Supermarket Commits to Sustainable Future with Extended Revolving Credit Facility

  • Co-op extends £400m sustainability-linked revolving credit facility until November 2029
  • Six banks support Co-op in the extended facility: National Westminster Bank, Barclays Bank, Handelsbanken PLC, Lloyds Bank PLC, ING Bank and Santander
  • Co-op aims to have 79% of suppliers enrolled in Science Based Targets initiative by end of 2030
  • Targeting a reduction of 650 tonnes of food waste per year across stores and depots
  • Co-op committed to halving food waste generated by its stores and depots by 2030
  • Rachel Izzard, CFO at Co-op, thanks partner banks for their support

Co-op has extended its £400 million sustainability-linked revolving credit facility for another five years, running until November 2029. The extension highlights the supermarket’s dedication to a sustainable future and aligns with its sustainability and social goals initiated in the original agreement. The revolving credit facility serves as a backstop liquidity source for additional funds needed to support the group’s vision and growth strategy. Six banks, including National Westminster Bank, Barclays Bank, Handelsbanken PLC, Lloyds Bank PLC, ING Bank, and Santander, now support Co-op in the extended facility. The cost of borrowing for the group is linked to specific ESG commitments. Co-op aims to have 79% of suppliers enrolled in the Science Based Targets initiative by the end of 2030, targeting a reduction of 650 tonnes of food waste per year across stores and depots. Currently, around 47% of Co-op’s Scope 3 emissions are covered by suppliers adhering to the Science Based Targets initiative. The company plans to increase this figure to 79% through initiatives like building cross-sector partnerships, providing clear sustainability guidance to suppliers, and embedding sustainability goals into contracts and joint business plans. Co-op has already committed to halving food waste generated by its stores and depots by 2030, aligning with WRAP (Waste and Resources Action Programme) best practices. As part of this lending commitment, the grocer aims to reduce almost 650 tonnes of food waste per year throughout the life of the sustainability-linked loan.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Co-op’s sustainability efforts, its extended credit facility, and the involvement of various banks in supporting these initiatives. It also includes specific targets and goals related to reducing food waste and working with suppliers.
Noise Level: 2
Noise Justification: The article provides relevant information about Co-op’s sustainability efforts and its extended credit facility, with clear goals and actions outlined for reducing food waste and increasing supplier participation in the Science Based Targets initiative. It also includes a quote from the CFO that supports the content. The article stays on topic and does not dive into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Co-op’s extension of its £400m sustainability-linked revolving credit facility, which shows financial relevance as it involves a significant amount of money and impacts the company’s financial position. However, there is no mention of specific events that impact financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk