Taulia, a leading provider of working capital management solutions, has announced its partnership with the business sustainability rating provider, EcoVadis. EcoVadis will provide ESG ratings for Taulia’s Sustainable Supplier Finance solution, allowing businesses in any industry globally to identify the most responsible and sustainable suppliers while encouraging suppliers to improve ESG performance with financial incentives.
Taulia’s Sustainable Supplier Finance solution with EcoVadis’ ESG ratings will support businesses in identifying and monitoring their suppliers’ ESG performance and 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.
EcoVadis’ methodology uses seven management indicators across 21 sustainable criteria in four themes: environment, labor & human risks, ethics, and sustainable procurement. EcoVadis follows international sustainability standards such as the Ten Principles of UN Global Compact, the International Labour Organization conventions, and the UN Guiding Principles on Business and Human Rights.
Cedric Bru, Chief Executive Officer, Taulia, said: “Until now, lack of transparency in supply chain reporting and comparability has been responsible for a large number of ESG issues within businesses. 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.
Pierre-François Thaler, Co-CEO and Co-Founder, EcoVadis, also commented: “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. 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.”
