BNP Paribas and PUMA launch innovative financing program
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BNP Paribas and PUMA launch innovative financing program for suppliers to reward social and environmental standards
BNP Paribas announces the launch of a pioneering initiative, designed in collaboration with sports company PUMA and implemented through the support of the IT platform provider GT Nexus. This innovative financing structure offers financial incentives for PUMA suppliers to improve environmental, health and safety and social standards. As ethical standards, sustainability policies and compliance continue to climb up the priority list of an investor’s decision making process, there is a crucial need for corporates to seek and integrate more advanced sustainable financing products and solutions.
Jacques Levet, Head of Transaction Banking EMEA, said: “The program launched with PUMA highlights the growing importance of sustainability matters across industries and demonstrates BNP Paribas’ ability to implement such innovative financing solutions. It is also a testimony of PUMA’s strong innovation capacity as a leading-mover in the industry. We are extremely proud to accompany PUMA in its growth ambitions as well as in its sustainability strategy through this supplier financing program.”
A supplier financing program allows for a Corporate to provide a financing solution to its suppliers that are offered the possibility to discount their receivables due from the buyer, while benefiting from the buyer’s credit standing.
PUMA, who currently works with more than 300 external manufacturing partners, located primarily in Asia, and distributes its products in more than 120 countries, aimed to set up a supplier financing program to support its suppliers worldwide in the implementation of PUMA’s social and environmental standards.
A distinct feature of this program developed collectively by PUMA, BNP Paribas, IFC (International Finance Corporation – a member of the World Bank Group) and GT Nexus, is that the rate at which the bank discounts the suppliers’ invoices depends not only on PUMA’s credit standing but also on PUMA's supplier rating, that is applied after PUMA has monitored a supplier's adherence to the company's social and environmental standards through an auditing process.
Lars Sørensen, PUMA’s Chief Operating Officer, stated: “This is the first program in our industry, which takes into consideration a supplier’s score in PUMA’s environmental and sustainability rating as a bonus or malus on related fees. Thus our supplier’s investments in sustainability are rewarded, which is an additional incentive for them to improve their environmental and social standards.”
“With the help of BNP Paribas and their global presence we can offer this innovative program to PUMA suppliers worldwide”, adds Frank Waechter, Senior Director Treasury & Insurance at PUMA. “This is not only an outstanding cooperation with BNP Paribas but also a great example of cross-functional internal collaboration of PUMA’s Finance functions and Operations, which underlines our ambition to implement fast and efficient processes.”
PUMA monitors its manufacturing partners worldwide on a regular basis to ensure their compliance to the company’s social, health, safety and environmental standards. Best performing suppliers are upgraded and access better funding conditions. BNP Paribas only funds suppliers that have successfully passed its own Know Your Suppliers checks, ensuring that those suppliers meet appropriate compliance standards.
Press contacts
BNP Paribas: Alexandra Umpleby – +44 20 7595 2434 - alexandra.umpleby@uk.bnpparibas.com
PUMA: Kerstin Neuber - PUMA SE - +49 9132 81 2984 - kerstin.neuber@puma.com
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 75 countries, with more than 189,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
PUMA is one of the world’s leading Sports Brands, designing, developing, selling and marketing Footwear, Apparel and Accessories. For over 65 years, PUMA has established a history of making fast product designs for the fastest athletes on the planet. PUMA offers performance and sport-inspired lifestyle products in categories such as Football, Running and Training, Golf, and Motorsports. It engages in exciting collaborations with renowned design brands to bring innovative and fast designs to the sports world. The PUMA Group owns the brands PUMA, Cobra Golf and Dobotex. The company distributes its products in more than 120 countries, employs more than 10,000 people worldwide, and is headquartered in Herzogenaurach/Germany.
