Coca-Cola Europacific Partners (CCEP) has announced that it has established a sustainability-linked supply chain finance programme in association with Rabobank.
Rabobank will provide funding to the programme, with other banks expected to participate and expand the facility over time, CCEP added.
CCEP’s vice-president of procurement, Ralf Peters, 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.”
The new initiative incentivises and rewards suppliers to make sustainability-focused improvements in their businesses.
It will provide competitive financing linked to a number of sustainability-driven KPIs for suppliers that, when met, unlock incremental discounts against the initial funding rate and align with CCEP’s own action to reduce emissions across its value chain and reach net zero by 2040, the company noted.
The programme, initially launched in Germany, will be rolled out to CCEP’s suppliers in the rest of Europe, Australia and New Zealand in phases in due course.
CCEP will also partner with Rabobank’s social impact fund, Rabo Foundation, to support one of its farmer programmes in Indonesia.
It focuses on promoting the adoption of sustainable practices and farm inputs to increase yields and achieve better long-term economic strength.
Thomas Levin, managing director, global corporate client coverage at Rabobank, stated, “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.”
The director of value chain finance, Zwier Smith, 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.”