Taulia Introduces ESG Component to Supply Chain Financing Programme in Collaboration with Henkel

Published on: 20 October 2022
by KnowESG
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Henkel, a German giant making adhesives and consumer goods, and Taulia, a leader in working capital management solutions, announced that sustainability criteria had been added to Henkel's supply chain finance programme.

The Supply Chain Finance initiative, which the two firms have been running since 2015, will now give Henkel's suppliers flexible financing alternatives at preferential rates based on their ESG ratings.

By raising their ESG rating, suppliers can lower the cost of financing in the supply chain even more. This programme shows how Henkel plans to work with customers, consumers, and suppliers to reduce CO2 by 100 million tonnes between 2016 and 2025.

The programme is supported by Taulia’s tech solution to allow scale. The multi-funder model of Taulia gives businesses access to a network of financial institutions like UniCredit and ING. It gives them flexibility and a way to reduce risk by getting funding from different places. Also, the integration of ESG ratings will make it possible for many more companies to meet their ESG goals while keeping the supply chain safe.

Cedric Bru, CEO, Taulia said: 

“This project marks an important milestone in establishing transparency around sustainability in supply chains. Together with Henkel, Taulia will deliver a programme that makes liquidity available to eligible suppliers in the supply chain and incentivises suppliers to minimise the impact they have on the environment.”

Marco Swoboda, CFO, Henkel, said: 

“Henkel considers itself a pioneer in the field of sustainability, which is an essential part of our strategic agenda for purposeful growth. Sustainability has become a key criterion for successful supply chains nowadays. Turning our Supply Chain Finance programme with Taulia sustainable marks another step in this direction.”

Ulrich Borgstädt, Head of Group Treasury, Henkel, said: 

“Already today, we are using ESG ratings in selecting our suppliers. Our sustainable Supply Chain Finance programme gives our suppliers an incentive to improve their ESG rating by looking at sustainability from more than just a carbon reduction perspective. Our sustainable supplier financing allows them to participate by receiving preferential discount rates.”

Inés Lüdke, Head of Working Capital Sales Germany at UniCredit, said: 

"We help our business clients make the changes they need to make to reach their ESG goals and stay a sustainable business in the future."

Adriaan Bellaart, Global Lead of Supply Chain Finance at ING Bank, said:

“At ING, we believe that sustainable business is better business. That is why we are committed to supporting clients to take action in improving their sustainability levels through financing and rewarding their efforts to transition to a more sustainable business.”

Source: Taulia

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