Vodafone suppliers to receive better rates based on improvements to environmental sustainability
London - Citi, in collaboration with Vodafone Group Plc (“Vodafone”), announces the addition of environmental criteria to Vodafone’s Supply Chain Finance Programme (“SCF”). Eligible suppliers to Vodafone will now be able to access preferential SCF rates from Citi by disclosing environmental data and demonstrating improvements to their performance.
Eligible Vodafone suppliers will be able to access preferential financing rates from Citi based on multiple factors. These include an independent supplier categorisation and roadmap framework, which was jointly developed by Vodafone and CDP, a global not-for-profit organisation that runs a global environmental disclosure system. It is hoped that this new programme will encourage suppliers to reduce their carbon footprint and ultimately contribute towards Vodafone meeting its Scope 3 emissions targets.
The launch comes as Citi continues to roll out sustainable Trade and Working Capital solutions, including Sustainability-linked Supply Chain Finance, as part of its commitment to help clients with solutions to achieve their environmental ambitions.
“We are delighted that Vodafone has collaborated with Citi to deliver this sustainability-linked solution for its suppliers. As a firm, we are committed to reaching net zero greenhouse gas emissions by 2050 and are pleased to be supporting Vodafone with its own important efforts to meet its broader emissions reduction goals”, commented Chris Cox, Global Head of Trade and Working Capital Solutions, Treasury and Trade Solutions.
“With this launch, Citi is happy to strengthen its long-standing relationship with Vodafone, having supported their Supply Chain Finance programme for over a decade and continuing to serve them in more than 40 countries across a wide product offering”, commented Erik Arveschoug, Global Head of Tech & Comms Corporate Banking.
About Supply Chain Financing
SCF programmes benefit companies and their suppliers as they prioritise their working capital positions respectively. In using Citi's SCF programme, for example, the bank would provide financing to a client's suppliers from the date of collection of specific goods/provision of services to the date on which payment is owed to these suppliers. The cost of this financing is borne by suppliers at a rate lower than their usual cost of funds. As a result, suppliers benefit from cash flow acceleration, quicker payment and improved financing costs.
About Citi Treasury and Trade Solutions
Citi Treasury and Trade Solutions (TTS) enables our clients' success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe. Based on the foundation of the industry's largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continue to lead the way in offering the industry a comprehensive range of digitally enabled treasury, trade and liquidity management solutions.
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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