Coca Cola Europacific Partners (CCEP) has established a new sustainability-linked supply chain finance programme, structured and operated by specialist food and agri bank Rabobank. Rabobank will provide funding to the programme with other banks expected to participate and grow the facility over time.
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The programme, one of the first of its kind in the global beverage industry, incentivizes and rewards suppliers to make sustainability improvements in their businesses. It will provide competitive financing that is linked to a number of sustainability-driven KPIs for suppliers that, when met, unlock incremental discounts against the initial funding rate, and align with CCEP’s own action to reduce emissions across its entire value chain and reach net zero by 2040.
Over 90% of CCEP’s emissions are attributed to its supply chain, and it has already asked its suppliers to take three actions to make impactful carbon reductions in their businesses: setting and validating reduction targets with the Science Based Targets Initiative (SBTi) by 2023; committing to using 100% renewable electricity across their operations by 2023 and sharing their carbon footprint data.
The programme will build on this and set KPIs for suppliers in improving their overall ESG ratings, via assessment from EcoVadis (a leading provider of business sustainability ratings).
Coca Cola Europacific Partners will also partner with Rabo Foundation, Rabobank’s social impact fund, to support one of its farmer programmes in Indonesia that promotes the adoption of sustainable practices and farm inputs to increase yields and achieve better long-term economic strength.
Thomas Levin, Managing Director Coverage at Rabobank, said: “Coming up with solutions to help businesses achieve their sustainability targets runs to the heart of all of our financing initiatives and Growing a Better World Together strategy.
Zwier Smith, Director Value Chain Finance, further added, “We’re confident that by providing an enhanced sustainability-linked supplier finance programme for Coca Cola Europacific Partners we can create a more responsible and sustainable food and beverages industry that everyone benefits from.”
“We know how crucial it is that we work together with our suppliers to decarbonise our businesses, and are committed to providing the support and solutions they need to help them reduce emissions, aligned with our own sustainability goals. Our new supply chain finance programme is another important step that will help us to take collective action – by implementing positive and impactful change and driving continuous sustainability improvements” – Ralf Peters Vice President Procurement, CCEP