Citi collaborates with Vodafone to support emissions reductions through Supply Chain Finance

Rhea-AI Summary

Citi, in partnership with Vodafone Group, has introduced enhanced environmental criteria within Vodafone's Supply Chain Finance Programme. Suppliers meeting these criteria will now benefit from preferential financing rates by disclosing environmental data and enhancing their performance. This initiative, developed in collaboration with CDP, aims to motivate suppliers to reduce their carbon footprints, aligning with Vodafone's Scope 3 emissions targets. Citi is intent on fostering sustainable financial solutions, marking a significant step in their long-term relationship with Vodafone, which spans over a decade and includes operations across more than 40 countries.

Positive

• Introduction of environmental criteria in Vodafone's Supply Chain Finance Programme.
• Suppliers can access lower financing rates, encouraging sustainability.
• Collaboration with CDP strengthens the environmental impact of the initiative.
• The program aligns with Vodafone's goals for reducing Scope 3 emissions.

Negative

• None.

Vodafone suppliers to receive better rates based on improvements to environmental sustainability

LONDON--(BUSINESS WIRE)-- 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.

Notes to Editors

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.

About Citi

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.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005406/en/

Citi Media Contacts:



Victoria Durman

+44 (0) 7894505730

victoria.durman@citi.com

Source: Citi

FAQ

What recent partnership did Citi establish with Vodafone regarding financing rates?

Citi collaborated with Vodafone to introduce environmental criteria in Vodafone's Supply Chain Finance Programme, allowing suppliers to access better financing rates.

How will suppliers benefit from Vodafone's Supply Chain Finance Programme?

Eligible suppliers can receive preferential financing rates by disclosing environmental data and demonstrating sustainability improvements.

What are the expected outcomes of the environmental initiatives in Vodafone's financing programme?

The initiatives aim to encourage suppliers to reduce their carbon footprints and assist Vodafone in achieving its Scope 3 emissions targets.

What organization did Citi collaborate with to enhance Vodafone's sustainable financing?

Citi worked with CDP, a global not-for-profit organization, to develop the independent supplier categorization framework.

How long has Citi been involved with Vodafone's Supply Chain Finance Programme?

Citi has supported Vodafone's Supply Chain Finance Programme for over a decade.