HOFER KG which manages the international activities of the ALDI SOUTH Group outside of Germany, has signed a more than one billion euros revolving credit facility (RCF) that is linked to specific sustainability targets of the company. The RCF has a term of five years and includes two extension options of one year each.
The credit facility is - for the first time - linked to sustainability goals of the ALDI SOUTH Group, which have a positive or negative impact on the credit margin, depending on whether the targets are achieved. The three targets reflect the three international focus areas of zero carbon, resource efficiency and human rights, with which the ALDI SOUTH Group aims to achieve its vision: Making sustainability affordable for its customers.
Specifically, the agreed targets include the following three points:
- By the end of 2025, the ALDI SOUTH Group will have conducted a total of twelve Human Rights Impact Assessments to better understand, assess and address the adverse impacts of its business. The focus will be on the most critical supply chains, such as coffee, cocoa, tropical fruits, and textiles.
- In line with its vision of "Zero Carbon ", the ALDI SOUTH Group commits to reduce its CO2 emissions by 36 per cent internationally by the end of 2025 compared to 2016. The ALDI SOUTH Group will invest in modern technologies such as photovoltaic and refrigeration systems across its stores and regional distribution centers. In addition, the ALDI SOUTH Group encourages its suppliers to establish their own reduction targets by 2024.
- The ALDI SOUTH Group is increasing the number of sustainable products in its product range by 10 percent by 2025. The focus is primarily on critical product groups like coffee and cocoa, wood, fish, and seafood as well as cotton. For the sake of transparency and verifiability, the ALDI SOUTH Group relies on third-party certifications such as Fairtrade, Rainforest Alliance, Organic and FSC.
For many years, the Group has successfully integrated sustainability into the business. The new International CR Strategy focuses on the most pressing global challenges. The ten-year strategy includes a total of six key areas: respecting human rights, increasing resource efficiency, reducing all emissions, positioning the company as an attractive employer, giving all customers access to healthy products, and supporting local communities. Eleven long-term goals have been defined, such as increasing supply chain transparency, expanding human rights programs, and reducing greenhouse gas emissions. The ALDI SOUTH Group aims to enable its customers to consume consciously and sustainably while staying true to its discount value proposition.
The new revolving credit facility is provided by a consortium of international banks, with HSBC acting as the documentation agent and sustainability coordinator.
