The supply chain plays a major role in determining the ESG rating of a corporate, as more than 80% of greenhouse-gas emissions is attributable to the supply chain – the Scope3 emissions.
Supply Chain Finance can play a key role in supporting a company’s sustainability ratings. The buyer and the bank would work along with the ESG Ratings provider to score, verify and track suppliers’ ESG performance. In a sustainability linked SCF program (SSCF) the discount margin reduces with an improved ESG score of the supplier, providing a financial incentive to suppliers to improve their sustainable behaviour.
Deutsche Bank’s Anil Walia will present a case study on how an existing SCF program of a European MNC was converted to a SSCF program recently. He will touch upon the internal decision drivers at the company, explain the guidelines that an SSCF would need to follow; and discuss the various aspects that need to be considered when setting up a new SSCF program.
European Association of Corporate Treasurers (EACT) https://eact.eu/
International Group of Treasury Associations (IGTA) http://igta.org
+353 1 610 8574
Address: PO Box 10104, Lucan, Co Dublin
Copyright © IACT2022