Standard Chartered Introduces Sustainable Trade Loans For Financial Institutions
Standard Chartered has introduced a sustainable trade loan for financial institutions, aimed at offering liquidity to support trade flows associated with sustainable development. The bank's initial focus is on the sustainable end-use pillar in the renewable energy sector.
It will refer to its green and sustainable product framework, which was developed in collaboration with ESG data firm Morningstar Sustainalytics, to determine eligible activities for financing. These activities may include wind turbine installation, solar panel purchases and the sale of renewable energy battery storage systems.
Notably, funding for sustainability initiatives remains a challenge for many companies, with around 70 per cent of large corporates and mid-sized firms reporting difficulties in obtaining finance for ESG and sustainability-related expenses.
The company in a statement added that Standard Chartered's sustainable trade loan aims to address this issue by providing financial institutions with the necessary liquidity to support clean technology projects, thereby assisting clients in achieving their net-zero commitments and broader sustainability goals.
Samuel Matthew, Global Head of Flow and Financial Institutions Trade, Standard Chartered said, “We know that many financial institutions and their clients want to play a greater role in driving sustainable outcomes by directing capital to where it matters most in their markets.”
This new offering extends the bank's sustainable trade finance proposition, first introduced in March 2021. The initial proposition was created to assist companies in adopting sustainable practices throughout their ecosystems and strengthening their supply chains.
