Customer
Bridgestone
Company Type
Buyer
Industry
Headquarters / Region
Japan, US, Europe
Company Size
135,000 employees
SAP Taulia Solution(s)
Helping Bridgestone build a sustainable supply chain through an innovative approach to financing
As one of the world’s largest tire manufacturers, Bridgestone recognises its responsibility to build a sustainable supply chain that works for all, particularly when it comes to advancing science, techniques, and the local environment at natural rubber’s point of origin around the world.
“Our award-winning Sustainable Supply Chain Financing initiative is a tangible demonstration of how the Finance function can play a role in driving sustainability. And it's a win-win situation — for the environment, for Bridgestone, and also for our suppliers who can achieve lower financing costs and improved payment terms based on their sustainability scores. We are grateful to the Taulia financial technology solution that also helps make all of this possible.”
Julle Pedersen, Treasury Director for Bridgestone Europe, Middle East, India, Africa (EMIA)
Before: Challenges and opportunities
At a time when ESG criteria have become as strategically important as financial metrics for businesses globally, Bridgestone needed to embed sustainability priorities into all its activities and those of its suppliers, with accuracy, transparency, and accountability at the core. The company carries ambitious targets: achieving full carbon neutrality across its entire value chain and working with 100% sustainable materials by 2050. To deliver on these commitments, Bridgestone needed better visibility across its supply chain and a way to incentivize suppliers to adopt their own sustainability programs, while balancing these ambitions against real financial pressures including longer payment terms and lower prices.
Why SAP Taulia
SAP Taulia worked alongside Bridgestone, EcoVadis, and JP Morgan to develop the Bridgestone Sustainable Supply Chain Financing (SSCF) program, a scalable solution able to onboard suppliers of all sizes quickly and easily. By incorporating EcoVadis ESG rating data, the solution removes subjectivity from sustainability assessments and shifts to a reliable, third-party methodology. Launching in 2020 and expanding across Europe, India, South Africa, and North America through 2022, the program offers preferential discounts to suppliers based on their ESG ratings, directly incentivizing long-term sustainability commitments across the supply chain.
After: Value-driven results
The flexibility and simplicity of the Bridgestone SSCF program allows socially responsible supplier partners to access preferential financial terms based on their ESG ratings. The tiered pricing methodology means Bridgestone can incentivize its suppliers to continue making progress on long-term sustainability strategies. The program’s innovative approach was recognised externally when it won Best Supply Chain Finance Solution at the 2021 Adam Smith Awards.
