THE RETAIL BULLETIN - The home of retail news
Click here
Home Page
News Categories
Commentary
CX
Department Stores
Desert Island Stores
Electricals and Tech
Entertainment
Fashion
Food and Drink
General Merchandise
Grocery
Health and Beauty
Home and DIY
Interviews
People Matter
Retail Business Strategy
Property
Retail Solutions
Electricals & Technology
Sports and Leisure
TRB conference review
Christmas Ads
Shopping Centres, High Streets & Retail Parks
Uncategorized
Retail Events
People in Retail Awards 2024
Retail Ecom North
Retail HR North 2025
Retail Omnichannel Futures 2025
Retail HR Central 2025
The Future of The High Street 2025
Retail Ecom Central
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
Tesco launches sustainability-linked bond of £400m

Tesco has today launched its second sustainability-linked bond linked to the Company’s commitment to reduce greenhouse gas emissions. Tesco was the first business globally to set… View Article

GROCERY NEWS UK

Tesco launches sustainability-linked bond of £400m

Tesco has today launched its second sustainability-linked bond linked to the Company’s commitment to reduce greenhouse gas emissions.

Tesco was the first business globally to set a zero-carbon goal in 2009 and later the first FTSE 100 Company to set science-based carbon reduction targets on a 1.5-degree trajectory. The launch of a second sustainability-linked bond further demonstrates the strength of their commitment to reduce their impact on the environment by reaching their target of reducing GHG emissions by 60% by 2025 (against a 2015/16 baseline).

The sterling bond has a coupon of 1.875% and a 7-year maturity. This follows the issuance of Tesco’s first sustainability-linked bond in January 2021 and the establishment of a £2.5bn revolving credit facility in October 2020, with interest linked to the achievement of three ambitious environmental targets.

The bond is aligned to an agreed Sustainability Performance Target (SPT) of reducing Scope 1 and 2 Group Greenhouse Gas (GHG) Emissions by 60% by 2025 against Tesco’s 2015 Baseline.

Tesco have already achieved a 50%[1] reduction in Group GHG emissions against a 2015 baseline, as well as sourcing 100%1 of electricity from renewable sources. In July 2021, they launched a new windfarm in partnership with ScottishPower Renewables to provide clean energy to power the equivalent of 20,000 homes and representing a major step towards powering Tesco stores directly from renewable sources.

The bond will be aligned to Tesco’s Sustainability-Bond Framework, which follows the ICMA Sustainability-Linked Bond principles, and has been independently assessed by Sustainalytics.

Tesco has always taken a transparent approach to reporting progress and targets for environmental and sustainable goals. The Little Helps Plan captures the approach Tesco are taking to be a responsible and sustainable business.

Imran Nawaz, CFO, 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”.

Subscribe For Retail News