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TechTrade Finance Drive Decarbonization of Global Supply Chains

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INTRODUCING THE ROLE OF TECHNOLOGY AND TRADE FINANCE IN DECARBONISING SUPPLY CHNS

The global demand for sustnable supply chns has propelled the connection between digitalization and decarbonisation. Companies worldwide are grappling with growing scrutiny of environmental impact, particularly carbon emissions from their supply chns. This presents both a challenge and an opportunity, particularly as businesses seek to optimize operations while ensuring compliance with emerging regulations.

To navigate this complex landscape, technology platforms have emerged as key tools for companies looking to track, report on, and reduce their carbon footprint across global supply chns. Among these is CarbonChn, anpowered platform that enables comprehensive tracking of emissions associated with procurement activities across the company's value chn. By leveraging -learning, CarbonChn assesses vessel capacity levels and emission factors, streamlining information gathering and making decarbonization efforts more feasible for businesses.

The role of trade finance in this context is pivotal as it facilitates the global movement of goods that can span vast distances. This often includes high volumes of emissions associated with transportation alone. Banks are thus increasingly focusing on digital transformation to better understand their carbon footprint, while also serving clients' sustnability goals.

Shujue C, Head of Structured Trade and ESG Transaction Banking for Asia Pacific at Societe Generale, underlines the significance of trade finance in decarbonization efforts: The future trajectory of our industry will be shaped by its role in facilitating the low-carbon transition while undergoing digital transformation. The integration of emissions data into trade finance allows companies to assess and potentially reduce their supply chn carbon intensity.

Furthermore, regulatory developments like the European Union's Carbon Border Adjustment Mechanism CBAM illustrate a growing tr towards aligning carbon pricing across domestic products and imports. This will influence how businesses operate within global markets and highlight the need for real-time emission dashboards that enable forecasting of carbon price insights prior to initiating trade transactions.

Carlos Zapata Lui, Vice President of CarbonChn, urges companies to take action on measuring emissions immediately: Regulation is only going to become stricter over time. It's better to start managing your emissions and adjusting proactively than to be caught off guard.

The integration of technology in supply chn management offers promising avenues for companies seeking to decarbonize their operations while mntning competitive advantage. By leveragingplatforms like CarbonChn, businesses can gn insights into carbon footprint across various stages of procurement and production processes. Meanwhile, trade finance providers such as Societe Generale are playing a crucial role by incorporating ESG principles and digital technologies to align with the evolving landscape of sustnability requirements.

As regulations continue to tighten around global emissions management, companies that proactively integrate these tools and strategies will be best positioned for long-term success in a decarbonized world.
This article is reproduced from: https://www.societegenerale.asia/en/newsroom/press-releases/press-releases-details/news/the-role-of-technology-and-trade-finance-in-decarbonising-supply-chains/

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Digitalization Decarbonizes Supply Chains Technology Tracks Global Emissions Trade Finance Facilitates Sustainable Imports CarbonChain AI Reduces Procurement Footprint Societe Generale Transforms for ESG CBAM Aligns International Carbon Pricing