Standard Chartered
and
ADM
announced the successful execution of the Bank’s first Green Trade Export Letter of Credit (LC) programme in
Singapore
,
London
and
New York
. The transaction, which demonstrates both
Standard Chartered
and ADM’s commitment to sustainability, supports supply chain trackability and greater adoption of sustainable farming and production practices, promoting positive impacts on resource efficiency, deforestation, energy use and social impact. Olivier Boujol,
ADM
vice president and global head of Structured Trade Finance said: “Sustainability powers our strategy, and is foundational to our purpose as a company. With an integrated value chain spanning food and agriculture,
ADM
is uniquely positioned to drive sustainable practices across our industry, and we’re continuously scaling up our efforts to power positive change. We’re proud to work with
Standard Chartered
to support and encourage sustainable agriculture and food production from the farm gate to the dinner plate, and we look forward to continuing to expand our structured trade efforts in sustainability.”
Key Highlights:
* Earlier this year,
ADM
announced a
$20 million
commitment to supporting cover crops in the
American Midwest
, supporting lower-carbon crop production.
* In 2021, the company announced a plan to reduce Scope 3 emissions by 25% by 2035, and last year,
ADM
accelerated its deadline for a completely deforestation-free supply chain by five years, from 2030 to 2025.
Original Press Release:
New York
,
Singapore
,
Aug. 11
--
Standard Chartered
issued the following news release:
Standard Chartered
and
ADM
(NYSE:ADM) today announced the successful execution of the Bank’s first Green Trade Export Letter of Credit (LC) programme in
Singapore
,
London
and
New York
. Issued under the “Sustainable Goods” pillar of the Bank’s Sustainable Trade Framework, the transaction helps advance ADM’s widening efforts to expand sustainable farming practices and source sustainably produced goods.
The commodities underlying this
USD500m
programme are mainly soybeans, oilseeds and cotton, with flows originating from
Latin America
, the US, and
Australia
to European markets. Third-party issued approved sustainable goods certifications from Round Table for Sustainable Soy (RTRS)[1], US Sustainable Soy Assurance Protocol (SSAP)[2], International Sustainability & Carbon Certification (ISCC)[3] as well as Better Cotton Initiative (BCI)[4] are issued and evidenced as part of the transaction structure.
The transaction, which demonstrates both
Standard Chartered
and ADM’s commitment to sustainability, supports supply chain trackability and greater adoption of sustainable farming and production practices, promoting positive impacts on resource efficiency, deforestation, energy use and social impact.
Olivier Boujol,
ADM
vice president and global head of Structured Trade Finance said: “Sustainability powers our strategy, and is foundational to our purpose as a company. With an integrated value chain spanning food and agriculture,
ADM
is uniquely positioned to drive sustainable practices across our industry, and we’re continuously scaling up our efforts to power positive change. We’re proud to work with
Standard Chartered
to support and encourage sustainable agriculture and food production from the farm gate to the dinner plate, and we look forward to continuing to expand our structured trade efforts in sustainability.”
Kai Fehr
, Global Head of
Trade & Working Capital
,
Standard Chartered
, said: “Our clients are increasingly prioritising sustainability across their supply chain ecosystem, which is not only important to their business agenda but also ensures a more resilient growth for the wider economy. As a longstanding trade bank, we have an incredibly important role to play in helping to make global supply chain activities more sustainable. The successful execution of this Export LC programme is testament to the significant opportunity we have in catalysing finance to scale impact, by complementing ADM’s sustainable procurement processes with our tailor-made sustainable trade finance offering to advance their sustainability goals.”
From supporting sustainable farming practices, to improving the efficiency of its own operations, to offering a vast and growing portfolio of plant-based foods, fuels and other products,
ADM
is committed to expanding sustainable practiced across the food and agriculture value chain. Earlier this year,
ADM
announced a
$20 million
commitment to supporting cover crops in the
American Midwest
, supporting lower-carbon crop production. The company continues to advance its Strive 35 Goals to reduce greenhouse gas emissions, energy intensity, water usage, and waste to landfill. In 2021, the company announced a plan to reduce Scope 3 emissions by 25% by 2035, and last year,
ADM
accelerated its deadline for a completely deforestation-free supply chain by five years, from 2030 to 2025.
ADM
also recently committed to work with the Science-based Targets Initiative with the aim of obtaining approval of its climate targets and alignment with ambitious global goals to limit rising temperatures to 1.5 degrees Celsius.
Standard Chartered
aims to embed sustainability and responsibility into everything it does as a bank and to be the leading private catalyser of finance for the
Sustainable Development Goals
(SDGs) where it matters most, across its footprint and to achieving its Net Zero 2050 goal.
To do so, the Bank looks to catalyse finance and partnerships to scale impact, capital and climate solutions to where they are needed most, including a plan to mobilise
USD300 billion
in green and transition finance between 2021 and 2030. It recently launched sustainable trade finance solutions across
Asia
,
Africa
and the
Middle East
,
Europe
and the
Americas
to help companies implement more sustainable practices and build more resilient supply chains.
Footnotes:
[1] RTRS is a global non-profit organisation promoting the growth of production, trade, and use of responsible soy. It sets the standards for both responsible soy production and chain of custody.
[2] The US SSAP is a respected industrywide initiative that demonstrates US soy’s commitment to responsible growing practices and sustainability through setting clear, verifiable standards of industry practice.
[3] ISCC offers solutions to address sustainability requirements for all feedstocks and aims to provide solutions for a fully traceable and deforestation-free supply chain.
[4] BCI is the world’s leading sustainability initiative for cotton. Their mission is to help cotton communities survive and thrive, while protecting and restoring the environment.
Source:
Standard Chartered
[Category: Banking & Finance, Banking, ESG]
