Coca-Cola Europacific Partners (CCEP) has chosen Rabobank to run a new sustainability-linked supply chain finance programme. Rabo will provide funding to the programme, with other banks expected to participate and grow the facility over time.
The programme incentivises suppliers to make sustainability improvements. It will provide competitive financing that is linked to sustainability-driven KPIs for suppliers that unlock incremental discounts against the initial funding rate. The programme will set KPIs for suppliers in improving their overall ESG ratings, using data from EcoVadis.
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, It represents a significant win for Rabobank, replacing several existing programmes at CCEP, which has annual revenues of €13.5bn.
CCEP will also partner with Rabo Foundation, Rabobank’s social impact fund, to support one of its farmer programmes in Indonesia that promotes the adoption of sustainable practices and farm inputs to increase yields and achieve better long-term economic strength.
Anthony Breach, Director of Procurement CoE at CCEP, will share more details of this programme at Working Capital Forum Europe in Amsterdam on 1st December.