Standard Chartered Introduces ESG-linked Cash Account to Reward Sustainable Practices

Standard Chartered Introduces ESG-linked Cash Account to Reward Sustainable Practices

(IN BRIEF) Standard Chartered has launched a new ESG-linked Cash Account for corporate banking clients that rewards them for meeting key environmental, social, and governance (ESG) targets. The account connects interest rates and fees to clients’ ESG performance, encouraging them to set ambitious, relevant goals. This initiative builds on the bank’s existing sustainable banking solutions, such as the Sustainable Account and Sustainable Trade Finance offerings. The ESG-linked Cash Account will first be available in Hong Kong and Singapore, with plans for future expansion to other markets.

(PRESS RELEASE) LONDON, 13-Aug-2024 — /EuropaWire/ — In a significant advancement for corporate banking, Standard Chartered has announced the launch of a new ESG-linked Cash Account aimed at incentivizing clients to achieve key environmental, social, and governance (ESG) targets. This innovative solution will begin its rollout in Hong Kong and expand to other markets over time.

The ESG-linked Cash Account ties the interest rates on credit balances and fee structures to clients’ performance against established ESG-related metrics. Clients will select key performance indicators that are not only material to their business but also ambitious in comparison to external benchmarks, industry peers, or their historical performance.

This launch enhances Standard Chartered’s comprehensive range of Transaction Banking offerings, which includes the Sustainable Account that helps clients manage liquidity while directing surplus cash towards initiatives that align with the United Nations Sustainable Development Goals. Additionally, the Bank provides Sustainable Trade Finance solutions designed to support sustainable practices across various sectors, including the Sustainable Financial Institution Trade Loan, which equips financial institutions with necessary liquidity for sustainable trade flows.

Mahesh Kini, Global Head of Cash Management at Standard Chartered, emphasized the role of banks in facilitating sustainable transitions. “As companies progress from aspirations to actionable sustainability strategies, it is crucial for banks to provide the tools and motivation needed for this journey. The introduction of our ESG-linked Cash Account underscores our dedication to delivering solutions that support our clients in achieving their treasury and sustainability objectives.”

The pilot launch of the ESG-linked Cash Account will take place in Hong Kong and Singapore, with plans for expansion into additional markets in the future.

Note: Participation in this initiative is subject to restrictions, market conditions, and client eligibility criteria.

Standard Chartered

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Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.

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Media Contacts:

Rami Lawand
Standard Chartered
+65 6981 5277
Rami.Lawand@sc.com

Alvina Neo
Standard Chartered
+65 6981 5796
Alvina.neo@sc.com

SOURCE: Standard Chartered