Asda has introduced a new supply chain finance program with Lloyds that ties payment terms and rates directly to sustainability performance. The scheme gives UK suppliers the chance to access improved financing if they share sustainability data and show progress against key measures. Suppliers who do not take part will remain on their current terms with no disruption.
Michael Gleeson, Chief Financial Officer at Asda, said:
Supporting our suppliers in making meaningful, sustainable changes is central to our wider ESG ambitions. Through our new supply chain finance scheme with Lloyds, we’re strengthening that commitment – offering competitive financing that rewards progress and encourages transparency across our supply base. It’s a practical way to support our suppliers in making sustainable changes to their business, while building a more resilient and responsible supply chain for the future.
Michael Gleeson, Chief Financial Officer at Asda
EcoVadis, the global sustainability ratings platform, has been appointed to evaluate suppliers’ environmental, social, and ethical performance. Their scoring will decide the tiered structure of the finance scheme, with suppliers who have stronger sustainability credentials gaining the best terms.
The program builds on Asda’s 2024 partnership with another bank, which was its first sustainability-linked supply chain finance initiative. Both efforts are aimed at embedding sustainability standards into procurement and financing, with particular attention on decarbonization and social responsibility.
Aled Patchett, MD and Head of Consumer at Lloyds, added:
We’re proud to have supported Asda for many years in its work to build further resilience in its supply chain. Our existing programme has successfully supported suppliers over the years and converting it to reward sustainability efforts will not only deepen support for British businesses, it will also support Asda in meeting its own ESG ambitions.
Aled Patchett, MD and Head of Consumer at Lloyds
Suppliers that meet the criteria will be able to join the scheme from October. Asda already requires its largest suppliers who account for about 80 percent of its product carbon emissions—to submit sustainability data through EcoVadis.
