This preferential financial support will be associated with the implementation of solutions focusing on environmental and social sustainability. The program started with suppliers in Indonesia and Vietnam, and will soon be rolled out to other countries.
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IFC is supporting building a sustainable pepper supply chain in Vietnam |
As part of this initiative, suppliers will qualify for a discounted rate on short-term working capital financing when they meet McCormick-accepted sustainability standards. These standards include outcomes on working conditions, health and safety practices, crop management, environmental impact, farmer resilience, and women’s empowerment. The higher the supplier’s compliance with these standards, the greater the discount achieved.
This financial partnership includes a consulting component implemented in Vietnam, where IFC is assisting McCormick in building a sustainable, traceable, certified, and compliant pepper supply chain. quality standards for pepper suppliers and producers.
Michael Okoroafor – Vice President of Global Sustainability and Packaging Innovation at McCormick & Company – said: “Through a purpose-driven results approach, we are aiming to exceed industry standards. to ensure improved farmer resilience, empower women, and demand ethical action at every level of the supply chain.
Deploying a sustainable financing solution, Citi is committed to helping clients achieve their sustainability goals, particularly related to supply chain and environmental challenges. We are working with customers around the world to help balance environmental and economic needs, comply with established standards, and manage risk in the supply chain. Contributing to supporting the sustainability of supply chains and promoting international trade flows…, said Mr. Adoniro Cestari – Citi’s Global Head of Commercial Product Management and Structure
To date, the partnership between the implementing parties is part of IFC’s Global Supplier Trade Finance Program (GTSF), a $500 million multi-currency investment and consulting program funded by IFC. Established since 2010. GTSF provides short-term financing to small and medium-sized suppliers in emerging markets that are supplying large domestic buyers or international exporters, by discounting the following invoices. when the invoice is accepted by the buyer. Funding interest rates can be tied to sustainable solutions to reduce environmental impact and promote climate-sustainable agriculture, while connecting small suppliers to global markets.
According to Industry and Trade Newspaper
