CEMEX has announced that it has signed an agreement with BBVA Mexico to offer preferential rates under its supply chain finance program to suppliers that demonstrate the best environmental, social, and corporate governance (ESG) practices.
As part of this agreement, a revolving line of MXN1.6 billion was made available to approximately 3000 CEMEX suppliers, which can now finance their working capital at preferential rates.
Suppliers seeking to access this benefit will be evaluated by a third party to ensure that they meet the ISO 26000 standard, which is a social responsibility guide for public and private entities encompassing human rights, labor practices, the environment, fair operating practices, and active participation in community development. Supply chain finance operations will be carried out through the eFactor Network platform, a leading fintech company in working capital financing in Mexico.
This program is a step forward in CEMEX’s goal of evaluating sustainable practices in at least 80% of its critical suppliers by 2025, and 90% by 2030.
“At CEMEX, we are deeply committed to sustainability and seek to extend it to our supply chain. This sustainable supply chain finance program with BBVA and eFactor is an invitation as well as a recognition to suppliers that have implemented the best ESG practices”, said Luis Garza, Director of Corporate Treasury at CEMEX.
Álvaro Vaqueiro Ussel, General Director of Corporate and Investment Banking at BBVA Mexico, said: "For BBVA Mexico, it is essential to offer sustainable financing solutions to our corporate clients to help them promote, among their clients and suppliers, the evolution towards business models sustainable. So far this year, we have closed more than 25 operations linked to sustainability in the banking, debt, and equity markets. This operation with CEMEX demonstrates the importance that companies give to incorporating environmental, social, and corporate governance criteria into their environment".
CEMEX is firmly committed to promoting initiatives that contribute to mitigating climate change. Under its Future in Action program, the company offers sustainable products and solutions, implements decarbonisation processes in its operations practices and promotes the circular economy, develops actions to care for water and biodiversity, innovates in its processes and products, and creates alliances strategies that multiply efforts to build a better future. All to be a net zero carbon emissions company by 2050.
Read the article online at: https://www.worldcement.com/the-americas/04112022/cemex-to-offer-preferential-conditions-to-suppliers-committed-to-sustainability/