The International Chamber of Commerce (ICC) has called on banks, corporates and technology companies to take part in piloting a framework to grade the sustainability profile of individual trade transactions.
For the first phase of the project, ICC has said it will focus its new ‘Sustainable Trade Framework’ on the textile industry, with textile-specific standards having been approved by the organisation for measuring.
Over a three-month period, participants will help in assessing transactions under the framework in order to inform future elaboration.
“Wave one” will work on the basis of a matrix to determine whether the different elements of a transaction are sustainable, drawing on available data and recognised sustainability standards.
Rewarding sustainable practices
In a release, the firm said it will temporarily exclude transportation in this assessment due to the low maturity of shipping standards.
“Given the urgency of ensuring that trade and associated financing can contribute actively to meeting global sustainability goals, we have placed an absolute emphasis in delivering an initial industry framework that is immediately workable – while, crucially, integrating robust and recognized sustainability standards,” said Raelene Martin, ICC’s head of sustainability.
She continued: “Simply put: our aim is to deliver a system capable of rewarding sustainable practices by companies across global value chains while eliminating risks of greenwashing.”
Further elements of the pilot framework will be announced during the upcoming COP27 in November, along with the publication of the full “wave one” guidelines.