International Chamber of Commerce Announces Wave 3 Of the Principles for Sustainable Trade
- Aquamerge
- Nov 5, 2024
- 2 min read
Tailored Advice Reflecting Input from Major Banks and Corporate Leaders
The International Chamber of Commerce (ICC) has unveiled the third wave of its Principles for Sustainable Trade, reflecting input from over 30 top banks and corporate leaders. This updated version builds on earlier principles and offers more flexibility and actionable advice for assessing sustainability in trade across all sectors.
Wave 3 introduces improved guidelines for trade finance through the recently launched Principles for Sustainable Trade Finance. These principles offer tailored advice for the industry on the appropriate use of proceeds, ensuring they align with the broader Principles for Sustainable Trade. A significant emphasis is placed on harmonizing trade transactions with objectives promoting environmental integrity and socioeconomic sustainability.
The Principles for Sustainable Trade cover four essential elements: Use of Proceeds, Buyer, Seller, and Distribution. This provides the opportunity for extensive sustainability evaluations that conform to well-defined frameworks such as the Loan Market Association Green Loan Principles.
The Principles for Sustainable Trade embrace a sector-agnostic approach and present clear and concise guidelines that banks and corporations can easily incorporate into their operations. Optional detailed guidance is also available to help operationalize these principles. Major updates, such as improved assessments regarding the use of proceeds and distribution, reflect valuable feedback from the Wave 2 Pilot.
The Principles for Sustainable Trade aim to bolster worldwide initiatives to achieve the targets set by the Paris Agreement, reduce carbon emissions in trade activities, and promote the United Nations Sustainable Development Goals.
Pilot And Survey Engagement
To learn more about Wave 3 of the Principles for Sustainable Trade, go to ICCWBO.org:
“ICC will run a pilot following the launch of Wave 3 of the Principles for Sustainable Trade where it will be tested on real transactions and for leading trade practitioners to provide their feedback. This collaborative approach will ensure that the principles remain practical, scalable, and reflective of industry needs.
In addition, ICC is launching a survey designed to gather further insights and feedback from industry professionals.”
Source: ICC Announces Wave 3 of the Principles for Sustainable Trade to Drive Global Trade Sustainability Across All Sectors – International Chamber of Commerce
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Written by AQUAMERGE
November 5th, 2024
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