Asda launches new sustainable supply chain finance scheme for UK suppliers
The Leeds-based supermarket chain Asda has launched a new sustainability-linked supply chain finance scheme with Lloyds.
Asda will provide access to preferential rates for numerous suppliers on a tiered basis, dependent on sustainability performance against a range of KPIs (key performance indicators).
The statement added: “Suppliers performing strongly against their sustainability KPIs and sharing their sustainability data will be rewarded with the most preferential terms.
“Asda has appointed Ecovadis, the global sustainability ratings platform provider, to help them assess and improve their supplier’s environmental, social, and ethical performance across their value chains. This data is used as part of this scheme.”
The EcoVadis scoring will help to embed strong sustainability practices throughout Asda’s supply chain, with a particular focus on decarbonisation and social initiatives, the statement said.
Michael Gleeson, Chief Financial Officer at Asda, said: “Supporting our suppliers in making meaningful, sustainable changes is central to our wider ESG (Environmental, Social, and Governance) ambitions.
“Through our new supply chain finance scheme with Lloyds, we’re strengthening that commitment, offering competitive financing that rewards progress and encourages transparency across our supply base.
“It’s a practical way to support our suppliers in making sustainable changes to their business, while building a more resilient and responsible supply chain for the future.”
Aled Patchett, MD and Head of Consumer at Lloyds, said: “We’re proud to have supported Asda for many years in its work to build further resilience in its supply chain. Our existing programme has successfully supported suppliers over the years and converting it to reward sustainability efforts will not only deepen support for British businesses, it will also support Asda in meeting its own ESG ambitions.”