Sustainability has from the start been an integral part in the development of all Enigio’s solutions. Below you will find actions in trade that will have instant impact just by switching from paper to digital documents. In this case digitalisation is fundamental for sustainability and by using this solution it is possible to deliver on several UN Sustainability Development Goals, both with direct effects and indirect effects.
Reduce carbon emissions, fresh water usage and land use
A paper-based system
According to the International Chamber of Commerce (ICC) every single day, four billion pieces of paper are circulated between the physical and financial supply chains of businesses involved in cross-border trade. Many of these documents are used to satisfy requirements stipulated in letters of credit and documentary collections. A cross-border transaction involves multiple actors and on average requires the exchange of up to 36 different documents and 240 copies. In addition to this one must add the amount of man hours, costs and carbon footprint associated with courier and manual reconciliation involved in ensuring that the documents get transported to the right parties and checked for accuracy and authenticity.
Digital documents expected to revolutionise global trade
By using digital documents, no paper needs to be physically produced, printed and transported from one place to another, carbon emissions, fresh water usage and land use, will be reduced instantly. Imagine the staggering numbers and immediate effects that will be accomplished by changing our behavior in trade. Enigio’s trace:original document is able to replace all paper documents currently in use globally.
SME growth and prosperity
Today many small and medium sized enterprises worldwide are excluded from financing since using e.g. a paper bill of exchange is extremely cumbersome, costly and time consuming for all parties and therefore not used for smaller amounts and shorter tenors.
The cost of creating a trace:original document varies between EUR 0.05 – EUR 20 depending on features, and thereafter the document is free of charge to manage during its lifetime for any holder of the document. This enables sustainable handling and cost levels for SMEs and MSMEs trade instruments, even for low value transactions.
Speed is another big and crucial advantage for SMEs. A digital document will significantly reduce lead times to a minimum since no time and costs will be spent on physical transportation of the document.
By for instance using a digital bill of exchange created in trace:original it will be easier to set up and execute a transaction. Smaller amounts and shorter tenors are possible as well as access to ECA (export credit agency) financing and guarantees.