Sustainable Islamic supply chain: Standard Chartered Saadiq goes the extra mile in to support the Halal trade ecosystem

The Halal industry is witnessing exponential growth, with various projections positioning it as a multi-trillion-dollar opportunity. 

As the industry continues to globalise, there is potential to harness the socially-responsible funding mechanisms of Islamic finance and strive to produce goods and services which are Halal Tayyab (pure, safe and permissible according to Islamic law). 

Capitalising on the synergies between the two industries can foster a genuinely sustainable Halal economy — an economy in which the sum of its parts is not only Shariah compliant but also has its place in the Divine Order.

Halal goods and services supply depends on a robust Halal ecosystem, with the primary criteria being Halal compliant. This means the credibility and trust around a Halal certification are of utmost importance. Malaysia has taken the lead in developing a world-class Halal ecosystem via the Halal Development Corporation (HDC) under the Ministry of International Trade and Industry. The country’s achievement in this aspect solidifies its credibility in developing the holistic growth of the Halal industry while offering standardisation to cement consumer trust and confidence.

One driving force of the Halal ecosystem is Standard Chartered Saadiq, the Islamic banking arm of Standard Chartered Bank Malaysia Bhd. The leading international Islamic network spans Asia, Africa and the Middle East. 

In 2020, Standard Chartered Saadiq launched the Halal360 proposition as an Islamic supply chain solution to connect the Halal trade corridors, thus ensuring that businesses across geographies can leverage its unparalleled Islamic network.

Specifically, Halal360 works to:

• Supports suppliers across various geographies
• Provide a digital platform with straight-through processing
• Eliminate physical documentation and allow for integration with different enterprise resource planning platforms
• Provide preferential treatment for SME vendors, hence creating economic sustainability and uplifting participation among these businesses
• Comply with environmental, social and governance (ESG) criteria whereby the bank and buyer can work with suppliers to improve ESG practices, thus moving towards the net-zero carbon emissions target. 

 

Amid the increased awareness and adoption of ESG practices, Halal businesses have a natural advantage by being more ethically aligned and emphasising purity and cleanliness.

The longevity of any business is no longer solely dependent on the financial indicators but also on how well ESG practices are embedded into the corporate objectives and implemented into the standard operating model and ecosystem. Building a sustainable and resilient supply chain is no longer optional. Instead, it is a vital part of creating a business model that enables a company and its ecosystem to thrive in the long term.