Supermarket giant Woolworths
(ASX:WOW) has committed to $880 million (EU 550 million) in bonds, outlining their sustainability goals of reducing carbon emissions.
The bonds will predominantly be issued to institutional European investors, and includes a penalty if at the end of FY26, scope 1 and 2 emissions targets are not met.
Woolworths hope to reach their reduction target by 2030, in line with the Paris agreement scenario of limiting global warming to 1.5 degrees.
“The bond is directly linked to our emissions reduction performance and embeds financial incentives to drive meaningful change, in addition to the clear incentives to do so for the environment and our customers,” commented chief financial officer Stephen Harrison.
Settlement is expected occur on 16 September this month. The funds will be used to establish long-term funding for the company's recent investments in Quantium and PFD Food Services.
Shares in Woolworths
(ASX:WOW) are trading 0.6 per cent lower at $39.57.
