Supply chains get more attention in sustainable trade finance

Banks are taking a more proactive approach to sustainable trade finance, recognizing that their responsibilities extend beyond simply providing financially competitive products.

Sustainable trade finance involves enabling clients to support suppliers that meet pre-agreed criteria with access to off-balance sheet finance at attractive rates. But banks are increasingly aware that it is also important to engage with clients about the environmental impact of their supply chains to find out how they can be supported in their green transition or improve their sustainable supply chain credentials.

This is a topic that bankers say has increased in prominence since the start of the coronavirus pandemic.

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