PI Global Investments

CCEP launches sustainable supply chain finance program with Rabobank

Described as one of the first-of-its-kind in the global beverage industry, the program will be structured and operated by specialist food and agri bank Rabobank, which will provide funding to the program with other banks expected to participate in the future (Rabobank is the primary financing bank and as the program grows towards the expected funding level of €600m / $610m, it has agreed additional syndicated funding with other banks such as Santander.)

The program will provide competitive financing that is linked to a number of sustainability-driven KPIs for suppliers that, when met, unlock incremental discounts against the initial funding rate. 

It will help CCEP reach its ambition of net zero by 2040, and reduce greenhouse-gas emissions across its value chain by 30% by 2030 (compared to 2019).

From sugar cane to paper packaging

CCEP notes that supply chains are under increasing pressure from population growth, increased demand for food products and climate change.

It depends on a global supply of agricultural ingredients and raw materials from more than 20,500 suppliers to produce its drinks: ranging from sugar beet, sugar cane, coffee, tea and fruit juice through to packaging materials such as glass, aluminum, paper and PET.

CCEP has identified 13 priority agriculture-based ingredients and bio-based packaging materials: cane sugar, beet sugar, high-fructose corn syrup, stevia, orange, lemon, apple, grape, mango, coffee, tea, soy, pulp and paper.

It manages the purchase of these key ingredients together with The Coca-Cola Company and other Coca-Cola bottlers.

Source link

Related posts

Blended Finance Schemes Are Catalysing Real Impacts in Sustainable Development


Finance Committee Republicans on Democrats’ Plans to Hike Taxes, Kill Jobs and Fuel Inflation


Stocks extend losses in downbeat start to September


Leave a Comment


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    100% secure your website.