Standard Chartered Launches Sustainable Supply Chain Finance To The Middle East
As per the latest news, Standard Chartered has introduced what it says is the first sustainable supply chain finance program in the Middle East, in association with Majid Al Futtain Retail, administrator of the Carrefour franchise in the region. Earlier, Standard Chartered launched Olea with Linklogis for sustainable trade finance.
The program, which is now being administered by some of the organization’s most dynamic suppliers in the United Arab Emirates, facilitates ideal financing terms to suppliers that fulfill sustainability criteria such as utilizing energy-efficient equipment, incorporating fuel-efficient vehicles and decreasing landfill waste.
The program is expected to be extended to all of the organization’s suppliers across the Middle East, Africa, and Asia.
“Through this innovative program, we aren’t only supporting our supplier partners, moreover, we are also introducing & boosting them to take on sustainable practices within their operations,” says Hani Weiss, CEO of Majid Al Futtaim Retail.
This is the latest in a series of sustainable supply chain finance programs within the retail sector. In 2019, HSBC developed the first such scheme, empowering Walmart suppliers that exhibit progress in The Sustainability Index, powered by The Sustainability Consortium’s measurement and reporting system, or through the retailer’s Project Gigaton, to incorporate improved financing.
Last year, supermarket chain Tesco was recognised as the first UK retailer to facilitate sustainability-linked supply chain finance to its supplier base with the help of a program with Santander which likewise carried out a comparative program in May for multinational retail conglomerate Sonae in Spain and Portugal.
Recommended Read: DBS & Standard Chartered Launch Blockchain Trade Finance Platform
The recent Standard Chartered programme for Majid Al Futtaim is being offered as a part of the sustainable trade finance proposition it reported last year, which embeds the Loan Market Association’s (LMA) green and sustainability-linked loan standards into the Bank’s offerings. The first green trade finance offering under the initiative was introduced in September 2021, aiding efforts by UAE-based Amplus Energy Solutions to strengthen its solar power generation business. This was trailed by a sustainable receivables finance facility for Siemens’ United Arab Emirates arm in October this year.