COUNTRY FOCUS : SWITZERLAND
carriers and vessels in any way , compared with 92 % in the UK .
The research was conducted for Pole Star , the global leader in maritime risk intelligence among 350 heads of trade , compliance and finance in UK and Swiss-based banks and financial services organisations .
It shows how continued reliance on manual processes and ad hoc solutions undermines efforts to make global trade more sustainable . On average , Swiss trade finance organisations ’ compliance departments spend 43 % of their time screening for sustainability , compared with 50 % among UK banks . ecosystems for sustainability is one of their three biggest challenges . In the UK , 40 % of organisations cite the problem of having to use multi-point solutions instead of single , integrated service ( selected by 22 % in Switzerland ).
“ This is a major commercial oversight , meaning financial institutions will continue to miss out on important new revenues . It also means institutions are poorly prepared for governmental pressure to link finance to reduced emissions and climate-change goals . This is certain to increase in the wake of the COP26 climate conference and implementation of carbon-reducing EU regulations .”
Village of Lauterbrunnen , surrounded by the Alps
“ Banks in Switzerland may be better than UK counterparts at seizing green finance opportunities , but the reality is that sustainability screening and the ability to demonstrate compliance in both countries is pretty woeful ,” said Simon Ring , Global Head of Maritime Trade Technologies & ESG , Pole Star .
Most trade finance organisations in both countries cannot screen carriers ’ vessels engaged in commodity transactions for their emissions-reductions , although the UK is slightly ahead . Currently 31 % of UK trade finance organisations can do this , compared with 27 % in Switzerland . Only 15 % of Swiss organisations can screen a commodity transaction for modern slavery and workforce well-being , compared with 33 % in the UK . And just 14 % of Swiss trade finance businesses screen commodity transactions for deforestation compared with 29 % in the UK .
Despite the obvious sustainability screening difficulties of banks revealed in the research , only 36 % of Swiss-based trade finance organisations and 31 % in the UK say end-to-end screening of transaction
The research showed , however , there is increasing awareness of the shortfall in digital screening capability within banking and finance . More than four-in-10 financial organisations in the UK and Switzerland ( 43 %) want sustainability screening integrated into their compliance software . Nearly three-in-10 ( 28 %) want high-quality data on individual vessels ’ carbon emissions .
But banks and institutions are also hindered by significant screening problems among carriers , forwarders and charterers . The research found less than half of all such shipping industry organisations ( 49 %) are currently able to demonstrate compliance with sustainability or screening requirements . p
Just 14 % of Swiss trade finance businesses screen commodity transactions for deforestation compared with 29 % in the UK .
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