Standard Chartered Kenya has today announced the launch of its first Sustainable Account in Africa, in response to growing momentum in the sustainable finance arena.
Aligned to Standard Chartered’s commitment to enhance access to sustainable finance, the Sustainable Account provides clients an opportunity to participate in sustainable development by having surplus cash referenced against Standard Chartered’s sustainable loans and projects.
Kenya became the first African market to adopt the new solution following its launch in the United Kingdom, the United Arab Emirates, Singapore, China and more recently, the United States.
“We understand the challenges that businesses face when it comes to executing tangible sustainable initiatives as they adapt to the need for more impactful investments. The Sustainable Account allows our customers to use their deposits as a force for good, enabling them to contribute to sustainable development while maintaining daily access to their cash,” said Makabelo Malumane, Head of Transactional Banking at Standard Chartered.
Cash placed into the Sustainable Account will be referenced against projects aligned with the Bank’s Green and Sustainable Product Framework. This framework guides what qualifies as ‘green’ and ‘sustainable’ and is mapped against the SDGs, allowing the Bank’s customers to contribute towards sustainable development without having to evaluate and track complex sustainable projects.
The Account also enables clients who wish to adopt sustainability and responsible business practices such as reducing their carbon footprint or promoting social equity to do so without necessarily allocating separate funding for projects.
Developed with the support of Sustainalytics, a leading independent provider of environmental, social and governance (ESG) research and ratings, this means that the Bank’s corporate clients do not need to allocate additional resources for sustainability initiatives, which often require separate assessments. They can also easily understand the impact of the Sustainable Finance assets that their deposits are referenced against by referring to the Bank’s Sustainable Finance Impact Report, which is released annually.
The development follows Standard Chartered’s closure of the largest Sustainability Linked Loan in the region, and aligns to the Bank’s ambition to combine its local and global expertise to unlock sustainable and inclusive growth across its markets.