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Standard Chartered has emerged as the first international bank to fully embrace the International Chamber of Commerce’s (ICC) Principles for Sustainable Trade Finance, a development announced yesterday from its Singapore headquarters.
The ICC introduced these principles in October 2024, creating a comprehensive framework aimed at guiding financial institutions, corporations, and investors in channeling capital towards sustainable and inclusive trade finance initiatives.
“Standard Chartered first unveiled its sustainable trade finance proposition in 2021, and as part of our commitment to fostering sustainable trade finance standards across the industry, we are proud to adopt the ICC’s principles,” stated Sofia Hammoucha, Global Head of Trade & Working Capital at the bank.
The bank’s sustainable finance solutions are governed by two primary frameworks: the Transition Finance Framework and the Green and Sustainable Product Framework 2024. These frameworks are designed to ensure transparency regarding transaction and client eligibility criteria, while also maintaining compliance with environmental and social risk management standards.
The documents underscore the fact that achieving climate transition poses significant challenges in emerging markets, where only 10-20% of the capital required to fulfill the goal of net zero emissions by 2050—estimated to be between $1.8 trillion and $3 trillion—currently flows.
Raelene Martin, Head of Sustainability at ICC, expressed her approval of Standard Chartered’s adoption of the principles, describing it as “an important step in aligning the industry around a common methodology for the assessment of sustainable trade finance.”
The ICC Principles offer a standardized approach for evaluating transactions within the realm of sustainable trade finance. They encompass methodologies for assessing the use of proceeds, enhanced due diligence protocols, and unified reporting standards, all designed to ensure consistency across financial institutions.
Boston Consulting Group (BCG), a strategic partner of the ICC, played a pivotal role in the development of these principles. Ravi Hanspal, a Partner at BCG, emphasized the significance of this adoption, stating, “The formal recognition and adoption of ICC’s Principles for Sustainable Trade Finance by a leading global financial institution marks a significant advancement on this journey and is hopefully the first of many more to follow.”
