Deutsche Bank and BASF have launched the first sustainability-focused payables financing program in Asia targeting BASF’s operations in China. The program transforms BASF’s existing payables financing system into a sustainability-focused model for its subsidiaries in China. The initiative offers enhanced interest rates to suppliers that implement sustainable practices. It leverages EcoVadis, a recognized rating platform, to assess supplier sustainability, thereby incentivizing improvements in environmental and social performance. By combining financial incentives with sustainability actions, the program strengthens the partnership between BASF and its suppliers, driving positive change throughout the entire supply chain.
Ole Matthiessen, Head of Corporate Banking for Asia Pacific, Middle East and Africa at Deutsche Bank, said: “We are pleased to partner with BASF on the first sustainability-related accounts payable financing program in Asia. This is in line with our commitment to sustainability and to support our customers in improving their supply chain resilience and sustainability footprint. » Birka Benecke, Senior Vice President Corporate Treasury at BASF, commented: “This program allows us to deepen our collaboration with our suppliers and strengthen our partnerships in the sustainability transformation while optimizing our supply chain.