Financial institutions are essential architects of sustainability, wielding their impact well beyond their own operations. They play a vital role in the broader landscape of sustainable development by providing green financing alternatives, loans, and investment programs that empower individuals and businesses in their quest for eco-friendliness.
On the home front, banks can weave sustainable practices into the very fabric of their operations, human resources, and asset management strategies. This multifaceted approach elevates banks to the status of key contributors in financing a greener economy, and more nature-positive future.
One bank making notable strides in this arena is Standard Chartered. The institution has recently unveiled an ESG-linked Cash Account for its corporate clientele, aimed at rewarding those who meet substantial ESG benchmarks. This groundbreaking initiative is part of Standard Chartered’s growing suite of sustainability-driven Transaction Banking Cash solutions. This innovative account connects the interest rates and/or fee structures to the client’s achievements in critical ESG metrics. These metrics are required to be relevant, aspirational, and measured against external benchmarks, industry peers, and the client’s historical performance.
Mahesh Kini, Global Head of Cash Management at Standard Chartered, emphasized the bank's unwavering dedication to empowering clients in their sustainability journeys. “As organizations transition from aspirations to tangible actions on sustainability, banks play a crucial role in facilitating and inspiring them along this path,” Kini remarked. “The introduction of our ESG-linked Cash Account reinforces our commitment to providing clients with solutions that enable them to achieve both their treasury and sustainability aspirations.” This newest is set to be initially launched in Hong Kong with aspirations to branch out into additional markets.
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