Deutsche Bank and BASF Ally for Greener Supply Chains
Highlights
- Launch Asia's first sustainability-linked payables finance programme in China.
- Incentivise suppliers to adopt sustainable practices through preferential interest rates.
- EcoVadis will assess supplier sustainability performance.
- Aim to rejig supply chain sustainability and financial performance.
Deutsche Bank has teamed up with BASF to introduce Asia's first sustainability-linked payables finance programme, focusing on BASF's operations in China.
This innovative solution converts BASF's existing payables finance programme into a sustainability-driven model for its Chinese subsidiaries.
The programme offers better interest rates to suppliers who adopt sustainable practices. It uses EcoVadis, a well-known rating platform, to assess supplier sustainability. This helps suppliers to enhance their environmental and social performance.
By linking financial rewards with sustainable actions, the programme deepens the partnership between BASF and its suppliers, promoting positive change across the supply chain.
Ole Matthiessen, Head of Corporate Bank for Asia Pacific, Middle East, and Africa at Deutsche Bank, says: "We are delighted to partner with BASF on its first sustainability-linked payables finance program in Asia. We are strongly committed to our sustainability strategy and helping our clients find innovative new solutions that not only improve resilience of their supply chains, but also advance their sustainability footprint to future proof their operations. We look forward to continuing to help BASF with its sustainable growth ambitions globally.”
Birka Benecke, Senior Vice President Corporate Treasury at BASF, said: “With this program, we can deepen our collaboration with our suppliers and strengthen the partnership in the area of sustainability transformation. This also gives us the opportunity to further optimise our supply chains.”
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Source: Deutsche Bank
