This document summarizes the status of a Sustainable Trade Finance initiative with three workstreams: 1) Standards and Certification, 2) Guidelines, and 3) Education and Awareness. For workstream 1, efforts are underway to integrate sustainability assessment tools and pilot a process flow diagram. Workstream 2 is drafting a sustainability-focused client due diligence questionnaire. Workstream 3 is developing training modules on sustainability for a banking academy. Key next steps include piloting the assessment tools, finalizing the questionnaire, and testing the training modules.

1. Sustainable Trade Finance

2. Sustainable Trade Finance
› Annual cost of subscription of GMAP/ITC tool
› Global banks: questionnaire might be seen as duplication of current
client onboarding procedures
› Content related issues including copyrights for previously developed
material
› 3 phone calls of working group, various calls of workstreams
› GMAP & ITC Tool activities
› Sustainability questionnaire drafted
› Training module for ICC Academy
› Alignment with other initiatives, e.g. export finance working group
› Fine-tune questionnaire
› Work on implementation in KYC questionnaires
› Maybe two sessions in Beijing – one “standard” one, one best
practice sharing
› Finalize new tool based on GMAP / ITC Tool
› Rollout of ICC Academy training
› Launch pilot with some banks
End
Launch ITC / GMAP Tool
Publication of questionnaire
Training available
March 2019
Early 2019
July 2019
Milestones (planed)
3 workstreams: a) Standards & Certification b) Guidelines c) Awareness & Education
Members: various banks and all major multilateral development Institutes
Issues and risks
Activities / results since last banking commission meeting Next steps

3. POLICY AND BUSINESS PRACTICES
Sustainable Trade Finance Process

4. POLICY AND BUSINESS PRACTICES
BACKUP

5. POLICY AND BUSINESS PRACTICES
• Business overview
• Sustainability commitments
• Sustainability capacity
• Sustainability track record
KYC questions
1. Commitment: Please describe the Environmental/Social/Sustainability policies and procedures
your bank has in place
2. Capacity: Please describe the resources your bank has in place to implement these
Environmental / Social/ Sustainability policies and procedures
3. Track Record: Please describe how your bank reports publically on Environmental /
Social/Sustainability matters
Sustainability Questionnaire

6. POLICY AND BUSINESS PRACTICES
Status Sustainable Trade Finance
Workstream A: Standards and Certification
› Annual cost of subscription of GMAP/ITC tool
› Developed overarching Sustainable Trade process flow diagram
(incorporating worksteam A and B)
› Initiated integration of IFC GMAP and ITC Standard Map into single
fit for purpose tool
› Pilot the process flow diagram and fit for prupose GMAP/ITC tool
Start End
Complete integration GMAP/ITC Jun 2018 Dec 2018
Pilot flow diagram and GMAP/ITC tool Jan 2019 Mar 2019
Launch process and tool Mar 2019
Decisions needed
Milestones (planed)
Short description target
Issues and risks
Activities / results since last banking commission meeting Next steps
› Which FIs to be part of pilot?
› How to launch within market?
› Do we look to house this initiative elsewhere i.e. Equator Pricniplces
once launched?

7. POLICY AND BUSINESS PRACTICES
Status Sustainable Trade Finance
Workstream B - Guidelines
› Global banks: questionnaire might be seen as duplication of current
client onboarding procedures  questionnaire could be used to
evaluate current practices
› Local banks: potential issue in understanding of answers by the
client  solution proposed with training
› Creation of CDD draft questionnaire for sustainability based on the
working group feedback and on the commetns from ICC National
committees (China, USA, Germany and Brazil). The questionnaire
is based on these 4 main areas:
› Business Overview
› Sustainability Commitments
› Sustainability Capacity
› Sustainability Track Record
› Link questionnaire with sustainability tool developed in Stream A;
› Promotion of the questionnaire with all ICC National committees,
for it to become an industry standard for sustainability risk
management;
› Ensure example of questionnaire answers are published together
with the training provided in Stream C.
Start End
Sign off to draft questionnaire
Circulation of draft to ICC Nat.
Committees
Oct 2018 Nov 2018
Nov 2018 Feb 2019
Publication of questionnaire Mar 2019
Decisions needed
Milestones (planed)
• Provide guidance on how to manage sustainability risk management and client discussions to evaluate the extent of such risk.
Short description target
Issues and risks
Activities / results since last banking commission meeting Next steps
› Approval of CDD draft questionnaire

8. POLICY AND BUSINESS PRACTICES
Status Sustainable Trade Finance
Workstream C – Education & Awareness
› Delays due to unforeseen staffing or budgetary restrictions
› Cost of training for developing countries
› Content related issues including copyrights for previously developed
material
› Delayed progress due to budget and staffing restrictions
› Initial engagement ICC Academy
› Solicited examples and training materials from various parties
› Staff up IFC team
› Finalize ICC academy training module 1
› Demo ICC Academy online training to the working group
› Test training with select banks
› Continue to solicit feedback from larger working group
› Incorporate Stream A and B into advanced ICC training modules
Start End
- ICC Academy Basic Demo
- Test training
Dec 2018
Mar 2018
Mar 2019
Apr 2019
- Modify and finalize Apr 2019 July 2019
Decisions needed
Milestones (planed)
• Prepare Sustainable Trade Finance Training Slides for introduction to the topic and sensitizing banks on the importance, introduce available materiel
developed by multilaterals on general E&S management.
Issues and risks
Activities / results since last banking commission meeting Next steps