ EUROPEAN Cleaning Journal

As part of its transition to becoming an Employee-owned Trust (EoT) last year, facilities services provider Churchill Group chose to fund its employees share acquisition via the debt market. It has now done this through a sustainability-linked loan (SLL) with a variable interest rate depending on how it meets a set of KPIs.

The SLL is through H.I.G. Capital and the two parties have approved a set of KPIs. Churchill Group will be rewarded with a lower interest rate if it meets and maintains the KPI seton an annual basis.

The KPIs have been set until the end of the financial year 27/28, and include goals around renewable energy use, employee training, external accreditation and voluntary disclosures. The KPIs will be reviewed every year and can be reforecast if Churchill Group is ahead of schedule. For example, if Churchill Group exceeds its target for renewable energy use, the target can be raised for future years to incentivise the company to keep improving.

Churchill Group has recently partnered with Social Value Portal to better measure, report on and amplify its social value. By the next SLL review and with that foundation in place, it aims to add a social value KPI.

The business became an EoT just over a year ago and is the second largest in the UK with 10,000 employee owners. Since becoming an EoT, it says there has been an increase in employee retention, a redesigned benefits package has been launched, and the number of colleagues being recognised through its Shining Stars programme has increased by 20 per cent. And 150 new clients have joined in the last 12 months.