The company will use the funding to renovate its network of refrigeration systems, starting with factory replacements at its Sutton Bridge and Boston sites in Lincolnshire, and at the Bo’ness site in West Lothian.
Ben Waldron, Chief Financial Officer of the Bakkavor Group, said: “Now more than ever, climate action is at the forefront of the way we do business. On the eve of COP26, we are supporting the efforts of UK businesses – and the food industry in particular – to lead the way in the fight against climate change.
Greater operational impact
“As a manufacturing company, our greatest operational impact on the climate comes from the heating and cooling systems used at our sites. route to Net Zero.
Bakkavor’s investment in its refrigeration systems was the first milestone after launching its environmental, social and corporate governance (ESG) strategy.
The strategy focused on reducing the carbon footprint and manufacturer’s energy intensity across operational manufacturing, to achieve net zero by 2040.
Sacha Balachandran, Head of Equipment Finance at HSBC UK, added: “Since the launch of its ESG strategy, Bakkavor has sought to innovate in order to fight against its environmental footprint. It is not easy in the refrigerated products industry, which faces many challenges in maintaining product quality during production and distribution.
“This funding is indicative of a broader trend in the industry to use technology to find new ways to be successful with low carbon operations. Bakkavor is at the forefront of this approach.
Bakkavor’s latest investment in sustainability follows a series of similar announcements from food and beverage manufacturersDuring and in the run-up to COP26.
Meanwhile, the fresh prepared food processor Fenmarc Produce has purchased two new production lines, thanks to a Funding of £ 1.9million from HSBC UK.