Consortium Releases Technology-Enabled Sustainable Supply Chain Finance Model
A consortium of international banks, corporates, fintech startups, an NGO and a research institution has released a new model for blockchain-enabled sustainable supply chain finance, called Trado.
Led by the University of Cambridge Institute for Sustainability Leadership (CISL), the group includes BNP Paribas, Barclays, Rabobank, Sainsbury’s, Sappi, Standard Chartered, Unilever, as well as technology companies Provenance, Halotrade and Meridia, and IDH, a sustainability NGO.
Since the beginning of the year the group has been exploring a new supply chain finance structure in which new technologies such as blockchain and smart contracts are used to collect and record social or ecological data on suppliers, who in return get preferential access to trade finance.
The aim of the model is to drive more transparency in global supply chains and encourage sustainable production processes through supply chain finance.
Photo courtesy of Joey Kyber.