The programme incentivises and rewards suppliers to make sustainability improvements in their businesses.
Rabobank will provide funding to the programme that is linked to a number of sustainability-driven KPIs for suppliers that, when met, unlock incremental discounts against the initial funding rate. It is expected that other banks will participate and grow the facility over time.
The move aligns to CCEP’s own action to reduce emissions across its entire value chain and reach net zero by 2040.
Over 90% of CCEP’s emissions are attributed to its supply chain, and it has already asked its suppliers to take three actions to make impactful carbon reductions in their businesses. This includes setting and validating reduction targets with the Science Based Targets Initiative (SBTi) by 2023; committing to using 100% renewable electricity across their operations by 2023 and sharing their carbon footprint data.
CCEP said the programme would build on this and set KPIs for suppliers in improving their overall ESG ratings, via assessment from EcoVadis, the provider of business sustainability ratings.
Initially launched in Germany, the programme will be expanded to CCEP’s suppliers in the rest of Europe, Australia and New Zealand in future phases.
Ralf Peters, vice president procurement, CCEP, said: “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.”
Thomas Levin, managing director Coverage at Rabobank, said: “Coming up with solutions to help businesses achieve their sustainability targets runs to the heart of all of our financing initiatives and Growing a Better World Together strategy.”