Trafigura to pilot sustainable supply chain finance programme for Mexican mining companies with eFactor Network
Mexico, 14 December 2022 - Trafigura Pte Ltd (“Trafigura”), a market leader in the global commodities industry, in collaboration with eFactor Network and a number of financial institutions, are piloting a Sustainable Supply Chain Finance programme for mining companies in Mexico.
The programme - the first of its type and providing a model that can be scaled across the region - is structured to improve mining companies’ working capital whilst driving responsible sourcing practices along the metals value chain.
Through the programme, Trafigura’s suppliers of metal concentrates will receive accelerated payments for products using eFactor’s digital factoring platform, whilst benefitting from a bespoke programme of site-based capacity building on topics of international importance, such as respect for security and human rights.
The programme directly complements Trafigura’s existing responsible sourcing due diligence efforts and will respond to risks identified within the value chain. In addition to cash flow benefits, Trafigura and financial institutions involved will extend improved financial terms, including preferential interest rates, as each company’s Environmental, Social and Governance (ESG) performance improves. Initially the programme will drive alignment with the internationally recognised Voluntary Principles on Human Rights (VPSHR) which guide businesses on how to conduct their operations whilst respecting human rights. The VPSHR has significant importance in complex operating environments where companies strive to build trusted and harmonious relationships with local communities whilst ensuring that their security providers respect human rights.
Progress in aligning with the requirements of the VPSHR will be formally assessed on an annual basis by an independent assurance provider. A global financial institution will act as ESG Coordinator, working with Trafigura to ensure the robustness of the programme against selected key performance indicators.
“We greatly value the collaboration with Trafigura and financial institutions in this programme, which in addition to benefiting mining companies and their suppliers with attractive financing conditions, brings stability and transparency to the supply chains of a sector of great importance for the Mexican economy by incorporating ESG incentives,” said Héctor de la Garza, CEO of eFactor Network.
“Trafigura is committed to working with the mining community across Latin America to source commodities responsibly. This pilot programme offers a powerful illustration of how different value chain actors can, and must increasingly collaborate to promote good practice in a complex operating environment,” said Inigo Flores Piran, Trafigura’s Chief Financial Officer for Latin America.
For further information please contact:
eFactor Network Office: Tel: 52 8182480800 or Email: firstname.lastname@example.org
Trafigura Montevideo Press Office: Tel: +598 2518 8188 or Email: email@example.com
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. Trafigura is owned by its employees and employs over 12,000 people working in 61 countries.
About eFactor Network
eFactor Network is a Fintech company, leader in working capital financing in Mexico, which helps large purchasing organizations improve their working capital by extending payment terms without increasing the burden of their supply chain, as well as its suppliers by giving the option of obtaining an advance payment at attractive financing rates. It has alliances with development banks such as IFC World Bank, IDB Invest, Bancomext and PrimeRevenue. After over a decade of operations, its network includes more than 16,000 companies, suppliers, bottomers and technological partners. eFactor operates in 20+ countries where they pay company suppliers in various currencies and has granted 5 billion dollars through its platform.
Additional information about e-Factor network can be found at www.efactornetwork.com