HSBC, Walmart Team on Sustainable Supply
Chain Finance Program
April 19, 2019
and Walmart have rolled out a sustainable supply chain finance program
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
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% of greenhouse-gas emissions and more than
90% of the impact on air, land, water, biodiversity, and geological
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
Being sustainable is seen as very important by businesses around the
world. According to the recent HSBC Navigator survey, 81% of global
companies say ethical and environmental sustainability is important to
them and 83% 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 plays a unique role in supporting
a shift to sustainability in global supply chains. HSBC is embedding
sustainability into the products and services it offers to customers,
with the aim of supporting the sustainable development of its customers’
supply chains. Nearly one-third of businesses surveyed in the recent
HSBC Navigator survey plan to make sustainability-related changes to
their supply chains within the next three years.