Standard Chartered has introduced a new ESG-linked cash account designed to reward corporate clients who achieve specific environmental, social, and governance (ESG) goals. The account is structured to provide financial incentives, such as improved interest rates or reduced fees, based on the client’s performance in meeting these ESG targets. This new offering is a part of Standard Chartered’s broader suite of sustainability-focused transaction banking solutions. The bank has been actively developing products that align with global sustainability goals. This suite includes solutions like the Sustainable Account, which allows clients to use surplus cash to support activities aligned with the United Nations Sustainable Development Goals (SDGs), while still retaining access to funds for day-to-day operations. In addition, to help customers implement more sustainable practices, the bank offers the Business Finance Business Loan, which lends money to business flows related to sustainable development.
The ESG goals associated with the new portfolio are tailored to each client’s business, and the relevant key performance indicators (KPIs) should be taken into account. These goals should be challenged when measured against external indicators, peer performance and the customer’s past performance. This ensures that incentives are aligned with progress in sustainability. Initially, the ESG-linked fund will be launched on a pilot basis in Hong Kong and Singapore. Over time, Standard Chartered plans to gradually expand its offering to other markets and strengthen the bank’s commitment to incorporating sustainability into its financial products and services.