Standard Chartered has introduced a new ESG-linked Cash Account, aimed at corporate banking clients, which incentivizes companies to achieve environmental, social, and governance (ESG) targets. This innovative solution will initially be rolled out in Hong Kong, with plans to expand to other markets.
The ESG-linked Cash Account ties the interest rates and fee pricing associated with a client’s cash balance to their ESG performance. Clients must set ambitious and relevant key performance indicators (KPIs) that are significant to their business. These KPIs are evaluated against external benchmarks, industry peers, or the client’s historical performance to ensure that the targets are both challenging and impactful.
This new offering is part of Standard Chartered’s broader suite of Transaction Banking solutions. It complements existing products such as the Sustainable Account, which allows clients to manage their liquidity while directing surplus cash towards activities that support the United Nations Sustainable Development Goals. Additionally, Standard Chartered’s Sustainable Trade Finance Proposition helps clients implement sustainable practices in their operations and across their supply chains.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, emphasized the bank’s role in supporting companies as they move from sustainability ambitions to tangible actions. "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," said Kini.
The ESG-linked Cash Account will begin its rollout in Hong Kong and Singapore, with further expansion planned in the near future. This initiative underscores Standard Chartered's dedication to integrating sustainability into its financial products, providing clients with tools to advance their ESG agendas while managing their financial operations effectively.
