Standard Chartered has executed its first green export letter of credit programme in Singapore, London and New York for ADM, a US multinational food processing and commodities trading firm.
The transaction aims to advance ADM’s efforts to expand sustainable farming practices and source sustainably produced goods.
The commodities underlying the US$500 million programme are mainly soybeans, oilseeds and cotton originating from Latin America, the United States, and Australia and destined for European markets.
The LC programme was issued under the sustainable goods pillar of the bank’s sustainable trade framework.
As part of the transaction, third-party sustainable goods certifications were issued by Round Table for Sustainable Soy, US Sustainable Soy Assurance Protocol, International Sustainability & Carbon Certification, and Better Cotton Initiative.
The deal supports supply chain trackability and greater adoption of sustainable farming and production practices, which seek to promote positive impacts on resource efficiency, deforestation, energy use and social development.
Chicago, Illinois-headquartered ADM is expanding its sustainable practices across the food and agriculture value chain. Earlier this year, it announced a US$20 million commitment to supporting cover crops in the American Midwest, supporting lower-carbon crop production.