Supply Chain Finance Sustainability Linked

Supply Chain Finance Sustainability Linked is an evolution of traditional Supply Chain Finance programmes, developed to integrate ESG objectives into supplier–buyer relationships.

The solution is designed for medium-to-large Buyers aiming to support the sustainable transition of their supply chain while enhancing and demonstrating their ESG commitment, in line with European regulatory frameworks.

Through the execution of a dedicated ESG Addendum, a sustainability-linked component is embedded into Reverse Factoring and/or Confirming programmes, allowing Buyers to actively incentivise suppliers to move towards more sustainable business models.

The solution is based on the introduction of dynamic pricing, reviewed annually and linked to the ESG score assigned to suppliers: the better the score, the more favourable the financing conditions applied.