Founded in 1889 and headquartered in Sparks, Maryland, McCormick & Company is a manufacturer, marketer, and distributor of spices, seasonings, flavorings, and other specialty food products for the consumer and industrial markets. McCormick is publicly traded in NYSE and institutional investors hold majority of its shares

The proposed project (‘the Project”) within the GTSF facility is expected to be US$30 million for the supply of spices from McCormick’s suppliers.

GTSF-approved countries, including Vietnam, Indonesia, Brazil, and Madagascar.

The Project’s development impacts include: (i) improved access to finance for McCormick suppliers in emerging markets; (ii) a measurable improvement in the E&S performance of McCormick suppliers; and (iii) (iii) demonstration effect for local and international financial institutions to offer Supplier Finance products in emerging markets and for international buyers to utilize this instrument and align their commercial and sustainability objectives.

   This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

The environmental and social impacts that are expected to occur among McCormick’s suppliers are those related primarily to agricultural production. The most significant of these impacts are related to labor practices, including child labor, forced labor, occupational health and safety, wages, and overall safe and fair employment conditions. In addition, environmental risks include water consumption; handling and use of chemicals (pesticides and fertilizers); and impacts on biodiversity due to deforestation.

McCormick’s supplier system considers potential impacts of the suppliers in the aspects related to PS1 (Assessment and Management of Environmental and Social Risks and Impacts) and PS2 (Labor and working conditions); elements of PS3 (Resource Efficiency and Pollution Prevention) are considered in the audit process; and elements of PS6 (Biodiversity Conservation and Sustainable Natural Resource Management) are considered in the Rainforest Alliance certification process. The suppliers to be financed within this Project all entail existing processing facilities and procurement from existing smallholder farmers. Since no greenfield processing facilities nor greenfield farms will be financed, the impacts related to PS5 (Land Acquisition and Involuntary Resettlement); PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) are not expected. Suppliers’ impacts are limited mostly to their premises and no impacts to local communities are expected, therefore PS4 (Community Health, Safety and Security) issues are not expected.