Co-op has extended its £400m sustainability-linked credit facility for five more years, solidifying its commitment to a sustainable future.
- The extension reaffirms the retailer’s drive for sustainable growth and provides liquidity to support its strategic vision.
- Six prominent banks are backing this financial move, linking borrowing costs to Co-op’s sustainability goals.
- Co-op aims to increase supplier adherence to its eco-targets from 47% to 79% by 2030.
- The company focuses on reducing food waste and fostering diversity and inclusion within its workforce.
Co-op, the well-known convenience retailer, has announced a significant extension of its £400 million sustainability-linked revolving credit facility. This extension runs for an additional five years, taking it to November 2029. By extending this facility, Co-op underscores its commitment to fostering a sustainable future while ensuring access to vital financial resources, should they be required to support its strategic growth plans.
The credit facility is supported by six major banks, including National Westminster Bank, Barclays Bank, Handelsbanken, Lloyds Bank, ING Bank, and Santander. These financial institutions have agreed to link the cost of borrowing to Co-op’s environmental, social, and governance (ESG) commitments. This alignment means that Co-op’s borrowing costs are directly connected to its ability to meet specific sustainability targets.
A critical aspect of Co-op’s sustainability agenda is its collaboration with suppliers. Initially, about 47% of the retailer’s Scope 3 emissions are accounted for by suppliers who are part of the Science Based Targets initiative. Co-op is working diligently to increase this figure to 79% by the end of 2030. This will involve enhancing partnerships across different sectors, offering clear guidance on sustainability, and directly working with farmers to lower production emissions.
Food waste reduction is another focal point of Co-op’s sustainability drive. The company has committed to halving the food waste produced by its stores and distribution centers by 2030. This ambitious goal is aligned with the Waste and Resources Action Program (Wrap) best practices, targeting a reduction of almost 650 tonnes of food waste annually through operational assessments and consumer awareness initiatives.
In addition to its environmental efforts, Co-op is also concentrating on social responsibility. The retailer is making strides in becoming a diverse and inclusive employer. It has set objectives for increasing the representation of women and ethnic minorities in management positions, aiming to closely align with UK population demographics, as per the latest Office for National Statistics data.
Rachel Izzard, Co-op CFO, highlighted the significance of this extension, noting the improved financial standing and balance sheet strength that supports Co-op’s sustainable growth ambitions. She emphasized the importance of creating sustainable value for Co-op’s six million members and the broader community.
Co-op’s financial move illustrates a firm step towards achieving its long-term sustainability and growth objectives.
