Episode 140: CSFI The ESG Gap in Trade Finance
Update: 2024-06-04
Description
The global economy needs to transition to net zero and trade finance should be a powerful lever in making that happen. But the development and adoption of ESG standards in trade finance has been slow. So, what’s behind the delay? Technology? Data? Product-market fit mismatch? The challenge of getting global co-operation? This podcast is led by Helene Panzarino, CSFI Director, Fintech Innovator, and Author, and features Vera Spender Koubek, MBA, MSc, PIEMA, a sustainability consultant and adviser and Charles Radclyffe, Founder and CEO of EthicsGrade who discuss why trade finance is not delivering its full ESG potential covering:
- key barriers to ESG adoption including the qualitative nature of the industry which makes it difficult to standardise data and unify metrics; metrics that may not be fit for purpose
- leveraging ESG data to identify and mitigate supply chain risks
- the role of technology in enabling greater transparency and traceability in transacting, reporting and decision-making
- the state of collaboration between FIs and key partners to direct capital to sustainable opportunities in emerging markets and support the likes of SMEs, and female-owned businesses to address gender imbalances
- the potential lack of financial instruments to incentivise ESG improvements, (penalise poor performance) and create greater industry alignment with sustainable best practice.
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