Deutsche Bank has introduced BASF’s inaugural sustainability-linked payables finance programme in Asia, focusing on its operations in China. This solution, aligned with global standards and customised for local business needs, aims to support BASF’s activities in the region.
The programme transforms BASF’s existing payables finance structure into a sustainability-linked financing model for select subsidiaries in China. This adjustment enables BASF to encourage its suppliers to adopt sustainable practices by incentivising them.
Supplier sustainability performance will be evaluated by EcoVadis, a leading global supplier sustainability rating platform. Suppliers with higher ratings will be rewarded with preferential interest rates, while those without ratings will be motivated to achieve a rating, promoting their shift towards sustainable practices. This initiative is designed to enhance BASF’s payables finance programme by creating shared value and aligning goals.
Ole Matthiessen, Head of Corporate Bank for Asia Pacific, Middle East and Africa and Global Head of Cash Management said, “We are delighted to partner with BASF on its first sustainability-linked payables finance programme in Asia. We are strongly committed to our sustainability strategy and helping our clients find innovative new solutions that not only improve the resilience of their supply chains but also advance their sustainability footprint to future-proof their operations. We look forward to continuing to help BASF with its sustainable growth ambitions globally.”
Birka Benecke, Senior Vice President Corporate Treasury at BASF, said, “With this programme, we can deepen our collaboration with our suppliers and strengthen the partnership in the area of sustainability transformation. This also gives us the opportunity to further optimise our supply chains.”
The programme was recently honored by The Asset’s Triple A Treasurise Awards for ‘Best ESG Solution in China’. Additionally, Deutsche Bank was recognised by Euromoney’s Awards for Excellence as the ‘World’s Best Bank for Corporates’.