Vodafone Share News (VOD)

(Alliance News) - Vodafone Group PLC on Tuesday said it has joined forces with environmental not-for-profit firm CDP to develop a framework that will encourage suppliers to reduce their carbon emissions.

The Newbury, England-based telecommunications company explained that the framework consists of 12 criteria taken from CDP's annual environmental performance survey, relating specifically to greenhouse gas emissions in the supply chain. This will then be used as the basis for a new environmentally-linked supply chain finance programme, Vodafone said.

The company explained: "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.

"The framework will initially be offered to suppliers, taking advantage of Vodafone's supply chain finance programme through [Citigroup Inc], and Vodafone will open the framework to a wider variety of suppliers and their supply chain financing providers later this year."

Vodafone said it believes the preferential supply chain financing rates will encourage suppliers to submit data on their environmental performance, reduce their carbon emissions overall, and contribute towards its scope three emissions targets.

Scope three emissions are emissions that aren't directly produced by a company, but are linked to its business activity.

Shares in the FTSE 100-listed firm were down 0.2% at 92.50 pence on Tuesday morning in London.

By Heather Rydings, Alliance News senior economics reporter

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