BNP Paribas has been structuring sustainable working capital facilities for years, according to Jacques Levet, Head of Transaction Banking EMEA. And now the bank has gone beyond one-off financial structures by creating the market's first framework for these facilities.
BNP Paribas' sustainable working capital system looks at the environmental, social and economic impact of bringing products and services to market.
Sustainable working capital – short-term financing encompassing payables, receivables and inventory – can affect all parts of the corporate supply chain, from the sourcing of raw materials through the entire productions process to shipment and disposal or recycling. The suppliers of companies that adopt a sustainable working capital system can obtain financing discounts depending on their adherence to environmental and social practices.
What forms can sustainable working capital take? What are the on- and off-balance sheet benefits for companies and for the whole ecosystem? Read the article in Global Finance.