UK-based banking group Standard Chartered has launched an ESG-linked Cash Account for corporate banking clients that rewards them for meeting ESG targets. Standard Chartered’s new ESG-linked Cash 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 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 banking group’s sustainability products The introduction of the ESG-linked Cash Account builds on the banking group’s existing suite of Transaction Banking solutions, such as the Sustainable Account (allows clients to retain access to their cash for day-to-day liquidity requirements whilst using surplus cash to support activity that contributes to the United Nations Sustainable Development Goals), its Sustainable Trade Finance Proposition (trade finance solutions designed to help clients implement more sustainable practices in their operations and across their ecosystems), including its Sustainable Financial Institution Trade Loan offering (which provides financial institutions with the liquidity needed to support the underlying trade flows associated with sustainable development). Commenting on this launch, Standard Chartered’s officials said that 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 their ESG-linked Cash Account is another testament to their commitment to offer clients solutions that enable them to meet both their treasury and sustainability goals. The ESG-linked Cash Account will be launched in Hong Kong and Singapore as pilot sites, with roll-out to further markets expected in due course. .