Last year, Churchill Group transitioned to an Employee-owned Trust (EoT) and decided to finance its employees’ share purchases through the debt market. To achieve this, the company secured a sustainability-linked loan (SLL) with H.I.G. Capital. The loan has a variable interest rate, which depends on Churchill Group’s performance against a set of agreed-upon key performance indicators (KPIs).
The KPIs, which are in place until the end of the 2027/2028 financial year, cover areas such as renewable energy usage, employee training, external accreditation, and voluntary disclosures. If Churchill Group meets these KPIs annually, it will benefit from a lower interest rate. The KPIs are reviewed every year and can be adjusted if the company outperforms its targets. For example, if Churchill Group exceeds its renewable energy goals, the targets can be increased for the following years to encourage continuous improvement.
Recently, Churchill Group partnered with Social Value Portal to enhance its ability to measure, report, and expand its social value. With this partnership, the company aims to introduce a social value KPI at the next SLL review.
Celebrating one year as an employee-owned company, Churchill Group is now the second-largest EoT in the UK, with around 10,000 employee-owners. Over the past year, the company has seen an increase in employee retention, launched a redesigned benefits package, and recognized 20% more employees through its Shining Stars program. Additionally, 150 new clients have joined in the last 12 months. As Churchill Group’s performance continues to exceed expectations, the next steps include further investment in employee development and the establishment of an employee voice group.
James Bradley, CEO at Churchill Group, said: “Our core values are to always do right, always seek better and always put people first. That’s why we become an EoT and that’s why we have chosen to take a sustainability-linked loan. We of course want to operate in the most sustainable way possible, and this is a way of putting our money where our mouth is. The KPIs measure our ambitious sustainability targets, and the accreditations ensure that there is external verification of our efforts.”