Anthesis, the sustainability activator, is proud to have supported Tesco to launch its sustainability-linked supply chain finance programme. Launching later this year, the initiative offers suppliers access to tiered financing rates linked to sustainability performance, provided by Santander. Suppliers will be assessed based on the disclosure of greenhouse gas emissions, setting reduction targets, and delivering on goals.
In line with Tesco’s science-based climate targets and goal to achieve net zero in the UK by 2035, the supply chain finance programme encourages suppliers to work with Tesco to address the most urgent environmental issue, climate change.
Anthesis has supported Tesco to design the methodology that determines how suppliers’ sustainability credentials are assessed. In addition, the team will assist with collecting and reviewing supplier data, as well as supporting Tesco with the continued evolution of the initiative over time – in line with the retailer’s sustainability goals.
Anthesis has been working with Tesco since 2014 to advance its supply chain sustainability agenda. This has included developing and delivering the Tesco Supplier Network, Tesco’s online supplier collaboration platform, which gives over 10,000 suppliers and producers access to guidance materials to improve sustainability.
Ashwin Prasad, Tesco’s Chief Product Officer, said:
“In this critical year for climate action, we’re delighted to be able to offer thousands of suppliers access to market-leading supply chain finance linked to sustainability. This programme not only provides suppliers with a real incentive to set science-based emissions reduction targets, it will help embed sustainability goals throughout our supply chain and support the UK in realising its climate change targets.”
Chris Morris, Principal Consultant at Anthesis, added:
“This project highlights the value and importance of working with and incentivising the supply change to address the biggest sustainability challenges of our time. The project opens an exciting opportunity for suppliers to realise how sustainability can drive value in their business and for other organisations to learn from this industry leading initiative.”