UK-based banking group Standard Chartered has launched an ESG-linked cash account for corporate clients that rewards them for achieving ESG targets.
Standard Chartered’s new ESG-linked Cash Account links 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, peers and/or the client’s historical performance.
The banking group’s sustainability products
The launch of the ESG-linked Cash Account builds on the banking group’s existing suite of transaction banking solutions, including the Sustainable Account (enables customers to continue to access 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 customers 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).
Commenting on the launch, representatives from Standard Chartered said banks have an important role to play in supporting and motivating companies on their journey from sustainability ambition to implementation. The launch of their ESG-linked Cash Account is further evidence of their commitment to offering 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.
