This Practice Note addresses ESG issues in trade and commodity finance transactions. It focuses on trade finance instruments and the bilateral, syndicated and club financing structures commonly used in trade and commodity finance transactions. It explains how ESG considerations are typically incorporated into these transactions, and how broader ESG principles are adapted in practice to reflect the economic, operational and legal characteristics of commodity trading businesses and trade finance structures. It does not cover capital markets instruments, such as green bonds or sustainability-linked bonds.Trade and commodity finance covers a range of financing structures, from classic trade finance instruments such as letters of credit linked to individual trade flows, through structured trade finance and loan facilities supporting working capital for ongoing trading activity, to asset-focused financings that sit alongside, or overlap with, asset finance and project finance structures. For more information, see: Types of trade and commodity finance transactions—overview.In many cases, however, financing supports commodity trading businesses on a portfolio basis, rather than discrete, ring-fenced assets