Standard Chartered has launched a new ESG-linked Cash Account for corporate banking clients that rewards them for meeting material environmental, social and governance related targets.
The new account links the credit balance interest rate and/or fee pricing in relation to the Cash Account with the client’s ESG-related performance. The bank says the selected key performance indicators must be material and relevant to the client’s business, and the associated targets must be ambitious when compared to an external benchmark, peers and/or the client’s previous performance.
The ESG-linked account, which sits alongside a suite of other sustainable-based accounts from Standard Chartered's transaction banking business, will be launched in Hong Kong and Singapore as pilot sites, with roll-out to further markets expected in due course.
“As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey,” says Mahesh Kini, global head of cash management at Standard Chartered. “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.”