Taulia has entered a sustainability-focused partnership with EcoVadis, based in France, to help build sustainable supply chains, a press release reported.
“By connecting EcoVadis Sustainability Ratings to Taulia’s extensive financing offerings and global network, our collaboration brings tangible financial incentives to fruition to drive positive social and environmental impact at a global scale,” Pierre-François Thaler, co-CEO and co-founder, EcoVadis, said in the release.
The capital management solutions expert will count on the French business sustainability rating provider to supply ESG ratings for Taulia’s Sustainable Supplier Finance offerings, which will enable businesses across any industry to pinpoint the most appropriate sustainable suppliers that improve ESG performance with “financial incentives.”
“Until now, lack of transparency in supply chain reporting and comparability has been responsible for a large number of ESG issues within businesses,” Cedric Bru, CEO, Taulia, said in the release. “However, now business leaders have the opportunity to build on their own proactive ESG efforts by encouraging suppliers and partners to report reliably, consistently and comparably against globally recognized benchmarks. Through this partnership we are committing to help customers more easily evaluate the ESG metrics and credentials of trading partners and ultimately create a more sustainable world for future generations."
The solution will support businesses with monitoring the ESG performance of their selected suppliers, as well as their qualifications across the entire supply chain.
“By connecting ESG ratings with low-cost early payments as a financial incentive, businesses can create alignment with suppliers to improve their ESG performance and behavior continuously,” the press release said.
EcoVadis’ strategy uses seven management indicators across 21 sustainable criteria, distributed into four themes: Environment, labor and human risks, ethics and sustainable procurement. The company follows international sustainability standards like the Ten Principles of UN Global Compact, the International Labor Organization conventions and the UN Guiding Principles on Business and Human Rights.
“The journey to sustainable resilience in value chains can be rapidly accelerated when motivations for trading partners are aligned to reliable performance benchmarks across the broadest possible range of companies,” Thaler said.