Standard Chartered is introducing a new type of account that aligns interest rates and fee structures with clients’ ESG performance. This ESG-linked Cash Account will adjust credit balance interest rates and/or fees based on the client’s ESG-related metrics. The bank specifies that the key performance indicators (KPIs) must be both significant and pertinent to the client’s business, with targets set to be ambitious compared to external benchmarks, industry peers, or the client’s past performance.
Initially launching in Hong Kong and Singapore, this account will be part of Standard Chartered’s broader suite of sustainable banking solutions. The bank plans to extend this offering to additional markets over time.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, commented, “As companies transition from sustainability ambitions to actionable results, banks have a crucial role in facilitating and inspiring their progress. The introduction of our ESG-linked Cash Account underscores our dedication to providing clients with solutions that help them achieve both their treasury and sustainability objectives.”
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