Compass Group Issues First Sustainable Bonds to Achieve Net Zero Goals
, fromCompass Group PLC
Compass Group, the world's largest food services group, has successfully issued two Sustainable Bonds, raising €500 million and £250 million, respectively, to fund the Group's sustainability initiatives and the attainment of its global Climate Net Zero target.
Compass became the first international contract catering company to announce a global commitment to Climate Net Zero by 2050, including validated Science Based Targets and a commitment to be carbon neutral globally in its own operations by 2030, in October 2021. The new Sustainable Bond issuances represent another industry first for the Group in support of this 2050 Net Zero goal.
The proceeds of the Sustainable Bond will be used under the Group's new Sustainable Financing Framework (launched in July 2022) on projects that will improve responsible sourcing, products purchased from local and diverse suppliers, and other sustainable expenditure that supports decarbonisation throughout the Group's value chain.
Palmer Brown, Group Chief Financial Officer of Compass Group, said:
“As a Group, we recognise the importance of acting on climate change and are committed to delivering a sustainable future for all. Our new Sustainable Bonds and Sustainable Financing Framework not only reflect our objective to be a socially and environmentally responsible organisation for our clients, employees, suppliers, and wider society; they also support our long-term Climate Net Zero ambitions.
“We intend for the proceeds of the Sustainable Bonds to initially support the increased purchase and tracking of Fairtrade and sustainable goods within our supply chain, reducing our Scope 3 emissions footprint while funding diverse and minority suppliers.
“Furthermore, by providing a sustainability reporting framework for our colleagues to adhere to, we expect to see additional operational benefits across the Group’s businesses, reinforcing more sustainable practices and behaviours while accelerating existing projects that underpin our growth and drive efficiencies.”
The transaction also supports the Group's funding needs in FY23, replacing an existing €500 million Eurobond that matures in January 2023. The Group has committed to providing a Green Financing Report annually until full allocation has been achieved, disclosing how the proceeds have been allocated alongside the environmental and social impacts of the financed projects.
Source: Compass Group