Co-op has announced a significant extension to its £400 million sustainability-linked revolving credit facility, now set to continue until November 2029. This move is a testament to the retailer’s dedication to sustainable growth and ensuring financial resources are aligned with their environmental goals.
The extension of the credit facility involves cooperation with six prominent banks—National Westminster Bank, Barclays Bank, Handelsbanken PLC, Lloyds Bank PLC, ING Bank, and Santander. These financial institutions link the cost of borrowing to Co-op’s environmental, social, and governance (ESG) commitments, enhancing the retailer’s focus on sustainability.
Currently, approximately 47% of Co-op’s Scope 3 emissions are managed by suppliers adhering to the Science Based Targets initiative. Co-op aims to elevate this figure to 79% by 2030, reinforcing its responsibility towards emissions reduction.
To achieve these ambitious targets, Co-op is forming strategic partnerships across various sectors. This includes providing sustainability guidance, collaborating with farmers, and integrating sustainability objectives into contracts. These efforts underscore their commitment to reducing emissions throughout their supply chain.
The organisation has committed to halving food waste from its stores and depots by 2030. This aligns with the Waste and Resources Action Programme (WRAP) guidelines, with plans to eliminate approximately 650 tonnes of food waste annually, supported by operational assessments and customer awareness campaigns.
In addition to environmental targets, Co-op is pursuing diversity and inclusivity within its workforce. The facility’s new metrics aim to reflect UK population data in its management, focusing on increasing the representation of women and ethnic minorities. This aligns with Co-op’s vision of being a diverse and inclusive employer.
Rachel Izzard, Co-op’s Chief Financial Officer, emphasised the strengthened financial position of the Co-op, attributing the facility’s extension to their resilience and growth ambitions. She highlighted the integration of social value commitments with long-term funding strategies as a reflection of Co-op’s heritage and values.
The extension of Co-op’s sustainability-linked credit facility is a clear indication of its ongoing commitment to a sustainable and inclusive future. By aligning financial operations with environmental and social goals, Co-op is paving the way towards a more responsible and progressive retail environment.
