SUPPLY CHAIN

Tesco to offer suppliers access to sustainability-linked finance

Tesco is set to become the first UK retailer to offer sustainability-linked supply chain finance, in a bid to encourage more suppliers to sign up to science-based emissions reduction targets. The voluntary programme, due to launch this September, will require suppliers signing up to the scheme to provide annual greenhouse gas emissions data, which will be independently verified and assured. Suppliers will then be offered preferential financing rates via Santander's supply chain finance platform, which incentivises suppliers to make positive changes to their business and tracks performance. The rates will be based on each suppliers' carbon data disclosure, emissions reduction targets, and progress against sustainability goals. (Business Green)

CAMPAIGNS & ACTIVISM

Credit Suisse investors call for tougher coal finance policy

Credit Suisse investors managing $2.5 trillion have called for the bank to toughen its stance on coal financing, amid concern current policies are too lax. Investors including Amundi, wrote to Credit Suisse's board asking for "firm" operational steps to curb coal lending, while backing the bank’s pledge to align financing with the Paris Agreement and set science-based emissions-reduction targets. The letter cited research from the Rainforest Action Network showing Credit Suisse to be Europe's third-biggest funder of coal power and Europe's largest backer of coal mining between 2016 and 2020. Last July, the bank said it would stop funding or underwriting companies with a coal share of revenue greater than 25%, unless they had a "credible" strategy to diversify away from thermal coal, without disclosing what it considers to be credible. (Reuters)

TECHNOLOGY & INNOVATION 

Ryanair targets 12.5% of flights using sustainable fuels by 2030

Ryanair, Europe’s biggest airline, plans to power 12.5% of its flights with sustainable aviation fuels by 2030, and has promised to allocate a €1.5 million donation to Trinity College Dublin to launch a sustainable aviation research centre. Sustainable jet fuel generally produces up to 70% less carbon than fossil fuels, offering airlines a way to become greener while continuing to fly, before less carbon-intensive hybrid, electric or hydrogen aeroplane options become available from the late 2030s. The announcement comes days after the owner of rival British Airways committed to using the fuels to power 10% of its flights. Critics are concerned Ryanair’s low-cost business model encourages people to fly more frequently and drives growth in the total number of people flying. (Reuters)

CLIMATE CHANGE

Denmark plans to spend 60% of its EU crisis funds on climate measures

Denmark wants to spend a majority of its share of the European Union’s fund for post-pandemic recovery on financing its efforts to achieve an ambitious climate target. The Nordic country has earmarked 60% of its share of the EU crisis fund on green initiatives, clearly above the 37% required by the conditions of the fund. The Danish finance ministry has already spent a significant part of its allocation on a tax reform introducing a short-term tax cut on investments into emission reduction, research and green reforms in polluting industries like agriculture and transport. All initiatives are supposed to contribute to the Danish government’s efforts to achieve its target to cut carbon emissions by at least 70% by 2030, higher than the EU’s goal of 55%. (Bloomberg*)

CIRCULAR ECONOMY

Asda launches second-hand fashion offering in 50 UK stores

Major retailer Asda is rolling out a second-hand fashion aisle to 50 of its UK stores, in a bid to encourage a more circular economy for clothing, following a successful trial in 2019. The retailer first began offering “pre-loved” garments in September 2019, as part of a month-long trial to gauge consumer attitudes and test the practicalities of this business model. Now, it has confirmed that the offer will be made available in 50 stores across the UK in collaboration with wholesaler Preloved Vintage Kilo. Clothing sold through the partnership will not only be from Asda’s George brand, as the supermarket has confirmed that “vintage, retro and second-hand branded” goods will be on offer. (Edie)

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