Words by Smiley Team
An integral part of transitioning to a green economy involves companies offering more sustainable investment opportunities, divesting from fossil fuels and making their finances fit the needs of an increasingly fragile planet. Setting the business world an important example, Tesco is the first retailer to offer a sustainable bond that will help the company on its way to zero emissions in the UK by 2035.
Inviting environmentally-minded investors to contribute to the bond of €750 million, the retailer is offering an opportunity to save money through a scheme that will improve the company’s environmental impact. Launched in order to reduce their greenhouse gas emissions by 60 per cent by 2025, this is the first bond Tesco has issued that is linked to their commitment to going green and the first of its kind issued by a retailer.
Announcing the bond, their chief financial officer Alan Stewart said: “Linking our financial strategy to our long-term commitment to tackling sustainability is an important step in ensuring that this commitment is embedded across all our business operations and ensures we are driving continuous improvement. We are proud to be making good progress on our journey to be a net-zero carbon business in the UK by 2035 and for the entire Group by 2050.”
The launch of their first sustainability-linked bond builds on the company’s efforts to reduce its impact on the environment and become a net-zero carbon business in the UK by 2035.
Among the retailers leading the way in their environmental efforts, Tesco was the first business globally to set a zero-carbon goal in 2009, as well as the first FTSE 100 Company to aim for carbon reduction targets that, if all companies participated, would help keep the planet below 1.5°C of warming.
Working towards these targets, the company has so far achieved a 50 per cent reduction in emissions since 2015 as well as sourcing 97 per cent of electricity from renewable sources. In November 2020, they partnered with renewable energy company Low Carbon to create three new solar farms and introduced a fleet of electric delivery vehicles in London in their mission to go fully electric by 2030.
Taking inspiration from Tesco’s initiatives, companies can make similar moves to encourage investments in their journeys towards sustainability. After all, if we are to avoid the worst of catastrophic climate collapse, we have limited time to do so.
