The business will use the funding to overhaul its network of refrigeration systems, starting with plant replacements at its Sutton Bridge and Boston sites in Lincolnshire, and Bo’ness site in West Lothian.
Ben Waldron, chief financial officer at Bakkavor Group, said: “Now more than ever is climate action at the forefront of how we do business. On the cusp of COP26, we support UK business efforts – and the food sector in particular – leading the way on tackling climate change.
Biggest operational impact
“As a manufacturing company, our biggest operational impact on the climate comes from the heating and cooling systems used in our sites, so it’s great to see the next phase of the overhaul of our refrigeration systems get underway, reducing our company’s carbon footprint on the road to Net Zero.
Bakkavor’s investment into its refrigeration systems was the first milestone to follow the launch of its environment, social and corporate governance (ESG) strategy.
The Strategy focused on reducing the manufacturer’s carbon footprint and energy intensity across operational manufacturing, in order to achieve net zero by 2040.
HSBC UK head of equipment finance Sacha Balachandran added: “Since the launch of its ESG strategy, Bakkavor has sought to innovate in order to tackle its environmental footprint. This isn’t easy in the refrigerated goods sector, which has a variety of challenges to maintain product quality during production and distribution.
“This funding is indicative of a wider trend in the industry to use technology to find new ways to succeed with low-carbon operations. Bakkavor is right at the cutting edge of that approach.”
Bakkavor’s latest investment in sustainability followed a string of announcements in a similar vein from food and drink manufacturers during and in the run-up to COP26.
Meanwhile, fresh prepared foods processor Fenmarc Produce has purchased two new production lines, thanks to a £1.9m finance package from HSBC UK.