Standard Chartered has launched an ESG-linked cash account for its corporate banking customers which rewards them for meeting environmental, social and governance (ESG) targets.

The new account links the interest rate on the account’s credit balance and/or fee pricing in relation to the account with the client’s ESG-related performance.

Standard Chartered said the selected key performance indicators must be relevant to the client’s business, and the associated targets must be ambitious when compared to an external benchmark, peers, or the customer’s previous performance.

The new account builds on Standard Charter’s other accounts such as the sustainable account, which allows customers to use surplus cash to support activity that contributes to the United Nations Sustainable Development Goals.

The account initially launches in Hong Kong and Singapore, with it being gradually rolled out to other markets.

“As companies move from ambition to execution on sustainability, banks play an important role in enabling and motivating them on this journey,” said Mahesh Kini, global head of cash management at Standard Chartered. “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.”

Elsewhere, Standard Chartered has made an investment in United Fintech Group Limited, a digital transformation platform.

As part of the investment, the terms of which were not disclosed, Standard Chartered has been granted board observer rights and will be offered a rotational board seat subject fulfilment of certain pre-conditions.

This will enable Standard Chartered to share existing expertise and contribute to decisions around the platform’s strategic direction.

“We have been impressed by the growth in United Fintech’s portfolio of innovative, engineering-led technology companies and share their vision for how technology can transform and disrupt market structure and infrastructure,” said Geoff Kot, global head, CIB business platforms & partnerships at Standard Chartered. “We look forward to partnering with them as we continue on our journey of digital transformation.”

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