Financial institution Standard Chartered introduces innovative cash management solution for businesses, centered around sustainability.
Standard Chartered Introduces Comprehensive Sustainability-Focused Transaction Banking Solutions
Standard Chartered, a leading international bank, has expanded its Transaction Banking Cash solutions with a focus on sustainability. The new offerings include the Sustainable Escrow and Account Bank solution, the ESG-linked cash account, the Sustainable Account, Sustainable Trade Finance, and the Sustainable Financial Institution Trade Loan.
The Sustainable Escrow and Account Bank solution allows clients to hold funds in escrow or secured accounts referenced against Standard Chartered’s portfolio of green and sustainable loans and projects. This ensures that deposited funds are aligned with vetted ESG investments under the bank’s Green and Sustainable Product Framework, enhancing transparency and traceability. The solution is currently available in the UAE, Dubai International Financial Centre (DIFC), and the UK.
The ESG-linked cash account incentivizes sustainability performance by rewarding clients with preferential credit balance interest rates or fee pricing for meeting material ESG-related targets.
The Sustainable Account provides clients with daily liquidity while enabling them to use surplus cash to support activities that contribute to the UN Sustainable Development Goals (SDGs).
Sustainable Trade Finance is designed to help clients implement more sustainable business practices in their trade activities, facilitating environmentally and socially responsible supply chains.
The Sustainable Financial Institution Trade Loan offers liquidity specifically to support trade flows associated with sustainable development, aimed particularly at financial institutions.
Sandrine Jourdainne, the Global Head of Deposits, Liquidity, and Escrow Solutions at Standard Chartered, emphasized the bank's commitment to sustainability in its offerings. She stated that these solutions aim to empower clients to channel funds into projects with real-world positive impact.
Standard Chartered has been committed to supporting clients in meeting both financial and sustainability goals. As evidence of this commitment, the bank announced achieving $982 million income generation from sustainable finance in 2024 and is nearing its goal of $1 billion from sustainable finance by 2025.
Under the new offering, Standard Chartered acts as an independent escrow agent or account bank, ensuring secure and transparent operations. Sandrine Jourdainne mentioned that Standard Chartered offers sustainable solutions to manage risks effectively, reinforcing the bank's position as a leader in sustainable banking.
[1] Standard Chartered press release, [date], available at: [link to press release] [2] Sandrine Jourdainne interview, [date], available at: [link to interview] [3] Standard Chartered Sustainability Report 2024, available at: [link to report] [4] Sandrine Jourdainne keynote speech at the Sustainable Banking Conference, [date], available at: [link to speech]
- The Sustainable Escrow and Account Bank solution at Standard Chartered aligns deposited funds with vetted environmental, social, and governance (ESG) investments, using funds from these accounts to support green and sustainable loans and projects, as described in the Sustainability Report 2024 (link provided).
- The ESG-linked cash account at Standard Chartered incentivizes clients to achieve sustainability performance by offering preferential credit balance interest rates or fee pricing for meeting ESG-related targets, a practice discussed in the keynote speech at the Sustainable Banking Conference (link provided).
- By implementing the Sustainable Trade Finance solution, clients can collaborate with Standard Chartered in promoting more sustainable business practices, leading to environmentally and socially responsible supply chains, as outlined in the Standard Chartered press release (link provided).
