Standard Chartered has launched a sustainable trade loan offering that will support its financial institution (FI) clients globally by providing liquidity to finance the underlying trade flows associated with sustainable development, in areas where it is most needed.

The bank will reference its green and sustainable product framework – co-authored by Morningstar Sustainalytics – on eligible activities the facility can be used to finance. Some examples include installation of wind turbines, purchase of solar panels, and sale of renewable energy battery storage systems.

The lack of funding for sustainability initiatives continues to be a challenge for companies – the bank’s recent research report notes that approximately 70% of large corporates and mid-sized companies found obtaining funding or finance for environmental, social and governance (ESG) and sustainability-related expenses and investments to be a major issue.

The bank’s sustainable trade loan thus provides financial institutions with the much-needed liquidity to support trade flows associated with clean technology projects, accelerating the progress of their clients in meeting net-zero commitments as part of their overall sustainability agenda.

“We know that many financial institutions and their clients want to play a greater role in driving sustainable outcomes by directing capital to where it matters most in their markets,” says Samuel Matthew, the bank’s global head of flow and financial institutions trade. “The launch of our sustainable trade loan for financial institutions clients aims to support them by providing liquidity for flows that meet their sustainability aspirations. It further demonstrates our commitment to be a force for good by delivering targeted solutions and capabilities that can help to close the financing gap needed to achieve these goals.”