The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group, has unveiled its Environmental and Social (ES) policy, marking a pivotal step toward embedding sustainability across its trade finance operations. This initiative highlights the critical role trade finance plays in addressing climate change and promoting social equity, aligning with the Paris Agreement and the United Nations Sustainable Development Goals (SDGs).
With trade contributing 20-30% of global CO₂ emissions, ITFC’s policy focuses on reducing its environmental impact while supporting member countries most vulnerable to climate challenges, social inequalities, and economic disparities. The policy is structured around five key pillars: environmental action, sustainable and inclusive trade finance, capacity building for climate resilience, innovative treasury solutions, and transparent performance assessment. These include promoting green practices within operations, advancing sustainable agriculture and eco-friendly supply chains, scaling Shariah-compliant green financial instruments such as green Sukuk, and enhancing disclosure and accountability standards.
Eng. Hani Salem Sonbol, ITFC CEO, underscored the importance of this initiative: “From rural landscapes to urban centers, we are witnessing the accelerating impacts of climate change. Our commitment to powering sustainable growth makes it imperative to fully operationalize our shift toward sustainability and climate action.”
The ES policy represents ITFC’s vision of fostering economic growth that is both inclusive and sustainable, setting a benchmark for trade finance institutions globally. Through innovative solutions and strategic partnerships, ITFC is poised to drive transformative change, enabling member countries to adopt green energy solutions and build resilient economies.
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