Environment, Social & Governance (ESG) can drive long term value for all stakeholders and is critical for sustainable and fairer economies in this time of planetary emergency. The global ESG agenda is evolving at an impressive pace with adequate attention from players such as governments, regulators, corporations, non-profit organisations, and civil society.
Regulators are writing up new regulations to tackle greenwashing and long-standing lack of transparency in the ESG landscape, industry bodies are coming up with their own guidelines, investors are pushing for standardization and many corporations worldwide are developing their ESG framework in line with United Nations (UN) Sustainable Development Goals (SDGs) and or required regulations applicable to them. Combined with a considerable rise in demand for ESG-related financial products, doing nothing in this area is no longer an option.
The whole financial system, which includes trade finance do have an essential role to play in the development of a more sustainable world given its impact on global supply chains. We have now begun to see pioneering transactions with ESG criteria inbuilt into structures. Various innovative programs are being set up by large corporates in partnership with Financial Institution (FIs) to meet these goals. The solution set in the trade finance industry is expanding, however, a lot still depends on the data and its quality – what, from where and how! We believe that ‘Technology’ will be the key to evolving the capacity of participants to progress further in this direction.
A Supply Chain Finance Platform that supports your ESG ambitions
At Demica, we have sought to build an industry leading supply chain finance platform that provides flexibility to our Corporate and FI clients to support their ESG ambitions. The platform offers various capabilities to design and structure ESG transactions allowing stakeholders to monitor relevant Key Performance Indicators (KPIs) and drive change.
The platform offers capabilities such as the ability to capture data from a variety of sources (whether internal or external for the client), automated data processing, availability of customized reports for transaction participants and innovative features such as preferential pricing that can be inbuilt for ESG assets. Demica technology also facilitates adequate data storage and audit trail.
We are proud to work with our corporate and FI partners who are leading the way in this area. An example is our collaboration with International Finance Corporation (IFC) as a funder and Barry Callebaut, world’s largest chocolate maker, to support the latter’s objective of setting up an ESG focused supply chain finance program.
Our team is excited to work with you on ESG based financing transactions with you. For a demonstration of our capabilities and to discuss your requirements further, arrange a 15 minute meeting with one of our experts using the form below.