Standard Chartered has introduced an innovative ESG-linked Cash Account, designed to reward corporate banking clients for achieving specific environmental, social, and governance (ESG) targets. The account, which will initially be rolled out in Hong Kong, links the interest rate on credit balances and/or fee pricing to the client’s performance on selected ESG key performance indicators (KPIs).
The KPIs must be material and relevant to the client’s business and demonstrate ambitious goals compared to external benchmarks, industry peers, or the client’s previous achievements. This initiative is part of Standard Chartered’s broader strategy to support clients in integrating sustainability into their business operations.
Building on its existing suite of Transaction Banking solutions, including the Sustainable Account and Sustainable Trade Finance Proposition, the ESG-linked Cash Account offers a compelling addition to the bank’s sustainability-focused financial products. These solutions are designed to help clients manage liquidity while supporting activities that contribute to the United Nations Sustainable Development Goals.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, emphasized the bank’s role in motivating companies on their sustainability journey. “As companies transition from ambition to execution on sustainability, banks are crucial in enabling and encouraging them,” Kini said. “The launch of our ESG-linked Cash Account underscores our commitment to offering solutions that help our clients achieve both their treasury and sustainability objectives.”
The account will initially be launched in Hong Kong and Singapore, with plans for a broader roll-out in other markets in the near future.
