Asda launches new sustainable supply chain finance scheme
Asda has introduced a new sustainability-linked supply chain finance programme in partnership with Lloyds.
The initiative will give suppliers access to preferential financing rates, offered on a tiered basis according to their performance against key sustainability KPIs.
Suppliers that demonstrate strong progress on these KPIs and actively share their sustainability data will benefit from the most favourable terms.
Michael Gleeson, chief financial officer at the supermarket, said: “Supporting our suppliers in making meaningful, sustainable changes is central to our wider ESG ambitions.
Subscribe to TRB“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.”
Asda suppliers who satisfy the criteria are able to benefit from the scheme from as early as October. Meanwhile, those who choose not to engage will remain on current payment terms and default rates.
Aled Patchett, managing director and head of consumer at Lloyds, added: “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.”
