Standard Chartered has launched a new ESG-linked cash account for corporate clients, rewarding them for meeting key environmental, social and governance objectives.
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The new account links the interest rate on the balance and/or fee prices related to the cash account to the customer’s ESG-related performance. According to the bank, the selected performance metrics must be material and relevant to the client’s business and the associated targets must be ambitious compared to an external benchmark, competitors and/or the client’s past performance.
The ESG-linked account, which joins a range of other sustainable accounts from Standard Chartered’s transaction banking business, will be launched in Hong Kong and Singapore as pilot locations, with further markets expected to roll out in due course.
“As companies move from their ambitions to achieving their sustainability goals, banks play an important role in supporting 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 further evidence of our commitment to providing our customers with solutions that enable them to achieve both their treasury and sustainability goals.”