Home / Knowledge / News / Textiles / Walmart rolls out sustainable supply chain financing

Walmart rolls out sustainable supply chain financing

24
Apr '19
Pic: Walmart
Pic: Walmart
Walmart and HSBC have joined forces for a sustainable supply chain finance programme that pegs a supplier’s financing rate to its sustainability performance. This will allow Walmart suppliers who demonstrate progress in Walmart’s Project Gigaton or Sustainability Index Program to apply for improved financing from HSBC based on their sustainability ratings.

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.

"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," Natalie Blyth, global head of trade and receivables finance, HSBC, said.

“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,” said 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 resources.

Being sustainable is seen as very important by businesses around the world. According to the recent HSBC Navigator survey, 81 per cent of global companies say ethical and environmental sustainability is important to them and 83 per cent 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.

"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 for all," Blyth added.

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. (RR).

Fibre2Fashion News Desk – India


Must ReadView All

Cotton prices drop in Brazilian market as buyers retract

Textiles | On 20th May 2019

Cotton prices drop in Brazilian market as buyers retract

Cotton trades were at a slow pace and prices dropped in the Brazilian ...

Trade between Eastern Europe, Vietnam hit $10.1 bn in 2018

Textiles | On 20th May 2019

Trade between Eastern Europe, Vietnam hit $10.1 bn in 2018

Despite Eastern European countries being an important export market...

Bangladesh apparel exports jump 12.59% in July-April 2019

Apparel/Garments | On 20th May 2019

Bangladesh apparel exports jump 12.59% in July-April 2019

Readymade garment exports from Bangladesh increased by 12.59 per cent ...

Interviews View All

Ghanshyam Ghoghari, Kimora Fashion

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Top executives, Fashion houses, India

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Karan Suratwala, Key Textile Accessories Private Limited

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

C Dhandayuthapani,

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Madhu Sudhan Bhageria,

Madhu Sudhan Bhageria

Incorporated in August 1990, Filatex India Ltd manufactures manmade...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search