The International Chamber of Commerce (ICC) has launched a new set of Principles for Sustainable Trade Finance (PSTF) at Sibos 2024 in Beijing. Developed in collaboration with industry experts, financial institutions, corporates and Boston Consulting Group (BCG), the PSTF aim to provide a consensus set of principles that define sustainable trade finance products.
Existing sustainable finance frameworks often cannot be easily and objectively applied to many Trade Finance products due to their nature as a ‘flow’ product without delineated projects. The PSTF offer clear, transparent, and consistent guidelines to enable banks, corporates and investors to effectively channel capital towards sustainable and inclusive trade finance facilities while mitigating the risks associated with greenwashing.
The PSTF contain four distinct sections:
- bespoke Principles for Green Trade Finance (PGTF),
- ICC guidance on Sustainability Linked Trade Finance,
- ICC guidance on Sustainability Linked Supply Chain Finance and
- ICC’s ambition for Social Trade Finance.
Initiating industry-wide consultation
The launch of the PSTF marks the commencement of an open consultation period. ICC invites all stakeholders within the trade finance industry to review the document and provide comments and feedback. This collaborative approach ensures that the principles are robust, practical, and reflective of the diverse needs and insights of industry participants.
Following the consultation period, the PSTF will be finalised and officially released later this year, solidifying its role as a cornerstone in promoting sustainable trade finance globally.
Online event and feedback opportunities
To facilitate a deeper understanding of the PSTF and encourage active engagement, ICC will host an online launch event on 29 October 2024 at 13:00 CET. This session will feature a comprehensive walkthrough of the principles, followed by a 30-minute Q&A segment. Participants will have the opportunity to engage directly with the authors and contributors of the PSTF, fostering a dialogue that will shape the final version of the document.
In addition, ICC is launching a survey designed to gather further insights and feedback from industry professionals.
Engage and participate
- Register for the online event: To join the online session on Tuesday 29 October, please register via this link.
- Provide your feedback: Participate in the PSTF survey
- Contact us: For more information on the Principles for Sustainable Trade Finance or to submit detailed comments, please reach out to:
- Raelene Martin, Head of Sustainability, ICC
- Tomasch Kubiak, Policy Manager, ICC
ICC would like to thank HSBC, Standard Chartered, Deutsche Bank, Santander, ING, CommerzBank and BCG for their substantial input into the creation of the principles.
Read more about our work on sustainable trade and sustainable trade finance.
