Standard Chartered has unveiled a new ESG-linked Cash Account designed for corporate banking clients, which offers incentives for achieving specific environmental, social, and governance (ESG) targets. Initially available in Hong Kong, this solution will gradually expand to other markets.
This ESG-linked Cash Account ties the interest rate and/or fee structure of the Cash Account to the client’s ESG performance. Key performance indicators must be significant and relevant to the client’s business, with targets set ambitiously against external benchmarks, peers, and/or past performance.
The launch of this account complements Standard Chartered’s existing Transaction Banking solutions, including the Sustainable Account—which supports the United Nations Sustainable Development Goals by utilising surplus cash for impactful activities— and its Sustainable Trade Finance Proposition, which promotes sustainable practices through trade finance solutions. This also includes the Sustainable Financial Institution Trade Loan, which provides liquidity to support trade flows related to sustainable development.
Mahesh Kini, Global Head of Cash Management at Standard Chartered said, “As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey. 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 initially launch in Hong Kong and Singapore, with plans to expand to additional markets in the future.