The Chief Executives of the world's biggest buyers of agricultural commodities have, through the Consumer Goods Forum, made public commitments to transforming supply chain practices such that by 2020, their palm oil, soy, pulp and paper, and beef supply chains will be helping to achieve zero net deforestation. To deliver this goal, these companies have set deadlines by which they will be procuring only commodities that were produced in line with certain sustainability standards. The banking industry, through the Banking Environment Initiative (BEI), has been working with these companies to establish what aligning banking services with this major client-led transformation would look like in practice.
The authors state that the document aims to bring the mechanics and benefits of BEI's Sustainable Shipment LC to the attention of all commodity buyers, trading houses, trade finance banks, development banks and others to encourage them to engage with the concept, to commit to supporting it and to translating it into a new market norm.