Standard Chartered has announced that it is adopting the International Chamber of Commerce’s (ICC) Principles for Sustainable Trade Finance, making it the first international bank to confirm its alignment.

The ICC principles, published in October 2024, provide a framework for sustainable trade finance that will empower banks, corporations, and investors to better direct capital toward responsible trade practices.

A structured approach to sustainable finance

Standard Chartered’s sustainable finance strategy is built on both the Transition Finance Framework and the Green and Sustainable Product Framework 2024, which align the bank’s trade finance solutions with environmental and social risk management standards.

Sofia Hammoucha, Global Head of Trade & Working Capital at Standard Chartered, said, “Our commitment to sustainable trade finance began in 2021, and aligning with the ICC’s principles reinforces our role in shaping industry-wide standards. We aim to provide innovative financial solutions that support our clients in meeting their sustainability targets while effectively mitigating associated risks. ICC’s leadership in this space is invaluable, and we look forward to continued collaboration to drive global adoption of sustainable trade finance.”

The ICC’s framework introduces a structured methodology for evaluating sustainable trade finance transactions and includes clear guidelines for consistency in due diligence processes and reporting standards across financial institutions.

Raelene Martin, Head of Sustainability at ICC, said, “This milestone marks a significant step toward a common, globally recognised methodology for sustainable trade finance. As a leading international trade bank, Standard Chartered’s support is instrumental in advancing the adoption of these principles across the industry.”

The ICC’s Sustainable Trade programme has been developed in partnership with Boston Consulting Group (BCG).

Ravi Hanspal, Partner at BCG, said, “Trade finance has lacked a universally accepted definition of sustainability. With Standard Chartered’s alignment, we anticipate broader industry adoption, making sustainable trade finance more accessible and effective.”

More details on the ICC Principles for Sustainable Trade Finance can be found on the ICC website.