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ESG rewards unlocked under new givvable and Fifo Capital partnership

Environmental, Social, and Governance (ESG) and finance have been brought together in tandem thanks to a new partnership between AI powered supplier sustainability platform, givvable and Fifo Capital.

In what’s billed as an Australian first, it has created a sustainability-linked finance option for small to medium businesses which rewards customers in line with their ESG activities.

The partnership provides SME supply chains, with eligible sustainability or ESG credentials, access to reduced rates when obtaining cash flow finance.

It will reward businesses with the opportunity to monetise their sustainability efforts allowing sustainability practices around environmental, ethical, diversity and inclusion, social, community and governance to be leveraged. This will allow access better rates on Fifo Capital Australia’s cash-flow finance model.

“There’s plenty of lenders looking to see how to connect ESG with finance, but this initiative with givvable will be an Australian first and a much needed breakthrough for the SME sector,” Wayne Morris, CEO of Fifo Capital Australia says.

“We anticipate this new offer will be far reaching, as sustainable finance options have previously been largely out of reach or very limited for micro, small and medium sized businesses.”

Sustainability credits unlocked

Fifo cCapital says eligible third-party validated certifications, accreditations, ratings or action-based commitments will go toward sustainability credits on the givvable platform to unlock better rates on early payment of invoices.

Read what lies ahead for sustainable procurement in 2022

Sustainability credits achieved will go hand in hand with improved finance rates, with up to 25% discount available.

“We’re expecting this to be a real game changer for small to medium businesses in Australia before taking it global with Fifo Capital,” says givvable CEO and co-founder, Frances Atkins says it will be a game changer for the ESG domain for Austrlaian businesses.

Research from Hackett shows by 2023, 92% of enterprises expect to have sustainable procurement programs in each category. 

Currently 40% of sustainable procurement strategies are clearly aligned with the enterprise’s corporate social responsibility (CSR) or ESG strategy, says Hackett.

Furthermore, 33% of procurement organisations don’t even have a formal program.

“We know businesses are wanting to do more to improve their sustainability credentials,” Frances says.

“Rewarding them through reduced rate finance takes it to another level, and with cash flow being critical for business survival.”

 Wayne added that the offering will incentivise continued focus on improving ESG principles and practices: “As a leading fintech, we’re not only proud to bring a first-of-its kind sustainable finance option to the Australian SME sector but also help businesses who are making a contribution,” says Wayne Morris.

The givvable AI-powered platform captures and maps business credentials to sustainability and ESG targets, frameworks and reporting standards, simplifying complex data relationships for its users. The technology tracks over one million sustainability credentials, across hundreds of local and global sources and all three dimensions of ESG.

Launched in Australia in 2007, Fifo Capital is a leader in the commercial fintech space for innovative cash flow and working finance facilities, underwriting in excess of $2b to over 3, 000 businesses.

 

 

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