HSBC SSCF “Greening” PVH Corp’s Supply Chain

Asia, Hong Kong
Hsbc
Environmental, Social and Governance (ESG), Supply Chain

(11 July 2022 – Hong Kong) Corporate treasurers are taking an increasingly active role in “greening” their supply chains, making use of innovative sustainable supply chain finance (SSCF) solutions as evidenced by HSBC and PVH Corp.

PVH Corp’s SSCF with HSBC enables PVH to offer more favourable lending terms to suppliers that demonstrate compliance with its environmental, social and governance (ESG) standards. HSBC launched its first SSCF programme in 2019 with Walmart, allowing the group’s suppliers to apply for improved financing from HSBC subject to them demonstrating progress based on their sustainability ratings.

While BNP Paribas and JPMorgan also offer SSCF programmes, who do corporates think of first for leading “natural capital” supply chain finance management? East & Partners latest Global Insight Report “Digitising and Greening Global Supply Chains” details ESG policy implementation progress, key barriers to ESG measures implementation and mind share of key providers based on direct interviews with the Top 100 corporates in eight countries including Australia, Canada, China, Germany, Hong Kong, Singapore, the United Kingdom and the USA.

The announcement of the PVH programme did not detail the key metrics however PVH publishes explicit guidelines for supply chain partners such as responsible use of natural resources and prohibition of forced or child labour through its links to prominent fashion brands such as Tommy Hilfiger and Calvin Klein.

“We are proud to leverage our international and sustainability expertise to help one of the world’s largest apparel companies make progress against their ESG goals,” said HSBC North America Regional Head of Global Trade and Receivables Finance, Marissa Adams.

“Offering suppliers an early payment solution incentivises them to help PVH achieve its 2030 social and environmental goals. The trade terms are usually not more than 90 days”

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