Standard Chartered has introduced a new ESG-linked Cash Account designed for corporate banking clients, providing incentives for achieving significant environmental, social, and governance (ESG) targets.
This innovative account ties the interest rates on credit balances and fee structures to the client’s ESG performance. The bank stipulates that the chosen key performance indicators (KPIs) should be materially relevant to the client’s business and that the associated targets be ambitious in comparison to external benchmarks, industry peers, or the client’s historical performance.
Initially launched in Hong Kong and Singapore as pilot markets, the ESG-linked account complements Standard Chartered’s array of sustainable offerings within its transaction banking division, with plans for further expansion to additional markets in the future.
Mahesh Kini, the global head of cash management at Standard Chartered, remarked, “As businesses transition from sustainability aspirations to actionable strategies, banks have a crucial role in supporting and incentivizing this journey. The introduction of our ESG-linked Cash Account underscores our dedication to providing our clients with solutions that align with their treasury and sustainability objectives.”
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