Sustainable Finance: Supply Chain

Sustainable supply chain finance is an innovative approach that integrates environmental, social, and governance (ESG) factors into traditional supply chain financing, aligning with the United Nations Sustainable Development Goals.

This concept has gained traction as businesses recognize the importance of sustainability in creating long-term value. It involves mapping the entire supply chain to identify areas for improvement and managing greenhouse gas emissions, particularly Scope 3 emissions in the value chain.

By adopting these practices, companies can enhance resilience, improve risk management, contribute to a more sustainable global economy, and potentially access better financing terms while strengthening relationships with suppliers and stakeholders.

Target Audience

Financial institutions and banks: These organizations can offer SSCF solutions to their corporate clients, tapping into a growing market. Banks and financial service providers are developing and implementing SSCF programs to meet the increasing demand from their clients.

Course Objectives

Definition and Importance: Sustainable supply chain finance integrates ESG factors into traditional supply chain financing, recognizing the importance of sustainability in business operations and long-term value creation.
ESG and SDG Alignment: It incorporates Environmental, Social, and Governance considerations and aligns with the United Nations Sustainable Development Goals, promoting responsible business practices.
Supply Chain Mapping: A crucial step involves thoroughly mapping the entire supply chain to identify areas for sustainability improvements and potential risks.
Emissions Management: Understanding and managing greenhouse gas (GHG) emissions, particularly Scope 3 emissions in the value chain, is a key focus area.
Business Benefits: Adopting sustainable supply chain finance practices can enhance company resilience, improve risk management, contribute to a more sustainable economy, and potentially lead to better financing terms and stronger stakeholder relationships.

Course Outline

1. Introduction to Sustainable Finance

Understanding the role of sustainable finance in business and investment decisions.
Key concepts: E (Environment), S (Social), G (Governance).

2. Sustainable Development Goals (SDGs) and Business Impact

How sustainable finance aligns with SDGs.
Impact on business and industry.
Supply Chain & Climate Change: Understanding GHG Emissions and Scope 3

3. Mapping Your Supply Chain Unveiling the Network Behind Your Business and Aligning it with SDGs

Introduction to LCAs (life cycle assessments)
Supply Chain Mapping and Its Benefits
Social and Environmental Impact on Supply Chains
Integrating SDGs into your supply chain map
SDG Gaps at Each Stage of the Supply Chain

4. Creating Impact

Building resilient supply chains through sustainable practices.
Circular economy mindset for resource efficiency.
Real-world applications and case studies.
Supply Chain Transparency and Traceability
Crafting a sustainable finance roadmap.

5. Implementing Sustainable Finance Strategies and Products

Integrating ESG considerations into financial decision-making.
Financing Solutions for a Sustainable Supply Chain
Leveraging various financial products to address SDG Gaps
- Green Bonds
- Social Bonds
- Sustainability-Linked Loans
- Impact Investments
- Supply Chain Finance
- Green Trade Finance