Standard Chartered has announced the launch of a new ESG-linked Cash Account for corporate banking clients1 that rewards them for meeting material environmental, social and governance (ESG) related targets.
The solution will be gradually rolled out across the Bank’s markets, starting with Hong Kong.
The new ESG-linked Cash Account links the credit balance interest rate and/or fee pricing in relation to the Cash Account with the client’s ESG-related performance.
The selected key performance indicators must be material and relevant to the client’s business, and the associated targets must be ambitious when compared to an external benchmark, peers and/or the client’s previous performance.
The introduction of the ESG-linked Cash Account builds on Standard Chartered’s existing suite of Transaction Banking solutions, such as the Sustainable Account (allows clients to retain access to their cash for day-to-day liquidity requirements whilst using surplus cash to support activity that contributes to the United Nations Sustainable Development Goals), its Sustainable Trade Finance Proposition (trade finance solutions designed to help clients implement more sustainable practices in their operations and across their ecosystems), including its Sustainable Financial Institution Trade Loan offering (which provides financial institutions with the liquidity needed to support the underlying trade flows associated with sustainable development).
“As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey,” said Mahesh Kini, Global Head of Cash Management at Standard Chartered. “The launch of our ESG-linked Cash Account is another testament to our commitment to offer our clients solutions that empower them to meet both their treasury and sustainability goals.”
The ESG-linked Cash Account will be launched in Hong Kong and Singapore as pilot sites, with roll-out to further markets expected in due course.
