ADB's TSCFP Delivers Sustainable Development Goals
ADB's Trade and Supply Chain Finance Program empowers countries to meet the Sustainable Development Goals (SDGs) by closing market gaps through guarantees, loans, and knowledge products. Since 2009, the TSCFP has supported $57 billion in trade across 45,510 transactions (60% SME-related).
TSCFP is supported by the following:
- Government of Australia
- Urban Climate Change Resilience Trust Fund
- Financial Sector Development Partnership Special Funds
- Regional Cooperation and Integration Fund
- Government of the United States of America
ADB's TSCFP: Green, Resilient, Inclusive, Transparent and Socially Responsible
TSCFP curates the latest knowledge products, services, and solutions in response to industry-wide challenges and gaps, by building capacities of its partner banks in line with global standards to timely respond to trade and supply chain finance demands.
Promoting activities in ADB’s developing member countries (DMCs) to achieve their Sustainable Development Goals (SDGs), including green initiatives, ending support for fossil fuels, and increasing awareness and developing capacities of partner banks through various learning activities.
- Carbon tracking and reporting: initiative to track and report carbon (and ESG-related data) end-to-end across supply chains.
- Green Equipment Facility: implementing over 2023, a new financing facility to support companies upgrading equipment to reduce their carbon footprint.
- Environmental and Social Management Systems (ESMS): implementing ESMS in all partner banks.
- Environment Social and Governance (ESG) Services Directory: Developing a comprehensive online global directory of ESG related services and agencies.
- Training: delivering live and online sustainability training to partners.
Collaborating with key global partners on initiatives that will transform the trade and supply chain finance ecosystem and create resiliency. With systems remaining heavily reliant on paper being relayed between parties involved in moving goods and services around the world, digitalization of trade becomes imperative.
- Digitalization of trade is critical to supply chain resilience. Without laws recognizing electronic trade documents, such as e-bill of lading, trade will never be digitalized. To that end, advocating for the adoption of and/or alignment to the Model Law on Electronic Transferable Records, developed by the United Nations Commission on International Trade Law. The model law creates an enabling legal framework for paperless trade.
- Supporting selected countries to analyze their domestic legislative frameworks to identify how they can be aligned with the model law. Learn more
- Created an interactive mapping tool with a database of more than 50,000 companies for the supply chains of vital COVID-related products. The tool allows governments, banks, investors, healthcare professionals, and companies to trace every component product such as masks or portable ventilators, down to the metal and rubber.
Supporting small and medium-sized enterprises (SMEs) in accessing the capital needed to create growth and leading the inclusion of women and initiating disability initiatives in ADB DMCs. Trade makes the most impact when everyone benefits.
- Delivered the Trade Finance Gaps, Growth, and Jobs Study, which in 2021 confirmed the worsening of the trade finance gap to US $1.7 trillion. This study, first launched in 2013 was the first of its kind and serves as the industry’s barometer for trade finance health, as it quantifies market gaps and brings them to the attention of regulatory, academic, financial, and policy making bodies.
- Implemented gender equality initiative, co-funded by the Australian Department of Foreign Affairs and Trade, aimed at more financial inclusion and support for women entrepreneurs and women in trade. The initiative analysed the human resource policies of 19 partner banks in ADB DMCs to determine how those policies could be enhanced to attract, retain, and promote more women in banking. Learn more
- Launched inclusion of disabled persons initiative, in partnership with the Global Disability Innovation Hub, to review policies and accommodations for persons with disabilities. Recommendations on HR and physical access policies will be provided to partner banks to integrate this aspect in their operations.
Leading transparency initiatives to improve global supply chains. This includes anti-money laundering, countering the financing of terrorism, and digitalization of trade. Improved transparency leads to trust, lower trade costs, and improved predictability.
- Implemented a pilot with authorities in Bangladesh, Mongolia, Nepal, Pakistan, and Sri Lanka in partnership with the United Nations Office on Drugs and Crime to better identify, report, and combat trade-based money laundering (TBML).
- Designed and initiated delivery of multiple capacity building sessions on TBML to banks, regulators, law enforcement, and intelligence stakeholders.
- Contributed to the 2020 Financial Action Task Force - Egmont Group report on Trade Based Money Laundering.
- Hosted a widely attended TBML Webinar Series in 2022 in collaboration with the Asia Wolfsberg Group.
- Delivered training and certification in partnership with the Association of Certified Anti-Money Laundering Specialists.
Leading the development of key standards for socially responsible trade and supply chain finance, including labor standards, and safe and equitable labor practices. TSCFP is developing innovative solutions for compliance and reporting with partner organizations.
- Created enhanced due diligence framework on labor standards being implemented at TSCFP partner banks in 2023.
Knowledge Products and Solutions
Interested in Joining? Reach out to the TSCFP Team.
2022: By the Numbers
value of transactions supported
2009-2022: $64.8 billion
2009-2022: $39.4 billion
SME transactions supported
Awards Won by TSCFP