Sustainability has long been a top priority for the REWE Group when it comes to its products and services. We have now linked our strategy for sustainable business practices with our corporate financing, becoming the first German food retailer to successfully issue a sustainability-linked bond. What exactly is a sustainability-linked bond?
Klaus Wirbel: A sustainability-linked bond, or SLB for short, is a bond that, in addition to interest payments, offers investors the assurance that we are also committed to achieving our sustainability targets. Specifically, by the end of the seven-year bond term, we pledged to reduce the carbon emissions of the Group companies which together generate the highest emissions within the REWE Group, namely, REWE and PENNY in Germany.
Nicola Tanaskovic: We have set ourselves some very ambitious targets. By 2030, for example, we are aiming for a 42 percent reduction in emissions from our own business operations, e.g. from the consumption of electricity, heat, and fuel for vehicles as well as refrigerant losses. Experts refer to these types of emissions, over which we as a company have a large degree of control and influence, as Scope 1 and Scope 2 emissions. Scope 3, on the other hand, refers to emissions caused by suppliers in the manufacture, transportation, and packaging of products. Here, too, we are aiming for a reduction of 42 percent by 2030, or approximately 30 percent for agricultural emissions, which are the most difficult to address. Given the complexity of our supply chains, this is highly ambitious.