The International Finance Corporation (IFC), a member of the World Bank Group, has signed four sustainability-linked loans totaling $250 mn with Coca-Cola İçecek A.Ş. (CCI) of Türkiye and its subsidiaries in Uzbekistan, Tajikistan, and Iraq. This investment aims to support CCI in implementing sustainable manufacturing processes and enhancing gender equality within its workforce.
Investment Focus on Sustainability and Gender Equality
The financing from IFC is designed to help CCI, a multinational beverage producer, improve its sustainability practices across four countries. These improvements include reducing energy and water usage, enhancing circular economy practices, and increasing the use of recycled PET bottling capacities. Additionally, the funds will be directed towards energy-efficient equipment, renewable energy projects, and water-saving measures.
Erdi Kurşunoğlu, Chief Financial Officer of CCI, highlighted the company's commitment to creating value for its consumers, customers, employees, and the community.
"This deal is an important milestone in achieving CCI's long-term expansion plans in some of its fastest-growing markets," he said.
An important portion of the financing, 60%, is dedicated to climate finance. This allocation underscores the critical importance of environmental sustainability in CCI's operations. The funds will help the company to adopt more sustainable manufacturing processes and reduce its environmental footprint.
Enhancing Female Representation in the Workforce
One of the key objectives of this financing deal is to boost female labor participation and women's empowerment within CCI. The company has committed to increasing female representation among new hires and at the management level to 35% and 40%, respectively, by 2030. This initiative aligns with IFC's broader goals of promoting gender equality and empowering women in the workforce.
Wiebke Schloemer, IFC Director for Türkiye and Central Asia, emphasized the importance of this collaboration.
"Through our collaboration with CCI, we will help elevate the beverage sector's sustainability path and enhance industry practices. This financing will support CCI in implementing sustainable manufacturing processes, promoting gender equality, and boosting job creation. The investment aligns with our mission to foster inclusive economic development by stimulating growth in the project countries' supply chain, logistics, and distribution sectors," she said.
CCI's expansion efforts, supported by this investment, are expected to have substantial economy-wide effects. The initiative is anticipated to create numerous direct and indirect jobs along the company's supply chains in Türkiye, Uzbekistan, Tajikistan, and Iraq. By enhancing local production capacities and improving sustainability practices, CCI will contribute to the economic growth and development of these countries.
CCI operates in Türkiye, Pakistan, Kazakhstan, Iraq, Uzbekistan, Bangladesh, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan, and Syria. The company produces, distributes, and sells sparkling and still beverages from The Coca-Cola Company and Monster Energy Beverage Corporation. Additionally, CCI produces fruit juice concentrate through its affiliate Anadolu Etap İçecek.
Employing over 10,000 people, CCI operates 33 bottling plants and 3 fruit processing plants across 12 countries, serving a population of 600 million. The company's product portfolio includes juices, waters, sports and energy drinks, iced teas, and coffee. CCI's shares are traded on the Borsa Istanbul Stock Exchange under the symbol "CCOLA.IS".
The IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Operating in over 100 countries, IFC leverages its capital, expertise, and influence to create markets and opportunities in developing nations. In the fiscal year 2023, IFC committed a record $43.7bn to private companies and financial institutions in developing countries, aiming to end extreme poverty and boost shared prosperity as economies grapple with global compounding crises.
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