Tesco to offer supply base sustainability-linked supply chain finance

Wednesday 5 May 2021 13:15 CET | News

Tesco has announced it will offer its supply base sustainability-linked supply chain finance to encourage more suppliers to sign up to science-based emissions reduction targets.

The voluntary programme, which has been in development for 18 months and is due to launch in September 2021, will see annual greenhouse gas emissions data provided by suppliers independently verified and assessed by sustainability experts.

Tesco suppliers will be offered preferential financing rates via Santander’s supply chain finance platform which incentivises suppliers to make positive changes to their business while tracking performance. The rates will be based on each suppliers’ carbon data disclosure, emissions reduction targets, and progress against sustainability goals.

The retailer expects the programme to be of particular interest to small and medium-sized businesses. Tesco will provide online tools and support to help these suppliers enrol in the scheme.

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Keywords: supply chain finance, data, SMEs
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: United Kingdom
This article is part of category

Banking & Fintech