A new programme from Vodafone will incentive its suppliers to increase their environmental performance by unlocking preferential supply chain financing rates to those that score highly against environmental performance criteria.

Vodafone will use CDP’s disclosure system to encourage industry-wide adoption of the model, persuading suppliers to report on environmental performance and reduce carbon emissions.

Vodafone already asks suppliers to agree to achieving various environmental, social and governance 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.

Now 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. Vodafone suppliers will be invited to share their environmental performance score with their supply chain financing provider, and in doing so will have the opportunity to receive preferential financing rates based on their ranking.

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