TradeSun Adds ESG Score to its Platform
TradeSun, a trade finance technology firm, plans to integrate an environmental, social, and governance (ESG) score system developed by trade data and analytics supplier Coriolis Technologies into its compliance platform.
TradeSun, based in the United States, entered the trade finance industry for the first time in 2018, developing an artificial intelligence-based solution to digitise and automate the processing of trade documents with nine banks the following year.
The firm has subsequently unveiled its platform, which uses optical character recognition and natural language processing technologies to extract and standardise data from documents. Banks may manually or through an application programming interface upload data.
Financial institutions can then conduct compliance checks or confirm that their documents comply with international regulations such as the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce.
Under the terms of the new arrangement, TradeSun's banking clients will have access to the Coriolis ESG Tracker, a grading system that evaluates the success of their trade-related activities or customers using publicly available information.
The Coriolis scoring system, which measures the performance of companies and their products with the 17 Sustainable Development Goals established by the United Nations, was developed with input from more than 50 financial institutions, including banks, insurers, and multilateral organisations.
Users of TradeSun will also be able to observe how transactions are assessed under domestic and international regulatory frameworks, such as the EU Taxonomy, Sustainable Finance Disclosures Regulation, and US Sustainability Accounting Standards Board Regulations.
Policymakers, banks, and corporations have fought to define what constitutes sustainable commerce, leaving the industry vulnerable to accusations of greenwashing.
Coriolis signed similar deals with commodity-focused blockchain platform MineHub and Toronto-based trade finance technology company Surecomp earlier this year.
TradeSun's representative reports that the joint solution with Coriolis is now live and that banks are currently discussing its implementation.
As reported by GTR earlier this year, the number of customers on the TradeSun platform has reached double digits, with JP Morgan among them. JP Morgan backed the development and launch of fintech's real-time compliance solution.
Source: Global Trade Review