Harnessing AI for Sustainable Supply Chain Finance
Delivered at the Singapore FinTech Festival, this session explored the potential of AI in revolutionizing supply chain finance while driving sustainability. Panellists shared insights on how AI can streamline procurement, assess ESG risks, and promote decarbonization efforts across complex value chains.
Key Highlights
1. Defining Sustainable Supply Chain Finance
- Sabrina Noiran of BNP Paribas emphasized integrating ESG considerations into financial products to incentivise sustainable practices across supply chains. AI serves as a crucial tool for processing vast data points, identifying carbon hotspots, and deploying resources efficiently.
- Edmund Ng of Doxa Holdings highlighted the role of digital platforms in automating procurement and calculating embodied carbon in construction, simplifying complex sustainability metrics.
- David Koh of SMBC discussed the bank’s efforts in adopting AI for comprehensive CFO dashboards and partnerships like Project Nova to assess the true impact of green finance and combat greenwashing.
2. Practical Use Cases of AI
- BNP Paribas uses AI models to perform synthetic ESG assessments, identifying carbon emissions in supply chains and enabling proactive client engagement.
- Doxa Holdings leverages AI to streamline data from procurement processes, ensuring more accurate and simplified ESG reporting for construction projects.
- SMBC uses AI in creating CFO dashboards for clients, enhancing decision-making with predictive analytics. The bank also collaborates with MAS on Project Nova to ensure that green financing initiatives yield genuine environmental benefits.
3. Tackling ESG and Data Challenges
- The panellists discussed the complexity of tracking Scope 3 emissions, emphasising the need for reliable data and partnerships. AI’s role in analysing and managing these extensive datasets was recognized, but with an emphasis on maintaining human oversight to prevent inaccuracies or biases.
- Collaboration emerged as a recurring theme, with financial institutions, tech providers, and corporates needing to work together to drive real impact.
Conclusion
AI is a powerful enabler of sustainable supply chain finance, but its effectiveness depends on human oversight, collaboration, and continuous improvement. The speakers called for greater adoption of AI, emphasizing the need for shared responsibility to make the technology better and more accountable.
Speaker:
- David Koh, Managing Director, Co-head of Transaction Banking, APAC, Sumitomo Mitsui Banking Corporation (SMBC)
- Edmund Ng, Co-founder, Doxa Holdings
- Sabrina Noiran, Chief Sustainable Business Officer, BNP Paribas
Moderator:
- Dr James Ong, Founder & Managing Director, Artificial Intelligence International Institute (AIII)