Highlights

• New ESG-linked Cash Account for corporate clients.
• Incentives based on ESG goals.
• Hong Kong and Singapore to start, with global rollout to follow.

Standard Chartered launches ESG-linked Cash Account for corporate clients, to reward businesses that hit ESG targets.

The account’s interest rate and/or fee will be linked to the client’s ESG performance, with KPIs tailored to each client’s business. These targets will be tough, benchmarked against external standards, peers or the client’s own past performance.

This adds to Standard Chartered’s Transaction Banking offering, which includes the Sustainable Account—managing day-to-day liquidity while using excess funds to support the United Nations Sustainable Development Goals (SDGs)—and the Sustainable Trade Finance Proposition, to promote sustainability in trade operations. Also, the Sustainable Financial Institution Trade Loan provides liquidity for trade flows related to 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 first be introduced in Hong Kong and Singapore, with further expansion planned for other markets.

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Source: Standard Chartered