Middle East’s First Sustainable Supply Chain Finance Program Launched
Majid Al Futtaim Retail, operator of the Carrefour franchise in the Middle East, Africa and Asia, and Standard Chartered Bank announced today the launch of the region’s first Sustainable Supply Chain Finance program.
The innovative solution, designed by Standard Chartered Bank, enables Majid Al Futtaim Retail to incentivise their supplier partners to improve their sustainability performance and indicators, and address key Environmental, Social and Governance (ESG) risks within the supply chain.
Together, Majid Al Futtaim Retail and Standard Chartered Bank will work with a diverse range of Carrefour’s most active suppliers in the UAE to introduce a pilot program ahead of the official program launch, covering a wide range of categories offered at Carrefour.
The new program will incentivize suppliers that meet sustainability criteria such as using energy-efficient equipment, employing fuel efficient vehicles, and minimizing landfill waste, with favourable financing terms.
This program, which is the first of its kind in the region, will further the company’s commitment to supporting local economies, producers and suppliers across the markets that it serves from whom it sources more than 80% of its products.
Commenting on this pioneering sustainable program, Hani Weiss, Chief Executive Officer of Majid Al Futtaim Retail, said: “Today’s announcement is a great moment for Majid Al Futtaim, as it combines two core aspects of our extended responsibilities to the communities we operate in together; supporting our suppliers, and driving our sustainability agenda."
Rola Abu Manneh, Chief Executive Officer, Standard Chartered UAE, added: “We are pleased to launch this bespoke program with one of our leading clients in the UAE. This sustainable solution goes hand in hand with our sustainability agenda and sets a key milestone for the role of the private sector in the UAE’s Net Zero 2050 strategic initiative.”
The Sustainable Supply Chain Financing program builds on previous successful partnerships between Majid Al Futtaim and Standard Chartered, including its Supplier Finance Program, which was launched in the UAE in 2019 in an effort to support local suppliers with financing.
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