Standard Chartered launches ESG-linked cash account

Enhanced interest rates apply when sustainability targets are met.

Standard Chartered has structured its first ESG-linked cash account for a domestically incorporated company in the region, with ST Telemedia Global Data Centres (STT GDC) as the client.

STT GDC operates 2.3GW of IT capacity across more than 100 data centres in 12 major markets.

The ESG-linked solution links sustainability performance to returns on cash balances, with enhanced interest rates applied when pre-determined Sustainability Performance Targets are met.

The bank stated that the key performance indicators and targets are selected to be material to the client’s operations and benchmarked against industry peers, as well as its own sustainability track record.

STT GDC stated that it is working towards achieving carbon-neutral data centre operations by 2030.