The judges at the Environmental Finance Sustainable Company Awards 2023 singled out Portuguese conglomerate SONAE, for its, "innovative programme [that] provides financial incentives to Sonae's suppliers that have strong ESG ratings", its "interesting partnerships" and the "training and frequent reassessment of suppliers' ESG performance".

Sonae is a multinational company managing a diversified portfolio of businesses including food, electronics, and fashion retail. As part of its goal to achieve carbon neutrality by 2040, Sonae launched a sustainable supply chain finance (SCF) program in 2022.

The programme, which has been implemented in Portugal and Spain, rewards the suppliers that demonstrate the best ESG practices and ratings with preferential conditions for invoice payments.

To execute the programme, Sonae has partnered with Santander Bank and sustainability ratings provider, EcoVadis.

Suppliers are assessed according to an ESG scorecard and those that achieve ESG certification receive interest rate bonuses.

ESG evaluations are valid for one year and during this period SONAE and Ecovadis continue to monitor, provide training, and support suppliers with the aim of helping them to improve their ratings.

To date, around €170 million ($180 million) worth of supply chain purchases have been incorporated into the ESG SCF programme, offering participants the potential for cost reductions ranging from 5 basis points to 25 basis points.

André Sousa, the head of corporate finance and treasury at SONAE commented: "Our commitment to sustainability, as demonstrated by our SCF programme, is deeply embedded in our core values and business operations.

"We are proud to have collaborated with partners such as Santander Bank and EcoVadis to drive positive change in the realm of sustainability. This award underscores the collective impact of these collaborations and highlights the importance of sustainability in the modern business landscape.

"We firmly believe that sustainability is a collective journey, and this award inspires us to continue leading by example. By rewarding suppliers who embrace the best ESG practices, we are creating a tangible impact not only within our organisation but also across the entire supply chain and industry.

"We would like to express our deep gratitude to our partners, suppliers, and the team who worked tirelessly to make our programme a reality. This award belongs to all who have contributed to our vision of a more sustainable and responsible future."