Supermarket chain Tesco has become the first UK retailer to offer sustainability-linked supply chain finance (SCF) to its supply base, through a new programme with Santander. The voluntary programme, which has been in development for 18 months and is due to launch in September, will see Tesco’s suppliers get preferential financing rates via Santander’s SCF platform if they meet targets around carbon data disclosure, emissions reduction and progress against sustainability goals. “In this critical year for climate action, we’re delighted to be able to offer thousands of suppliers access to market-leading SCF linked to sustainability,” says Ashwin Prasad, chief product officer at Tesco. “This programme not only provides suppliers with a real incentive to set science-based emissions reduction targets, but will also help embed sustainability goals throughout our supply chain and support the UK in realising its climate change targets.” The programme will leverage Tesco’s existing supplier network technology, provided by sustainability-focused tech firm Anthesis, to verify and assess suppliers’ annual greenhouse gas emissions data. Tesco is also partnering with WWF, an environmental NGO, to support its suppliers in setting sustainability targets. KPMG has been engaged to carry out assurance of the programme. Santander tells GTR that the programme will be… continue reading
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Source: CTRM Center