Co-op has announced the extension of its £400 million credit facility, which links the cost of borrowing to specific ESG goals, for the next five years.

The retailer’s revolving credit facility provides a backstop liquidity source with access to additional funds should they be needed to support Co-op's growth strategy.

Six banks support Co-op in the extended facility including Barclays Bank, Handelsbanken PLC, Lloyds Bank and Santander.

The deal builds on new sustainability and social targets the Co-op announced earlier this year, which include reducing carbon emissions across its supply chain as well as lowering levels of food waste.

In the announcement, Co-op said it had added a new gender and ethnicity metric to its goals, ensuring that it is a diverse and inclusive employer to represent the communities it serves. The company says it is the only major retailer to have a female chief executive officer from an ethnic minority background, a female chief financial officer and a female chair of its board.

The Co-op added that it aims to have 79 per cent of its suppliers enrolled in the Science Based Targets initiative by the ed of 2030, with the company aiming to reduce food waste by around 650 tonnes per year across its stores and depots.

“The successful extension of our credit facility out to 2029 underscores the improved financial position of our Co-op, the balance sheet strength we now have to fuel our sustainable profitable growth ambitions, and the collective confidence in our ongoing financial resilience,” said Rachel Izzard, chief financial officer at Co-op. “As a Co-op we are here to create sustainable value for our more than 6 million active member-owners and the communities in which we operate and source from.”

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