The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), member of the Islamic Development Bank Group (IsDB), unveiled its new Environmental and Social (ES) policy. This policy reinforces ITFC’s commitment to embedding sustainable practices across its trade finance operations, recognizing the essential role trade finance and trade development can play in mitigating climate change and promoting social equity.
ITFC’s member countries are among the most vulnerable to climate change, social challenges, and economic inequality. This ongoing climate crisis requires urgent action. With trade being responsible for 20-30% of global CO₂ emissions, ITFC is aligning its operations with international frameworks such as the Paris Agreement and the United Nations Sustainable Development Goals (SDGs) to make trading greener in its markets of operations. By championing responsible and inclusive trade finance, ITFC aims to reduce its carbon footprint while supporting its member countries in achieving sustainable economic growth.
This new ES policy is focused on 5 key areas:
- Environmental Action. ITFC is proactively incorporating green practices throughout every aspect of its operations and work environment. By prioritizing digitization, implementing paperless solutions, and enhancing energy efficiency, we aim to lead by example in embracing environmentally responsible initiatives and demonstrating our commitment to sustainability.
Sustainable and Inclusive Trade Finance. ITFC aims to increase its share of financing in goods and services that promote sustainability. By prioritizing sectors that strengthen resilience, such as sustainable agriculture, financial inclusion, and eco-friendly supply chains, ITFC is contributing to sustainable and inclusive growth in our member countries.
Empowering for Sustainable Impact. Through capacity-building programs and technical assistance, ITFC will help businesses and governments reduce climate risks, advance social inclusion, and access green financing opportunities.
Innovative Treasury Solutions. ITFC is dedicated to increasing investment in Shariah-compliant sustainable financial instruments, including exploring the issuance of green Sukuk to bolster climate-resilient trade and development for ITFC member countries.
Credible Assessment and Disclosure. ITFC is committed to adopting best practices to embed environmental and social considerations in its transactions and projects. We aim to transparently disclose our ES performance, adhering to international best practices, promote accountability and build trust with our stakeholders.
On this note, Eng. Hani Salem Sonbol, CEO ITFC stated: “Our work in some of the world’s most climate-vulnerable regions have given us firsthand insight into the reality of climate change. From rural landscapes to urban centers, we are witnessing the effects of an accelerating environmental shift and as we remain true to our commitment to powering sustainable growth, it has become imperative for the Corporation to fully streamline and operationalize its new direction towards sustainability and climate change.”
ITFC’s new environmental and social policy reflects its vision to foster economic growth that is both inclusive and sustainable, setting a new standard for trade finance institutions globally. ITFC remains committed to fostering intra-OIC trade, enhancing member countries’ capacities to adopt green energy solutions.
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$80 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.
