30th April 2021
Tesco is set to become the first retailer in the UK to offer its supply base sustainability-linked supply chain finance, in a move it hopes will encourage more suppliers to sign up to emissions reduction targets.
The voluntary programme is due to launch in September and will see annual greenhouse gas emissions data provided by suppliers independently verified and assessed by sustainability experts Anthesis. Finance giant KPMG has been employed to carry out assurance of the programme.
Tesco suppliers will then be offered “preferential” financing rates via Santander’s supply chain finance platform, with the aim of incentivising suppliers to make positive changes to their business. The rates will be based on each suppliers’ carbon data disclosure, emissions reduction targets and progress against sustainability goals.