Asda Introduces Sustainable Supply Chain Finance Scheme
Asda, in collaboration with HSBC UK, is introducing a sustainability-linked enhancement to its Supply Chain Finance scheme, set to launch in January of the following year. The initiative aims to motivate firms in Asda s supply chain to adopt improved sustainability practices by offering financial incentives. The scheme will provide over 250 suppliers who are already part of the existing scheme with access to three tiers of enhanced financing rates. These tiers will be based on the suppliers disclosure of ESG (Environmental, Social, and Governance) performance data, setting targets, and taking action on shared sustainability goals. The performance of suppliers will be evaluated by the sustainability data platform EcoVadis, with those demonstrating strong performance against their ESG Key Performance Indicators (KPIs) and sharing their sustainability data receiving the most favorable financing terms. The focus of scoring will be on decarbonization, but it will also consider other ESG elements, such as social initiatives. Asda already requires its largest suppliers, responsible for approximately 80% of its product carbon emissions, to share sustainability data through the EcoVadis assessment platform. The company emphasizes the importance of engaging with suppliers to drive progress towards its own decarbonization and ESG targets. HSBC s Global Head of GTS, Vivek Ramachandran, highlights that this financing solution promotes transparency and encourages better ESG practices in Asda s global supply chain. The new scheme will not cause any operational disruption to existing suppliers. Those who choose not to participate will continue to receive payments under the current terms, with no change in default rates. The potential concern raised is whether Asda might be better served by addressing more immediate performance issues, as sustainability has not yet transitioned from a cost factor to a profit improvement factor. This commentary suggests that while the new scheme is a step in the right direction, there may be other pressing issues that need to be addressed to improve overall performance.
Source: kamcity.comPublished on 2024-09-26
Related news
- Asda launches sustainable supply chain finance scheme
- German Prosecutors Probe Whistleblower Greenwashing Allegations
- Kudu Investment Management Takes Stake in Sage Advisory Services
- IR TV : Mark Babington of the FRC on ESG regulation
- New EU measures on sustainability ground - breaking
- Parents can now bag a second - hand bargain at Mamas & Papas in Gateshead
- IMF Calls For Global Guidelines On Climate Reporting
- Greenwashing and the SEC : 2022 ESG Disclosure Targets
- Regal Investment Advisors LLC Has $243 , 000 Stock Position in iShares ESG MSCI united states Leaders ETF ( NASDAQ : SUSL )
- Federal court strikes down Missouri investment rule targeted at woke politics
- Rocky Mountain Why : Michigan new energy regulator hails from think tank behind discredited gas stove study – Michigan Capitol Confidential
- Notable Key Takeaways of EOG Resources , Inc . ( EOG ) Financial Quarterly Update
- Why Graphite Could be the Next Critical Mineral to Rise Steeply in Price
- Blink Charging Elects New Board Member
- Agricultural Interests Voice Opposition to SEC Climate Disclosure Proposal