Vodafone will offer preferential supply chain financing rates to telecom equipment suppliers that score highly against environmental performance criteria.
CDP, a global not-for-profit organisation that runs the global environmental disclosure system helping financial institutions, companies, cities, states and regions to measure and manage their environmental impact, has joined forces with Vodafone by developing a framework to encourage suppliers to reduce their own carbon emissions.
Vodafone already asks suppliers to agree to achieving various environmental, social and governance (ESG) targets across areas like health and safety, diversity and the environment as part of its responsible supply chain commitments. In addition, some suppliers also complete an annual CDP survey that scores them on environmental performance.
CDP and Vodafone have jointly developed a framework consisting of 12 criteria from that survey – relating specifically to greenhouse gas emissions in the supply chain – as the basis for a new environmentally-linked supply chain finance programme.
