At Capital Chains sustainability has a two-fold meaning when it refers to supply chain finance. First, sustainability refers to sustainable (long-term), trustworthy business relationships between (hopefully, someday ‘all’) supply chain partners. Second, it refers to initiatives to reduce the ecological and environmental footprint of businesses within supply chains.
SCF could play a significant role in achieving sustainability within supply chains. Beside commercial benefits, SCF solutions (when implemented correctly) are known to strengthen buyer-supplier relationships and incentivise supply chain partners to invest in their people and environment. Over time, strong business relationships become increasingly valuable when trust and reliability become more important than the pricing element alone.
As sustainability is gaining ground in global discussions, large corporates are increasingly being incentivised or forced by regulations to adapt to new environmental and ecological standards. These standards are not just applicable to their own company, but also for their extended supply chains. We believe providing SCF solutions at favourable terms, only to supply chain partners who meet certain sustainability standards, will accelerate the adoption of these standards. With that believe in mind, strong and reliable business relationships build on trust and mutual dependency are a perfect starting point for a corporate to make an impact.