Credit Agricole CIB has announced the launch of SPASE, an AI-powered ESG trade finance platform, aimed at analysing the sustainability performance of trade transactions in the Asia Pacific region. The solution includes ESG data analytics, sustainable finance technology and supply chain transparency tools, to develop auditable dashboards of suppliers, products and trade flows.

It is known as Smart Platform Assisted SustainablE (SPASE) and will be the bank's newest initiative to take AI into the trade finance fold. The tool is currently being tested with a Hong Kong-based sourcing hub of a global industrial service provider, before being rolled out on a broader regional scale, Crédit Agricole CIB said.

The role of AI in Sustainable Trade Finance.AI in Sustainable Trade Finance.

After the trade transaction data is converted into ESG dashboards, companies can use them to measure the sustainability performance of their supply chains through PASE. The platform monitors data related to supply chain, products and trade flows and offers a unified view of the ESG indicators.

For companies who have a global supply network, there can be issues with gathering and analysing sustainability data. ESG assessments can be performed by several teams, from different data sources and manual processes, making it challenging to assess performance in complex sourcing networks.

To overcome these challenges, Crédit Agricole CIB created the platform to link ESG information to already existing trade financing activity. The bank aims to provide company with more transparency on sustainability-related issues in their commercial activities.

Linking Transaction Data With ESG Performance

The platform emphasises the building of structure sustainability information from the existing trade data. SPASE dashboards are created by analysing transaction-level data which can assist businesses in evaluating supplier performance, product effects and overall trade trends.

Sustainability data across the supply chain is typically fragmented between procurement and compliance – or even between finance and sustainability – departments. The integration of these areas can provide an opportunity for organisations to develop a more coherent monitoring of their ESG performance.

The platform, the bank said, could help companies discover sustainability opportunities in their trade portfolios and evaluate opportunities associated with more responsible sourcing practices. It also seeks to enhance the incorporation of ESG information into business and financing decisions.

Asia Pacific Trade Finance Focus

SPASE is a new approach that is rolled out in Asia Pacific, where the business has a significant footprint in manufacturing, sourcing and cross-border business. After the initial pilot, the solution would be rolled out as a staged deployment region-wide, the bank said.

The transition follows a trend of rising investor, regulatory and customer expectations for companies to deliver more robust data on environmental and social outcomes through supply chain.

Sustainable finance has been growing, for example, with green bonds and sustainability-linked loans, but trade finance has been lagging in the integration of ESG principles, partly because the volume of trade finance transactions and the complexity of their operations.

ESG Data and Corporate Decision-Making

The launch is part of a broader evolution of sustainable finance, as businesses and financial institutions increasingly prioritise tangible ESG results over general pledges.

The adoption of AI technologies for ESG raises the stakes on data quality, data governance and transparency for corporate leaders. Businesses might require more robust platform to ensure supplier data and track sustainability statements.

Greater transparency around trade-related ESG performance may help investors and financial institutions to better understand supply chain risks, such as climate-related risks, regulatory and social responsibility concerns.

Bank’s Sustainable Finance Strategy

Sustainable development continues to be a priority in the financial sector in Asia Pacific, but may present resource challenges for implementation, said Parth Agrawal, Head of International Trade & Transaction Banking, Hong Kong.

“It is a platform that brings together sustainable finance skills and technology to enable the implementation of ESG-integrated trade finance solutions in the region,” said Antoine Rose, Head of Sustainable Investment Banking, APAC and Middle East.

According to Crédit Agricole CIB, SPASE is an initiative to move towards a more daily use of sustainability analysis and assesses the performance of the transactions based on ESG data.

AI-driven platforms like SPASE have the potential to shape the way ESG considerations are evaluated in international trade supply chains as companies increasingly prioritize transparency and sustainability.