Financial services company Standard Chartered unveils a novel sustainable cash management solution geared towards serving its corporate clientele.
Standard Chartered, a leading international bank, has launched a new Sustainable Escrow and Account Bank solution. This innovative offering is designed to help clients manage risks effectively while generating income from sustainable finance [1].
The solution, which is part of Standard Chartered's efforts to support clients in meeting their sustainability goals, is now available in the UK and the UAE [2]. Sandrine Jourdainne, Global Head of Deposits, Liquidity, and Escrow Solutions at Standard Chartered, emphasises that the solution provides a "transparent, credible" way for clients to align liquidity with sustainable outcomes and supports both financial and sustainability objectives securely and transparently [3].
The Sustainable Escrow and Account Bank solution allows clients to hold funds in escrow or secured accounts that are referenced against Standard Chartered's portfolio of green and sustainable loans and projects, aligned with its Green and Sustainable Product Framework. This enables clients to embed sustainability into their cash management, supporting their sustainability goals in a transparent and credible manner [4].
Under the new offering, Standard Chartered acts as an independent escrow agent or account bank. The solution serves as a secure and independent mechanism for clients to channel liquidity toward projects with positive environmental and social impact while managing financial risks effectively [4].
Standard Chartered's sustainable portfolio and product framework guide the eligibility of loans and projects, ensuring alignment with sustainability goals and ultimately contributing to impact-driven finance consistent with the United Nations Sustainable Development Goals (UN SDGs) [4].
In addition to the Sustainable Escrow and Account Bank solution, Standard Chartered offers other sustainability-focused Transaction Banking Cash solutions. These include an ESG-linked cash account, Sustainable Account, Sustainable Trade Finance, and Sustainable Financial Institution Trade Loan [6]. The ESG-linked cash account rewards clients for meeting material ESG-related targets [7].
Sustainable Trade Finance helps clients implement more sustainable practices, while the Sustainable Financial Institution Trade Loan provides liquidity to support trade flows associated with sustainable development [6]. By leveraging these solutions, clients can integrate sustainability into their core financial activities and contribute to sustainability agendas, including those aligned with the UN SDGs.
Sandrine Jourdainne stated that Standard Chartered is playing a role in empowering clients to channel their funds into projects and loans with real-world positive impact [8]. As a result, Standard Chartered is nearing its goal of $1 billion from sustainable finance by 2025 [9]. In 2024, the bank announced achieving $982 million income generation from sustainable finance [10].
In conclusion, Standard Chartered's new Sustainable Escrow and Account Bank solution offers clients a secure and transparent way to align their liquidity with sustainable outcomes, supporting both financial and sustainability objectives. The solution is an addition to Standard Chartered's existing suite of sustainability-focused Transaction Banking Cash solutions, further strengthening the bank's commitment to sustainable finance.
The Sustainable Escrow and Account Bank solution, a new offering from Standard Chartered, assists clients in managing risks effectively while generating income from sustainable finance, aligning with their business objectives. With this solution, clients can integrate sustainability into their financial activities, supporting their sustainability goals as part of Standard Chartered's comprehensive approach to sustainable finance.
