The Bank has developed a KPI matrix under the framework to incentivise clients who meet key performance indicators in responsible sourcing and procuring
BNP Paribas is piloting a framework to promote sustainable practices in corporate supply chains under the aegis of the Green and Sustainability Linked Loan Grant Scheme announced by the Monetary Authority of Singapore today.
The Bank’s framework aims to engage with large MNCs and their extensive supply chains to adopt more sustainable practices. It is the first of its kind in Singapore and a significant step toward supporting clients in their efforts to achieve more responsible sourcing and procuring.
Joris Dierckx, CEO of BNP Paribas Singapore, said, “Singapore is Asia’s top logistics hub offering world-class connectivity. With the unprecedented boom in regional cross-border trade and with the challenges that Covid-19 has brought to the supply chain network, we believe that it is crucial for banks to increase their efforts to help clients incorporate sustainable supply chain practices. Banks that pioneer best practices in this area can help to facilitate a cascade of positive change that will flow throughout supply chain and global trade networks.”
Incorporating sustainability into supply chain operations is highly complex and the Bank’s Sustainable Supply Chain Finance Framework is designed to encourage clients to innovate and adopt sustainable practices. At the heart of the framework is a KPI matrix that measures the sustainability performance of corporates in their supply chain processes, and provides corporates with more favourable terms based on their sustainability performance.
With green and sustainable finance activities growing in Singapore, building on industry capabilities will help to bring green financing and sustainability-linked loans into the mainstream. Through the framework, which has been reviewed by V.E, an Affiliate of Moody’s, BNP Paribas will support corporates in meeting sustainability targets aligned to the UN Sustainable Development Goals.”
Pamela Chew email@example.com +65 6210 1291