Tesco launches £400m sustainability bond

It is aligned with the supermarket’s aim to slash Scope 1 and 2 emissions by 60% by 2025

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Tesco has launched a £400 million sustainability-linked bond, enhancing its commitment to slash emissions.

This the second sustainability-linked bond the supermarket has launched, following its first in January of this year and its establishment of a £2.5 billion credit facility in October 2020 – with interest linked to environmental targets.

The new bond is aligned with reducing Scope 1 and 2 emissions by 60% by 2025 and has a seven-year maturity.

Tesco stated it has already halved its emissions from 2015 levels and uses 100% renewable electricity.

Imran Nawaz, CFO at Tesco, said: “I am delighted that we have issued our second sustainability-linked bond, further demonstrating our commitment to achieving our climate change targets, especially in the run up to the COP26 climate conference next week.

“We are proud to be making good progress on our journey to be net zero in our operations by 2035 and by linking our financial strategy to this target, this further cements our ambition.”