Incentivizing Ethical Supply Chains through Innovative Trade Finance
Today, with support from Humanity United, the business network and consultancy BSR (Business for Social Responsibility) released new research demonstrating the promise of trade finance to facilitate more sustainable and socially responsible supply chains. Sustainable supply chain finance is defined as supply chain finance practices and techniques that support trade transactions in a manner that minimizes negative impacts and creates environmental, social, and economic benefits for all stakeholders involved.
The report identifies some of the key challenges to and opportunities for the widespread adoption of supply chain finance. While there are still significant gaps, the amount and diversity of supply chain data is growing, and the digitization of transactions—including through blockchain-based smart contracts—offers new potential for efficiency and transparency.
HU believes there is an opportunity to incentivize and reward sustainable and socially responsible supply chain practices—practices that ultimately benefit the millions of vulnerable workers in corporate supply chains.