When we think of sustainability, we tend to first imagine oil spills, Greta Thunberg, and the mantra to ‘reduce, reuse, and recycle.’ A less understood and less covered, but equally crucial to the global journey towards sustainability and net-zero, is its application in trade finance.

In this industry, sustainability is the integration of environmental, social, and governance (ESG) considerations into the systems, instruments, and policies that govern global trade and finance. It is not limited to reducing emissions or producing annual ESG reports. Instead, sustainability entails a fundamental shift in how trade and capital flow. Since risks associated with the climate grow, inequality in society remains the same, and regulatory frameworks change, including ESG in financial and trade-related decisions, is now a strategic need.

This guide has been developed to support a diverse group of stakeholders. We’ve considered regulators, financial institutions, multinational enterprises, small and medium-sized enterprises (SMEs), digital trade platforms, and sustainability experts. The intention is to add to the current body of literature with a clear connection between sustainability and incorporating the views of the stakeholders we are looking to assist, while providing practical tools to act on ESG opportunities and mitigate risks throughout global value chains.

This guide presents a straightforward methodology for implementing sustainability in trade finance, including designing financial instruments linked to ESG performance, applying ESG screening tools in trade transactions, and adhering to responsible sourcing and procurement standards. Whether users are structuring ESG-linked guarantees, supporting transition finance in high-emission sectors, or ensuring deforestation-free supply chains, this guide offers structured insights grounded in real-world practices and evolving regulatory expectations.

Additionally, it addresses the accelerating transformation of regulatory expectations and how this shapes consumer and information behaviour. For the first time, we compile all the conflicting compliance information from all around the world in Chapter 2; we go continent by continent, sifting through regulations so you don’t have to. New reporting frameworks  – such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the International Sustainability Standards Board (ISSB) standards, and global initiatives on nature and biodiversity – are redrawing the service line for accountability.

We are grateful for the contributions of the Export Credits Guarantee Department, or UK Export Finance (UKEF), the export credit agency and a ministerial department of the Government of the United Kingdom. The team has helpfully explained to the writing team how the UK is incorporating these values in various initiatives.

This report comes at a time when investors are demanding greater accountability from companies on climate- and nature-related risks; trade financiers face increasing public scrutiny of the ESG credentials of their portfolios; and regulators and buyers alike are calling for supply chains that are transparent, ethical, and verifiable.

This compendium is both an instructional resource and a strategic call to action. It urges leaders across sectors to help build trade and finance systems that are inclusive, resilient, and future-ready. By embedding ESG at the core of trade finance, we can create pathways for economic growth that also safeguard our shared environmental and social future.