Deutsche Bank has launched BASF’s first sustainability-linked payables finance program in Asia, with a focus on its operations in China. According to the official announcement, the solution meets global standards and has been tailored to suit local business requirements.

The program is set to support BASF’s operations in China by transforming its existing payables finance program into sustainability-linked financing for some of its subsidiaries. This allows BASF to encourage its suppliers to adopt sustainable practices. Suppliers’ sustainability performance will be assessed by EcoVadis, a globally recognised supplier sustainability rating platform.

Rated suppliers will be incentivised to continually enhance their performance to qualify for preferential interest rates, while unrated suppliers will be encouraged to seek ratings, prompting them to shift towards sustainable practices. This program aims to improve BASF’s payables finance performance by promoting shared values and common goals. Officials commented that Deutsche Bank is strongly committed to its sustainability strategy and helping clients find innovative new solutions that not only improve resilience of their supply chains, but also advance their sustainability footprint to future proof their operations.

Other recent news from Deutsche Bank In June 2024, Bitpanda and Deutsche Bank partnered to facilitate real-time inbound and outbound cash payments for German crypto traders. Through this collaboration, Bitpanda users in Germany will gain the ability to conduct real-time payments on the platform. This initiative is expected to enhance transaction efficiency and security while bolstering liquidity for Bitpanda's clientele in the region.

In May of the same year, Deutsche Bank announced that it entered an asset tokenisation project by collaborating with Singapore’s Central Bank. The bank joined the Monetary Authority of Singapore’s (MAS) Project Guardian, an asset tokenisation project for wholesale funding markets and decentralised finance (DeFi) applications. Through their partnership, Deutsche Bank is set to test an open architecture and interoperable blockchain platform to deliver tokenised and digital funds.

In addition, the bank aims to suggest protocol standards, while also identifying the proper approach to contribute to industry advancement. .