New Principles Clarify Sustainable Trade Finance

On October 21, 2024, the International Chamber of Commerce (ICC) launched its Principles for Sustainable Trade Finance (PSTF). Developed with input from financial institutions and corporates, the PSTF provides specific guidance for sustainable trade finance, covering green trade finance, sustainability-linked trade finance and sustainability-linked supply chain finance. The PSTF aim to standardize definitions and reduce greenwashing risks in trade finance due to their "flow" nature rather than project-based structure. ICC includes a list of green activities in the appendix.