Kenya: Standard Chartered introduces its inaugural sustainable account

Standard Chartered Bank has introduced its inaugural Sustainable Account in Africa, marking a significant step in response to the increasing momentum within the sustainable finance sector.

Aligned with its dedication to broadening access to sustainable finance, Standard Chartered’s Sustainable Account empowers clients to engage in sustainable development initiatives by allocating surplus cash towards the bank’s sustainable loans and projects.

Kenya emerged as the inaugural African market to embrace this innovative solution, following its successful launch in key global locations such as the United Kingdom, the UAE, Singapore, China, and the USA.

Cash deposited into the Sustainable Account will be linked to projects in line with Standard Chartered Bank’s Green and Sustainable Product Framework. This framework defines criteria for what qualifies as ‘green’ and ‘sustainable’ and is aligned with the Sustainable Development Goals (SDGs), enabling the bank’s customers to support sustainable development without needing to navigate complex sustainable projects themselves.

Furthermore, the Account facilitates clients interested in embracing sustainability and responsible business practices. This encompasses efforts to reduce their carbon footprint or promote social equity, allowing them to do so without the necessity of allocating separate funds for individual projects.

The StanChart Sustainable Account is developed with the support of Sustainalytics, an 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.

Makabelo Malumane, Head of Transactional Banking at Standard Chartered said, “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.”

The launch of the Sustainable Account follows Standard Chartered’s closure of the largest Sustainability Linked Loan in the region. This aligns with the Bank’s ambition to combine its local and global expertise to unlock sustainable and inclusive growth across its markets.