HSBC, Walmart Join Forces On Sustainable Supply Chain Finance Programme

 

HSBC and Walmart has announced the roll-out of a sustainable supply chain finance
programme that pegs a supplier’s financing rate to its sustainability performance.
This global programme allows Walmart’s suppliers who demonstrate progress in
Walmart’s Project Gigaton or Sustainability Index Program to apply for improved
financing from HSBC based on their sustainability ratings.

Project Gigaton is a Walmart initiative to avoid one billion metric tons (a gigaton) of
greenhouse gases from the global value chain by 2030 through supplier commitments.
Walmart’s Sustainability Index Program gathers and analyses information across a
product’s life cycle, and was developed by The Sustainability Consortium (TSC), a global
organisation dedicated to improving the sustainability of consumer products, to help
Walmart benchmark suppliers and encourage continuous improvement.

Natalie Blyth, Global Head of Trade and Receivables Finance, HSBC, comments: “The
procurement standards of a buyer are a huge driver for sustainability, and this is why we
are proud to join forces with Walmart, the world’s largest retailer and a company that
shares our mission to build a more sustainable future. In many industries it is a
company’s supply chain – rather than the company itself – that is responsible for most
of the environmental impact and therefore offers the greatest potential for sustainability
improvements.”
“At Walmart, we appreciate that the only way to a sustainable future is through combined
effort, and we share HSBC’s commitment to empowering our suppliers on this journey.
We want to encourage companies throughout the supply chain to focus on sustainability,
as we have seen first-hand how this sparks innovation and generates value. Investing in
sustainability can not only lead to higher productivity and cost savings for suppliers, but
can also drive their business growth as they make a positive contribution to the world,”
says Matthew Allen, VP Finance & Assistant Treasurer, Walmart.

HSBC believes that supply chains are one of the most important levers for banks and
businesses to create a positive effect on the world.

According to McKinsey, a typical consumer company’s supply chain creates far more social and environmental costs than its own operations, accounting for more than 80 percent of greenhouse-gas emissions and more than 90 percent of the impact on air, land, water, biodiversity, and geological resources.

Blyth adds: “Trade is a force for good, and trade finance has a vital role to play if we are
to achieve the UN’s Sustainable Development Goals. Embedding sustainability in global
supply chains is not only beneficial for the environment and society, but also for
companies’ bottom lines. As the world’s leading international bank, HSBC is actively
building new partnerships and frameworks to help deliver a more sustainable future for
all.”

Being sustainable is seen as very important by businesses around the world. According
to the recent HSBC Navigator survey, 81 percent of global companies say ethical and
environmental sustainability is important to them and 83 percent aspire to be a genuinely
ethical or environmentally sustainable company. Also, improving sustainability outcomes
is among the top three objectives for making supply chain changes.

As a leading international bank, HSBC has a unique role to play in supporting a shift to
sustainability in global supply chains. We are embedding sustainability into the products
and services we offer to customers, with the aim of supporting the sustainable
development of our customers’ supply chains. Nearly one-third of businesses surveyed
in our recent HSBC Navigator survey plan to make sustainability-related changes to their
supply chains within the next three years.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Securities Commission Revises Guidelines On Digital Assets

The Securities Commission Malaysia (SC) has revised its Guidelines on Digital Assets (Guidelines), which came into force today to regulate Initial Exchange...

MATTA calls for sufficient funding for tourism businesses to digitalise in upcoming Budget 2021

The Malaysian Association of Tour and Travel Agents (MATTA) is urging Putrajaya for sufficient funding for tourism businesses to invest in digitalisation...

MATTA urges for proposed two-tiered wage subsidy system

The Malaysian Association of Tour and Travel Agents (MATTA) in agreement with the Malaysian Association of Hotels (MAH) is urging for a...

#MyAPEC2020 exhibition registers over 6,000 viewers and 300 buyers

The #MyAPEC2020 exhibition has amassed over 6,000 registered viewers on the online platform in just under two months since its commencement as...

Tourplus secures RM4.1 million in investment

Tourplus Technology Sdn Bhd, a Malaysian travel startup that provides an online marketplace for travelers providing personalised itineraries linking travelers to local...

Must read

Budget 2021 – Youth’s wishlist to endure the crisis

By Sofea Azahar, As Budget day approaches, talks about the perks to be considered in addressing the setbacks of...

5 ways how corporate culture works for remote teams

By Vinod Chandramouli, Head ASEAN Business, Freshworks, Back in the days of pre-Covid 19, the strategy to embed corporate...

Ok, Boomer. Ok, Gen Z. Let’s talk

By Dr Jesrina Ann Xavier, Senior Lecturer and Programme Director at the Faculty of Business and Law, Taylor’s University and Anna Matthew,...

A three-phased approach to Budget 2021: The now, next and beyond

By EY Tax Leaders, In response to the Covid-19 pandemic, the Malaysian Government has announced stimulus packages of...