International banking group Standard Chartered announced the launch of a new ESG-linked cash account, enabling corporate clients to be rewarded, through the credit balance interest rate or fee pricing, for meeting material ESG-related targets.

The new ESG-linked cash account forms the latest in a series of sustainability-focused Transaction Banking Cash solutions by Standard Chartered, which also includes the Sustainable Account, which allows retain access to cash for day-to-day liquidity while using surplus cash to support activities contributing to the UN SDGs, Sustainable Trade Finance, designed to help clients implement more sustainable practices, and Sustainable Financial Institution Trade Loan, providing liquidity to support trade flows associated with sustainable development.

According to Standard Chartered, ESG goals rewarded under the new cash account will be based on KPIs that are material and relevant to the client’s business, with a requirement for the targets to be ambitious relative to external benchmarks, peers, and the client’s previous performance.

The new ESG-linked Cash account will be launched in Hong Kong and Singapore as pilot sites, and gradually rolled out across Standard Chartered’s markets.

Mahesh Kini, Global Head of Cash Management at Standard Chartered, 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.”