Key Impact Points:

• New global standards: ICC’s Principles for Sustainable Trade Finance (PSTF) provide clear guidelines for sustainable trade finance products, mitigating greenwashing risks.
• Industry collaboration: Developed with input from HSBC, Standard Chartered, Deutsche Bank, and other leading institutions, ensuring wide industry relevance.
• Open consultation: Stakeholders are invited to review and contribute to the PSTF during the consultation period, with the final version set for release later this year.

The International Chamber of Commerce (ICC) has launched its Principles for Sustainable Trade Finance (PSTF) at Sibos 2024 in Beijing. Developed in partnership with industry leaders, including major trade banks and Boston Consulting Group (BCG), the PSTF aims to provide much-needed clarity on what constitutes sustainable trade finance. The principles address gaps in existing frameworks, which often cannot be directly applied to trade finance due to the unique nature of its flow-based products.

Raelene Martin, Head of Sustainability at ICC, explains: “The PSTF offers clear, transparent, and consistent guidelines, enabling banks, corporates, and investors to channel capital towards sustainable trade finance while addressing the risks of greenwashing.”

The PSTF are divided into four key sections:

• Principles for Green Trade Finance (PGTF)
• ICC guidance on Sustainability Linked Trade Finance
• ICC guidance on Sustainability Linked Supply Chain Finance
• ICC’s ambition for Social Trade Finance

Open Consultation Period

The launch of the PSTF opens an industry-wide consultation, inviting stakeholders to review the principles and provide feedback. This process ensures that the final version is both robust and practical, addressing the diverse needs of the trade finance industry.

Tomasch Kubiak, Policy Manager at ICC, highlighted the collaborative nature of the initiative: “We are seeking input from all industry participants to shape principles that will serve as a global benchmark for sustainable trade finance.”

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Upcoming Online Event

To further engage stakeholders, ICC will host an online launch event on 29 October 2024 at 13:00 CET. The session will provide a detailed walkthrough of the principles, followed by a Q&A segment where participants can interact with the authors and contributors.

Get Involved:

• Register for the online event: Join the session on 29 October by registering through the provided link.
• Provide feedback: Participate in the PSTF survey to share your insights.

ICC acknowledges the substantial contributions of HSBC, Standard Chartered, Deutsche Bank, Santander, ING, CommerzBank, and BCG in developing these principles, which aim to set a new standard for sustainable trade finance globally.