Deutsche Bank, BASF Launch Finance Program Tying Rates for Suppliers to Sustainability Performance

Deutsche Bank has introduced a sustainability-linked payables finance program for BASF in Asia, focusing on operations in China. This program encourages BASF’s suppliers to adopt sustainable practices by tying finance rates to their sustainability performance. Supplier ratings, assessed by EcoVadis, will determine eligibility for preferential interest rates, motivating unrated suppliers to get rated and transition to sustainable practices. Birka Benecke, Senior Vice President of Corporate Treasury at BASF, emphasized that this initiative will enhance collaboration with suppliers and optimize supply chains through sustainability transformation. Ole Matthiessen, Head of Corporate Bank for Asia Pacific, Middle East, and Africa, reiterated Deutsche Bank’s commitment to innovative solutions that bolster supply chain resilience and sustainability. This program aligns with Deutsche Bank’s goal of facilitating €500 billion in sustainable financing and investments from 2020 to 2025. Resources: https://www.esgtoday.com/deutsche-bank-basf-launch-finance-program-tying-rates-for-suppliers-to-sustainability-performance/