Case Study: Tesco develops the UK’s first sustainability-linked supply chain finance product with Anthesis

Tesco and their finance partner, Santander, Anthesis supported the development of UK retail’s first sustainability-linked supply chain finance product

Tesco, a major UK retailer, sought innovative ways to incentivize its suppliers to help meet its ambitious science-based carbon reduction and Net Zero emissions targets. The company partnered with its long-term advisor, Anthesis, to develop a novel lever for encouraging sustainability action across its vast supply chain.

Anthesis supported Tesco and its finance partner, Santander, to develop the UK retail sector’s first sustainability-linked supply chain finance product. Anthesis designed the methodology to assess suppliers' sustainability credentials and independently reviewed each application. The solution provided suppliers with preferential financing rates for disclosing emissions and setting reduction targets, successfully incentivizing many to measure their greenhouse gas emissions for the first time and align with Tesco’s climate goals.

Tesco

Ashwin Prasad

Chief Commercial Officer