Carbon’s ‘hidden passport’: Financing sustainable supply chains

THE battle against climate change will be decided not solely in boardrooms or by governments. Much of the outcome will be shaped within global supply chains, where carbon emissions accumulate at every stage, from raw materials to finished goods moving across borders, operating much like a “hidden passport”.

Supply chains are not only where most emissions are embedded, but also where progress is hardest to track. While many large corporations have made strides in measuring and reporting their operational emissions, attention is now shifting to their supply chains, which often account for the bulk of their indirect emissions.

Bridging this gap requires more than standards and software. It demands trade financing structures that recognise and reward sustainable practices, empowering companies – big and small – to see sustainability as a value-add, not a cost, to business.