Co-op has unveiled “ambitious” new sustainability targets aligned to its credit facilities.
The new targets include reducing carbon emissions across its supply chain, with the aim of having two thirds of suppliers enrolled in the Science Based Targets initiatives by the end of 2025, up from 37% currently.
It will also target a 650 tonnes reduction in food waste per year, and will double the annual funding to Co-op Levy Share, investing thousands in apprenticeships.
The goals align with its commitment to reach net zero status across all of its operations by 2035, and across its whole business by 2040. It follows The Co-op meeting its original greenhouse gas target early, ahead of its 2025 goal.
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The update comes after the mutual became the first UK retailer to adopt a sustainability-linked financing facility in 2019, with the new targets building on this commitment.
Its revolving credit facility is supported by Lloyds Bank, Barclays, NatWest, ING Bank, Handelsbanken and Bank of Ireland,
Co-op explained while its RCF was currently undrawn due to the “considerably enhanced” financial strength of the business after it improved net debt and cash generation in its last financial year, it provided a backstop liquidity and working capital management facility which was important for its future vision and growth strategy ambition.
Co-op CFO Rachel Izzard said: “These new targets reflect our commitment to the issues which matter most to our member-owners, including environmental stewardship and the reduction of carbon emissions and food waste across our business and supply chains.”
“This also marks a further step forward towards our goal of achieving net zero across our operations by 2035.
“The banks supporting Co-op share our commitment to these important areas, and their backing will go a long way to facilitating the implementation and achievement of our plans.”
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