In January 2025, Asda will introduce a new scheme offering enhanced financing rates to over 250 suppliers, linked to the retailer s existing Supply Chain Finance programme with HSBC. The access to three tiers of enhanced rates will be based on suppliers ESG (Environmental, Social, and Governance) performance data, commitments, and actions towards shared sustainability goals. The retailer will use EcoVadis data platform to score performance, rewarding those who meet KPIs and share their data with improved rates. The scheme will prioritize decarbonization but also consider other ESG areas, such as social initiatives. Asda s largest suppliers, responsible for around 80% of its product carbon emissions, are already required to share sustainability data through the EcoVadis assessment platform. Asda s chief financial officer, Michael Gleeson, emphasizes that this new scheme is a crucial step in the retailer s decarbonization and ESG journey, with supplier engagement being essential. The partnership with HSBC, which has roots dating back to a Yorkshire family business in the 1920s, aims to support Asda s sustainability ambitions. Suppliers who choose not to engage in the program will remain on current payment terms and default rates. The supply chain finance program will continue to provide payment within 14 working days. In related news, Food Manufacture shares the latest movers and shakers in the industry, with a September appointment round-up.
Source: foodmanufacture.co.ukPublished on 2024-09-26
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