GB Coke bottler Coca-Cola Europacific Partners has launched a new finance programme to encourage suppliers to make their businesses more sustainable.
CCEP has enlisted specialist food and agri bank Rabobank to provide funding for the programme.
The venture will incentivise and reward suppliers for improving their ESG performance by offering preferential lending rates depending on a number of sustainability-driven KPIs.
Initially launched in Germany, the programme will be expanded to CCEP’s suppliers across the rest of Europe, Australia and New Zealand in future phases.
The programme is designed to align with CCEP’s own actions to reduce emissions across its entire value chain and reach net zero by 2040 and reduce greenhouse-gas emissions across its value chain by 30% by 2030.
CCEP said over 90% of its emissions are attributed to its supply chain. As such, it has already asked its suppliers to take three actions to make impactful carbon reductions in their businesses: setting reduction targets by 2023; committing to using 100% renewable electricity; and sharing carbon footprint data.
The programme will build on this and set KPIs for suppliers in improving their overall ESG ratings, according to assessment from independent sustainability ratings firm EcoVadis.
CCEP said it envisages that other banks will join Rabobank to participate and grow the facility over time.
The drinks group said the programme was “one of the first of its kind in the global beverage industry”.
Last year Tesco became the first UK retailer to offer its suppliers sustainability-linked finance, via Santander, in a move the supermarket said would encourage more companies to commit to science-based emission reduction targets.
Meanwhile, CCEP will also partner with Rabo Foundation, Rabobank’s social impact fund, to support one of its farmer programmes in Indonesia that promotes the adoption of sustainable practices to increase yields and achieve better long-term economic strength.
Ralf Peters, vice president procurement at CCEP commented: “We know how crucial it is that we work together with our suppliers to decarbonise our businesses, and are committed to providing the support and solutions they need to help them reduce emissions, aligned with our own sustainability goals.
“Our new supply chain finance programme is another important step that will help us to take collective action – by implementing positive and impactful change and driving continuous sustainability improvements.”
Zwier Smith, director for value chain finance at Rabobank, added: “We’re confident that by providing an enhanced sustainability-linked supplier finance programme for CCEP we can create a more responsible and sustainable food and beverages industry that everyone benefits from.”
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