Henkel has become the latest multinational to add an ESG component to its supply chain finance offer. Deutsche Bank, which funds Henkel's SCF programme, will link supplier early payments to ESG data provided by EcoVadis.
Speaking to Der Treasurer, Ulrich Borgstädt, head of group treasury at Henkel, said the ESG offer was being launched in Europe at first but could soon be rolled out globally. 'That's one of the reasons why we decided to link to Ecovadis,' he added, 'This rating is recognised globally and can therefore also be used in other regions.'
Deutsche Bank has adapted its systems to integrate the EcoVadis data and allow suppliers to be moved from one category to another 'with the click of a mouse', said Michael Dietz, head of trade finance flow at Deutsche Bank.
Citi is to expand its supply chain finance offering in Africa with funding from British International Investment (BII), the UK’s development finance institution.
The Master Guarantee risk-sharing agreement with BII will boost Citi’s supply chain finance volumes in Africa, with a focus on funding SME suppliers and underserved or excluded businesses.
Chris Cox, Global Head of Trade & Working Capital Solutions, Treasury and Trade Solutions, Citi, said the agreement would, “Enable us to expand our supply chain finance offering and increase credit to suppliers most in need, in particular the small and medium size enterprises that normally have limited access to financing.”
Taulia has become the latest supply chain finance provider to announce that it is integrating ESG data from EcoVadis into its platform. EcoVadis will provide ESG ratings for the SAP-owned fintech's Sustainable Supplier Finance solution.
The announcement formalises a relationship which had already seen J.P. Morgan and Taulia fund and manage a sustainable SCF programme for Bridgestone, which uses a pricing matrix linked to EcoVadis data.
Last week CRX Markets announced its own partnership with EcoVadis, which is rapidly gaining ground as the ESG data provider of choice for SCF programmes, with Morningstar's Sustainalytics its closest competitor.
ESG-linked supply chain finance will be a key topic at Working Capital Forum Europe in Amsterdam on 1st December. Tickets are available now.
U.S. Bank is to work with SCF platform provider LiquidX to offer supplier finance to the bank's corporate clients.
The collaboration will see suppliers and buyers able to connect their supply-chain systems directly to U.S. Bank and transact through LiquidX’s platform. Suppliers can then be paid nearly immediately and buyers may receive extended payment terms.
'With so many supply-chain challenges for businesses, we want to help make the financing process as smooth as possible,” said Dan Son, head of global banking division at U.S. Bank. 'This new collaboration will deliver a single intuitive interface that seamlessly connects suppliers, buyers and our bank in the supply-chain ecosystem.'
Call centre provider Continuum Global Solutions has turned to LSQ for a $65 million invoice finance facility to replace an existing line of credit.
LSQ will also be providing the company with accounts receivable management solutions, including customer credit, risk management, and collections through the LSQ FastTrack® platform.
'This new facility with LSQ allows Continuum to continue our growth plans for the foreseeable future,' said Michael Flodin, CEO at Continuum.'The structure of the arrangement also allows us the flexibility needed to achieve these goals.'
LSQ worked with strategic partner Skyview Capital to complete the financing for its portfolio company Continuum, according to Miguel Serricchio, LSQ executive VP of channel management and strategy.
The company is looking forward to this new relationship and appreciative for the creative structure which allows Continuum to stay on its growth trajectory," said Dean Estrada, managing director at Skyview Capital.
CRX Markets has partnered with EcoVadis to integrate its sustainability ratings into its platform. The deal will allow funders to assess corporate sustainability in based on Ecovadis data and and offer appropriate financing rates.
CRX Markets launched what was claimed as the first Sustainable Supply Chain Finance (SSCF) transaction in the DACH region with its client, Nestlé, in April 2020. Since then it claims to have arranged close to half a billion dollars in financing through the programme.
Frank Lutz, CEO of CRX Markets, said the firm sees, 'A high demand from companies to map ESG criteria also in working capital finance. This is not just a trend but will become an integral part of any corporate financing.'
At EcoVadis, communications and marketing director David McClintock added, 'By combining our Sustainability Ratings with CRX Markets Platform, together we can deliver the integration and automation required to bring powerful financial incentives for companies to improve their sustainability performance, and drive positive impact at global scale.'
Citi is working with SCF platform Stenn to offer deep-tier financing to smaller firms in its clients' supply chains. Citi described the move as part of an expansion of its global trade payables finance product suite to cover onboarding, compliance, risk management, and potential financing for deep-tier suppliers.
Chris Cox, head of trade and working capital, treasury, and trade solutions at Citi, said, ‘Deep tier supplier financing provides our clients with solutions that can further strengthen relationships with suppliers and help to improve the resilience of supply chains. Developing these offerings with fintechs like Stenn helps deliver that capability.’
Greg Karpovsky, CEO at Stenn, described the Citi partnership as, ‘A significant milestone.’
Italian food company Barilla is the latest customer for Kyriba's Enterprise Liquidity Management platform to support its treasury, risk management and supply chain finance operations.
The solution will centralise Barilla’s multiple supply chain finance programs into a single Dynamic Discounting programme. The platform, says Barilla, will also increase cash visibility, improve cash forecasting, and digitise FX, interest rate, and commodities risk management.
'We set out to bring more value to the Barilla enterprise and required a provider that would deliver an easy-to-use solution with proven expertise in supply chain finance, and a robust multi-bank connection capable of onboarding suppliers anywhere in the world', said Giangaddo Prati, Group Chief Financial and Information Technology Officer at The Barilla Group. 'Kyriba is the only provider to bundle treasury management and supply chain finance in a unique solution.'
SAP is to buy working capital fintech Taulia for an undisclosed sum. In a statement, SAP said the move would, ‘Expand SAP’s Business Network and strengthen SAP’s solutions for the CFO office.’
The Working Capital Forum has launched a research project aimed at analysing the state of automation in account payable (AP) departments in global businesses.
The AP Initiative starts with a survey of several hundred AP and shared services directors to understand which stages in the AP process are causing the most friction and which would most benefit from further automation or digitisation.
This survey, supported by Taulia, is now open to responses.