Standard Chartered and Singapore FinTech Association partner on blockchain paper to drive sustainability in supply chain payments
Standard Chartered, together with the Singapore FinTech Association (SFA) as its knowledge partner, have published the ‘Deepening Sustainability with DLT’ paper that explores how different stakeholders can work together to improve payment transparency in supply chains. The paper advances knowledge on complex topics such as Distributed Ledger Technology (DLT) and how it can be used in supply chain payments for corporates, financial institutions and their corresponding ecosystems.
Launched ahead of Ecosperity Week, the paper complements the Bank’s efforts with external partners to address the persistent issues challenging industries with long, complex supply chains, by empowering innovation while embedding sustainability into product lifecycles more effectively. As the demand for sustainable development increases, the finance and banking sector must consider financial innovations that support their clients in achieving greater transparency and access to sustainable production and related payment transactions.
With support from the SFA, the paper highlights case studies where digital currencies have enabled desired sustainability outcomes, while highlighting the key roles that banks, fintechs, corporates and non-governmental organisations can play in creating an ecosystem that is sustainable and future-proof.
Importantly, the paper outlines a framework where various blockchain solutions were measured against a set of qualifying criteria to identify the most efficient set of sustainability outcomes. By presenting achievable solutions which seek to address some of the critical challenges facing the global value chain today, such as traceability and visibility, cash efficiency, and accountability, this can help financial institutions and corporates focus and prioritise their innovation approach on sustainable financial flows.
Philip Panaino, Global Head of Cash, Transaction Banking, Standard Chartered, said: “Many of the markets we operate in rely on supply chain-intensive industries for their continued economic growth – yet these are the same markets where the impact of opaqueness, fragmentation and inefficiencies in global value chains are often most difficult to unravel. Standard Chartered is in a unique position to support the industry’s transition to a more transparent, efficient and secure infrastructure, while also ensuring the sustainability of supply chain payments. Together with the SFA, we hope to raise awareness and understanding of how environmental, social and governance values may be assured with digital currency infrastructure and shared innovation from all stakeholders.”
Shadab Taiyabi, President of the SFA, said: "With companies around the world placing more emphasis on sustainability, the focus on strengthening the resilience of supply chains will not only be an integral part of protecting companies’ growth, but also ensures that they are leaving a positive impact on the environment and society. We see huge potential in Green FinTech and technologies like DLT to break down barriers to sustainable supply chains by enabling greater traceability and visibility. SFA remains committed to fostering the development of sustainable solutions and supporting the growing Green FinTech ecosystem, and we look forward to working with Standard Chartered to promote efforts that drive the transition to a net-zero carbon economy."