Multinational food processing and commodities trading corporation ADM and Standard Chartered have launched the bank's first green trade export letter of credit (L/C) programme in Singapore, London, and New York.

Issued under the sustainable goods pillar of StanChart's sustainable trade framework, the transaction helps advance the food giant's efforts to expand sustainable farming practices and source sustainably produced goods.

Third-party certifications

The commodities underlying this US$500m programme are mainly soybeans, oilseeds and cotton, with flows originating from the US, Latin America and Australia to European markets.

Third-party sustainable goods certifications from Round Table for Sustainable Soy, US Sustainable Soy Assurance Protocol, International Sustainability and Carbon Certification as well as Better Cotton Initiative will be issued and evidenced as part of the transaction structure.

The transaction aims to demonstrate both StanChart's and ADM's commitment to sustainability, support supply chain trackability and greater adoption of sustainable farming and production practices, and promote positive impacts on resource efficiency, deforestation, energy use and social impact.

Stanchart's sustainability aims

StanChart says it aims to embed sustainability and responsibility into everything it does as a bank; to be the leading private catalyser of finance for the UN's sustainable development goals (SDGs), and achieve its net zero emissions by 2050 goal.

To do this, the bank plans to catalyse finance and partnerships to scale impact, capital and climate solutions to where they are needed most, and mobilise US$300 billion in green and transition finance between 2021 and 2030.

Going for green

StanChart has 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.

One of these, announced last week, was the successful closure of the Middle East's first transition trade finance facility for Lafarge Emirates Cement to support a waste heat recovery system in the UAE for the wholly owned subsidiary of Holcim Group.

Sustainable food production

Chicago-based ADM meanwhile has announced several initiatives in pursuit of its commitment to expand sustainable practices across the food and agriculture value chain.

One of these is a US$20 million commitment to supporting cover crops in the American Midwest, supporting lower-carbon crop production and its programme to reduce greenhouse gas emissions, energy intensity, water usage, and waste to landfill. Another is ADM's acceleration of its deadline for a completely deforestation-free supply chain by five years, from 2030 to 2025.

Further details of StanChart and ADM's US$500 million sustainable export L/C programme can be found here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.