ESG and Trade

ESG factors are evaluated to assess the environmental and social impact of trade transactions, as well as the governance practices of the involved parties. This evaluation takes into account factors such as carbon emissions, waste management, labor conditions, human rights, supply chain sustainability, and adherence to ethical business practices. By integrating ESG principles into trade finance, stakeholders can make informed decisions that promote sustainable development, mitigate risks associated with environmental and social issues, and support responsible trade practices. ESG considerations enable financial institutions to align their lending and investment activities with sustainability goals, encourage positive changes in supply chains, and foster transparency and accountability throughout the trade finance ecosystem.