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Co-op has announced the extension of its £400m sustainability-linked revolving credit facility for a further five years until November 2029.
The extension underlines the supermarket’s commitment to a sustainable future and aligns with its sustainability and social goals targets initiated within the original facility agreement.
The revolving credit facility provides a backstop liquidity source with access to additional funds should they be needed to support the group’s vision and growth strategy.
Six banks now support Co-op in the extended facility: National Westminster Bank, Barclays Bank, Handelsbanken PLC, Lloyds Bank PLC, ING Bank and Santander.
The extended bank facility links the cost of borrowing for the group to specific Co-op ESG commitments. In pursuit of Co-op’s commitment to achieve Net Zero status the business aims to have 79% of suppliers enrolled in the Science Based Targets initiative by end of 2030 and targeting a reduction of 650 tonnes of food waste per year across stores and depots.
As a starting base, around 47% of Co-op’s Scope 3 emissions are covered by suppliers adhering to the Science Based Targets initiative. As part of the refreshed targets linked to this facility, the Co-op is working with its supply chain to increase that figure to 79% by the end of 2030.
Efforts to support suppliers in achieving this include building cross-sector partnerships, disseminating clear sustainability guidance to suppliers, working with farmers and growers to reduce emissions from primary production, and embedding sustainability goals into contracts and joint business plans, among other initiatives.
Co-op has already committed to halving food waste generated by its stores and depots by 2030, aligning with the 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 over the life of the sustainability-linked loan.
Rachel Izzard, CFO at Co-op, said: “The successful extension of our credit facility out to 2029 underscores the improved financial position of our Co-op, the balance sheet strength we now have to fuel our sustainable profitable growth ambitions, and the collective confidence in our ongoing financial resilience. As a Co-op we are here to create sustainable value for our more than 6 million active member-owners and the communities in which we operate and source from.
“It is wonderful, and true to our Co-op heritage and values, to be able to weave our social value commitments into our longer-term funding strategies. I would like to personally thank our partner banks for their shared commitment in supporting these important areas, which matter so much to our member-owners.”
