According to the company, the new initiative will be launched later this summer in partnership with major development banks and private financial institutions, including World Bank and the IFC.
In addition, while details of exactly how the scheme will work are yet to be finalised, the company claims that CDP aims to convene a group this summer that will work to provide finance at a preferential rate to suppliers, in order to support low-carbon initiatives. The focus is expected to be mainly in emerging markets, where financing costs are higher.
The proposals are built on CDPs current work with a host of multinationals to improve the environmental performance of their supply chain, which sees large purchasing companies send questionnaires to their key suppliers each year requesting information on their green credentials.
According to the company, while growing numbers of suppliers were disclosing information on carbon, water, and energy use, many continued to ignore the questionnaires while some of those that wish to enhance their environmental performance are hampered by an insufficient skills base or a lack of access to finance.
Further details of how the new financing scheme will work, and confirmation of its final finance partners, is expected in the coming weeks, with the aim of getting the scheme up and running next year.
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