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.'