The adoption of sustainable supply chain finance

: advantages, challenges and the role of technology providers

Abstract

This thesis investigates the adoption of Sustainable Supply Chain Finance (SSCF) and the role of technology providers in supporting these programs. SSCF integrates Environmental, Social, and Governance (ESG) criteria into financial decision-making, encouraging sustainable practices across supply chains. The study addresses two research questions: What are the key advantages and disadvantages of SSCF compared to other sustainable finance solutions? and how do technology providers influence the implementation and effectiveness of SSCF? Using qualitative data from semi-structured interviews with professionals from banks, fintech companies, and corporate firms, the research uncovers the main benefits of SSCF, including its ability to align financial incentives with sustainability goals, foster systemic sustainability improvements, and provide a competitive advantage for suppliers. However, challenges such as the limited resources of smaller suppliers, the complexity of integrating ESG data, and the risk of greenwashing hinder broader SSCF adoption. The findings highlight the crucial role of technology providers in managing data, ensuring transparency, and enhancing SSCF scalability through innovations like AI and blockchain. This thesis contributes to the existing literature on sustainable finance by identifying key success factors for implementing SSCF, including collaboration between stakeholders and the importance of transparent communication to mitigate risks. The research also provides managerial insights into overcoming barriers related to data management, supplier participation, and technology integration, ensuring that SSCF drives long-term sustainability.

Date of Award	17 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Filipa Andrêa Godinho de Lancastre Serpa Pinto (Supervisor)