• BASF incentivizes suppliers to adopt sustainable practices through Deutsche Bank’s new finance program.
• EcoVadis will measure supplier sustainability performance, leading to preferential rates.
• The program aims to enhance BASF’s supply chain resilience and sustainability.

Deutsche Bank has introduced BASF’s first sustainability-linked payables finance program in Asia, targeting operations in China. This tailored solution meets global standards while catering to local business needs.

The program transitions BASF’s existing payables finance into a sustainability-linked model for its Chinese subsidiaries. Suppliers adopting sustainable practices are incentivized with better interest rates, encouraging broader sustainability initiatives.

EcoVadis, a global sustainability rating platform, will evaluate supplier performance. Rated suppliers benefit from preferential rates, while unrated suppliers are encouraged to seek ratings, promoting a shift towards sustainable practices.

Ole Matthiessen, Head of Corporate Bank for Asia Pacific, Middle East, and Africa and Global Head of Cash Management at Deutsche Bank, stated:

“We are delighted to partner with BASF on its first sustainability-linked payables finance program in Asia. We are strongly committed to our sustainability strategy and helping our clients find innovative new solutions that not only improve resilience of their supply chains but also advance their sustainability footprint to future-proof their operations.“

Birka Benecke, Senior Vice President Corporate Treasury at BASF, added:

“With this program, 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 optimize our supply chains.“

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The program received accolades from The Asset’s Triple A Treasurise Awards as ‘Best ESG Solution in China’. Additionally, Deutsche Bank was honored as ‘World’s Best Bank for Corporates’ by Euromoney’s Awards for Excellence.

This initiative not only bolsters BASF’s supply chain resilience but also aligns with broader sustainability goals, setting a benchmark for future corporate finance solutions.