Trade finance providers have a critical role to play in the low-carbon transition. Through their lending decisions, they hold massive influence in some of the most carbon-intensive companies and supply chains, and they can use this leverage to push for much-needed progress on climate.
While a growing portion of the industry starts to seize the opportunities of measuring and managing emissions, many commodity traders still hesitate. Why undertake the complex process of carbon accounting, if it’s hard, if it’s not a legal requirement, and if it only draws attention to their high-carbon products rather than their competitors?