Taulia and REWE Group introduce an innovative Early Payment Solution with sustainability incentives
SAN FRANCISCO, CALIFORNIA, DECEMBER 10, 2024 – Taulia, a leading provider of working capital management solutions and part of the SAP group, and REWE Group, the German food retailer based in Cologne, have announced an extension of their collaboration to create a sustainable, responsible supply chain finance program.
By integrating sustainability criteria into the program, REWE Group encourages suppliers to continuously improve their ESG performance and practices throughout the supply chain. The program will provide suppliers with flexible financing options, including early payment incentives. These incentives will offer preferential rates based on the suppliers’ ESG ratings provided by the business sustainability rating provider, EcoVadis as well as integrating into SBTi (Science Based Target initiative). The program aims to make the supply chain more sustainable, improve the financial health of its participants, enhance resilience, and drive further innovation.
Leveraging Taulia’s Sustainable Supplier Finance solution, REWE Group can scale the program to its global supply chain base, allowing a large selected supplier base to utilize it in Europe and beyond. This global reach creates an opportunity for REWE Group and its suppliers to promote responsible action and forward-thinking for environmental and climate protection and to make a lasting positive impact for a more sustainable society.
The program is aimed to aid REWE Group fulfill its sustainability commitments and targets defined by its climate agenda, which was the basis for its 2023 debut Sustainability-Linked Bond (€900m, 2030). REWE Group is committed to addressing social and environmental risks across its entire supply chain through improving environmental protection measures related to resource consumption, avoidance of environmental pollution, handling of waste, climate protection, and animal welfare, among other topics.
Cedric Bru, CEO of Taulia, said, “With this important collaboration with REWE Group, we strive to create a lasting positive impact on the environment and supply chain. Our goal is to implement enhanced practices that promote innovation, resilience, and ethical standards in supply chain finance.”
Klaus Wirbel, Group Director Finance of REWE Group, said, “At REWE Group, we recognize the critical importance of sustainability, especially in mitigating Scope 3 emissions within our supply chain. We firmly believe that integrating sustainability-linked supply chain finance will significantly aid in achieving our environmental goals. By incentivizing our suppliers to adopt sustainable practices, we can collaboratively reduce our overall carbon footprint and foster a more eco-friendly and responsible business ecosystem.”
Despite the program’s early stages, it is already receiving recognition for its innovative approach, particularly in connection with the Science Based Target Initiative (SBTi). The program recently earned a ‘Highly Commended’ award at the 2024 Working Capital Forum Awards in Amsterdam for their new sustainability-linked Supply Chain Finance (SCF) program and also won the Best ESG Approved Payable Financing Program Award at the 2024 Supply Chain Finance Community Awards.
About Taulia
Taulia is a fintech provider of working capital management solutions headquartered in San Francisco, California. Taulia helps companies access value tied up in their payables, receivables, and inventory. Taulia’s platform and network of millions of businesses enables customers to execute their working capital strategies, support their suppliers with early payment, and contribute to building sustainable supply chains. Taulia processes more than $500 billion each year and is trusted by the world’s largest companies, including Airbus, AstraZeneca, and Nissan. In March 2022, Taulia became part of SAP. For more information, please visit www.taulia.com.