Henkel’s supply chain financing to be linked to ESG performance

THE WHAT? Henkel’s latest round of supply-chain financing has been linked to its ESG rating, according to a report published by Reuters. A move the news outlet is hailing as a first of its kind in Europe.  

THE DETAILS The Deutsche Bank program gives Henkel’s suppliers a discount on financing costs according to their Environmental, Social and Governance performance.

THE WHY? Sustainability and ESG-linked financing is a growing investment trend, says Reuters, although the criteria used to measure performance is yet to be standardized.