EUROPE – Coca-Cola Europacific Partners (CCEP) in partnership with specialist food and Agri bank Rabobank, has enacted a new sustainability-linked supply chain finance programme for its suppliers.
The programme, one of the first of its kind in the global beverage industry, structured and operated by Rabobank will incentivize and reward suppliers for improving their ESG performance and supports CCEP’s ambition to reach net zero by 2040.
It will also help reduce greenhouse gas (GHG) emissions across CCEP’s value chain by 30% by 2030, to boost the positives it achieved in 2019.
Initially launched in Germany, the programme will be expanded to CCEP’s suppliers in the rest of Europe, Australia and New Zealand in future phases.
In the partnership, Rabobank will provide funding to the programme with other banks expected to participate and grow the facility over time.
The competitive financing 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 make sustainability improvements in its businesses.
Thomas Levin, Managing Director of Coverage at Rabobank, commented that coming up with solutions to help businesses achieve their sustainability targets runs to the heart of all of Rabobank’s financing initiatives and Growing a Better World Together strategy.
The company has also committed to using 100% renewable electricity across its operations by 2023 and sharing its 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).
Ralf Peters, Vice President Procurement, CCEP stated: “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.”
In the same line, Zwier Smith, Director of Value Chain Finance was confident that by providing an enhanced sustainability-linked supplier finance programme for CCEP, Rabobank can create a more responsible and sustainable food and beverages industry that everyone benefits from.
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