Standard Chartered, a prominent player in the financial sector, has unveiled a cutting-edge product aimed at enriching its corporate banking portfolio.
The newly introduced ESG-linked Cash Account is specifically designed to encourage and reward corporate clients for achieving significant environmental, social, and governance (ESG) targets. This initiative marks a significant step in the bank’s commitment to promoting sustainable business practices globally.
The rationale behind the new product stems from an increasing corporate focus on sustainability. The ESG-linked Cash Account ties the interest rates and fee structures directly to the clients’ performance in ESG-related activities. This innovative approach ensures that the financial incentives are aligned with sustainable development goals, encouraging companies to set and pursue ambitious targets that surpass industry benchmarks and their previous achievements.
The bank’s sustainability product portfolio includes offerings like the Sustainable Account and the Sustainable Trade Finance Proposition, which support activities aligned with the United Nations Sustainable Development Goals.
Additional offerings from Standard Chartered in this realm include the Sustainable Financial Institution Trade Loan, which provides liquidity to support sustainable trade flows. These initiatives are part of the bank’s broader strategy to integrate sustainability deeply into its transaction banking services.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, highlighted the bank’s role in the shift towards sustainability. Kini said, “As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey.
“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.”
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