October 6, 2022

Coca-Cola bottle maker and Rabobank partner in sustainability-linked financing plan for suppliers

Coca-Cola Europacific Partners (CCEP) has established a new sustainability-linked finance program. which is designed to present companies In the soft drink producer’s supply chain, the financial rate is reduced. If the company achieves important environmental and social goals

The CCEP describes a financing program supervised by food and bank specialist Rabobank, one of the first in the global beverage industry.

announced on wednesday This program is designed to offer incentives and rewards for CCEP suppliers that provide sustainability improvements in their businesses. The financing is linked to a number of key performance indicators. which, if so It unlocks an increased discount on the initial funding rate, CCEP explains.

The CCEP said the initiative would support a net zero greenhouse gas emissions target for 2040, including a goal to reduce emissions across the entire value chain by 30 percent by the end of the decade. Compared to the 2019 baseline

Over 90% of bottling releases come from the supply chain.

“We know how important it is to work with suppliers to remove carbon in our business. and is committed to providing support and solutions needed to help reduce emissions. This is in line with our sustainability goals,” said Ralph Peters, Vice President. of CCEP procurement, “Our new supply chain financing program is another important step forward in helping us to work together. by implementing positive changes and making an impact and drive sustainable development continuously”

Over 90 percent of CCEP’s emissions come from the company’s supply chain. And the company said it had previously asked suppliers to take three actions to reduce the carbon footprint of their business. This includes setting and monitoring reduction goals with the Science Based Targets Initiative (SBTi) committed to 100 percent renewable electricity across all operations. and share all carbon footprint data by 2023.

This new sustainability-linked finance project aims to build on these ambitions. At the same time, it sets new KPIs for CCEP suppliers to help improve the overall ESG rating, which it says will be assessed by sustainability rating provider EcoVadis.

The financing program was first launched in Germany. It then aims to expand to major beverage suppliers across Europe, Australia and New Zealand.

Rabobank has been approached to provide initial funding for the project. while other banks Expect to join and expand that limit over time.

CCEP plans to partner with the Rabo Foundation to support farmer programs in Indonesia.

CCEP also plans to collaborate with the Rabo Foundation — Rabobank Social Impact Fund — To support one of the farmers programs in Indonesia that promote the adoption of sustainable practices and farm inputs to increase productivity and achieve better long-term economic strength.

Rabobank’s managing director of news reports, Thomas Levin, said: “Finding solutions to help businesses achieve their sustainability goals will be central to all of our financial initiatives and our Growing a Better World Together strategy.”

Zwier Smith, Rabobank’s Director of Value Chain Finance, welcomed the announcement of the program, adding: “We are confident that by providing an improved sustainability-linked supplier finance program for the CCEP. We can create a more responsible and sustainable food and beverage industry that benefits everyone.”

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