Co-op has announced a significant extension to its sustainability-linked revolving credit facility, now set to last until November 2029.
This extension is a crucial step in Co-op’s broader strategy to reinforce its commitment to sustainable business practices. The £400 million facility will serve as a financial safety net, ensuring Co-op can access additional funds to support its sustainability and growth ambitions when necessary. Six major banks, including National Westminster and Barclays, have backed this initiative, linking Co-op’s borrowing costs to its Environmental, Social, and Governance (ESG) commitments.
Currently, approximately 47% of Co-op’s Scope 3 emissions are covered by suppliers who adhere to the Science Based Targets initiative. Co-op aims to increase this figure to 79% by the end of 2030. To achieve this, the retailer is fostering cross-sector partnerships, issuing clear sustainability guidance, collaborating with farmers to minimise emissions, and embedding sustainability goals within business contracts and plans.
Co-op has set an ambitious target to reduce food waste by half across its stores and depots by 2030, aligning with the Waste and Resources Action Programme’s best practices. This commitment translates to reducing nearly 650 tonnes of food waste annually through systematic operational assessments and cultivating essential partnerships.
Additionally, Co-op is committed to enhancing diversity and inclusivity within its workforce. By incorporating diversity targets into their bank facility metrics, they aim to mirror UK population data in management roles regarding gender and ethnic diversity. This effort illustrates Co-op’s dedication to social responsibility within its corporate structure.
Co-op’s Chief Financial Officer, Rachel Izzard, highlighted the strategic nature of this financial extension, emphasising the strengthened financial position and resilience it brings. “As a Co-op, we aim to create sustainable value for our more than 6 million active member-owners and the communities we serve,” she stated.
Co-op’s extension of its revolving credit facility underscores its resolve to integrate sustainability into its financial strategies, ensuring long-term resilience and community value.
