Vodafone gives preferential financing rates to suppliers disclosing carbon emissions
Vodafone has partnered with CDP and Citi to enable suppliers preferential financing rates if they disclose their greenhouse gas emissions and otherwise prove they are improving their environmental credentials.
The telecoms giant has worked with CDP to develop a framework streamlining the way in which suppliers can disclose their greenhouse gas emissions. It comprises 12 criteria and questions from CDP’s usual disclosure platform on climate, designed for larger businesses.
Suppliers disclosing data through this framework will be able to access preferential financing rates. The framework will initially be offered to suppliers already using taking Vodafone’s supply chain finance programme through Citi, which is offering the rates benefit. The framework will be opened to additional suppliers, through additional finance providers, earlier this year.
Citi is the starting point as the bank has supported Vodafone’s supply chain finance programme for more than 10 years in some 40 countries.
It is hoped that the changes will encourage more suppliers to disclose their emissions performance as Vodafone Group works to achieve its 2040 net-zero target and interim science-based targets to cut emissions across operations and the supply chain. Vodafone already asks suppliers to agree to certain ESG requirements when signing contracts but the new measure is more targeted.
In future, CDP plans to make a template of the framework used by Vodafone available to other players in the telecoms sector. The hope is to ensure that all key telecoms suppliers are measuring and reducing their climate impact.
Related news: Vodafone UK turns to big data and AI to slash network emissions
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