ICC BANKING COMMISSION MIAMI MEETING 2018: Day 2 @ 16:00 Sustainability and Traceability in Trade
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This document discusses sustainable trade finance and traceability in trade. It outlines how multilateral development banks are working to promote sustainability through trade finance by minimizing environmental and social impacts. It also describes the objectives and progress of the ICC Working Group, including developing due diligence guidelines and risk assessment tools to help banks address sustainability risks. Finally, it presents tools like the GMAP and ITC Standards Map that help assess sustainability risks and compare certifications for different commodities and countries to support more sustainable and traceable trade.
ICC BANKING COMMISSION MIAMI MEETING 2018: Day 2 @ 16:00 Sustainability and Traceability in Trade
- 1. Sustainability and Traceability in Trade Sustainable Trade Finance: "Trade Finance transactions that support goods or services produced in a manner that minimizes adverse environmental or social impacts or risks or that promote environmental protection or social benefit" Why is it important? What risks do banks face? Experience and approach of Multilateral Development Banks Objectives and Progress of ICC Working Group: Due Diligence Guidelines Risk Assessment & Certification Tools Education Blockchain and Tracing Technology: How can they help? Business Opportunities and Challenges
- 2. GMAP Tool developed by IFC and WWF
- 3. Choose Country and Commodity for Risk Assessment
- 4. GMAP insight into individual issues
- 5. From GMAP for Ghana Cotton: Credible certification for cotton in Ghana exists through the Better Cotton Initiative. However, there are no stakeholders in Ghana at this time. REFERENCE: Better Cotton Initiative. http://bettercotton.org/index/204/west_&_central_africa.html GMAP HIGH RISK ASPECT BETTER COTTON INITIATIVE FAIR TRADE STANDARD X STANDARD Y Laws related to forced labour YES YES Conditions of Production YES YES Laws related to the protection of workers from significant safety issues Uncertain Uncertain From ITC Standards Map: Raw Cotton, Ghana Cotton (raw) Global - 58 Certification systems exist Cotton (raw) Ghana - 26 Certifications REFERENCE http://www.sustainabilitymap.org/standardidentify/ COMPARISON OF CERTIFICATIONS USED IN GHANA FOR COTTON Is certification available to address high risks? See ITC Standards Map