Terence emphasises the complexity of integrating sustainability into supply chain finance and highlights that there is not a one-size-fits-all approach . There is a need to co-design bespoke solutions that meet the unique value chain needs of corporations .
“ We need to form a coalition around the buyer or the brand owner as well as the suppliers , he adds . A collaborative model that extends to include the supplier ecosystem to include specialists in technology and sustainability to identify what can be measured or optimised and defining the right metrics to amplify the buyer ’ s desired outcomes .” he adds .
This extended ecosystem approach serves multiple purposes :
• Determining appropriate measurements for desired outcomes
• Ensuring data quality and accountability
• Establishing robust audit trails and assurance
From principles to impact : ESG in action To bring these principles into action and how DBS has delivered impact , Shilpa Gulrajani , Head of Sustainability , Institutional Banking Group at DBS , highlights a pioneering sustainabilitylinked supplier payment services programme that integrates ESG metrics into financial services . Through a strategic partnership with a Hong Kong-based construction company , the bank demonstrates its commitment to advancing sustainable value chain management .
DBS worked closely with the company to understand its value chain , examining hundreds of subcontractors along the way .
“ We undertook co-creation with our client to find the real materiality aspects of ESG , defining precise KPIs to drive measurable impact across their operations and value chain ,” Shilpa explains .
“ The client plays a pivotal role as an anchor , fostering awareness and collaboration across the valuechain to adapt to these sustainability KPIs .”
The bank ’ s unique strength lies in its comprehensive understanding of different client segments , from large corporations to SMEs , enabling a nuanced approach to sustainable financing .
A notable example of DBS ’ s ESG efforts here can be seen in its partnership with H & M Group . DBS collaborated with H & M to establish an investments programme for select SME suppliers in India for energy efficiency , water management and the measurement of these outcomes .
Sumeet Nath , a Managing Partner at Raj Woollen Industries , adds : “ This joint project with H & M Group , Guidehouse and DBS has been a
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