Asda launches new sustainability finance scheme for UK suppliers

The new scheme will be offered to Asda’s UK suppliers and give them access to “preferential rates based on sustainability performance”.

The supermarket said it would rate suppliers against a range of KPIs, with those showing strong progress against sustainability commitments being offered tiered enhancement terms and faster payment.

The new initiative will go live in October and convert Asda’s existing supplier finance scheme and build on a similar initiative it introduced with HSBC for import suppliers.

The grocer has appointed global sustainability ratings platform provider Ecovadis to help assess its suppliers.

Asda chief financial officer Michael Gleeson said: “Supporting our suppliers in making meaningful, sustainable changes is central to our wider ESG ambitions.

“Through our new supply chain finance scheme with Lloyds, we’re strengthening that commitment – offering competitive financing that rewards progress and encourages transparency across our supply base.

“It’s a practical way to support our suppliers in making sustainable changes to their business, while building a more resilient and responsible supply chain for the future.”

Lloyds managing director and head of consumer Aled Patchett added: “We’re proud to have supported Asda for many years in its work to build further resilience in its supply chain.

“Our existing programme has successfully supported suppliers over the years and converting it to reward sustainability efforts will not only deepen support for British businesses, it will also support Asda in meeting its own ESG ambitions.”