BBVA and the pharmaceutical company Euromed close the first sustainable ‘reverse factoring’ in Spain
Euromed has become the first company to formalize a ‘reverse factoring’ sustainable operation (also known as ‘confirming’) in Spain. It has been done by BBVA and thanks to its transactional banking framework, a pioneering methodology in the industry from which BBVA customers can already benefit.
This is the first sustainable transaction of ‘reverse factoring’, also known as ‘supply chain finance’. It is a specific product of the Spanish market that consists of the management of payments and discount of invoices to suppliers. With this sustainable version of the product, Euromed becomes the first company in Spain that can offer more favorable conditions to suppliers with better sustainability performance.
Based on the process of suppliers’ approval, a series of eligibility criteria has been defined for those suppliers who have sustainability certificates and organic production in accordance with internationally recognized prestige standards. With this operation, which will be executed according to the BBVA transaction banking framework reviewed by Vigeo Eiris, Euromed contributes to the achievement of the Sustainable Development Goal (SDG) 12: responsible production and consumption.
This sustainable transactional banking framework is an initiative promoted by the entity’s corporate transactional banking team, whose priorities are innovation and customer service excellence. BBVA, pioneer in sustainable financing, is committed to the Principles of the United Nations Global Compact, to the objectives established in the Paris Agreement of COP21 and to the achievement of the United Nations Sustainable Development Goals. This framework of sustainable transactional product, which also has as reference market standards such as the ‘Green Bond Principles’, the ‘Social Bond Principles’, the ‘Sustainability Bond Guidelines’ and the ‘Green Loan Principles’, reinforces this commitment and the offer of sustainable financial solutions that the entity offers to its customers.
“Today we achieve a very important milestone in BBVA, by making a part of the Euromed supplier chain feel linked to the sustainability objectives of its client. Sustainable confirming is the best way to multiply the commitment to the environment. Financing the future is financing sustainability, since the future is only if it is sustainable,” said Joan Piera, regional director of Business and Corporate Banking in Catalonia.
“This agreement will allow Euromed to strengthen the position of those suppliers that meet the highest quality standards to achieve a value chain in our traceable and sustainable products,” said Javier Roig, CEO, and Edgar Rojas, CFO of Euromed.
Founded in 1971 by the German pharmaceutical company MADAUS, EUROMED S.A. is a vertically integrated leading producer of standardised botanical extracts and natural active substances for the pharmaceutical, nutraceutical, food and cosmetic industries.
Annually, a biomass of more than 5000 tonnes is extracted at the company’s manufacturing facilities in Mollet del Vallès (Barcelona) and Molina de Segura (Murcia), Spain. The production plant in Murcia further expands EUROMED’s capabilities with eco-friendly technologies that use a sophisticated water-based extraction method, the Pure-Hydro Process™.
All extracts comply with worldwide GMP (Good Manufacturing Practice) norms, international pharmacopoeias and regulations. EUROMED has a long history of expertise in research and development, laboratory analyses and extraction technologies and is committed to the highest quality standards in terms of analytics, chemistry and evidence-based therapeutics. This experience is now available to the rapidly expanding global nutraceutical market, which is increasingly seeking pharmaceutical-grade, evidence-based and trusted botanical solutions that support health.