Standard Chartered has launched a sustainable trade loan offering for financial institutions. The new offering supports the bank’s financial institution clients globally by providing liquidity to support the underlying trade flows associated with sustainable development, in areas where it is most needed.
With a current focus on the sustainable end-use pillar within the renewable energy sector, the bank will reference its Green and Sustainable Product Framework – co-authored by ESG data, research and ratings firm, Morningstar Sustainalytics – on eligible activities the facility can be used to finance. Some examples include installation of wind turbines, purchase of solar panels, and sale of renewable energy battery storage systems.
The lack of funding for sustainability initiatives continues to be a challenge for companies – the bank’s recent research report notes that approximately 70% of large corporates and mid-sized companies found obtaining funding or finance for ESG and sustainability-related expenses and investments to be a major issue.
“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,” said Samuel Mathew, Global Head of Flow and Financial Institutions Trade at Standard Chartered.
“The launch of our sustainable trade loan for financial institutions clients aims to support them by providing liquidity for flows that meet their sustainability aspirations,” he added.