Standard Chartered Introduces ESG-Linked Cash Account
- Rewards for Sustainability: Clients earn benefits by meeting ambitious ESG targets.
- Performance-Based Incentives: Interest rates and fees are tied to ESG achievements.
- Strategic Roll-Out: Initial launch in Hong Kong and Singapore, with global expansion planned.
Standard Chartered has unveiled an innovative ESG-linked Cash Account, designed to reward corporate banking clients who achieve significant environmental, social, and governance (ESG) goals. This new offering ties credit balance interest rates and fee pricing directly to a client’s ESG performance, encouraging businesses to set and meet ambitious targets.
The key performance indicators (KPIs) chosen for this account must be both material and relevant to the client’s business operations. These KPIs should reflect goals that are challenging when compared to external benchmarks, industry peers, or the client’s past performance.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, emphasized the bank’s commitment to sustainability, stating, “As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey. 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.“
This new account is an extension of Standard Chartered’s broader suite of Transaction Banking solutions, including the Sustainable Account and the Sustainable Trade Finance Proposition. These offerings are crafted to help clients implement more sustainable practices across their operations and ecosystems, supporting their liquidity needs while contributing to the United Nations Sustainable Development Goals.
Related Article: Iberdrola Achieves Milestone with €5.3 Billion ESG-Linked Credit Facility
The ESG-linked Cash Account will initially launch in Hong Kong and Singapore, with plans to expand to additional markets in the near future, signaling Standard Chartered’s dedication to fostering sustainable business practices globally.
