August 2, 2021
IFC announced a partnership with McCormick & Company, a global leader in flavor, and Citi, to provide suppliers of McCormick’s herbs and spices with financial incentives linked to improvements in measures of social and environmental sustainability. The program has started with suppliers in Indonesia and Vietnam, and will soon be launched in other countries.
Under the initiative, suppliers can qualify for discounted rates on short-term working capital financing when they meet sustainability standards accepted by McCormick. Those standards include performance on labor conditions, health & safety practices, crop management, environmental impact, farmer resilience, and women’s empowerment. The higher the supplier’s performance level in meeting these standards, the more they save.
The financial partnership includes an advisory component in Vietnam, where IFC is helping McCormick build a more sustainable, traceable, certified, and quality-compliant pepper supply chain through capacity development and the empowerment of women farmers, aimed at helping to achieve environmental and social improvements for pepper suppliers and producers.
This innovative partnership between McCormick and IFC leverages Citi’s global Supplier Finance offering. Citi’s Supplier Finance platform is made available to McCormick’s suppliers with environmental, social, and governance credentials so they may benefit from liquidity at preferential rates based on their sustainability performance.
Source: McCormick & Company