Monday, 29 November, 2021
E-paper

StanChart executes sustainable trade finance transaction

  • Staff Correspondent
  • 3 November, 2021 12:00 AM
  • Print news

Standard Chartered Bangladesh has executed country's first Sustainable Trade Finance Transaction locally.

The Bank provided sustainable trade finance support to Square Textiles, a subsidiary of Square Group, in supplying yarn made from sustainably sourced cotton to their local buyer Echotex Ltd under a Letter of Credit transaction, said a press release.

Square Textiles Ltd is a manufacturer of sustainable yarn, produced from cotton that was sourced from sustainable cotton producers who are also members of the Better Cotton Initiative (BCI).

Better Cotton Initiative (BCI), which is the largest cotton sustainability programme in the world, was formed to register and recognize members within the textile and clothing industry who contribute towards and actively promote soil health, water stewardship, emissions reduction as well as social factors like decent work and diversity.

Standard Chartered Bank's Sustainable Trade Finance framework enables identification of sustainable activities in the physical supply chain or manufacturing process and enables capital to be directed towards these to encourage and enable such activities.

One of the pillars in that framework is about financing sustainable goods which carry certifications from certain approved bodies, like the BCI.

Echotex Ltd is a 100 percent export oriented ready-made garments company.

They are also members of BCI, producing apparels from fabric made with sustainable yarn, and selling to global buyers who also want to sell goods produced under sustainable practices.

Naser Ezaz Bijoy, CEO of Standard Chartered Bank, Bangladesh said "Our vision is to become the most sustainable and responsible bank, and the leading private sector catalyser for the Sustainable Development Goals where it matters most, across Asia, Africa and the Middle East.

Tapan Chowdhury, Chairman of Square Textiles, said "Sustainability and concern for the environment should be a key consideration for any manufacturing business.

It is certainly a key agenda here at Square Group. As one of the leading textile companies in the country, we are aware of our responsibility to lead by example, and hence we have invested heavily in our sustainability drive. We are sourcing cotton now from BCI member suppliers and also selling our yarn to exporters whose ultimate buyers are retailers aligned with sustainability. Thus, we are contributing to end-to-end sustainable cotton initiative across the textile and garments supply chain.

We are very glad that our Bank, Standard Chartered, Bangladesh, is also aligned to our values and has supported our export with their Sustainable Trade Finance program. I understand that this is a first of its kind in Bangladesh and would like to congratulate Standard Chartered for their excellent initiative. Square Group is proud to be part of this transaction."