Standard Chartered today announced the launch of a new ESG-linked cash account for corporate clients, rewarding them for achieving material environmental, social and governance (ESG) targets. The solution will be rolled out gradually across all the bank’s markets, starting with Hong Kong.
The new ESG-linked Cash Account will link the balance interest rate and/or fee structure in respect of the Cash Account to the client’s ESG-related performance. The selected performance metrics must be material and relevant to the client’s business and the associated targets must be ambitious compared to an external benchmark, competitors and/or the client’s past performance.
The launch of the ESG-linked Cash Account builds on Standard Chartered’s existing suite of transaction banking solutions, including the Sustainable Account (enabling clients to retain access to their cash for day-to-day liquidity needs while using surplus cash to support activities that contribute to the United Nations Sustainable Development Goals), the Sustainable Trade Finance Proposition (trade finance solutions designed to help clients implement more sustainable practices in their operations and ecosystems) and the Sustainable Financial Institution Trade Loan Proposition (providing financial institutions with the liquidity needed to support underlying trade flows related to sustainable development).
“As companies move from ambition to implementation in terms of sustainability, banks play an important role in supporting and motivating them along the way,” said Mahesh Kini, Global Head of Cash Management at Standard Chartered“The launch of our ESG-linked Cash Account is further evidence of our commitment to offering our clients solutions that enable them to achieve both their treasury and sustainability goals.”
The ESG-linked cash account will be launched in Hong Kong and Singapore as pilot locations, with expansion to other markets planned in due course.