Financial institution Standard Chartered introduces sustainable escrow and account banking solution in the United Arab Emirates, Dubai International Financial Centre, and the United Kingdom.
Standard Chartered, a leading international bank, has unveiled a new Sustainable Escrow and Account Bank solution designed to help corporate and institutional clients integrate Environmental, Social, and Governance (ESG) principles directly into their treasury and transaction banking strategies.
The bank's commitment to sustainable finance is evident in its focus on sectors such as renewable energy, energy efficiency, sustainable infrastructure, clean transportation, and social projects that advance the United Nations Sustainable Development Goals (SDGs).
Green and Sustainable Product Framework
At the heart of this new solution is Standard Chartered's Green and Sustainable Product Framework 2024. This framework defines and aligns eligible green and sustainable loans and projects, ensuring that clients' escrow or secured funds are referenced against the bank's portfolio of sustainable assets.
Key aspects of this framework include:
- Alignment with SDGs: The framework spans sectors like renewable energy, sustainable water management, and other ESG-relevant initiatives, ensuring that the bank's actions contribute to global sustainable development targets.
- Collaboration with Sustainalytics: To provide credibility and ensure alignment with international sustainability standards, the framework was developed in collaboration with Sustainalytics, a leading ESG research provider.
- Transparent and Accountable Fund Management: Funds held under the Sustainable Escrow and Account Bank solution are earmarked against the bank’s verified green and sustainable loans and projects, creating transparency and accountability for clients linking their liquidity with impactful ESG activities.
- Integration of Sustainability into Core Financial Operations: This approach supports clients in managing liquidity while simultaneously advancing their sustainability goals, offering a structured and credible way to embed sustainability in core financial operations.
Financing for a Texas Solar Plant
Standard Chartered's latest commitment involves a $235M green loan for a Texas Solar Plant, part of a broader objective to embed sustainability into financial infrastructure. This move demonstrates the bank's commitment to making a real-world impact through secure and transparent financial services.
Future Plans
Standard Chartered aims to close the $4 trillion annual financing gap for global sustainable development targets. From January 2021 to June 2024, the bank has mobilised $105 billion toward sustainable finance, with a target of $300 billion by 2030.
To stay updated on Standard Chartered's sustainable finance initiatives, follow the bank on LinkedIn. For more information about the Green and Sustainable Product Framework, visit Standard Chartered's website.
[1] Standard Chartered's Green and Sustainable Product Framework 2024: [Link] [2] Standard Chartered's Sustainable Escrow and Account Bank Solution: [Link] [3] Sustainalytics: [Link] [4] Standard Chartered's commitment to sustainable finance: [Link] [5] Standard Chartered's sustainable finance targets: [Link]
- Standard Chartered's Green and Sustainable Product Framework 2024, focusing on sectors like renewable energy and sustainable water management, aims to align eligible green and sustainable loans and projects with international sustainability standards, contributing to global sustainable development targets.
- The bank's latest commitment to sustainable finance involves a $235M green loan for a Texas Solar Plant, a step towards closing the $4 trillion financing gap for global sustainable development targets, with a goal to mobilize $300 billion by 2030.
- As part of its commitment to sustainable finance, Standard Chartered partnered with Sustainalytics, a leading Environmental-Science research provider, to ensure credibility and alignment with international sustainability standards in its finance practices.
