International Finance Corp (IFC) is teaming up with McCormick & Company and Citi to advance social and environmental sustainability by offering financial incentives to suppliers.
The initiative has already rolled out in Indonesia and Vietnam, and plans are in place to introduce the incentive program to more countries. It gives suppliers the opportunity to get discounts on financing to assist with short-term working capital needs in exchange for adhering to McCormick’s sustainability standards. The standards cover labor conditions, health and safety practices, crop management and environmental impact. Moreover, the sustainability protocols also include women’s empowerment and farmer resilience.
“At McCormick, we’re committed to doing what’s right for people, communities and the planet we share. Through our partnership with IFC and Citi, we’re enabling our suppliers to sustainably source our herbs and spices more easily, and, in turn, are working toward our own goals at the same time,” Michael Okoroafor, vice president for global sustainability and packaging innovation at McCormick & Company, said in a press release.
“Through our Purpose-led Performance approach, we’re going beyond the industry standard to ensure that we’re improving farmer resilience, elevating women’s empowerment and mandating ethical behavior at every level of our supply chain,” Okoroafor added.
The financial partnership among McCormick, IFC and Citi includes an advisory component in Vietnam. There, IFC is working with McCormick to “build a more sustainable, traceable, certified and quality-compliant pepper supply chain through capacity development and the empowerment of women farmers,” according to the release.
Adoniro Cestari, global head of trade product management and structuring with Citi’s Treasury and Trade Solutions, said that it’s a milestone for the company to introduce a tool related to sustainable financing. “We are working with clients around the world to help them balance environmental and economic needs, adhere to defined standards and manage risks in their supply chains,” Cestari said.