CCEP launches supply chain finance initiative tied to sustainability

CCEP launches supply chain finance initiative tied to sustainability

To achieve its goal of reducing greenhouse-gas (GHG) emissions across its value chain by 30% by 2030, CCEP has partnered with Rabobank, a specialised food and agri bank, to implement a programme that incentivizes and pays suppliers for making sustainability changes to their businesses (vs. 2019).

In line with CCEP’s own action to decrease emissions throughout its entire value chain and reach net zero by 2040, this initiative will offer competitive financing tied to a number of sustainability-driven KPIs for suppliers, the achievement of which will unlock incremental discounts against the initial funding rate.

Over 90% of CCEP’s emissions are said to be attributable to its supply chain, so the company has asked its suppliers to take three steps to make significant 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 expand on this by using EcoVadis’ assessment to establish key performance indicators (KPIs) for suppliers to meet as they work to boost their overall environmental, social, and governance (ESG) ratings (a leading provider of business sustainability ratings).

The programme began in Germany, but it will eventually include all of CCEP’s European, Australian, and New Zealand suppliers.

We recognise how important it is to engage with our suppliers to decarbonize our operations, and we’re committed to giving them the support and solutions they need to help them decrease emissions, in line with our own sustainability goals,” said Ralf Peters, Vice President of Procurement at CCEP.

One of Rabobank’s top executives, Thomas Levin, put it thus way: “Coming up with solutions to help businesses reach their sustainability targets runs to the heart of all of our financing projects and Growing a Better World Together agenda.”

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