Standard Chartered announced on Wednesday that it has introduced the first multi-country sustainability-linked trade finance facility for Siemens Energy, spanning eight markets in the Middle East, Africa, and Pakistan.
The initiative ties trade finance to measurable sustainability targets, integrating performance-based incentives related to reducing greenhouse gas emissions and total recordable injury rate.
The structure, which covers guarantees and letters of credit, aligns with Siemens Energy’s broader corporate objectives while setting a precedent for responsible trade finance.
Benchmark for Sustainable Trade Finance
“This partnership is a testament to our commitment to delivering financial solutions that go beyond standard business practices,” said Roberto Hoornweg, co-head of global corporate & investment banking and CEO of Europe, Americas, Africa & Middle East at Standard Chartered. “By linking trade finance to performance-based sustainability measures, we are driving financial innovation while supporting our clients in achieving their sustainability ambitions.”
Siemens Energy, a leading global energy technology company, emphasized integrating sustainability into its financial operations.
“Sustainability is at the core of our mission, and embedding it into our financial operations is a crucial step towards achieving our long-term environmental and social goals,” said Robert McAnally, head of treasury & corporate finance at Siemens Energy. “This facility enables us to enhance transparency, drive measurable impact, and accelerate our transition to cleaner energy solutions across key markets.”
Driving Responsible Growth
The sustainability-linked trade finance structure underscores the growing need for financial solutions that promote both business efficiency and responsible growth.
By embedding performance-based incentives, the facility allows Siemens Energy to manage trade finance requirements while encouraging sustainable business practices.
Standard Chartered’s broader strategy includes developing innovative financial structures that help businesses adapt to evolving market conditions while reinforcing long-term value creation.
The bank has been at the forefront of integrating sustainability into financial products, aiming to support businesses in their transition to a low-carbon economy.
“As businesses adapt to evolving market dynamics, this facility serves as a blueprint for integrating sustainability-linked mechanisms into trade finance,” Standard Chartered said in a statement. “We remain committed to pioneering financial solutions that align profitability with purpose.”
The deal marks a significant step forward in leveraging finance as a tool for sustainable transformation, reflecting a broader trend of integrating environmental, social and governance criteria into corporate financial strategies.
