Sustainable Supply Chain Finance
On the global stage, there is a clear need for sustainable business as regulatory and environmental challenges require businesses to act. Creating and improving sustainability within your supply chain can be particularly challenging. In direct response to an interest expressed by our clients, we have developed ING’s Sustainable Supply Chain Finance solution. This solution allows our clients to strengthen their supplier base and offers financial incentives in order for their suppliers to become more sustainable. Simply speaking, we link supply chain finance discount rates to suppliers’ sustainability scores.
- Sustainable operations carry financial benefits
- Supports your sustainability strategy transparently
- Proactively manages your supply chain
As part of our supply chain finance offering, the Sustainable Supply Chain programme provides benefits that are twofold: we improve the financial efficiency of a supply chain by reducing the working capital for both buyers and suppliers and we enable a company to proactively manage the sustainability levels of their suppliers by driving environmental and/or social improvements in exchange for financial benefits. And you, as our client, benefit from an improved sustainability rating, too.
The Sustainable Supply Chain Finance programme works like this:
- You, as the buyer and our client, stimulate your suppliers to become more sustainable by involving ING in offering them better payment conditions than to less sustainable suppliers.
- Your suppliers provide evidence of their level of sustainability by applying for an environmental, social and governance (ESG) assessment.
- A pricing grid for suppliers in the supply chain finance programme can be linked to their ESG rating. The more sustainable your supplier is, the better conditions they enjoy within the Supply Chain Finance programme.
At ING, we believe that sustainable business is better business. That is why we actively support clients to take action in improving their sustainability levels through financing and rewarding their efforts to transition to a more sustainable business. Our Sustainable Supply Chain Finance programme is a tool which can be used to help you achieve your sustainability goals in an objective and transparent manner.