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Green Finance Goes Global: Banks Embrace Sustainable Trade
18 Nov
Summary
- Seven major banks endorsed ICC's Green Trade Finance Principles.
- Endorsements now cover about 70% of Europe's trade finance sector.
- Principles align with LMA Green Loan Principles for consistency.
The International Chamber of Commerce (ICC) announced that a second group of major international banks has endorsed its Principles for Green Trade Finance (PGTF). This expansion, including institutions like BNP Paribas, Intesa Sanpaolo, and Rabobank, is projected to cover around 70% of Europe's trade finance market. These principles offer standardized guidelines for evaluating the environmental sustainability of trade finance transactions, aligning with existing green finance frameworks.
The initiative, developed collaboratively by ICC and BCG with industry experts, aims to establish clear criteria for sustainable trade finance. By endorsing the PGTF, these banks commit to harmonizing minimum sustainability thresholds and due diligence standards. This broad adoption across diverse geographies and products signifies a global push towards greener trade finance practices.
This growing coalition underscores the trade finance industry's commitment to a sustainable global economy. The endorsements represent a significant milestone, establishing a common understanding and practical framework for defining and delivering sustainable trade finance worldwide, crucial as global sustainability targets approach.
