Standard Chartered has announced its adoption of the International Chamber of Commerce’s (ICC) newly published Principles for Sustainable Trade Finance, becoming the first international bank to align its sustainable trade finance solutions with the global industry standards.
The ICC released the principles in October 2024 to provide clear, transparent, and consistent guidelines for banks, corporates, and investors looking to direct capital towards sustainable and inclusive trade finance initiatives.
Standard Chartered’s sustainable finance solutions operate under two key frameworks – the Transition Finance Framework and the Green and Sustainable Product Framework 2024 – which set out eligibility criteria for transactions and clients while ensuring adherence to strict environmental and social risk management standards.
Sofia Hammoucha, global head of trade and working capital at Standard Chartered, said the bank had introduced its sustainable trade finance proposition in 2021 and remained committed to advancing industry-wide sustainability standards.
“As part of our efforts to support the creation of sustainable trade finance standards across the industry, we are pleased to adopt ICC’s principles,” she said. “We are committed to offering our clients innovative solutions that empower them to achieve their sustainability goals while effectively managing associated risks. We applaud ICC for leading the way in setting international guidelines for the industry and look forward to continuing our partnership to shape the future of sustainable trade finance globally.”
The ICC Principles for Sustainable Trade Finance provide a standardised framework for evaluating sustainable trade finance transactions. This includes clear guidelines on the use of proceeds, enhanced due diligence for sustainability verification, and unified reporting standards to ensure consistency across financial institutions.
Raelene Martin, head of sustainability at ICC, welcomed Standard Chartered’s decision, describing it as an important step towards aligning the industry around a common methodology. “As one of the leading trade banks, Standard Chartered’s support is integral to our ongoing efforts to provide thought leadership and practical guidance for the industry globally. We believe these principles represent a major milestone in embedding sustainability at the heart of global trade.”
Boston Consulting Group (BCG), a long-term strategic partner of the ICC, has co-led the Sustainable Trade programme since its inception, including the working group that developed the latest principles.
Ravi Hanspal, partner at BCG, highlighted the importance of this development in accelerating sustainability across complex global supply chains. “Unlike many other financial products, trade finance has historically lacked a clear, consensus-based definition of sustainability, limiting its application. Standard Chartered’s formal recognition and adoption of ICC’s principles marks a major step forward, and we hope to see many more institutions follow suit.”
