For more than a decade, Tesco has been transforming itself into a leader in sustainable business. Back in 2009, the UK’s biggest retailer became the first company in the world to set a net-zero carbon emissions target. Then, eight years later, it committed to limit global warming to 1.5 degrees Celsius at a time when other firms were aiming for 2 degrees. And last year, its UK operations brought forward its net-zero deadline from 2050 to 2035. “That shows we are really up for the challenge of getting to this target,” says Lynda Heywood, the firm’s group treasurer.
These efforts laid the foundation for Tesco’s long-awaited foray into sustainable debt. Its debut last October was a £2.5bn ($3.4bn) revolving credit facility (RCF) with interest payments linked to its so-called ‘Little Helps Plan’, an annual report-like document that tracks sustainability performance.
