In this paper, we examine how this new bond compares to the company’s earlier instruments, and what its choice of Sustainability Performance Targets (SPTs) says about its environmental ambitions – and what they mean for the bonds’ financial materiality.
The latest SLB has its coupon linked to Scope 1+2 emissions reductions and supplier climate commitments. But Carrefour has already made significant progress on operational emissions, raising questions about the slight ambition represented in this structure. By contrast, its Scope 3 target, which covers 99% of its total emissions, appears comprehensive and more ambitious, but was not used as an SPT for this issuance. For bondholders, this distinction matters, as absent an ambitious target, the embedded option in an SLB may lack value to investors.
We also analyse how differing coupon step-up structures across Carrefour’s curve alter the potential payout to investors, concluding that the 2035 bond carries the highest cumulative step-up. Of the other bonds, two 2029 maturities stand out for potentially reflecting divergent market expectations about target achievement and the probability of coupon step-ups.
