Project
In partnership with Tesco and their finance partner, Santander, Anthesis supported the development of UK retail’s first sustainability-linked supply chain finance product. The voluntary programme saw Tesco suppliers offered preferential financing rates based on their disclosure of greenhouse gas emissions, setting reduction targets, and delivering reductions. Anthesis led the development of the methodology by which suppliers are assessed. In addition, Anthesis was the implementation partner for the programme, independently reviewing each supplier’s application to the programme.
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.
Tesco has taken a leadership position as the first UK retailer to offer preferential funding rates linked to suppliers’ sustainability performance. Suppliers that successfully engaged with the programme have been able to access funding at costs below the market rate. Moreover, the programme has incentivised many suppliers to measure their greenhouse gas (GHG) emissions for the first time, set GHG reduction targets in line with Tesco’s goals, establish Net Zero ambitions, and deliver emission reductions.