HSBC and Walmart have announced a partnership to develop a supply chain finance programme which will take into account the sustainability performance of suppliers.
This will form part of Walmart’s sustainable sourcing efforts, which it has been investing in significantly. The method will help Walmart to track its supply chain and ensure its suppliers meet sustainability standards.
Through the programme, suppliers within Walmart’s network will be able to apply for improved financing from HSBC if they are making progress toward the supermarket chain’s sustainability targets.
Currently, Walmart is aiming to avoid 1bn tonnes of greenhouse gases from its global value chain by 2030 through Project Gigaton. It will therefore be important to keep track of its supply chain.
Natalie Blyth, Global Head of Trade and Receivables Finance at HSBC, said: “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.”
Matthew Allen, VP Finance & Assistant Treasurer at Walmart, added: “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.”